Breaking：Chinese Company Assisting Chinese People's Liberation Army Developing Covid19 is to be Listed on Shanghai Exchange.

 

As indicated in the Lude Media's program and other public records, Shanghai Model Organisms Center, Inc (SMOC or 上海南方模式生物科技股份有限公司), an animal model research and development base of Eight Six Three Plan of the Chinese Ministry of Science and Technology, has obtained stock code 688265 from Shanghai Securities Exchange and is to publicly issue 19.4909 million shares on 17 December 2021, accounting for 25% of the total share capital after the issuance. The preliminary price inquiry date is 14 December 2021. The purchase date is 17 December 2021, and the settlement date is 21 December 2021.  

Another company GemPharmatech Co., Ltd or 江苏集萃药康生物科技股份有限公司 (sometimes referred as "Jiangsu Jicui Yaokang Biotechnology Co., Ltd."), said to have assisted Chinese People's Liberation Army developing Covid19, is also to be listed on Shanghai Exchange.

On the website of International Mouse Strain Resource website, the two Chinese companies capable of producing humanized mice were found

GemPharmatech Co., Ltd cooperates closely with Nanjing University. It is also a cooperative unit of the The National Resource Center for Mutant Mice of China and China's largest genetically engineered mouse resource bank, Model Animal Research Center of Nanjing University.

In particular, GemPharmatech Co., Ltd has released ACE2 related experimental data on 29 Jan 2020.

The founder is Xiang Gao who defected and returned to China after stealing technology and is also the core point of this mission.

Clients of SMOC included the Second Military Medical University in 2014 and 2015, and the Naval Military Medical University in 2017.

From 2018 to 2020, client included the Chinese Academy of Sciences and its affiliated research institutions. Chinese Academy of Sciences and its affiliated research institutions include Wuhan Institute of Virology and Shanghai Institute of Biological Sciences of the Chinese Academy of Sciences. The Shanghai Pasteur Institute belongs to the Shanghai Academy of Biological Sciences of the Chinese Academy of Sciences. 

A gene knock-in revenue of 80,000 yuan from the Air Force Military Medical University was recognized in January 2019. Although it was delivered in December 2018, due to the 30-day objection period, revenue was recognized in January 2019. The revenue of humanized mice delivered to the Military Medical Academy on 23 December 2018 of 71,500 yuan, due to the objection period 15 days, was recognized on 6 January 2019. Clients also include the People's Liberation Army 62036 Troop, armed police, etc.

Part of the transaction records (indirect evidence) between SMOC and 62036 Troop of the PLA, other military universities or hospitals. The above records have been signed and sealed by the record producer and the unit.

Recognition of revenue means that the revenue has occurred and is related to this humanized mouse production company. The amount can be reliably measured and confirmed at an appropriate time. At the same time, the revenue comes from the main business activities of the accounting entity, not from stock trading, bond trading, government subsidies and disposal of assets.

It also means that in sales activities with customers, SMOC selling humanized mice is not an agent. Agencies can only recognize agency service revenue, and the agency does not have to bear the risks related to customer defaults on accounts and inventory, and at the same time the company is not in the role of custodian and transporter. Custodian and transporter only recognize revenue arising from storage and transportation fees.

Business types: customized models, standardized models, model breeding and breeding services. Customized model products provide customers with target gene information and strategy suggestions, complete the strategy design and model construction according to the individual needs of customers, and provide to customers genetically modified animal models that can be inherited stably.

Model breeding flow chart (take genetically modified mouse assisted reproduction breeding as an example).

Process flow of genetically modified animal model products

Based on random genetically modified model construction process, there are also quality inspection procedures

Model breeding business refers to the use of genetically modified animal models developed and produced or existing genetically modified animal models provided by customers, through natural breeding methods or assisted reproduction breeding methods, to deliver specific genotype model products to customers in a specific cycle.

The Order Production Department is responsible for order production and batch supply of genetically engineered mice, strain establishment and background purification, and reproduction and provision of commonly used animals. The Molecular and Biochemical Research Department is responsible for mouse genotype PCR identification, mouse RNA expression profile analysis, virus and microbial PCR identification, Western Blot, protein interaction analysis, protein nucleic acid interaction analysis, protein expression and small quantity preparation.

It said in its published documents that when delivering animal models, it firstly performs genotype identification and microbial testing on related models, and obtains a gene sequencing report to confirm that the animal model meets the customer's requirements, and delivers the identification method, sequencing results, conclusion report, and animal model to the customer together. After receiving the animal model, the customer issues a receipt to the company. During the objection period, the customer generally needs to further verify the animal model, and issue a confirmation sheet if the animal model is qualified.

The company applied for patents, and the patents are known to the public. Applied patents: a rapid construction method and application of ACE2 humanized mouse model, construction method and application of humanized CD40 genetically modified animal model, etc. Is ACE2 familiar?  Li-Meng Yan mentioned it in her first report. 

Public information shows that what the company purchases are mainly laboratory mice, reagents and consumables, comprehensive animal management services, sequencing, etc. The main suppliers are the Chinese Academy of Sciences and its affiliates, Shanghai Baisai Biotechnology Co., Ltd., Beijing Weitong Lihua Laboratory Animal Technology Co., Ltd., Shanghai Laboratory Animal Research Center, etc.

The company is located in Building 2, No. 1438 Jinliu Road, Tinglin Town, Jinshan District, Shanghai. The land use area is 41,155 square meters. But the prospectus is written in cubic meters of volume. It possesses laboratory animal production license, AAALAC certification, pathogenic microorganism laboratory record, OLAW certification and other certificates.

In 2019, it received a government grant of 300,000 yuan for the research of new humanized mouse products, and in 2020 it received a government grant of 400,000 yuan for a new homologous genetically modified mouse model. The largest government grant is Shanghai Zhangjiang Park Administration (2016) 085 Document No. 2016 which gave 20 million yuan for the capacity improvement construction project of Shanghai's model biotechnology public service platform. In 2016, there was another subsidy of 1.22 million for the model biotechnology professional technical service platform.

SMOC's subsidiaries include Shanghai Toshi Property Management Co., Ltd., Shanghai Toshi Biotechnology Co., Ltd., and Guangdong Nanmo Biotechnology Co., Ltd., all of which are 100% holdings.

SMOC leased 5,683.76㎡ in 2 buildings at No.178 Banxia Road, Pudong New District, Shanghai on 21 August 2015, and 329㎡ in 3 buildings at No.178 Banxia Road on 21 February 2017. The 2020 version of the prospectus also listed rooms 401, 403, 405, 406, 410, 412, 414, 415, 416, 417, and 419 of Building 6, Lane 898, Harley Road, leased from 1 July 2018.

IPO prospectus signed and stamped by accountants, lawyers, and management in 2020:  Shuping Gu, deputy manager of SMOC’s biological science and technology research department, used to do research in American universities for a long time. He was a physician at the Naval Hospital and the Fourth Military Medical University of Chinese PLA. She has a book Mouse Developmental Biology and Embryo Experimental Methods. The application areas of gene modification are shown in the attached drawings.  

It has accumulated more than 5,000 customized models for customers. Severe immunodeficiency mice are more suitable as carriers for xenogeneic cell transplantation. Atg5 gene is a key protein in the process of autophagy. This model mouse can be used to specifically knock out Atg5 gene in specific tissues or cells.

The production license and use license of Laboratory Animals obtained by the SMOC were effective from 31 August  2017. Broad, the patent agency of Massachusetts Institute of Technology and Harvard, began to license gene editing technology (including a series of patents related to CRISPR/Cas9 technology) for use by SMOC on 12 November 2018. The earliest trademark right has been effective from 28 May 2015, and the domain name has been effective in 2012.