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PostsRevenue of 114 million in the first quarter! CanSino Biologics emerges from the 'shadow', is spring coming for vaccine stocks?
The vaccine industry is still searching for the bottom.
As an industry with high investment, long R&D cycles, and significant R&D challenges, the vaccine sector has performed poorly over the past two years.
Recently, leading vaccine companies such as Zhifei Biological, Wantai Biological, Walvax Biotechnology, Kangtai Biological, and Hualan Vaccine have successively disclosed their Q1 2024 financial reports.
Among these companies, except for Zhifei Biological, which saw a "moderate" decline in performance, the others reported drops of over 50% in Q1.
Facing significant declines in corporate performance, the stock prices of vaccine companies have reacted in advance, with many hitting new lows.
It is well-known that China's vaccine industry has long lacked innovation, with major vaccine products lagging behind those of large European and American pharmaceutical companies. Moreover, over 90% of the global market share is monopolized by four giants: GlaxoSmithKline, Merck, Pfizer, and Sanofi.
After 2015, with the global capital boom and the start of domestic drug approval reforms, China's innovative drug industry began to flourish, including the vaccine sector. In 2019, due to the pandemic, the domestic vaccine industry experienced a brief period of growth, with CanSino Biologics emerging as a leader. However, after a short period of profitability, it returned to consecutive losses.
Notably, almost all major vaccine products are now being researched by domestic companies to achieve localization, indicating fiercer competition in the future.
On the evening of April 29, leading vaccine company CanSino Biologics released its Q1 2024 financial report, showing revenue of approximately 114 million yuan, up 13.65% year-on-year, and a net loss of 170 million yuan, down 21.43% year-on-year.
For peers, CanSino's revenue growth in Q1 was commendable, though its net loss also increased. For a company yet to turn a profit, CanSino's performance isn’t too bad.
To date, CanSino's marketed products include two COVID-19 vaccines, two meningitis vaccines, and one Ebola vaccine.
On April 29, CanSino announced plans to sign a "Product Transfer and Technology Licensing Agreement" with Shanghai Pharmaceutical CanSino, transferring global commercialization rights for its recombinant Ebola vaccine (adenovirus vector) and related technologies.
CanSino also stated that the Ebola vaccine has generated no sales since approval, meaning its current revenue relies solely on the two meningitis vaccines.
In terms of stock performance, after peaking at 797.2 yuan per share in 2021, CanSino's A-share price plummeted by over 93% in just three years.
It’s worth noting that vaccine development—from R&D to market—typically takes 8 to 20 years across five stages: R&D, registration, production, distribution, and usage. This process is not only lengthy but also costly. In recent years, domestic vaccines have gained some advantages in catching up with global leaders, and the worst may be over.
Overall, after more than three years of declines, Walvax Biotechnology, Kangtai Biological, and CanSino Biologics have seen excessive drops, with the bubble-squeezing phase likely over. These leaders now have mature products, and with further industry and technological advancements, domestic vaccines may soon expand globally.
Thus, Kanjian Finance believes that patience is warranted for innovative drug companies, especially in the vaccine sector.
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