Court documents show that Stemirna has been named in at least 55 disputes over labor, structural and service contracts, pursued through corporations in her home chain, from structural contractors to headhunters. Most of the cases were filed after October 2022, indicating that a currency crisis has occurred. It’s been taking it by storm since late last year.
Founded in 2016, Stemirna was at the forefront of China’s mRNA study industry and became one of the first companies to work on anti-Covid therapeutics. In collaboration with the Chinese Center for Disease Control and Prevention and other organizations, the company introduced animal trials for an mRNA Covid vaccine in February 2020. This type of vaccine uses a cellular messenger evolved in the laboratory to elicit human antibodies, unlike classic immunization, a weakened virus or an inactivated form of a virus.
As Covid has become a global pandemic, vaccines have become the biopharmaceutical investment, with mRNA taking center stage. In February 2020, Stemirna earned 30 million yuan ($4. 1 million) in a Series A investment from Junshi Biosciences (1877. HK; 688180. SH). In June of the same year, Tibet Rhodiola Pharmaceutical (600211. SH) pledged 351 million yuan in incremental investments to Stemirna, in exchange for securing exclusive global rights to the Covid, tuberculosis and flu vaccines in development. By December 2020, Stemirna can boast a post-investment valuation of more than one billion yuan after obtaining another 140 million yuan through a Series B investment.
Despite being an early adopter of mRNA technology, the company lacked deep expertise in the field of infectious diseases, such as in R.
Meanwhile, mRNA vaccines developed through BioNTech BNTX and Moderna MRNA have been rolled out in many parts of the world. With their peak coverage rates, they placed domestic mRNA vaccine developers in China at the top of the list when it comes to investment. In June 2021, Stemirna secured around $200 million in investments from China Merchants Health, Sequoia China, Greenwoods Investment, and Wuxi Apptec (2359. HK; 603259. SH). Neil Shen, founding partner and managing director of Sequoia China, has joined Stemirna’s board of directors. .
As the budget increased, the company accelerated launch deals even before products were approved. In January 2022, Chairman Li Hangwen said that two large-scale production plants had been established in Shanghai with a planned output of up to 400 million doses per year. , and the company is in the process of forming a sales team. In hindsight, all those advances ended up sowing the seeds of a debt crisis.
Demand for vaccines in China fell sharply after the government lifted Covid controls in late 2022, sparking a wave of infections that raised natural immunity rates across the country. Only one of the Covid vaccines produced and approved in China is mRNA: a product manufactured through CSPS Pharmaceutical Group (1093. HK). Stemirna, an early pioneer in the mRNA vaccine race, failed to cross the finish line and found herself in publicity jeopardy.
Stemirna said in July this year that the business environment in the process of conversion had forced it to suspend trial operations at its factory in Shanghai’s Zhoupu district to cut costs. Only a small portion was retained for essential on-site work. The other finished production plant has not yet been commissioned.
The Covid window of opportunity may have closed, but the company is still struggling to secure its future in the mRNA sector. In May 2023, Stemirna announced that it had secured many millions of yuan in a new budget to drive progress. of cancer and infectious disease vaccines, as well as spending on synthetic intelligence and mRNA series design. However, the company did not disclose the exact amount or the investor’s call.
Then, on Aug. 24, Stemirna announced a change in leadership, saying it would reposition itself as an mRNA progression partner for the pharmaceutical industry. The company aims to leverage its years of experience and generation of mRNA platforms for a contract production and progression organization (CDMO). ) for global spouses. In a media interview, Li said the company will also function as a contract study organization (CRO).
It wouldn’t be the first Covid vaccine company to take on a supporting role. CanSino Biologics (6185. HK; 688185. SH) announced in August that it would provide progression and production to pharmaceutical giant AstraZeneca (AZN. LON) as part of its mRNA Vaccine Program.
As the investment boom subsides, the partnership style may be offering Stemirna a fresh start if it can make the most of its credentials as an mRNA pioneer.
© 2023 Benzinga. com. Benzinga provides investment advice. All rights reserved.