Viva Biotech Company Profile

Background

Established in 2008, Viva Biotech Holdings (01873.HK) is a leading provider of comprehensive services spanning from early-stage structure-based drug research and development (R&D) to commercial manufacturing for global biopharmaceutical innovators. The company's mission is to combat diseases through cutting-edge drug discovery and development services, thereby enhancing quality of life. Viva Biotech envisions becoming a long-term partner for innovative biotech companies worldwide.

Key Strategic Focus

Viva Biotech's strategic focus encompasses:

Drug Discovery Services (CRO): Offering structure-based drug design (SBDD), cryo-electron microscopy (Cryo-EM), computer-aided drug design (CADD) with artificial intelligence (AI) integration, proteolysis-targeting chimeras (PROTAC) research, and medicinal chemistry.

Manufacturing Services (CDMO): Through its subsidiary, Langhua Pharmaceutical, providing drug substance and product manufacturing, process development, and Good Manufacturing Practice (GMP)-compliant production.

Equity-for-Service (EFS) Investment Model: Supporting early-stage biotech startups by offering R&D services in exchange for equity stakes, fostering innovation and expanding its influence in the biopharma ecosystem.

Financials and Funding

As of June 30, 2024, Viva Biotech reported:

Revenue: RMB 981.8 million

Gross Profit: RMB 339.1 million

Net Profit: RMB 144.2 million, a significant improvement from RMB 13.7 million in the corresponding period of the previous year.

This growth was primarily attributed to the elimination of financial adjustments due to the full repayment of convertible bonds and the successful exit from certain portfolio companies.

In 2023, Viva Biotech secured approximately US$210 million in funding from strategic investors, including Temasek, HighLight Capital, True Light Capital, and the Investment Corporation of Dubai. These investments have enhanced the company's corporate governance, business operations, and strategic development.

Pipeline Development

Viva Biotech has invested in and incubated 92 biotech startups, contributing to a diverse pipeline of drug candidates. As of June 30, 2024, these portfolio companies had nearly 222 pipeline projects, with 185 in the preclinical stage and 37 in the clinical stage. Notably, five portfolio companies completed or were close to completing new financing rounds, raising approximately US$117 million in total.

Technological Platform and Innovation

Viva Biotech distinguishes itself through several proprietary technologies and scientific methodologies:

Structure-Based Drug Discovery (SBDD): Utilizing X-ray crystallography and Cryo-EM to determine protein structures, facilitating targeted drug design.

Artificial Intelligence in Drug Discovery (AIDD): Integrating AI algorithms with CADD to enhance drug design efficiency and accuracy.

PROTAC Technology Platform: Conducting research into over 50 E3 ligase structures and delivering over 100 target protein–PROTAC–E3 ligase ternary complex structures, supporting the development of novel therapeutic modalities.

Membrane Protein Research: Employing advanced techniques to study membrane proteins, crucial targets in drug discovery.

DNA-Encoded Library (DEL): Facilitating high-throughput screening of vast compound libraries to identify potential drug candidates.

Leadership Team

Viva Biotech's leadership comprises experienced professionals:

Dr. Cheney Mao: Chairman and Chief Executive Officer, leading the company's strategic direction and growth initiatives.

Dr. Derek Ren: Chief Executive Officer of Viva Biotech (Shanghai), overseeing operations and business development in the region.

Competitor Profile

Market Insights and Dynamics

The global contract research organization (CRO) and contract development and manufacturing organization (CDMO) markets are experiencing significant growth, driven by increasing outsourcing trends in the pharmaceutical and biotechnology industries. The demand for comprehensive, integrated services from early-stage drug discovery to commercial manufacturing is escalating, positioning companies like Viva Biotech favorably in the market.

Competitor Analysis

Key competitors in the CRO and CDMO sectors include:

WuXi AppTec: Offers a broad range of services from discovery to manufacturing, with a strong global presence.

Charles River Laboratories: Provides preclinical and clinical laboratory services for the pharmaceutical, medical device, and biotechnology industries.

Lonza Group: Specializes in contract development and manufacturing, particularly in biologics and small molecules.

These competitors focus on comprehensive service offerings, technological innovation, and strategic partnerships to maintain their market positions.

Strategic Collaborations and Partnerships

Viva Biotech has established significant collaborations to enhance its market position and innovation capacity:

Equity-for-Service (EFS) Model: Investing in high-potential startups by providing R&D services in exchange for equity, fostering innovation and expanding its portfolio.

Acquisition of Langhua Pharmaceutical: Strengthening its CDMO capabilities to offer integrated services from drug discovery to commercial manufacturing.

Operational Insights

Viva Biotech's strategic considerations include:

Integrated Service Platform: Offering a one-stop solution from early-stage drug discovery to commercial manufacturing, providing clients with seamless project progression.