David Wang, chairman of BBI Life Science (01035.HK), expects the firm’s revenue from its protein- and antibody-related business to grow at least 20 percent annually in the next five years, as demand has been increasing rapidly in the mainland market.
That would translate to a nearly threefold increase from 16.16 million yuan (US$2.61 million) in 2013.
The largest supplier of synthetic DNA products in the mainland listed its shares on the Hong Kong stock exchange Tuesday.
The antibody business will be the major growth engine in its protein and antibody business unit, Wang told EJ Insight in an exclusive interview in Hong Kong this week.
“Within about five years, half of the funds for life science research may be allocated to antibody-related fields — which used to receive about only 10 percent of the funds in the past — following the completion of human DNA sequencing projects,” he said.
The domestic market would probably grow to 2 billion yuan by 2020 from about 400 million yuan at present, Wang said.
He said the slowdown of China’s overall economy is unlikely to affect funding for science research.
Antibodies are used in a wide range of life science research and biochemical techniques. They can be also used to treat cancer.
BBI Life Science provides products and services used to facilitate life science research.
DNA synthesis products contributed 91.11 million yuan, or 41.5 percent, of its revenue for 2013, while the protein- and antibody-related business accounted for 7.3 percent, according to stock exchange filings.
The firm’s businesses also involve genetic engineering services and life sciences research consumables.
The prospectus shows 27.35 percent of the proceeds from the initial public offering will be used to fund business expansion and construction of new research and production facilities for its protein and antibody business.
BBI Life Science, which has 4,000 antibodies in its database, plans to develop over 1,000 new ones every year.
Wang said the company hopes to expand into India, Japan, Australia and Russia, where related markets are not as mature as in the European countries.
It plans to set up production plants in those markets and acquire local vendors for a better sales network.
Wang said the overseas businesses are expected to report profits one year after they start operations.
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