It’s about Kexing vaccine! Look quickly!

The company’s 2023 annual report recently disclosed by Kexing Pharmaceutical shows that the company achieved an operating income of 1.259 billion yuan, down 4.32% year-on-year, a net profit loss attributable to listed shareholders of 190 million yuan, and a non-net profit loss attributable to shareholders of listed companies of 201 million yuan.

The loss in 2023 is also the second year since 2022 that Kexing Pharmaceutical has fallen into a loss, and the amount of loss has intensified. The annual report disclosed by Kexing Pharmaceutical also shows that the company invested 345 million yuan in research and development in 2023, setting a new high since its listing. However, although R&D investment continued to increase, Kexing Pharmaceutical not only failed to turn losses, but further increased its losses. The turnover rate of scientific research personnel in Kexing Pharmaceutical is around 21.63%, and in 2023, the company lost half of its doctors.

Addition and subtraction of doctor introduction and loss

The data shows that in 2023, the company introduced 17 new doctors, and the number of doctors in 2022 was 25. However, the number of doctors disclosed in the company’s 2023 annual report was only 20. In other words, although 17 doctors were introduced, 22 doctors left the company in 2023, which means that 17 postdoctoral doctors were introduced and half of them left Kexing Pharmaceutical in 2023.

How does Kexing Pharmaceutical, which relies on high-end talents for drug research and development, maintain innovation in research and development? What are the hidden dangers behind the abnormally high turnover rate of high-end talents?

Except for doctors, the overall number of R&D personnel of Kexing Pharmaceutical is in a state of substantial loss. The data shows that in 2022, the number of graduate students in the company was 87, and in 2023, the number of graduate students has been reduced to 79; In 2022, the number of R&D personnel with bachelor’s degree was 72, and in 2023, the number of R&D personnel with bachelor’s degree was only 53; In 2022, the number of R&D personnel with junior college or below was 24, and in 2023, it has dropped sharply to 11.

In 2022, there were 208 R&D personnel in the company, and in 2023, the number of R&D personnel in the company has been reduced to 163, a year-on-year decrease of 21.63%. In 2020 and 2021, the number of R&D personnel in the company was 170 and 194 respectively. In 2023, the number of R&D personnel of the company also hit a new low since listing.

R&D investment has reached a new high, but R&D personnel have been greatly lost and net profit has been greatly lost. For example, Kexing Pharmaceutical has fallen into a strange circle of more R&D investment and more losses this year.

The R&D investment of listed companies in the same industry disclosed in the company’s research report shows that the R&D investment of Tebao Bio, Sihuan Bio, Sanyuan Gene, Wan Ze Co., Ltd. and Cain Technology accounted for 13.33%, 14.42%, 20.65%, 16.68% and 12.22% of the operating income respectively, while the R&D investment of Kexing Pharmaceutical accounted for 27.4% of the operating income in 2023.

Overseas commercialization is not effective only by shouting.

The annual report disclosed this time also exposed the embarrassing reality of the company’s overseas commercialization strategy.

The annual report shows that the company’s export revenue in 2023 was 138 million yuan. Compared with 2022, the company’s export revenue did not rise but fell. In 2022, the company achieved overseas sales revenue of 161 million yuan, an increase of 61% over the same period of last year, setting a record high.

Kexing Pharmaceutical once regarded overseas commercialization as an important strategy, and the company indicated that it would devote itself to building the most valuable overseas commercialization platform in China. However, in three years, the company’s export income still accounts for only about 10% of the company’s operating income.

As early as 2021, Kexing Pharmaceutical introduced albumin paclitaxel, and obtained the technology of albumin paclitaxel and its commercial rights except the American market. However, albumin paclitaxel has only recently passed the GMP certification of the European Union, and if the drug goes on the market, it needs to be approved by the European Union Marketing Permit Application (MAA).

Although the company has introduced a total of 12 products, signed contracts with customers in more than 40 countries and submitted applications for registration of imported products, it still seems that it has not been sold in overseas markets. "infliximab, bevacizumab, albumin paclitaxel and other products have successively completed on-site audits in Egypt, Brazil, Indonesia, the European Union and other countries, and it is expected that overseas sales of the above products will be realized in 2024.

On the evening of May 24th, Kexing Pharmaceutical released the 2024 restricted stock incentive plan (draft). The number of restricted shares to be granted is 3.786 million shares, with a total of 147 people to be encouraged.

The assessment year of this incentive plan is two fiscal years from 2024 to 2025, and it is assessed once in each fiscal year. Taking the company’s overseas sales revenue in 2023 as the performance base, the growth rate of overseas sales revenue in each assessment year or the cumulative number of overseas registration documents was assessed. Based on the overseas sales revenue in 2023, it is planned that the growth rate of overseas sales revenue will be 50%-100% in 2024 and 200%-400% in 2025.

In 2023, the company’s export revenue will decline instead of rising, but in 2025, the overseas sales revenue will increase by two to four times. Although the vision of Kexing Pharmaceutical is beautiful, it still has a long way to go.

Original title: "It is related to Kexing vaccine! Look quickly! 》

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