Company profile
Heplatin Pharmaceuticals is a clinical stage biopharmaceutical company engaged in the research and development of differentiated antibody therapy in the field of immune and tumor diseases. It currently has more than 10 diversified pipelines that could be differentiated drug candidates, including core products such as HBM9161, HBM9036 and HBM4003 under clinical development. By the end of June 2020, the company had 143 employees and 6 consultants engaged in R & D, most of them in China, a few in the United States and Europe.
Sino-Thai viewpoint
The two core products in the immunization product pipeline are among the industry pioneers: the company's two core products (1) Bartoli monoclonal antibody is a subcutaneous injection of all-human monoclonal antibodies. The experimental data show that bartolizumab significantly reduces the level of IgG antibody and has a good performance in terms of safety. it has the potential to become a breakthrough therapy for many kinds of autoimmune diseases in Greater China in the future. To capitalize on the commercial potential of Bartolizumab, the company has selected immune thrombocytopenia, thyroid associated ophthalmopathy, myasthenia gravis and neuromyelitis optici pedigree diseases as the first wave of development; (2) the mechanism of action of tenercept is the inhibition of tumor necrosis factor (TNF)-α, which can cause eye inflammation, plays an important role in the treatment of moderate to severe dry eye disease (DED). According to Frost Sullivan, the number of people with moderate and severe dry eye disease in China is expected to increase from 77.1 million in 2019 to 93.7 million in 2030. Tenacip has been approved by the State Drug Administration in June 2020 to carry out three phases of registered trial design and strategy, with only the degree of symptom improvement (TCSS) as the main end point.
In terms of operating performance: in 2018, 2019 and the first half of 2020, the company's revenue was $1.48 million, $5.42 million and $6.07 million, respectively. Since there are no commercial products at present, the revenue comes from licensing and cooperation arrangements with third parties, such as technology license fees, molecular license fees and research service fees; gross profit margins are 56.4%, 88.5% and 95.3%, respectively The R & D costs are US $31.6 million, US $49.5 million and US $15.2 million respectively, which are expected to continue to increase in the future; losses are US $34.58 million, US $67.46 million and US $48.31 million respectively; net cash from operating activities is-US $34.88 million, US $49.79 million and-US $11.89 million; current ratios are 7.24,2.59 and 9.91 respectively.
Valuation: based on 760 million shares after the global public offering, the company's market capitalization is HK $89.8-9.92 billion. As the company has not yet made a profit, the PE valuation method is not applicable. The price stabilizer is Morgan Stanley, who recommended 11 projects this year, with a performance of 8 up, 2 down and 1 flat on the first day. In terms of cornerstone, nine investors, including Hillhouse and Aobo Capital, were introduced and subscribed for a total of US $92 million. We believe that once the two core products are approved, Bartolizumab will win the favor of patients and market recognition in China's fast-growing autoimmune disease bio-drug market. Tenercept will address a large number of unmet needs in China's moderate and severe dry eye drug market, giving it a score of 72 points, rated as "purchase".
Risk hints: (1) market competition risk, (2) the company is at a loss, the revenue is not stable, (3) the R & D progress is lower than expected, and the result is uncertain.
