The so-called"COVID-19 has become a winner and COVID-19 has lost",from the emergence of"nouveau riche"to the"dilution of profits",followed by the pressure of market value,the decline of the glory of nucleic acid,and many income enterprises have tried to turn the tide.
1、Cue health,I haven't woken up yet
Cue Health was founded in 2010,then named Ruubix,and changed its name to Cue in 2014.
Cue has developed a small,simple and fast testing equipment,which can replace the medical laboratory.It only takes 20 minutes to send the accurate testing results to the user's smartphone,and eliminate 99%of the artificial errors to ensure the accuracy and speed of the results.It is understood that the detection accuracy of this platform even exceeds that of traditional laboratories,and the influenza detection speed is 3 times faster than that of conventional detection methods.
During the COVID-19 pandemic,COVID-19 became a star enterprise.Although it received the dividends of Xinguan testing brought by the epidemic,it once created a myth that only one COVID-19 testing product would generate a revenue of 4 billion yuan(618.1 million dollars).
However,the product is single and the follow-up is weak.With the gradual disappearance of the epidemic situation and the increase of competition in the same industry,the former aura of Culture Health has gradually faded.
By 2021,Culture Health has completed 10 rounds of financing.On September 24,2021,Cue was listed on NASDAQ in the United States on September 24,and its estimated market value was once close to 15 billion.
However,such brilliant achievements have not continued for too long.COVID-19's dividend is"thinning"and the crisis is"now".At present,its market value is only 664 million US shares,about 4.475 billion yuan,and its market value has evaporated more than 10 billion yuan.
In early July,Culture Health announced the reduction of 170 employees.The company attributed this to the economic challenges affecting many industries,and the recent decision of the US government to reduce the number of COVID-19 tests.
On August 10,Culture Health released its financial report for the second quarter,showing that its revenue was$87.7 million,36%lower than the$137.4 million in the same three months of 2021.
When the revenue fell sharply,Cue Health chose to develop new products,including influenza A/B,respiratory syncytial virus,fertility,pregnancy and inflammation products.It is expected that FDA registration or authorization for these tests will be submitted in the second half of 2022.
However,despite the sharp drop in income compared with last year,the income is still far higher than that in the past few years.Therefore,under this adjustment,Culture Health has still not given up its products in COVID-19,but has chosen to continue to improve this layout.This home test is one of them.The goal is to add influenza,RSV and sexually transmitted infection screening devices on its portable platform.
Cue said that the clinical study of its independent influenza test was completed in the second quarter,which opened the door to resubmit to the FDA.
It can be seen that,seeking new growth points and trying to continue the glorious Cue Health,it is still earning profits from COVID-19.The big dream catalyzed by COVID-19 is not fully awakened by Cue.
2、Stop loss in time by"layoff and shutdown"
Recently,medical giant Perkin Elmer,Siemens and SummerBio also reported that they were downsizing and closing the factory,which is related to the continuous integration of the company's IVD reagent manufacturing business.
Siemens is closing its IVD reagent manufacturing center in Los Angeles and integrating this business into other regions.Siemens said that the closure will affect about 95 employees.
SummerBio,headquartered in Menlo Park,California,submitted a WARN document on June 14,announcing that it would lay off 101 employees and close its laboratory in early September.According to a report by Bay Area Inno,the company is closing all its businesses.In March this year,Sasha Seletsky,the co-founder and chief commercial officer of SummerBio,said that the company's goal was to become a long-term supplier of COVID-19 testing in California.
3、Develop new products and"seek transformation"
Looking for a broader business,which is no longer limited to COVID-19 testing business,has become the common pursuit of many IVD enterprises.Lanfan Medical is an example.
Last month,Lanfan Medical disclosed its performance forecast for the first half of 2022.After the high growth of performance stopped in 2021,in the first half of this year,the net profit of Lanfan Medical suffered a loss.The performance forecast shows that the net profit loss attributable to the parent company is 165-195 million yuan,a year-on-year decrease of 104.79%-105.67%;Non net profit loss was 195 million yuan to 225 million yuan,down 108.47%-109.77%year on year.
Before 2018,the main product of Lanfan Medical is health protection gloves,which belongs to the leading enterprise in the subdivided field,and is called"gloves"together with British Scientific Medical,but the gross margin of this industry is relatively low.
In 2018,Lanfan Medical acquired 93.37%of the shares of the world's fourth largest cardiac stent manufacturer at that time with 5.895 billion yuan,entering the lucrative high-end medical device market.Industry insiders believe that Lanfan Medical is replicating the development mode of Johnson&Johnson's"low value+high value"consumables.
With the withdrawal of the epidemic dividend,Lanfan's high value consumables will be its new performance power.However,from the perspective of profitability and time,it is bound to take a long time.
4、With the aid of M&A,"changing guns"
In addition to expanding product lines and business scope,some companies have frequently launched mergers and acquisitions and investments,and even started to work together to keep warm.
In May 2022,Quidel and Ortho merged to establish a new in vitro diagnostic company Quidel Ortho.The new company,established after the cooperation of the strong and powerful,has become one of the largest in vitro diagnostic suppliers in the world,combining the advantages of rapid bedside diagnosis and molecular detection,and the advantages of Aosenduo in clinical laboratories and blood transfusion medicine.
In China,mergers and acquisitions are not uncommon.IVD Company,which is rich in cash,takes advantage of the opportunity to change guns for guns and become bigger and stronger.
Dongfang Biology,Shengxiang Biology,Xiamen Baotai,etc.are companies in the IVD industry where COVID-19's business accounts for a relatively high proportion and the volume of revenue and profit grows rapidly.They have made extra efforts to expand COVID-19's business.
Oriental organism
In December 2021,Dongfang Biotech Investment set up a subsidiary to carry out the biochip production and research base project,and develop biochips,in vitro diagnostic reagents based on fluorescence quantification and time resolution and other product series,with a total investment of about 600 million yuan.
In February 2022,Dongfang Bio announced again that it planned to invest 500 million yuan to expand the innovative research and development of products and equipment from molecular biological raw materials to molecular diagnosis and biochip technology diagnosis,and carry out the transformation and application of the first to fourth generation gene sequencing technology.
Shengxiang Biology
In June 2021,Shengxiang Biotech acquired 14.76%of the equity of Zhenmai Biotech,the R&D manufacturer of upstream equipment and reagents in the gene sequencing industry,with RMB 255 million.
Baotai Biology
In September 2021,Baotai Bio announced its entry into the field of new biological drugs,and its new drug development strategy has attracted a number of top biomedical contract research and development service institutions and teams in the world,such as Medici,Saifu Pharmaceutical,Huashi Pharmaceutical,etc.
On August 8,Baotai Pharmaceutical(Shanghai)Co.,Ltd.was officially put into operation.
Wanfu Biology
In January 2022,Wanfu Biotech acquired a single luminous enterprise,Tianshen Medical
Mingde Biology
RMB 20 million was invested in Nanjing Neuin Gene,a multi PCR and macro genome sequencing company.
……
With the end of the boom in IVD industry,the industry will gradually return to normal,and the competition in IVD industry and the survival of the fittest practitioners will become more and more brutal.
