At least 9 synthetic biology concept stocks rose more than 20% in May. What is their condition

Blue Bio stated that the production of synthetic biology products involves separation, purification and other production processes, and the purification process is difficult. The company currently does not have this process and needs further development.

Recently, the concept stocks of synthetic biology have risen rapidly and continue to be subject to market speculation. Taking A-shares as an example, at least 9 concept stocks have seen a stock price increase of over 20% since May when they were reinstated.

Synthetic biology is a new interdisciplinary field that combines biology, genomics, engineering, and informatics. By rewriting the functional codes of organisms, it designs organisms with new functions to achieve specific purposes. According to CB Insights analysis data, it is expected that the global synthetic biology market will maintain a high annual compound growth rate of 28% from 2020 to 2025, and exceed 30 billion US dollars by 2026, with food and beverage, agriculture, and consumer goods growing rapidly.

The synthetic biology industry chain is divided into upstream, midstream, and downstream, with the upstream focusing on technology development, mainly including DNA sequencing, gene editing, modeling, etc; The midstream mainly involves technical platforms for designing and transforming biological systems and organisms; Downstream involves the application development and product landing of synthetic organisms in various fields such as clothing, food, housing, and transportation.

In the A-share market, those whose stock prices have increased by more than 20% since May include concept stocks such as Qicai Chemical (300758. SZ), United Chemical (301209. SZ), Tailin Biotech (300813. SZ), Ulan Biotech (603739. SH), Xinghu Technology (600866. SH), Fujilai (301258. SZ), Baolidi (300905. SZ), Chuanning Biotech (301301. SZ), and Ruifeng High tech (300243. SZ). How are these concept stocks positioned in the field of synthetic biology?

As of now, some companies have responded.

In a statement released on the evening of May 9th, NIO Biotech stated that its main business is the research and development, production, and sales of enzyme preparations, probiotics, and animal health products. In 2023, the company’s enzyme preparation revenue was 441 million yuan, accounting for 37.49% of its main business revenue; The revenue from micro ecological products is 237 million yuan, accounting for 20.14% of the main business revenue; The revenue from animal health products is 297 million yuan, accounting for 25.24% of the main business revenue; The revenue from other products is 202 million yuan, accounting for 17.12% of the main business revenue.

Blue Bio stated that the company has only established one synthetic biotechnology innovation laboratory in the field of synthetic biology, mainly used for the research and development of functional proteins for feed and sweeteners for food. However, the laboratory has a limited reserve of research and development projects, a small investment amount, and limited professional personnel allocation. Currently, it is still in the early stage of strain laboratory research and development, and there is still a significant gap from scaling up, and it does not have the conditions for industrialization.

“The production of synthetic biology products involves separation, purification, and other production processes, and the purification process is difficult. The company currently does not have this process and needs further development. At the same time, the product may also involve registration and regulatory approval, product selection, and market promotion in the future, with a long cycle and high difficulty, and there is significant uncertainty in commercialization. It is expected that it will not have a significant impact on the company’s operations in the long term. In addition, the company does not involve research and development investment in other synthetic biology fields.” said Blue Bio.

Since May, the stock price of NIO Biotech has been rising steadily, pulling out four limit up boards at one point. After the resumption of rights, the cumulative increase in stock price has also reached 47%, ranking among the top in the sector.

Tai Lin Biotechnology stated on the investor relations interaction platform that the company is in the pharmaceutical equipment industry, focusing on the big life and health industry. The company’s microbial detection technology product series, sterile production and pollution control equipment series, and other products can be applied in fields such as biomedicine, medical health, food and beverage, environmental monitoring, etc. The company’s customers also include enterprises engaged in synthetic biology research and production. They have purchased the company’s products for research and development or production processes, but the company currently has no direct planning and layout in the field of synthetic biology.

Since May, the stock price of Tailin Biotechnology has risen by more than 40% after its rights were restored.

Fujilai stated in the announcement that the company has noticed that some self media, stock bars, and other platforms are discussing the company’s business related to synthetic biology and related hot concepts. Biological enzyme catalysis is a development trend for the preparation of R-lipoic acid. The company has achieved mass production of R-lipoic acid produced by biological enzyme catalysis, mainly used for external sales and the preparation of R-lipoic acid sodium salt. Currently, it is still in the market promotion stage, and whether it can completely replace the original process depends on various factors such as market demand and customer acceptance. In 2023, the company’s revenue from this type of business accounted for no more than 3% of the company’s operating revenue, which is relatively small, and there is currently no clear expansion plan.

Baolidi clearly stated on the investor interaction platform that the company has not yet been involved in the field of synthetic biotechnology.

At the investor exchange meeting in April, Chuanning Biotechnology stated that based on the revenue generated in the first quarter of 2024, the company’s synthetic biology products have already generated some revenue. However, there will be a production capacity ramp up period in the synthetic biology production base in 2024. The company will actively expand the synthetic biology product market, accelerate the pace of the company’s synthetic biology products entering the international market, and actively promote the release of production capacity in the synthetic biology production base, continuously increasing the proportion of synthetic biology product revenue.

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