Kexing Pharmaceutical: An IPO 20 Years Late

The global new epidemic situation makes biopharmaceutical enterprises pay more attention to the capital market. At 9:30 on December 14, at the roadshow Hall of Shanghai Stock Exchange, with the sound of gongs, Kexing pharmaceutical, the leading enterprise of interferon in China, was finally listed successfully. The last time Kexing pharmaceutical entered the public eye, it was in February this year when the whole country fought against the epidemic.

According to the "diagnosis and treatment plan for pneumonia caused by new coronavirus infection" issued by the National Health Commission, if no effective antiviral treatment is confirmed, atomization inhalation of interferon alpha can be used. The recombinant human interferon alpha 1B (sirojin) is a broad-spectrum antiviral classic drug, with a market share of up to 30%. In February this year, under the deployment of the National Health Commission and the relevant requirements of provinces and cities, Kexing Pharmaceutical Co., Ltd. worked overtime day and night to provide more than 5 million recombinant human interferon α 1b to the front line of anti epidemic. A few days ago, Nature Magazine selected ten scientific discoveries in 2020. One of the findings is that the lack of interferon, especially interferon type I, is a key factor affecting the development of severe cases after infection with new coronavirus. This proves the diagnosis and treatment plan of the National Health Commission to some extent.

It is with this product called sirojin that Kexing pharmaceutical has established its position in China's biopharmaceutical industry. Whether it is the fight against SARS in 2003 or the Middle East respiratory syndrome in 2015, Kexing people are active.

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A heroic medicine, a generation of Chinese

In 1957, Eric Isaacs, a British virus biologist, discovered in his research that when the virus infects the human body, the cells invaded by the virus will produce and release a protein for "self-defense counterattack", which is called interferon. The discovery shocked the world. For thousands of years before this, human beings were almost helpless in the face of viral diseases like hepatitis B. Since then, scientists around the world have worked hard for nearly 30 years. In 1986, the world's first recombinant human interferon was approved by the U.S. FDA.

At the end of October this year, the new office of the State Council of the people's Republic of China held a press conference on the reform and development of health care during the 13th Five Year Plan period, announcing that China has taken off the title of a big country of hepatitis B. the number of people infected with hepatitis B virus has dropped from 120 million in 1992 to 70 million today. Before the advent of domestic interferon, hepatitis B treatment 100% rely on imported drugs, hundreds of yuan a, a course of treatment down to 230000.

In 1982, Hou Yunde, academician of Chinese Academy of preventive medicine, successfully constructed the engineering strain of interferon α 1b. However, it was difficult to carry out pilot test, so the research results could only stay in the laboratory. Under the promotion of the national "863" plan, the state mobilized the national health research forces Changchun Institute of biological products of the Ministry of health and Shanghai Institute of biological products to tackle the key problems, and finally developed the injection preparation in 1989.

With the success of the pilot test, new problems arise again. This new drug, which has consumed countless efforts of scientists, has no label, no instruction manual, and has not been approved for clinical use. Who would like to be the first clinical trial taker? At that time, a 6-month-old baby was suffering from viral meningitis, and the hospital had issued a critical notice. The parents of the baby decided to try it on their own children and signed a commitment to bear all the consequences. On the first day after the injection, the child's high fever subsided, and soon recovered to health, thus becoming the first patient on trial of domestic interferon.

In order to realize industrialization as soon as possible, in 1989, the State Science and Technology Commission took the lead and boldly introduced risk investment, raising 48 million yuan. Shenzhen Kexing Biological Products Co., Ltd., China's first modern bioengineering pharmaceutical enterprise, was established in Shenzhen Nanshan Science and technology park to undertake the important task of interferon localization. Cai Qixiang, then deputy director of the science and Technology Commission of Guangdong Province, an expert in scientific research management and one of the founders of the company, proposed that the company be called "Kexing". The "science" is the science and technology of science and technology and the "science and technology innovation" is the prosperity of rejuvenating the country and prospering with science and technology.

In 1992, α 1B gene engineering interferon was awarded a class of new biological product certificate issued by the Ministry of health of the people's Republic of China. After a heated discussion, Kexing people gave it a name that was pleasant to hear and easy to remember - "sirojin".

It seems that ordinary is the most unusual, but it is easy but hard to achieve. This small interferon has created many firsts: it is the first gene drug developed by using Chinese gene in the world, it is the first class of national new drug, the first genetic engineering drug approved by the Ministry of health, the first industrialization project in the field of biotechnology in the national "863" plan, and the first batch of national Torch Program projects.

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Once the gem 001 company

At the beginning, Shenzhen Kexing could only find ready-made technology and products in the market for grafting. It is in this way that enterprises once included almost all the most popular genetic engineering drugs in the world. In 1997, cerojin accounted for 60% of China's market share, fully realizing the substitution of imports.

In 1998, Shandong Kexing joined the Kexing biological system; in the same year, Shandong Kexing's recombinant human erythropoietin (EPO) was put into production, and China became the fourth country to produce recombinant human erythropoietin after the United States, Germany and Japan.

In October 1999, Shenzhen people ushered in the long-awaited first China International hi tech fair. Sinochem Bio Technology Co., Ltd. appeared at the high tech fair and became the focus of attention.

In May 2000, the State Council agreed in principle to set up the growth enterprise market in Shenzhen Stock Exchange. The Shenzhen municipal government recommended the first batch of 23 enterprises. Shenzhen Kexing was listed as No. 001 enterprise on the growth enterprise market, and "Kexing biology" almost became the synonym of "companies to be listed on the growth enterprise market".

In April 2001, in order to broaden the biopharmaceutical track, Shenzhen Kexing set up a new enterprise in Beijing, engaged in vaccine R & D and production, and was identified as Beijing Kexing Biological Products Co., Ltd. For a while, Shenzhen Kexing, Shandong Kexing and Beijing Kexing were established, and "Kexing biology" was a grand spectacle.

The strong wind starts at the end of Qingping, and a crisis is brewing quietly.

In the second half of 2000, the global technology bubble burst, and the NASDAQ index fell by 70% in just a few months. Subsequently, the preparatory plan for the growth enterprise market in mainland China was also suspended after a dispute for nine years. At that time, Shenzhen Kexing had just completed the joint-stock reform and introduced strategic investors. See Listing hopeless, some investors began to waver, withdraw capital in succession.

Misfortune never comes singly. The money making effect of the first two years has rapidly spawned a large number of competitors. In 2000, a price war finally swept the whole interferon industry. The production and sales volume of Shenzhen Kexing doubled in that year, and the sales volume was only 70% of the previous year. Shenzhen Kexing also withdrew its investment in Beijing in December 2002.

Shenzhen Kexing's fate has been rewritten and has entered a long bear road.

Second pioneering work and rebuilding Kexing

Even in a difficult situation, Kexing is also an enterprise full of feelings and responsibilities. In 2003, the company fought against SARS and overcame difficulties. It donated more than one million yuan of cerojin drugs, and was rated as a model unit in Guangdong pharmaceutical industry in fighting against SARS.

The afterglow of the old days can not endure the changes of the times. In 2007, Shenzhen Kexing fell into the plight of production stoppage and even wage arrears. In a sigh and expectation, the company finally ushered in restructuring. In 2008, Zhengzhong group completed the merger and acquisition of Shenzhen Kexing and Shandong Kexing for two years. First, it invested funds to solve the problem of employees' Arrears of wages. Then, it optimized management, increased research and development, opened up the market, and injected "marketization" and "enterprise" genes into the enterprise.

From 2011 to 2014, with the application of interferon from liver diseases to respiratory diseases, its market space is huge. At present, it ranks at the forefront in the field of anti viral interferon for respiratory diseases, and gradually enters the fields of skin and gynecology. Kexing has invested 350 million to build standardized drug production workshops and workshops, which have passed the GMP certification, promoted technical transformation and expanded production capacity. In 2015, Kexing launched marketing reform and built its own marketing team. At present, the distribution network of Kexing has covered more than 15000 hospitals of all levels, primary medical institutions and pharmacies. At the same time, erythropoietin developed patent formula without human serum albumin, increased product specifications, expanded new indications, and arranged overseas markets in advance. It has been exported to more than 20 countries, leading domestic peers. Through years of deep market cultivation, Kexing pharmaceutical has developed into a leader in the field of interferon and erythropoietin, and has established a complete drug R & D innovation system, with three technical directions of prokaryotic cells, eukaryotic cells and micro ecological living bacteria, and five domestic and foreign leading technology platforms.

With the sound of gongs landing on the science and technology innovation board, Kexing pharmaceutical, the 001 enterprise that missed the gem in those years, has gone through many vicissitudes and washed away its lead. Finally, it returns with the never extinguished spirit of Kexing. An old Kexing person said with emotion that this is an IPO 20 years late.