In 2023, the Hong Kong Stock Exchange's 18A segment celebrated its fifth year of listing, and the fifth set of standards for the Sci-Tech Innovation Board entered its fourth year of operation. A total of 81 biotech companies have successfully gone public through this listing channel, driving the entire life sciences sector into high gear.
From September 27th to 28th, 2023, Frost & Sullivan (Frost &The Second New Investment Expo of Frost & Sullivan and the 17th Frost & Sullivan Global Growth, Innovation and Leadership Summit (referred to as 'Frost & Sullivan New Investment Conference') - the New Investment Summit on Life Sciences - were grandly held at the Shangri-La Hotel in Pudong, Shanghai. The forum was co-hosted by Frost & Sullivan and the China Biomedical Industry Chain Innovation and Transformation Alliance (CBIITA), with the theme 'New Directions for the Future: Forge Ahead'. It brought together industry leaders, life science enterprises, investment institutions and professional service providers to focus on new opportunities in life science investment and financing, and jointly discuss the capital and industrial forces that enable enterprises to navigate cycles.
The New Investment Summit Forum on Life Sciences is held atIt opened on the afternoon of September 27.
Wonderful Review·September 27
Opening Remarks
Executive Vice President and Secretary-General of the CBIITA Alliance, and Chairman of Nanjing Bio-pharmaceutical Industry Innovation and Transformation Center Professor Zheng Xiaonan
Professor Zheng Xiaonan pointed out that the biopharmaceutical industry is a strategic emerging industry related to national economy and people's livelihoods, as well as national security. It is also a strategic high point in the new round of scientific and technological revolution and regional competition. As an important platform for resource allocation, the capital market is a key driving force for industrial development and plays an important role in the entire research, development, and transformation of biopharmaceuticals. The cyclical nature of the capital market objectively exists and requires a rational view of market adjustments. In the future, capital is expected to further connect deeply with biotechnology companies to promote industry development.
Global Partner and Chairman of Frost & Sullivan Greater China Region Dr. Wang Xin
Dr. Wang Xin stated that biotechnology is closely related to people's lives, and the research, development, and transformation of biotechnology products are closely linked to maintaining health and treating diseases. Capital support for the development of the biotechnology industry is expected to benefit a wide range of people. With the establishment of the Science and Technology Innovation Board and Hong Kong stocksWith the changes in the 18A listing rules, biotechnology companies that have not yet made a profit from products on the market still have good channels to obtain financing and further invest in research and development, production, and growth. In this process, Frost & Sullivan continues to explore and promotes decision-making through data, analysis, reports, etc., further helping the development of the biotechnology industry.
Keynote Speech
Foreign Academician of the Russian Academy of Engineering, Co-founder of Puxin Biotechnology/co-Chair Academician Zhang Dan
Academician Zhang Dan pointed out, New drug research and development has characteristics such as a long cycle, high costs, and high risks. From drug discovery to drug approval for market launch, the probability is approximately only0.01%, which alone requires $650 million to $780 million during the clinical trial phase. In 2023, biopharmaceutical professionals still face many challenges. However, people's demand for health continues to increase. The establishment of big data and AI models has driven improvements in drug research and development capabilities. Social resources are still disproportionately invested in the field of biopharmaceutical and health care. International exchanges and cooperation still exist. The biotechnology industry still needs continuous innovation, further considering what constitutes an 'unmet' clinical need, and striving to meet them. The biopharmaceutical industry in China should further develop in line with international standards, build an efficient leadership team for biopharmaceuticals, integrate government and social capital to focus on the health care sector, continue to innovate, and promote the transformation of scientific research into clinical practice.
Partner and Managing Director of Frost & Sullivan Greater China Region fattening
Frost & Sullivan's latest research findings on the life sciences business, 'Morphed into a Session at the Forum', were released on-site at the forum.The 'Blue Book on the Development of the Biotechnology Industry in Hong Kong's 18A & Sci-Tech Innovation Board Markets 2023' was released and interpreted. The report was officially published by Frost & Sullivan in collaboration with TradeGo and LeadLeo, aiming to sort out the ecosystem and development pattern of the biotechnology industry in Hong Kong's 18A and Sci-Tech Innovation Board markets for the Chinese industry community. It includes a panoramic analysis of the index performance, investment and financing environment, performance in H1 2023, valuation levels, and progress in H1 2023 of related enterprises in Hong Kong's 18A & Sci-Tech Innovation Board markets, as well as biotechnology-related companies listed on the US NASDAQ. The report further provides cutting-edge insights for market participants.
President of Shanghai Biotechnology Research Institute, President of Shanghai Biomedical Association Fu Daxu
Fu Daxu stated that biomedicine is one of the fields with the highest technological content, most intensive innovation, and the most active investment in a new round of global technological transformation. Humanity's victory over diseases cannot be separated from scientific discoveries and technological innovation. To achieve high-quality development of the pharmaceutical and health industry, innovation is essential.From 2019 to 2023, the global outbreak of the COVID-19 pandemic further highlighted the importance of biomedicine, with countries around the world elevating the advancement of biotechnology and industrialization as national strategies. Since 2013, the global pharmaceutical market has grown steadily, and in the future, the main therapeutic areas of the global pharmaceutical market will still be related to oncology; the overall growth of China's pharmaceutical market tends to be stable, while biomedicine innovation shows a strong momentum. Biomedical innovation is one of the important signs that make our country an innovative nation.
Co-Head of Investment Banking Healthcare Group and Managing Director of CITIC Securities Liu Xiaolan
Liu Xiaolan pointed out, Since 2021, there have been differences in the performance of domestic and foreign capital. Biopharmaceutical companies can choose appropriate listing routes according to their needs. Currently, the A-share market has formed a multi-level capital market system catering to different types of enterprises. At the same time, the Beijing Stock Exchange has also become a new focus for global capital.
President of Frost & Sullivan Israel Dr. Dillan
Dr. Dillan said,In 2023, compared to the previous five years, the frequency of global venture capital activities showed a downward trend. It is expected that venture capital investments related to healthcare technology will rebound after hitting a low point in the second half of 2023, as interest in new technologies including orthopedic implants, precision medicine, and telehealth is increasing; mergers and acquisitions in the fields of liquid biopsy and insulin patches are also on the rise. In the future, the development of new technologies including out-of-hospital care, smaller and smarter medical devices, and medical robots is expected to gain capital favor and become new investment opportunities.
Deputy General Manager of Investment Promotion Department, Suzhou Industrial Park Bio-industry Development Co., Ltd. Sun Yuan
Sun Yuan stated that the biopharmaceutical industrial park is a manifestation of industrial agglomeration. Existing successful cases (including biopharmaceutical industrial clusters in Boston, San Diego, and other places in the United States) demonstrate that the cluster development model can greatly promote the local biopharmaceutical industry's development process. Suzhou Biopharmaceutical Industrial ParkBioBAY is a professional technology innovation carrier established by Suzhou Industrial Park for the development of the biopharmaceutical industry. Today, it has gathered 560 various biopharmaceutical innovation enterprises, forming three key industrial clusters: innovative drugs, high-end medical devices and in vitro diagnostics, and biotechnology. Integrating talent, incubators, capital cooperation, conference platforms, etc., BioBAY further explores the innovative path of agglomeration and development of the biopharmaceutical industry.
Appointment Ceremony of the Life Sciences Experts Committee
Long-term tracking by Frost & SullivanThe 'Life Sciences' track has conducted in-depth research and established a Life Sciences Expert Committee, bringing together 12 senior professionals with significant industry influence, including representatives from authoritative academic and research institutions in the field of life sciences, outstanding listed company entrepreneurs, investment institutions, and professional organizations. The committee focuses on supporting the high-quality development of the life sciences industry, innovation and creativity, jointly exploring and promoting new paths and models for industry innovation and development, and working hand in hand to provide comprehensive empowerment for the development of the life sciences industry.
The appointment ceremony of the Frost & Sullivan Life Science Experts Committee was successfully held at this forum. Dr. Wang Xin, Global Partner and Chairman of Greater China at Frost & Sullivan, and Greg, Partner at Frost & Sullivan, Global Head of Client Relationships and Senior Vice President, were present.Karelix presented appointment certificates to the expert committee members and took a group photo.
List of Life Science Experts from Frost & Sullivan
Academician of the Russian Academy of Engineering, co-founder of Jiangsu Puxin Biotechnology Academician Zhang Dan
Director of Shanghai Biomedical Science and Technology Development Center Li Jizong
Dean, Deputy Secretary of the Party Committee, and President of the Shanghai Biotechnology Research Institute, and President of the Shanghai Biomedical Association Fu Daxu
Chief Medical Officer of Rongchang Biotech, Chief Scientist of SDIC Innovation Healthcare Dr. He Ruyi
Executive Vice Chairman and Secretary-General of the China Biomedical Industry Chain Innovation and Transformation Alliance, and Chairman of the Nanjing Biomedical Industry Innovation and Transformation Center Professor Zheng Xiaonan
Meimes Law Firm, Managing Partner Geng Ke
EY Hong Kong Life Sciences & Healthcare Co-Head of the Greater China Region Fever
Global Senior Vice President of BD Medical, General Manager of Greater China Region Deng Jianmin
VP and Market Access Officer of Bristol-Myers Squibb Deng Yuexin
Deputy Director of Scientific Research and Second-level Researcher at Shanghai Institute of Immunology, Distinguished Professor at Shanghai Jiao Tong University Professor Li Bin
Binling Venture Capital Management Partner Sun Xiaolu
Co-Head of Investment Banking Healthcare Group and Managing Director of CITIC Securities Liu Xiaolan
*Rankings are not in any particular order.
Wonderful Review·September 28
Opening Remarks
Partner at Frost & Sullivan, Global Head of Client Engagement and Senior Vice President greg·kalecia
gregKaleci pointed out that in the healthcare sector of the Asia-Pacific region, the number of innovative drug research and development clinical trials has significantly increased, with China leading the way. Despite certain limitations in the development of related markets, the overall market is still thriving. The antibody conjugate drug market continues to expand and has become a hot area. The field of cell and gene therapy (CGT) has broad prospects, with both challenges and opportunities. Artificial intelligence (AI) broadens the scope of the pharmaceutical value chain and provides more application possibilities. These advancements and changes have provided new impetus for the development of life sciences and are expected to further expand the industry scale.
Keynote Speech
Assistant Vice President, Hong Kong Exchanges Sun Ming
Sun Ming said that even today, Hong Kong stocksThe reform of the IPO system has consolidated the Hong Kong Exchange's leading position in the global new share market. Since the reform of the listing system in 2018, a total of 274 new economy companies have successfully gone public, with IPO financing accounting for 65% of the total Hong Kong stock market IPO financing. Among them, the healthcare sector's share increased to third place from 2018 to 2022, accounting for 19%. Innovation shapes the ecosystem, bringing together global and Chinese capital and providing listed companies with diversified and efficient refinancing channels. In the future, the Hong Kong Exchange will further connect China with the world, capital with opportunities, and the present with the future.
Partner and Managing Director of Frost & Sullivan Greater China Region fattening
Mao Hua pointed out that the number and amount of investment and financing events in China's biomedical investment and financing primary market are as follows:In 2021 and 2020, the peak was reached. Although the number and amount of subsequent investments have decreased, in 2023, hotspots in the field are still seeing vigorous investment. Small molecule, immune cell therapy, and gene therapy have become the hottest areas for investment and financing since 2022. The total amount of investment and financing in medical devices in China soared in 2020 and reached its peak in 2021, gradually slowing down in 2023. From 2022 to September 25, 2023, the financing heat for surgical robots, cardiovascular intervention, and medical consumables ranked among the top three. The valuations in the secondary markets of inland China and Hong Kong have adjusted back, while the primary market has returned to rationality. Despite policy and market cycle changes, in the long run, the life sciences field will still be a favored area for capital.
CStone PharmaceuticalsCEO Yang Jianxin
Yang Jianxin pointed out that in recent years, the number of innovative drugs from China going global has been increasing.The number of drugs under consideration for internationalization has started to grow explosively since 2020. The number of drug candidates also climbed rapidly, increasing from 111 in 2016 to 487 in 2021; at the same time, the number of core clinical trials related to these drugs has also surpassed that of the United States, further accelerating clinical research. With China's regulatory alignment with the world and the huge potential of the overseas innovative drug market payment market, it is imperative for Chinese pharmaceutical companies to go global. However, at this stage, they still face issues such as homogenization and an immature research and development ecosystem. To break through the barriers for innovative drugs going global, they need differentiated products, profound clinical/registration capabilities, a suitable commercial model, and international talents, in order to further expand their reach overseas.
Chief Medical Officer, Beijing Zehui Chenxing Biotechnology Co., Ltd. Jia Yi
Jia Yi stated that cell drugs are considered the third pillar of modern medicine following small molecule and large molecule drugs. They possess multiple potentials and functional plasticity. Human embryonic stem cells (hESCs) are a type of pluripotent stem cell with stronger differentiation potential compared to adult stem cells. With policy supervision and support, the research and development of hESC drugs have been continuously advancing, and they can be applied to various diseases including neurodegenerative diseases, cardiovascular diseases, malignant tumors, etc., showing great market potential. Currently, due to the high production process requirements, onlyFive items have been reviewed and approved by the CDE for clinical research (as of September 2023). It is believed that with the development of human embryonic stem cell treatment technology, it will become an important component of future stem cell therapies.
Chairman of FuKang Pharmaceutical Shen Xiaokun
Shen Xiaokun pointed out,With the support of AI technology, the life science industry is also making rapid progress. Through AI technology platforms, protein structures and new indications can be predicted, leading molecule optimization can be carried out, biomarkers can be screened and resistance optimization can be done. At the same time, FIC (Fischer-Institut-Komponente) prediction and screening can also be performed, making the prediction of new drugs more comprehensive and effectively accelerating the research and development of new drugs. In practical clinical applications, the design and clinical development of highly selective PI3K inhibitors can be precisely predicted through AI technology platforms, which can improve treatment efficacy, reduce treatment adverse reactions and enhance treatment outcomes. It is believed that AI technology platforms will provide new ideas and solutions for the research and development of new biopharmaceutical drugs.
CEO and General Manager of Harmony Biosystems Jia Guodong
Jia Guodong pointed out,Between 2022 and 2023, the investment and financing in the Cell and Gene Therapy (CGT) industry not only ranked among the top in China's life sciences sector but also showed a recovery trend in overseas primary markets during the first quarter of 2023. The gene and cell therapy industry has become a hot area for investment, financing, and clinical research. Since the first CAR-T cell therapy product was approved for market launch in 2017, the cumulative sales of globally marketed CAR-T cell therapy products have reached $8.57 billion. However, overall, the CGT industry still faces many challenges in transitioning from research and development to commercialization, including: insufficient high-quality production capacity suitable for clinical applications, lack of experience in large-scale production processes, immature technology, regulatory oversight of CGT products that is still developing, frequent changes, and cost control issues. Nevertheless, challenges come with opportunities, and the CGT industry is expected to see further development in the future.
Vice President of Business Development and Strategic Innovation, BD Medical Golden Carriage
Jinjia stated that with the interaction between the global market and biotechnology, its innovation model has shifted from closed to open. Innovative ideas or concepts are no longer gradually commercialized and introduced into the market based on a single company boundary. Instead, they start being licensed externally during the development phase and also receive external technical support. Through academic exchanges and the introduction of external products, the commercialization process is further promoted, and products are pushed towards the market. In the field of innovation, domestic enterprises are more concentrated on local R&D, imitation and improvement, technology transfer, and technology introduction. Foreign-funded enterprises in China tend to introduce headquarters and have stronger commercial capabilities. In the medical device field, open cooperation may be beneficial for building an innovation ecosystem, whether in terms of R&D, production, branding, or sales.
Founder of Jingzhi FutureCEO, Doctoral Supervisor at Beijing-Tianjin-Hebei National Technology Innovation Center Dr. Wang Junqi
Dr. Wang Junqi stated that currently, blood tests are commonly used in clinical practice to characterize diseases, and the gas exhaled by the human body can also be used for diagnosis; exhaling is another method."Blood." Exhaled metabolomics can characterize related human diseases through volatile substances in exhaled gases, as well as aerosols and droplets. It is an important field of life science research. Currently, there are over 110 global clinical pipelines related to this area, mainly focusing on lung cancer, asthma, and colorectal cancer. Using AI to analyze exhaled metabolomics biomarkers is expected to further identify more specific biomarkers, thereby promoting disease diagnosis and treatment.
Founder of Beijing Shurui, Professor at Shanghai Jiao Tong University Xu Kai
Professor Xu Kai pointed out that during the transition from open surgery to laparoscopic surgery, the assistance of robots can improve the intuitiveness and precision of surgical operations, while also reducing patient trauma. By implanting wrist joints, increasing intraoperative flexibility, master-slave remote operation, intuitive operation, high-definition binocular imaging, providing somatosensory depth of field, motion mapping scaling, filtering hand tremors, and setting entry areas, laparoscopic surgical robots can effectively address clinical operational pain points.
Chief Technology Officer of Jiangsu Chuangjian Medical Technology Co., Ltd. Li Haihang
Li Haihang stated that synthetic biology involves fields such as systems biology, genetic engineering, mechanical engineering, mechatronics engineering, informatics, physics, nanotechnology, and computer simulation, etc., which have entered all aspects of human daily life. Collagen has multiple uses in regeneration and repair. However, natural or extracted collagen has various limitations. The development of recombinant collagen through synthetic biology can meet market demands and at the same time, in the field ofOver the past 30 years of research history, recombinant collagen has been applied in fields such as cartilage reconstruction, soft tissue repair, corneal transplantation, stem cell support materials, tissue engineering scaffolds, bone grafts, and more. The recombinant collagen industry has developed new products such as medical absorbable repair dressings made from recombinant collagen and recombinant type III collagen bladder repair agents. The development of this field is expected to provide new technical support for the treatment of more diseases.
Peak Dialogue
Seeking Variation within Tradition: Opportunities and Choices for the Development of Innovative Biopharmaceutical Enterprises
The New Investment Summit Forum in Life Sciences"Seeking Change within Continuity: Opportunities and Choices for the Development of Innovative Biopharmaceutical Enterprises" kicked off the first summit dialogue, discussing the survival strategies of innovative biopharmaceutical enterprises in the current situation. The summit was moderated by Guo Jing, Senior Consulting Director at Frost & Sullivan's Life Sciences Division, with guests including Fan Guohuang, Chairman of Aimeifu, Zhu Haijian, General Manager of Lipine Pharmaceutical, Sheng Jian, CEO of Shenxi Biotech, Geng Ke, Managing Partner at Meimas Law Firm, and Liu Dan, Senior Partner at VGC of Dinghui Investment, participating in the discussion. Currently, innovative biopharmaceutical enterprises need to seize new opportunities in changing circumstances, choose paths that suit their own development, and be more pragmatic and innovative in biopharmaceutical research and development, aligning with clinical needs.
If you act, you will succeed: Innovation and Cooperation in Medical Devices in China
The New Investment Summit Forum in Life Sciences"Moving Forward: Innovation and Cooperation in China's Medical Devices" kicked off the second high-level dialogue, discussing the new ecosystem of medical device innovation and cooperative development, as well as analyzing the future development path of China's medical devices. The high-level dialogue was moderated by Chen Zhenrong, consulting director of Frost & Sullivan's Life Sciences business unit, with participation from Hao Jinceng, chairman of Yudu Medical, Cai Huiming, founder of Nuoyuan Medical, Deng Xiaoyu, general manager of Suzhou Xiyi Medical Research Co., Ltd., and Lu Xuezhong, senior partner of Jintiancheng Law Firm. The development of China's medical device industry is rapid, with market growth rates far exceeding those of other countries. The industry needs further industrial upgrading, strengthening independent innovation and industry cooperation, promoting high-end research results to market and clinical practice, and jointly driving the development of the industry.
The New Investment Summit in Life Sciences successfully concluded amidst wonderful presentations and intellectual collisions. Frost & Sullivan has been tracking this area for a long time.In-depth research on the 'Life Sciences' track, publishing cutting-edge observations. In the future, we will continue to gather authoritative institutions from industry, academia, research, and capital, as well as cutting-edge scientific and technological innovation forces, to pool the wisdom of all sectors, empower the development of the life sciences industry, and add value to corporate capital operations.
More wonderful moments from forums
