Walvax Biotech Initiates Strategic Restructuring: Terminates Multiple Clinical Trials, Ends Collaboration with Abogen Biosciences, and Reorganizes Corporate Structure

Jun 26, 2024 12:00 CST Updated 12:00

Walvax

Human Vaccine Research and Development, Manufacturer

Abogen

Nucleic Acid Drug Developer

On June 25, 2024, Walvax Biotechnology Co., Ltd. announced, Walvax Biotechnology Co., Ltd. and its subsidiary Yuxi Walvax Biotechnology Co., Ltd. with Abogen BiosciencesDecision to Terminate Technical Development Cooperation for COVID-19 mRNA Vaccine and Shingles mRNA Vaccine, and sign the "Termination Agreement".

At the same time, Walvax Biotechnology Co., Ltd. also adjusted the company's organizational structure and announced the adjusted organizational structure. Notably,At WalvaxAmong the six major business units, "mRNA Vaccine BU" is prominently listed., indicating that mRNA vaccines remain a key focus for the company's future development.

And whether it is terminating cooperative projects or adjusting organizational structure, it should beWalvaxMeasures to address "the least ideal financial report since 2017," "continuous decline in stock price," and "loss of market value"In 2023, Walvax's revenue and net profit both declined, with revenue decreasing by 19% year-on-year and net profit dropping by 45.5%. In the first quarter of 2024, the company’s revenue and net profit continued to fall, with the net profit decline exceeding 80%.

In response to the decline in performance and the impact of the capital market, WalvaxSince the beginning of this year, several clinical trials of COVID-19 vaccines have been terminated.

In terms of COVID-19 vaccines,Walvax began at the start of the pandemic in early 2020Layout Development,Through collaboration with multiple parties, several COVID-19 vaccine development projects have been acquired:

In early January 2020, Professor Zhang Linqi's team from the School of Medicine, Tsinghua University, and the Vanke School of Public Health and Health, began collaborative research with Professor Zhou Dongming's team from Tianjin Medical University.Chimpanzee Adenovirus Vector COVID-19 Vaccine", Walvax is responsible for clinical trials, product registration, production, and other commercialization work. This is the earliest COVID-19 vaccine that Walvax began to develop.
In March 2020, Walvax's subsidiary Shanghai Zerun initiatedRecombinant COVID-19 Vaccine (CHO Cell)The research and development targeting the original strain of the coronavirus.
Subsequently,Walvax has further developed a new vaccine based on the original strain to address the mutations of the novel coronavirus.Recombinant COVID-19 Variant Vaccine (CHO Cell)", the vaccine was jointly developed by Walvax, Shanghai Zerun, and Beijing Walvax."
In May 2020, Walvax Biotechnology Co., Ltd. collaborated with Abogen Biosciences and the Academy of Military Medical Sciences to develop "COVID-19 mRNA Vaccine (ARCoVax)". According to the agreement, Abogen is responsible for the preclinical research of the vaccine, including mRNA vaccine molecular design, chemical modification, and formulation process development, etc., while Walvax is responsible for the vaccine's QA, QC, IND, clinical research, NDA, and commercial production.
End of January 2022, Walvax collaborates with Blue鹊 Bio to carry outmRNA Vaccine Product for SARS-CoV-2 VariantsDevelopment and Commercialization Collaboration,Target drugs include monovalent and multivalent mRNA vaccines containing the original strain and/or variants of the新冠病毒 (not limited to Beta, Delta, and Omicron strains)., with a total of 130 million yuan in research and development and clinical milestone fees. In the same year, Fudan University joined the cooperation project in February.

However, in the above projectsOnly 2 products have been included for emergency use.："COVID-19 mRNA Vaccine (ARCoV)" has been granted emergency use authorization in Indonesia, andRQ3033 (brand name: Wolan Anan), a monovalent mRNA vaccine targeting the Omicron XBB.1.5 variant of COVID-19, co-developed by Blue Magpie Biotech, has been approved by relevant national authorities for emergency use.As for its actual commercial sales, they are almost negligible.

According to Walvax's financial report, from 2020 to 2023,Walvax's R&D investments were 316 million yuan, 754 million yuan, 1.053 billion yuan, and 911 million yuan, totaling 3.033 billion yuan.. But WalvaxFrom 2010 to 2019，R&D investment was only 1.974 billion yuan.It can be seen that Walvax should invest more in the development of the COVID-19 vaccine.

It can be said that the development of the COVID-19 vaccine has not helped Walvax.development, on the contrary, has become a "burden." Since the beginning of this year,Walvax has successively terminatedChimpanzee adenovirus vector COVID-19 vaccine, recombinant novel coronavirus vaccine (CHO cells), recombinant novel coronavirus variant vaccine (CHO cells)Clinical trials, as well as related collaborations with Abogen. Nowadays,Only the cooperation project with Blue Magpie Biotech remains.。

Blue Magpie Biotech was founded in 2019.，It is a biopharmaceutical company focused on the innovative research and development of mRNA drugs.In addition to the cooperation on the COVID-19 vaccine project, from a technical perspective, Bluebird Bio is very likely toIs Walvax's primary external partner in the mRNA vaccine field..

References:

[1] The Burden of Walvax. Blue Chip Enterprise Review. 2023-01-17.

[2] Walvax: Continuous decline in stock price. Yunnan Meicai Think Tank. 2024-06-12.

[3] Walvax Caught in Price War! Market Value Evaporates by 85%, mRNA and HPV Vaccines Both Delayed – What’s Wrong?. E Drug Manager. 2024-05-19.

[4] Walvax's R&D Transformation: Paving the Way for a Comeback?! Vaccine Home. 2024-06-26.

[5] Termination of Cooperation on Two Vaccines! Walvax and Abogen End Partnership. Pharmaceutical Investment Tribe. 2024-06-25.

[6] Walvax Biotechnology Co., Ltd. Announcement, etc.

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