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Stem cells are booming again, and many listed companies are accelerating their layout

2024-08-09

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Recently, the stem cell concept has become popular again. According to Dongcai data, in the past 10 trading days, 20 out of 21 CAR-T cell therapy concept stocks have been in the green, with Xiangxue Pharmaceutical rising as high as 187%, and Zhongyuan Xiehe and Guanhao Biotechnology leading the gains.



Stem cell research is hot

Cells are the most basic structural and functional units of the human body. All life activities of the human body cannot be separated from the support of cells, and the health of cells leads to the health of the human body. Stem cells are a type of cell with the potential to differentiate in multiple directions, self-renew, and secrete a variety of cytokines to participate in the repair of damaged tissues and organs.

Stem cell technology is known as the third medical revolution after drug therapy and surgical treatment. Pei Gang, an academician of the Chinese Academy of Sciences and honorary president of the Chinese Society of Cell Biology, once publicly stated that in theory, stem cells have the potential to change the fate of every individual and the entire human society.



It can not only treat difficult and complicated diseases, but also has important significance in anti-aging, and provides new possibilities for personalized medicine. By inducing stem cell differentiation under specific conditions, various types of somatic cells such as liver cells, kidney cells, lung cells and heart cells can be generated, bringing new life to countless patients.

According to relevant statistics, the global stem cell therapy market revenue will be around US$286 million in 2023, and has broad development potential. It is estimated that by 2028, the stem cell market valuation will reach as high as US$615 million.

Currently, the stem cell products approved worldwide are mainly concentrated in Japan, South Korea, the United States, the European Union, etc. In recent years, my country has also vigorously supported the development of stem cell technology.

As of December 2023, there are more than 4,000 registered stem cell-related clinical projects worldwide, including 3,101 completed projects. Among them, my country has more than 50 mesenchymal stem cell drug clinical trials. As the number of clinical trials increases, it is expected that by 2028, the compound annual growth rate of China's stem cell market economy will reach 16.5%.

Faced with the rapid development of the cell industry, the necessity and importance of supervision and regulation are becoming increasingly prominent. In recent years, stem cells have been included in the "14th Five-Year Plan" and the "Healthy China 2030" Outline. The "14th Five-Year Plan" points out that the focus is on the development of stem cell therapy, specific immunoglobulins, gene therapy products, immune cell therapy, etc. The "Healthy China 2030" Outline points out that cutting-edge medical technologies such as stem cells and regenerative medicine, biotherapy, and new vaccines will be the key development direction.

Judging from the relevant policies on stem cell medicine in various provinces and cities during the 14th Five-Year Plan period, stem cell medicine, as a cutting-edge medical technology field, is a development direction that various provinces and cities encourage. For example, Beijing, Yunnan, Shanghai, Shenzhen and other regions encourage the development of stem cell medical industry clusters; Hunan and other places have proposed the construction of the Stem Cell and Regenerative Medicine Industrial Technology Research Institute.

Listed companies accelerate layout

In recent years, the domestic stem cell industry has formed a relatively complete industrial chain, mainly including the following aspects:

The core of the upstream business is the collection and storage of stem cells, which is also the most advanced and basic part of the entire industry;

The midstream sector focuses on drug research and development. Currently, it has incubated typical R&D companies such as Zhongyuan Xiehe, Beijing Hanshi United Biology, Jiangsu Yuruikang, Beike Biology, Guanhao Biology and Tianjin Angsai. Their business areas involve stem cell proliferation, induced differentiation, drug research and development, and manufacturing of supporting products such as detection reagents.

The downstream is mainly stem cell clinical research, and there are also medical beauty service institutions. At present, my country's stem cell collection and storage business is the most mature, and no stem cell products have been launched on the market.

Industry experts said, "It may take a long time for any scientific breakthrough to be transformed into large-scale clinical applications. For new technologies to be truly applied in clinical practice, their safety and effectiveness must be rigorously explored and carefully demonstrated."

Among listed companies, Boao International Hospital under Jimin Medical signed a cooperation agreement with Professor Jonathan Robert Todd Lakey in January 2019, hiring Professor Jonathan Robert Todd Lakey as chief scientist, whose main responsibilities are to provide technical support in stem cell-related fields for the hospital and jointly carry out scientific research projects. The cooperation period is 3 years. So far, the cooperation between the two parties has ended, and the company has not promoted the transformation of its related scientific research results in China.

Guanhao Bio is a high-tech enterprise engaged in the research, development, production and sales of regenerative medicine materials and regenerative medical implants. In the field of cells, the company has been building a cell and stem cell research and development application platform since 2013, and its business has expanded from autologous cartilage tissue cell transplantation technology, immune cell storage technology, and stem cell storage technology to knee joint and skin beauty cell derivative product research and development technology.

At the same time, the company is actively promoting the application for the "Human Genetic Resource Sample Library", which will provide important scientific and technological platform support for future innovative development in the fields of new drug research and development, medical translational research, biology and health services, etc.

Zhongyuan Xiehe's business includes cell detection preparation and storage in the field of "precision prevention"; research, production and sales of in vitro diagnostic raw materials, in vitro diagnostic reagents and instruments in the field of "precision diagnosis", biological genes, proteins, antibodies and other scientific research reagents, as well as genetic testing services; research and development of clinical applications of stem cells and immune cells in the field of "cell therapy", etc.; forming a "precision medicine" industry chain.

Recently, the invention patent of its wholly-owned subsidiary Wuhan Optics Valley Zhongyuan Pharmaceutical Co., Ltd. - "A kind of spot human umbilical cord-derived mesenchymal stem cells and their preparation method and application" was officially authorized by the national invention patent, indicating that Zhongyuan Xiehe has independent intellectual property rights in the field of core stem cell new drug preparation and has obtained national authoritative recognition.