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Shanghai Securities News' "Innovation China" visits Kexing Biopharm

Release date:2021 - 11 - 28

In October 2021, Shanghai Securities News' "Innovation China" visited Kexing Biopharm and interviewed Chairman Deng Xueqin. In the interview, Deng Xueqin went into detail explaining the development history of Kexing Biopharm.

About Kexing Biopharm

Kexing Biopharm Co., Ltd. (hereinafter referred to as Kexing Biopharm, stock code: 688136) is an innovative international biopharmaceutical enterprise mainly engaged in integrated R&D, production, and sales of recombinant protein therapeutics and microecologics. It focuses on antiviral drugs, oncology and immunology, hematology, digestive, degenerative diseases, and other therapeutic fields. Currently, the company is working with its R&D layouts in various fields, including new proteins, new antibodies, and nucleic acid drugs. We are devoted to providing patients with biotechnology，becoming the leader of high quality biologicals.

Now, let's see what "Innovation China" had to say about the technological innovation spirit of Kexing Biopharm.

(The following report is taken from: "Shanghai Securities News" official WeChat account)

Yuehai Street in Shenzhen's Nanshan District is often crowded at night. After 10 o'clock in the evening, the lights are still on, takeaway delivery workers are busy shuttling from building to building, and there is an endless stream of taxis. Yuehai Street is the home of high-tech, swarmed with companies in fintech, next-generation information technology, and biomedicine. Nearly 100 listed companies have settled here.

In December 2020, Kexing Biopharm made it all the way from here to the Sci-Tech Innovation Board. Now, a year ago after its listing, "Innovation China" is visiting Kexing Biopharm to reveal the secrets behind the company that is "Invigorating China by Science and Technology Innovation and Making Precise Products".

For all of his 18 years as an entrepreneur, Chairman Deng Xueqin has always pursued the spirit of " technological innovation". "Science and technology innovation is the primary productive force of Kexing Biopharm. After listing, we have renewed and further increased our understanding of science and technology innovation, taking it as our doctrine and belief," he said, and continued to explain how the company is focusing on unmet clinical needs, sparing no effort in solving disease problems and protect human health through technology innovation.

A thorough understanding of recombinant protein therapeutics

Recombinant protein therapeutics are irreplaceable in antivirus, oncology and immunology, hematology and other fields, and after more than 30 years of development, they have become one of the most important products in modern biopharmaceuticals. With two major products, Human Erythropoietin Injection (EPOSINO) and Recombinant Human Interferon α1b for Injection (SINOGEN), Kexing Biopharm has established itself as a strong brand in recombinant protein therapeutics.

According to Deng Xueqin, human erythropoietin injection is mainly used to treat anemia caused by renal insufficiency, for both dialysis and non-dialysis patients, and can be used for perioperative erythrocyte mobilization. In his view, being at the forefront is the key to leading the way. "Human erythropoietin injection, our main product developed in a patented formula without human albumin, was the first product of its kind in China to be approved for research and development. It was also granted a new drug certificate and approval number, and it was the first product packaged in pre-filled syringes."

Kexing Biopharm's Recombinant Human Interferon α1b for Injection has a broad spectrum of antiviral, anti-tumor, and immunomodulatory effects. It has been reported that the product was obtained from healthy Chinese white blood cells by Academician Hou Yunde, the "father of interferon in China", and is known as the first genetically engineered new drug in China with high clinical recognition and popularity. It is also the main antiviral subtype in the natural interferon system for extensive indications, and the package insert has a relatively more complete description of medication safety for children. In early 2020, as the spread of COVID-19 was getting more severe, Kexing Biopharm immediately responded to the call, sending more than 5 million vials of Recombinant Human Interferon α1b for Injection (SINOGEN) to the front line.

According to MENET data, "EPOSINO" had the third biggest market share of any human erythropoietin injection in China for four consecutive years from 2017 to 2020, and its market share increased steadily year by year; "SINOGEN" enjoyed the biggest market share (30.81%) of short-acting human interferon for injection in China in 2020.

In recent years, the R&D trend of recombinant protein therapeutics has gradually switched to monoclonal antibodies and biclonal antibodies. With the marketing of adalimumab, PD-1 monoclonal antibody, and other star products, the field of recombinant protein therapeutics is booming. So, as a pioneer and leader, how can Kexing Biopharm take keep its lead in the increasingly fierce market competition?

Deng Xueqin believes there is still a lot of unexplored territory on the clinical value of recombinant protein therapeutics. "We are developing new proteins, new antibodies, nucleic acid drugs, etc. based on recombinant protein technology."

His plan for recombinant protein therapeutics is clear: The company will exploit the market value of existing protein varieties and explore new indications and new dosage forms; strengthen the R&D project approval of new recombinant protein therapeutics (long-acting, targeted); promote the development of protein platform by external cooperation (product introduction, cooperative R&D).

Deng Xueqin explained that subject enrollment and supplementary information submission had been completed for Human Erythropoietin Injection 10000 IU and Human Erythropoietin Injection 36000 IU, both of which can be used for treating anemia caused by chemotherapy for non-myeloid malignancies. At present, there is only one Human Erythropoietin Injection 36000 IU on the Chinese market, so there is definitely great market potential. The company is also proactively promoting the R&D of human growth hormones and long-acting growth hormones and is expected to achieve breakthroughs in safety, cost control, and other aspects of this field.

Exploring the comprehensive health market

Meeting clinical needs has always been the original aspiration of Deng Xueqin and Kexing Biopharm. Therefore, he has now set sight on a new track, microecologics.

"In fact, many of the underlying diseases are caused by microecological imbalance in the body, but at present, we don't know enough to deal with it, as these areas are not that well studied. However, the international market is well aware of the technical potential and clinical value of this field. Therefore, we hope to accelerate the development of this emerging market and share the trillion-level comprehensive health market," said Deng Xueqin.

The company will not only work intensively on the product line, but also gradually gain development through innovation. Compared with working alone, alliances between industry giants are great for boosting drug research and development, and an efficient way to stimulate innovation. At present, Kexing Biopharm is proactively arranging cutting-edge technologies of biopharmaceuticals and introducing and connecting with innovation projects in preclinical and clinical stages by technology transfer, cooperative development, and other means, improving the layout of R&D pipelines.

According to its strategic plan, the company has further enriched the combinations of product pipelines of anti-tumor, immunization, and other key tracks. On April 27 of this year, the company reached a cooperation agreement with Zhejiang Haichang Bio-Tech Co., Ltd. on the development, commercialization, technology transfer, and industrialization of high-end complex injections for the HC007 Project (for the treatment of metastatic breast cancer and other malignant tumors). Kexing Biopharm has finally obtained HC007 technology and marketing authorization of the technology except in the US.

"HC007 will enrich the company's anti-tumor product pipeline, meet the needs of more cancer patients at home and abroad, and make the company's R&D, production and sales of anti-tumor drugs more professional," said Deng. He also mentioned that the Shanghai R&D center currently under construction is expected to be officially launched by the end of this year. At the Shanghai R&D Center, a new drug R&D team with core advantages, focusing on the R&D of new nucleic acid and antibody drug discovery, target validation, and other areas will be established.

Adhering to the spirit of "technological innovation"
Nanshan District is one of the most active regions of science and technology innovation in China and being born out of that environment, there is no wonder Kexing Biopharm has excelled in this area. "With the name "Kexing" it might seem that we were aiming at the Sci-Tech Innovation Board from the beginning," Deng said as he shared a series of new changes that have taken place in the company in recent years,

"The most noticeable change is that the company's overall confidence has grown. Employees are more motivated and have an improved understanding of science and technology innovation. After listing, we proposed the doctrine of 'technological innovation' to improve the company in this area and take it to a new level." Deng admitted that after listing, under the expectations of investors, the company is facing increasingly more pressure. However, the company is turning this pressure into motivation, accelerating the development of Kexing Biopharm.

As a Chinese saying goes, "you have to plant the tree before you can attract the phoenix". The reporter noted that in the first half of this year, the company's R&D investment increased by 44.85%, mainly because it introduced a number of top researchers to work on drug R&D, animal pharmacodynamics, and pharmacokinetics. Kexing Biopharm also saw a year-on-year increase of 53.33% in the number of its researchers holding at least a master's degree.

a clear and long-term development path for researchers, and provided them with competitive compensations. We have also improved the incentive system centered on R&D projects and other supporting incentive policies, which greatly stimulates the potential of our researchers," said Deng Xueqin, explaining that human-oriented innovation is the primary pillar of Kexing Biopharm.

Purple gecko-shaped logos can be seen everywhere at Kexing Biopharm. Deng Xueqin said that it was specially designed based on the brand concept of Kexing Biopharm, and it has a triple meaning. "The first is Self-healing. Geckos can rapidly grow a new tail if they have lost theirs. Therefore, this logo reflects the most prominent advantage of biopharmaceuticals - their self-healing power. The second is Sharpness. Geckos are often known for their sharpness when it comes to capture and response. Only by maintaining sharpness can a pharmaceutical company create value for doctors and patients. The third is Hope. The Chinese pronunciation of the word "gecko" (bihu) is similar to the word bihuo, which means healing the disease and bringing hope to the people."

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