We are the second largest vaccine company in China in terms of 2021 approved lot release volume (excluding COVID-19 vaccines), accounting for a 7.4% market share following state-owned CNBG (中國醫藥集團中國生物技術股份有限公司), the largest vaccine market player in China accounting for a 35.5% market share. In terms of 2021 sales revenue (excluding COVID-19 vaccines), we accounted for a 2.1% market share in the PRC, whereas CNBG ranked first and accounted for 26.5%. As a major vaccine company in China, we cover the full value chain from research and development to manufacturing and to commercialization. According to CIC, we are the only China-based vaccine player that has all five proven human vaccine platform technologies worldwide, namely bacterial vaccine technologies, viral vaccine technologies, genetically engineered vaccine technologies, combination vaccine technologies and mRNA vaccine technologies, with at least one approved product or one vaccine candidate at CTA or clinical stages under each platform. We are one of the first two human vaccine companies in the PRC that have been granted permission under the Fourteenth Five Year Plan of the PRC to build a P3 Lab. In particular, in response to the current pandemic, we have taken full advantages of our full-spectrum platform technologies and are developing COVID-19 vaccine candidates spanning three technology routes validated by approved vaccines, namely mRNA, inactivated virus and recombinant adenoviral vector.
We strive to access the best industry resources. Through one decade of organic growth and external resource integration, we have become a major player in the Chinese vaccine industry. We acquired Rong’an Bio, AIM Honesty, AIM Kanghuai and AIM Weixin, between 2015 and 2017. After these acquisitions, we upgraded their infrastructure and built a number of new production lines to meet the latest GMP standards, improved manufacturing processes and techniques, formulated and executed production plans which closely follow group marketing strategies and consolidated supply chains. Through our standardized management measures, we successfully set up four market-driven Licensed Manufacturing Facilities. Furthermore, we promote a cross-functional and cross-entity R&D approach within the Group. We have established a dedicated R&D department in each of the four operating subsidiaries, with a specific focus on developing new vaccine varieties based on their respective major products and manufacturing specialties, to synergize R&D and manufacturing. We have also established three vaccine research institutes, namely AIM Explorer, Liverna and AIM Jianchi, of which AIM Explorer offers technological support to dedicated R&D departments in the four subsidiaries. Liverna develops mRNA vaccines leveraging its expertise in mRNA technologies, including our mRNA COVID-19 vaccine candidate; and AIM Jianchi focuses on the research and development of genetically engineered recombinant vaccines. These research institutions collaborate with the Licensed Manufacturing Facilities or with each other from time to time to accelerate our pipeline development. See “—Research and Development.” In addition, although each Manufacturing Facility engages in production activities of different products independently, we have a centralized sales and marketing system to synchronize marketing strategy and activities for products from these Manufacturing Facilities, which enables us to consolidate and integrate quality resources at the Group level instead of dispersing into four operating subsidiaries, and build effective sales channels for and strong CDC recognition of our products.
We currently commercialize eight vaccine products against six disease areas, of which the HBV vaccines and human rabies vaccine are our market-leading key commercialized vaccine products. We have been relying on our HBV and human rabies vaccine products during the Track Record Period, from which we generated 84.2%, 90.2%, 93.0%, 94.3% and 92.0% of our total revenue in 2019, 2020, 2021 and the four months ended April 30, 2021 and 2022, respectively. We expect to continue to generate substantial revenue from these two product types in the near future. We also have 22 vaccine candidates against 13 disease areas, of which five candidates are at clinical stages. Out of these five vaccine candidates, we expect to launch at least four from 2023 to 2025. We also plan to file over 10 CTAs by the end of 2023 to advance multiple CTA-enabling and preclinical candidates to clinical trial stages. Our broad vaccine portfolio of large potential market size is illustrated as below:
‧ Our portfolio of vaccine products and vaccine candidates covers all top 10 vaccine products worldwide by 2021 global sales (totaling US$101.9 billion);
‧ In 2021, we were the largest supplier of HBV vaccines in the globe and in the PRC, possessing a 45.4% market share in China in terms of approved lot release volume. In the PRC, anti-HBV vaccination is mandatory for all newborns within 24 hours of birth. In 2021, approximately 75% of China’s newborns received our recombinant HBV vaccine (Hansenula Polymorpha). In addition, we were the third largest HBV vaccine supplier in the PRC in terms of 2021 sales revenue, accounting for a 24.0% market share;
‧ In 2021, we were the second largest supplier of human rabies vaccines in the globe and in the PRC, possessing 18.1% and 16.2% market shares of China market, respectively, in terms of approved lot release volume and sales revenue; and
‧ We have three candidates against COVID-19 (adopting mRNA, inactivated virus and recombinant adenoviral vector technologies), one EV71-CA16 bivalent vaccine candidate against HFMD, three candidates against pneumococcal disease (PCV13, PCV20 and PPSV23), three DTP-based combination candidates (DTcP, DTaP and DTP-Hib) and a number of others with high market potential, most of which target major vaccine-preventable infectious diseases with large-population base and five are potentially first-in-class in the globe or in the PRC.
Our sales and marketing function is centralized, and is specialized and market-oriented, which enables us to accelerate strategy formulation and execution, achieve high cost-efficiency and gain cross-selling opportunities. As of the Latest Practicable Date, we were one of the only four vaccine market players that sold vaccine products to all 31 provinces, direct-controlled municipalities and autonomous regions in China.
Our total revenue was RMB951.6 million, RMB1,638.0 million and RMB1,570.1 million in 2019, 2020 and 2021, respectively. Our gross profit was RMB732.8 million, RMB1,354.1 million and RMB1,294.7 million in 2019, 2020 and 2021, respectively. Our revenue and gross profit grew rapidly by 72.1% and 84.8% respectively from 2019 to 2020; then slightly decreased by 4.1% and 4.4% respectively in 2021 mainly due to the impact of the recurrence of COVID-19 in certain cities in China since late July 2021 on our sales volume in the second half of 2021. Our profit significantly increased by 234.2% from RMB119.8 million in 2019 to RMB400.4 million in 2020. We incurred a substantial loss of RMB675.9 million in 2021, which was resulted primarily from (i) our share-based compensation expenses totaling RMB952.1 million, including a one-off share-based compensation expense of RMB896.9 million and other share-based compensation expenses of RMB55.2 million for other share awards and options granted to our employees, and (ii) an increase in research and development costs from RMB157.8 million to RMB307.4 million to develop our rich pipeline of 22 vaccine candidates. Due to a slowdown in sales amid COVID-19 outbreaks in China, from the four months ended April 30, 2021 to the same period in 2022, our revenue decreased from RMB464.9 million to RMB275.3 million and our gross profit decreased from RMB384.1 million to RMB220.0 million. We had a profit of RMB57.7 million in the four months ended April 30, 2021 but recorded a loss of RMB95.8 million in the same period in 2022, mainly driven by the drop in revenue and as we rapidly advanced clinical trials of our vaccine candidates, which drove up our research and development costs.
Source: AIM Vaccine (06660) Prospectus (IPO Date : 2022/09/23) |