Summary of Conference Call on Biopharmaceutical Company Company and Industry Overview - **Company**: Biopharmaceutical Company (生物股份) - **Industry**: Animal Vaccines, specifically focusing on African Swine Fever (ASF) vaccines Key Points and Arguments Clinical Progress and Results - The clinical progress of the ASF subunit vaccine is on track, achieving a 100% protection rate in the first round of challenge tests, exceeding the Ministry's standard of 80% [2][4] - A second challenge test is scheduled for April 12, 2026, with results expected in early May 2026. If successful, the company could receive a temporary production license by Q3 2026 [4][11] Competitive Advantages - Biopharmaceutical Company is the only GCP (Good Clinical Practice) contractor for the ASF vaccine, providing a competitive edge with a validated process and a potential market exclusivity of 1 to 1.5 years [2][6] - The company has invested nearly 600 million yuan in the project, including 200 million yuan for a P3 laboratory and another 200 million yuan for the production line, establishing high entry barriers in the industry [2][7] Production Capacity and Pricing - The company has established a production line capable of producing 300 million doses annually, with an expected price of around 25 yuan per dose and a target market penetration of 20%-30% [2][5] Technical Coverage and Efficacy - The subunit vaccine is effective against both type I and type II ASF strains, with a reserve of mRNA vaccine technology soon to be submitted for approval [2][8] - The challenge dose for the vaccine was set at 8,000 HAD, and the vaccine has shown effectiveness against the majority of circulating strains [8] Market Dynamics and Future Outlook - The ASF vaccine market may face competition in the future, but any new entrants are expected to emerge in two to three years. The market will likely be shared among a few companies, with a stable demand from China's 700 million pigs [9][10] - Even if prices decrease due to competition, the company anticipates maintaining profit margins through economies of scale as production volumes increase [10] Customer Engagement and Market Acceptance - The company is engaging with both large-scale farms and smallholders, with notable interest from major players like Zhengda Group. The involvement of significant shareholders indicates strong market demand for the vaccine [10] Upcoming Milestones - Key upcoming milestones include the second challenge test on March 12, 2026, with results expected in May 2026. Following successful results, the company anticipates receiving a temporary production license by Q3 2026 [11]

Core Viewpoint - The company is strategically acquiring Jilin Youben to enhance its capabilities in African swine fever vaccine research and production, aiming to increase market share and core competitiveness in the animal vaccine sector [1]. Group 1: Acquisition and Strategic Goals - The acquisition of Jilin Youben is aimed at improving the speed of research and production transformation for African swine fever vaccines [1]. - The company plans to expand its market share in the animal vaccine field through this acquisition [1]. Group 2: Compliance and Safety Upgrades - Jilin Youben and Jinhe Youben have upgraded their facilities to meet the safety requirements for vaccine production and testing, achieving biosafety level three compliance by specific dates in 2025 [1]. - By the end of Q3 2025, the company will have met all necessary qualifications for conducting clinical trials for the African swine fever vaccine [1]. Group 3: Challenges in Vaccine Development - Jilin Youben is facing challenges in finalizing a technology licensing contract with the patent transferor, which is crucial for the production and testing of the African swine fever vaccine [2]. - The company has recognized the high technical difficulty and lengthy regulatory approval process associated with African swine fever vaccine development, leading to uncertainties in project timelines and performance [2]. - As a result of these challenges, the company has decided to suspend the research and application of the freeze-dried inactivated African swine fever vaccine [2].

Group 1 - The first African swine fever subunit vaccine in China has been approved for clinical trials [1] - The approval was granted to China National Pharmaceutical Group Animal Health Co., Ltd. (referred to as "China National Animal Health") [1] - This marks a significant advancement in the research and development of African swine fever vaccines by China National Animal Health [1]