Five Biopharmaceutical Firms Join STAR Market Pipeline; AnHan Tech and Keqian Bio Enter Inquiry Stage

Prior to the Qingming Festival holiday, several companies successively submitted initial public offering (IPO) applications to the STAR Market of the Shanghai Stock Exchange. Among them, five were related to the biopharmaceutical sector: Qingdao Haier Biomedical Co., Ltd., Shenlian Biological Medicine (Shanghai) Co., Ltd., Chengdu Yuandong Bio-Pharmaceutical Co., Ltd., Shanghai Medicilon Inc., and Beijing Hotgen Biotech Co., Ltd. (Shenlian Biological Medicine is a manufacturer of veterinary vaccines and is not covered in this article.)

Haier Biomedical primarily provides low-temperature storage solutions for scenarios such as biobanks, blood safety, vaccine safety, and pharmaceutical and reagent safety. The company offers biomedical low-temperature storage products covering the full temperature range from -196°C to 8°C, with its main revenue derived from the sales of low-temperature storage equipment. Meanwhile, Haier Biomedical has pioneered the integration and innovation of IoT technology, committing to delivering comprehensive IoT-based biotechnology solutions that address pain points in the aforementioned scenarios.

Prior to domestic enterprises achieving technological breakthroughs and industrialized production, the research, development, and manufacturing of biomedical cryogenic storage equipment were exclusively conducted by foreign manufacturers. Through independent innovation, Haier Biomedical achieved technological R&D breakthroughs and industrialized production of cryogenic storage products starting in 2005, thereby realizing import substitution for biomedical cryogenic storage equipment. Its clientele includes national-level biobanks such as the China Marrow Donor Program, the National GeneBank, and the China Human Genetic Resources Bank, as well as numerous key medical institutions including Shanghai Ruijin Hospital, the Chinese PLA General Hospital (301 Hospital), and West China Hospital of Sichuan University. This has provided strong support for the advancement of biotechnological research and innovation in China.

Haier Biomedical's Main Business Revenue Table

Haier Biomedical’s total revenue in 2018 amounted to RMB 826 million, representing an increase of RMB 210 million compared with 2017.

Among these, the biobanking segment generated the highest revenue, with sales reaching RMB 397 million, accounting for 48.04% of the total revenue in 2018. Biobanking-related products include medical ultra-low temperature freezers, liquid nitrogen containers, and biological safety cabinets, with equipment storage temperatures ranging from -196°C to -86°C.

The second-largest product line by sales revenue is Pharmaceutical and Reagent Safety, which includes medical refrigerators and medical refrigerator-freezers, primarily covering a temperature range of -40°C to 8°C. The third-largest product line by sales revenue is Vaccine Safety, which also includes medical refrigerators and medical refrigerator-freezers; these are mainly used in the vaccine safety sector, with equipment covering a temperature range of -25°C to 8°C.

In addition to its innovations in ultra-low temperature storage equipment technology, Haier Biomedical has been launching IoT-enabled devices since 2018. These devices can accurately identify and record the storage locations of samples, as well as provide smart IoT-based vaccination solutions. The proceeds from this financing round will be used to further increase investments in R&D and sales, or for mergers and acquisitions related to the industry chain.

Yuandong Biopharma is a pharmaceutical enterprise specializing in chemical active pharmaceutical ingredients (APIs) and chemical drug formulations. The company has successfully achieved industrial-scale production of 16 chemical drug formulation products and 11 chemical API products. Its product portfolio primarily covers key therapeutic areas, including oncology, cardiovascular diseases, gastroenterology, anesthesia and analgesia, and pediatrics. Yuandong Biopharma possesses manufacturing capabilities for various dosage forms, such as injections, lyophilized powders for injection, tablets, and capsules, as well as chemical APIs, and has strategically expanded into the field of biologics.

Yuandong Biology currently has three domestically first-to-market generic products in production and two products that were the first to pass the consistency evaluation. Its ibuprofen injection has been listed as a reference listed drug in the "Catalog of Marketed Drugs in China," and its caffeine citrate injection has been included in the first batch of the Priority Review and Approval List for Pediatric Drugs. Multiple active pharmaceutical ingredient (API) products, including bisoprolol fumarate and ubenimex, have obtained certifications or had registration applications accepted in major international markets such as the European Union, Japan, and the United States. The company currently has 37 projects under development, including seven Class 1 new drugs (two of which are in clinical trials, and two are Class 1 biologics) and two Class 2 new drugs that are in clinical trials.

In terms of corporate revenue, Yuandong Biology reported a total revenue of RMB 768 million and a net profit of RMB 135 million in 2018, with R&D expenditure accounting for 16.18% of revenue. Among its primary business revenues, chemical pharmaceutical preparations accounted for 90.69%, while active pharmaceutical ingredients (APIs) accounted for 5.8%. The company’s top-selling products were Ubenimex Capsules and Bisoprolol Fumarate Tablets, with sales figures of RMB 205 million and RMB 178 million, respectively.

Medicilon is a CRO company specializing in integrated preclinical R&D services for the biopharmaceutical industry, providing comprehensive solutions to pharmaceutical companies and other new drug development institutions, including drug exploration and discovery, pharmaceutical research, and preclinical studies.

Since 2015, MediciNova has participated in the completion of over 50 new drug and generic drug projects that have been approved by the NMPA to enter Phase I clinical trials. Meanwhile, multiple new drug projects developed with its participation have been approved by the U.S. FDA and the Australian Therapeutic Goods Administration (TGA) to enter Phase I clinical trials. MediciNova has assisted clients in completing comprehensive preclinical studies for several antibodies and antibody-drug conjugates (ADCs), among which the full pharmacokinetic and safety evaluation studies for two ADC drugs have passed the NMPA technical review and entered the clinical trial phase.

Medicilon Biopharma: Breakdown of Revenue from Core Business Operations

Medicilon seized the favorable development opportunities in the CRO market for biomedical R&D, achieving significant performance growth. Its operating revenues in 2016, 2017, and 2018 were RMB 232 million, RMB 248 million, and RMB 324 million, respectively, with a compound annual growth rate (CAGR) of 18.01% from 2016 to 2018.

Hotgen Biotech 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 Biotech’s core technologies include up-converting phosphor technology, glycan capture technology, magnetic particle 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 diagnostics and biosafety. 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 Biotech has mastered single-test chemiluminescence and high-throughput chemiluminescence technologies. The company has successively developed small-, medium-, and large-sized fully automated chemiluminescence analyzers and reagent products, establishing a comprehensive immunoassay diagnostic platform that meets the diverse needs of end users, including rapid point-of-care testing (POCT) and 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 Biotech also covers public safety sectors such as bioterrorism countermeasures, food safety, and emergency response for disease control and prevention.

HotGen Biological Main Business Revenue Statement

During the reporting period, Hotgen Biotech’s main business revenue increased from RMB 122 million in 2016 to RMB 186 million in 2018. The majority of sales came from diagnostic reagents, which accounted for 85.62% of total revenue. Revenue from diagnostic instruments reached RMB 21.68 million, representing a significant increase compared with 2016 and 2017. Moreover, Hotgen Biotech reported a net profit of RMB 48.19 million in 2018, indicating a strong profit margin relative to its operating revenue.

As of April 4, the day before the Qingming Festival holiday, a total of 12 companies in the healthcare and medical sector had their applications accepted. These include seven biopharmaceutical companies—Keqian Biology, Chipscreen Biosciences, Tebao Bioengineering, Shenlian Biomedical, MicroPort Scientific, Yuandong Biology, and Hotgen Biotech; four specialized equipment manufacturers—Anhan Technology, Basda, Sino Medical, and Haier Biomedical; and one research and experimental development company, Medicilon.

The review status of the first batch of nine applicant companies, including Anhan Technology and Keqian Biology, has entered the "inquiry" stage, with the next step being a decision on whether to approve their applications.