Investment in US companies shrinks 90% the artificial liver project in Jilin ao Dong

The total loss of about 11.42 million yuan, Jilin AO East (market, interrogation) (000623,SZ) Biological artificial liver project again setback. A few days ago, Jilin AO East issued a supplementary bulletin said that its equity participation in the United States Life Treatment Company (Vitaltherapies, Inc., hereinafter referred to as VTI) in the U.S. Eastern Time April 17 on the Nasdaq listing, according to the 12 U.S. dollar closing price, Jilin Ao Dong investment from 2 million U.S. dollars shrank to 258,000 U.S. dollars, investment shrinkage ratio of 87.1%. Jilin AO East from this account about 11.42 million yuan of losses, accounting for the 2013 annual audit net profit of 1.08%. This is not the first time it has suffered a setback in a bioartificial liver project. As early as 2011, Jilin AO East on the prospect of artificial liver project, and invest 2 million of dollars in equity vti, and the future of additional investment. However, as a result of the delay in China's State administration of food and drug supervision of the approval, Jilin AO East subsequently suspended the additional investment. Now, Jilin AO East seems to be caught in the mire of biological artificial liver, not only the additional investment is not, even the existing investment has shrunk significantly. Yesterday (April 23), Jilin East Securities Department staff to the "Daily economic news" Reporter said that the investment shrinkage is mainly due to the investment at the time of the contract, the company is still quite optimistic about the vti of the biological artificial liver project, but temporarily did not consider in the two-tier market overweight VTI shares. Temporarily do not participate in secondary market overweight Jilin AO East 18th issued a notice, VTI in the United States April 17 in the Nasdaq market listing, the sale of 4.5 million shares, a total of 54 million U.S. dollars. After verifying with VTi company, the 2 million D series of Jilin Ao Dong Investment VTi Company accounted for about 5.89% of the total equity of VTI company at that time, because VTI for the continuous operation of the issue of the E-series shares and the listing of public shares, the company held VTi shares were converted into 21508 common shares, It accounts for about 0.11% of VTI's total equity after its listing. According to U.S. regulations, the company holds a lock-up period of 180 days, that is, after the VTI listing 180 days after the company's shares can be listed in circulation. On the interactive platform of Shenzhen Stock Exchange, the reporter found that many investors asked questions about the investment details, Jilin AO East on 22nd issued a supplementary notice, said the investment value has been reduced from 2 million U.S. dollars to 255,000 U.S. dollars, the company to the loss of 11.42 million yuan. For investors most concerned about why the investment shrink nearly 90% of the problem, Jilin AO East in two announcements did not give an explanation. Jilin AO East Securities Department staff explained to reporters that the biological artificial liver is VTI major research and development projects, for this project VTI carried out a, B, C, D, E, and other rounds of financing, each time the capital spent, VTI new financing, Jilin AO East involved in the D round of financing, at that time the price per share of 1 U.S. dollars. After the end of the D-round, VTI started new funding. Since the VTI was already on the verge of insolvency, the investment in subsequent financingWill change from preferred stock to common stock, and the number of shares will shrink, according to the previous share of the shares agreed. "The previous rounds of financing have shrunk even more. "The above-mentioned staff said, Jilin AO East still optimistic about VTI project, but because of the price of e-round financing is too high, taking into account the cost of investment, Jilin AO East did not participate in e-round financing." As to whether will participate in the secondary market overweight, need to see VTI bioartificial Liver Project Progress, currently there is no overweight plan. Li Xin, a group analyst at the Daily Economic news, said that from the point of view of the biopharmaceutical investment company, the risk was relatively small at the end of the second clinical trial, but the key to the success of the bio-research firm remains the availability of approval from the drug regulatory authorities. From the project itself, or more promising, VTI is also constantly advancing. At present, the investment in Jilin Ao Dong has shrunk, but from its investment intention, Jilin Ao Dong mainly do is strategic investment, not financial investment, the goal is to obtain biological artificial liver project, make up or enrich its product line, it is expected that Jilin AO East will not easily give up. Artificial liver project progress slowly because of investment in GF Securities (market, interrogation) profit quite abundant in Jilin AO East, in the pharmaceutical business has been seeking new breakthroughs. May 10, 2011, Jilin AO East Bulletin said, the company invested 2 million U.S. dollars in equity VTi company, the investment target is its biological artificial liver project. The bulletin showed that bioartificial liver not only provides continuous liver support for patients with liver failure, but also gives patients enough time to restore their liver to a healthy state, and can stabilize the patient's condition until a donor liver transplant can be found. China is a country with a higher incidence of liver disease, this February, the National health Planning, issued by the 2013 national Statutory infectious disease situation shows that the incidence of viral hepatitis, the number of infectious diseases reported incidence number one, liver disease drug use annual market share growth rate of more than 20%. and liver disease hook, the biological artificial liver from this is considered to have broad market prospects, shares this project Jilin AO East by the market sought after. Several securities firms have been to Jilin AO east to give overweight, recommended and buy recommended. But this project is not because of the intervention of Jilin AO East get Good luck, in December 2011, Jilin AO East released a moratorium on additional investment announcements, before entering a number of institutions fled, triggering the price of Jilin AO East fell. Li Xin said that in recent years, China's Food and Drug Administration has been very cautious of drug approval, VTI's biological artificial liver project has not been approved in the United States, which makes China more cautious of its approval. According to Jilin East Securities Department staff, VTi's bioartificial liver in the United States completed two clinical study after the suspension of clinical research, the third phase of clinical in China completed. VTI has restarted three clinical trials in Europe and the United States because of delays in the approval of China's state Food and Drug Administration. However, the state consulting pharmaceutical industry researcher Liu Zhongdao is not optimistic about the market prospect of bioartificial liver. He said that the current treatment of liver disease is mainly drug-oriented, artificial liver market share is not large. In patients with liver disease, slowHepatitis is the predominant part of liver disease, and artificial liver has little effect on chronic hepatitis. The role of artificial liver is mainly to alleviate liver toxicity, prolong the life cycle of patients, so that patients have enough time to wait for liver transplantation, because of the high cost of treatment, the current market space is not particularly big.