Hotgen Biotech Soars 205% on Sci-Tech Innovation Board Debut

VCBeat learned that on September 30, 2019, Hotgen was listed on the Shanghai Stock Exchange, debuting on the STAR Market. The opening price was RMB 90.08, surging by 205.77%. As of 10:09 a.m., the stock price remained at a high of RMB 79.57.

Hotgen has a total ofIssuance of 15.55 million shares,The issue price was RMB 29.46 per share, raising a total of RMB 458 million. According to the disclosures in its prospectus, the proceeds will be primarily invested in the construction of production bases and R&D centers.

Hotgen is a high-tech biotechnology enterprise engaged in the research and development, production, and sales of in vitro diagnostic (IVD) reagents and instruments. Its main products are IVD reagents and instruments, which are primarily applied in clinical medical fields such as liver cancer and hepatitis, cardiovascular and cerebrovascular diseases, and inflammatory infections, as well as in public safety sectors including biosafety, food safety, and disease control and emergency response.

Hotgen's Major Development Milestones

Hotgen’s core technologies include up-converting phosphor technology, glycan capture technology, magnetic microparticle chemiluminescence technology, gene recombination, and monoclonal antibody technology. Among these, the up-converting phosphor technology pioneered the application of up-converting phosphor materials (UCP) composed of rare-earth elements in clinical and biosafety fields. It was awarded the Second Prize of the National Technology Invention Award in 2015 and remains the only immunoassay methodology in China to have received this honor.

Through years of continuous technological research and development, Hotgen has mastered single-test chemiluminescence and high-throughput chemiluminescence technologies. The company has successively developed small, medium, and large fully automated chemiluminescence instruments and reagent products, establishing a comprehensive immunodiagnostic platform that meets the diverse needs of end-users, ranging from rapid point-of-care testing (POCT) to automated, high-throughput testing in central laboratories.

In terms of disease categories, there are 16 reagents for hepatitis and liver cancer, 18 diagnostic reagents for cardiovascular and cerebrovascular diseases, and 8 diagnostic reagents for inflammation and infections. Other areas include tumor diagnosis, kidney injury, preterm birth, rheumatoid arthritis, and bone metabolism. In addition to the clinical field, Hotgen is also involved in public safety sectors such as bioterrorism countermeasures, food safety, and emergency response for disease control and prevention.

Hotgen Revenue Table

Hotgen’s revenue and net profit have both maintained a continuous upward trend over the past three years. In 2018, its revenue reached RMB 187 million, with net profit of approximately RMB 48 million and a net profit margin of about 25.8%.

In terms of revenue distribution, diagnostic reagents are the primary source of income for Hotgen, accounting for over 85% of its total revenue in 2018.