“The company’s new crown nucleic acid detection reagents, nucleic acid detection equipment, related consumables and other products have a substantial increase in sales”
On the evening of January 18, a Shengxiang Biotechnology 2020 annual performance forecast attracted investors’ attention. This company, which mainly deals in diagnostic reagents, instruments, and third-party medical inspection services, has experienced a surge in performance under the new crown epidemic. Shenxiang Bio stated that it is expected that the net profit attributable to the owners of the parent company in 2020 will increase compared to the same period last year 2.5 billion to 2.76 billion yuan, an increase of 6375%to 7008%year-on-year.
The Shell Finance reporter found that after the end of New Year’s Day, listed companies have successively released 2020 performance forecasts. According to wind statistics, as of January 18, many listed companies related to genetic testing have issued 2020 performance forecasts. Affected by the epidemic, many of the nucleic acid testing concept stocks have seen a surge in profits.
The National Health Commission made it clear on January 20 that those returning home during the Spring Festival must hold a valid new coronavirus nucleic acid within 7 days After returning home with a negative test result, home health monitoring will be carried out for 14 days after returning home. During this period, there will be no gathering and no flow, and a nucleic acid test program will be carried out every 7 days.
On January 20, Wang Xiuchun, deputy director of the Department of Transportation Services of the Ministry of Transport, said that it is expected to send around 1.7 billion passengers during the National Spring Festival in 2021.
On January 22, Shenxiang Bio, Xilong Science and many other listed companies stock daily limit. So, how profitable is nucleic acid testing? What kind of testing market is behind it?
Behind the increased demand for nucleic acid testing in China for COVID-19
The price of centralized procurement continues to fall:the price of centralized procurement for a kit is some 10 yuan strong>
On January 22, the Leading Group for Epidemic Prevention and Control in Dongcheng District, Beijing announced that it would organize nucleic acid testing in batches in Dongcheng District from January 22 to January 23.
Since the second epidemic prevention and control, nucleic acid testing has become a necessity. On January 20, the National Health Commission answered questions on the key issues of the”Work Plan for the Prevention and Control of New Coronary Pneumonia Epidemics in Rural Areas in Winter and Spring”. The plan is clear. Returning personnel must return to their hometowns with a negative result of a valid new coronavirus nucleic acid test within 7 days. Afterwards, home health monitoring will be implemented for 14 days, during which there will be no gathering or flow, and nucleic acid testing will be carried out every 7 days.
On January 22, a reporter from Shell Finance opened Alipay’s Beijing New Coronary Nucleic Acid Test Portal, prompting”over 720,000 people to use it.” If you want to do a personal nucleic acid test in Beijing, you can make appointments at public hospitals or third-party testing agenciesthrough various channels such as JD.com, 114, and Beijing Yitong. > Nucleic acid testing services.
On the same day, the Shell Finance reporter searched on the official website of the State Drug Administration and learned that there have been 54 records of domestic medical device registration batch numbers related to the new coronavirus, including more than 20 production batch numbers for nucleic acid detection kits. There are also many IgM/IgG antibody detection kits for the new coronavirus.
The manufacturers of nucleic acid detection kits also include Wuhan Zhongzhi Biological, Hangzhou Ustar, BGI Biological, Da’an Gene, Zhijiang Biology, Mike Biology, Shengxiang Biological, Wanfu Biological and other companies.
So, where are the nucleic acid testing fees paid by consumers?
The Shell Finance reporter learned that the current new coronavirus detection chain is mainly divided into kit manufacturers and third-party testing institutions that can provide testing services, or some medical institutions. Most nucleic acid testing reagents The manufacturer of the kit does not have the ability to provide nucleic acid testing services on a large scale.
Among many testing institutions, Daan Gene, Shengxiang Bio, Golden Mile Medical and other listed companies can be said to have a large advantage. The company has the production capacity of nucleic acid detection kits and many laboratories can provide nucleic acid detection. service.
In the sales of new coronavirus nucleic acid detection kits, many companies will actively participate in centralized procurement carried out by local governments.
According to the list of selected products in the centralized procurement of new coronavirus-related testing reagents announced by Hubei Province last year, the price of the nucleic acid testing kit itself is not high, such as The winning bid price of the nucleic acid detection kit of Mike Biology is 16.78 yuan (1 person/copy), and the winning price of the nucleic acid detection kit of Mingde Biology is 23.9 yuan (1 person/copy).
In April 2020, Guizhou Province announced the results of the collection of nucleic acid testing for the new coronavirus, showing that the lowest winning bid price of nucleic acid testing reagents /span> is 17.78 yuan (1 person per serving), which is also a product of Mike Biology.
In addition, the purchase price of new coronavirus antibody detection kits is lower. According to the information on the purchase of new coronavirus-related detection reagents in Liaoning Province, the purchased Mike Bio new coronavirus antibody detection kit The price is 6.99 yuan per person.
It is worth noting that since 2021, the price of new coronavirus nucleic acid detection kits has been continuously reduced during the collection process. Da’an Gene stated on January 21 that in the most recent collection of nucleic acid detection kits in Zhejiang Province, the bid price has already It is reduced to 10 yuan per person,”but the demand is increasing, and small profits but quick turnover have formed a kind of scale economy effect.”
Next to the nucleic acid detection link. Shell Finance reporters through Alipay’s nucleic acid testing service entrance, under a new coronavirus nucleic acid testing service in Beijing Dean Medical Laboratory, saw that the new coronavirus nucleic acid testing service was”120 per person”, and it was written as”under normal circumstances 12 -24 hours to report.”
The reporter noted that 120 yuan is the price of most third-party testing agencies and hospitals for new coronavirus testing. In an appointment service for COVID-19 nucleic acid testing by Golden Field Medical, the cost of nucleic acid testing in Wuhan is only 75 yuan/person, the nucleic acid testing service in Fuzhou is 80 yuan/person, and Changchun’s is 150 yuan/person.
This means that the price of virus testing services in the nucleic acid testing process is much higher than the nucleic acid testing kit itself.
How about the nucleic acid testing company?
Da’an Gene earns 2 billion, Sunshine Bio profits soared 70 times
On January 22, Da’an Gene has a daily limit in late trading. According to the data released by Daan Gene, since the outbreak of the epidemic, the company’s daily production capacity of testing reagents has increased from the initial 50,000 to 20 Ten thousand shares and 500,000 shares have reached 1.5 million shares. So far, the company has produced more than 150 million copies of new crown detection kits.
In the previously released report for the third quarter of 2020, Da’an Gene predicted that the market is The demand for nucleic acid detection reagents has increased significantly, and the company will generate a net profit of 2 billion to 2.2 billion yuan in 2020, an increase of 206.963%to 2286.59%from 92.18 million yuan in 2019.
The listed company Kaip Biology is also affected. According to the 2020 annual performance forecast released by Kaipu Biotechnology on December 28, 2020, the company’s report period is expected to make a profit of 3.2 billion to 3.9 billion yuan, an increase of 117.26%-166.82%over the previous year.
Kaip Biosciences stated that in 2020, the company will seize the major development opportunities of nucleic acid testing and vigorously expand the nucleic acid testing business. The company’s nucleic acid testing reagents, instruments and third-party medical laboratory testing businesses will achieve rapid development .
The performance growth of the above two companies cannot keep up with Shenxiang Bio. On January 18, Shenxiang Bio stated that the company expects to achieve a net profit attributable to owners of the parent company in 2020 compared to the previous year. Compared with the same period, it will increase by 2.5 billion yuan to 2.766 billion yuan, an increase of 6375%to 7008%.
Shenxiang Bio stated that during the reporting period, the company actively responded to the global fight against the new crown epidemic. Corresponding epidemic prevention and control products have been developed in a relatively short period of time, and professional after-sales and technical support teams are simultaneously equipped to provide customers with a full range of services in a timely and effective manner, which better meets the needs of the global market, and the company’s new crown nucleic acid detection reagents, nucleic acids The sales of testing instruments, related consumables and other products increased significantly.
In fact, judging from the 2020 semi-annual report of pharmaceutical companies, it is not difficult to see that new crown testing products have become a new profit growth point for many companies.
Data shows that Mindray Medical’s operating income in the first half of 2020 is 10.5 billion yuan, an increase of 28.75%over the same period last year; net profit attributable to shareholders of listed companies is 3.45 billion yuan, an increase of 45.78%over the same period last year. At that time, Mindray Medical announced,”Starting from the second quarter of 2020, the company will export COVID-19 antibody reagents to overseas markets to make up for part of the impact of the epidemic on conventional in vitro diagnostic reagents.”
In addition, BGI also According to the 2020 semi-annual report, the market demand for new crown virus detection kits increased significantly in the first half of the year. In the first half of the year, the company achieved operating income of 4.1 billion yuan, a year-on-year increase of 218.08%; it achieved a net profit of 1.6 billion yuan attributable to shareholders of listed companies. A year-on-year increase of 734.19%.
The rapid expansion of nucleic acid testing capacity in various regions
8437 medical institutions nationwide carry out nucleic acid testing
For nucleic acid detection kit manufacturers, there is also good news:my country has continuously strengthened the construction of nucleic acid detection laboratories since 2020. This means that the demand for nucleic acid detection kits in various laboratories will also increase significantly.
Data shows that as of March 5, 2020, a total of 15.374 million kits have been supplied in China, with an average daily supply of 341,600.
Since the epidemic, the construction of nucleic acid testing institutions has also been put on the agenda. In May 2020, the Inner Mongolia New Coronary Pneumonia Epidemic Prevention and Control Headquarters issued a notice on the autonomous region’s work plan for improving the nucleic acid testing capabilities of medical institutions and expanding the scope of testing, which requires that the construction of new coronavirus nucleic acid testing laboratories in hospitals above the second level should be accelerated. Implement a 24-hour inspection system at all times to maximize inspection capabilities.”
In August 2020, the Joint Prevention and Control Mechanism of the State Council issued the”Working Plan for Further Promoting the Construction of New Coronavirus Nucleic Acid Detection Capacity”, which proposed that by the end of September 2020, all localities should achieve three-level integration within their jurisdictions. Hospitals, infectious disease hospitals, disease control institutions at all levels, and at least one county-level hospital in the county have nucleic acid sampling and testing capabilities.
In January 2021, the Shanghai Municipal Health Commission introduced that there are already 125 nucleic acid testing institutions in Shanghai, with a maximum daily testing capacity of 728,000. On January 20, the State Council’s joint prevention and control mechanism press conference emphasized that there must be a nucleic acid testing agency in every county.
The reporter noticed that at the press conference held by the State Council’s Joint Prevention and Control Mechanism on January 13th, since 2020, my country has continuously strengthened the construction of nucleic acid laboratories and strengthened personnel training. The detection level and efficiency have been greatly improved, providing strong support for epidemic prevention and control.
“As of now, 8437 medical and health institutions across the country can carry out nucleic acid testing, which is equivalent to 4 times the nucleic acid testing carried out by 2081 medical and health institutions at the end of March 2020; the single tube testing capacity reaches 12.55 million copies per day , Which is equivalent to 10 times of the 1.26 million copies at the end of March 2020.”
Edited by Li Yunqi, reporter of Shell Finance and Economics of Beijing News, edited by Li Weijia, proofreading by Zhang Yanjun