On August 3, Sinopharm listed its 30% equity interest in Maixin Biotechnology on the China Beijing Equity Exchange at a price of 947.5 million yuan. Beijing Strong Biotechnologies, Inc. (hereinafter referred to as BSBE) said they would fight for the acquisition. Compared with the 825 million yuan when Sinopharm Investment and BSBE jointly acquired Maixin Biotechnology (hereinafter referred to as Maixin) last year, the listing price has increased by 122.5 million yuan, an increase of 14.85%.
In September 2020, BSBE acquired a 65.55% equity interest in Maixin at a total cost of 1.8 billion yuan. If BSBE successfully acquires 30% of the equity, it will acquire Maixin for all the shares, further covering the field of clinical diagnosis of tumor cell screening and post-operative tumor tissue slices, and expanding the product line of pathological diagnostic reagents and instruments, to improve technology research and development capabilities and marketing network layout, and to consolidate the leading position of listed companies in the IVD industry.
The effect of combination is remarkable, the profit of BSBE may exceed 500 million this year
BSBE is a high-growth enterprise with the main business of R&D, production and sales of biochemical diagnostic reagents, and has a series of products that are basically in sync with the international development. Maixin is a leader in China's tumor pathology immunohistochemical diagnostic reagents and a high-tech biomedical enterprise. Maixin will achieve a net profit of 125 million yuan in the first half of 2021. If the acquisition is successfully completed, the profit of BSBE will be conservatively estimated to exceed 530 million yuan in 2021, an increase of more than 300% over 2020.
As China's COVID-19 has been well controlled, the operation of medical institutions has returned to normal order, and BSBE have achieved rapid growth. On the one hand, BSBE¡¯s traditional biochemical and blood coagulation business makes full use of Sinopharm¡¯s industrial channel resources to accelerate its business growth. On the other hand, Maixin¡¯s immunohistochemistry business will assist in growth. The above two aspects will benefit BSBE, and BSBE 's performance will achieve high growth this year.
Opportunities for the oncology industry
At present, the incidence of cancer in China is constantly rising, and cancer has become the primary cause of threats to people¡¯s lives. With the development of medical career, tumor treatment has also made great progress in technology and research, especially in precision medicine and individualized treatment. Many cancer patients have benefited greatly from targeted therapy. Pathological diagnosis is the recognized as "gold standard" for tumor diagnosis£¬which is a terminal diagnosis that cannot be replaced by any means at present, and also is the most reliable basis for guiding clinical treatment and prognostic evaluation. Pathological diagnosis can analyze the different pathological types of tumors, gene mutations, different stages, and the patient's physical condition, and formulate corresponding individualized plans to improve clinical treatment effects, which will become an important development direction for tumor diagnosis in the future.
Since establishment in 1993, Maixin has proposed that immunohistochemistry technology needs to be entered into every pathology department, and is committed to promoting the process of IHC quality control and standardization. Maixin insists on scientific research and innovation, independently researches and develops the first fully automatic pathological staining system in China, breaking the foreign monopoly, and letting "domestic substitution" no longer remain verbal. With the development of pathology career, immunohistochemistry technology is playing an increasingly important role in the daily diagnosis of pathologists, and every automated instrument and every antibody produced by Maixin will be directly related to the results of pathological diagnosis and the life and health of cancer patients.
In addition, Maixin currently has 40 Class III registration certificates and 400+ diagnostic antibodies, ranking the leading level in the immunization industry. Its self-developed automatic immunohistochemical staining system has the highest detection throughput in the industry, and the quality of its equipment can directly compete with foreign companies. It has significant competitive advantages in researching new products, double staining, companion diagnosis and other projects. In terms of channels, Maixin sales business accounts for more than 80%. Maixin is expected to contribute high growth to BSBE.
