Good News on Listing | Frost & Sullivan Assists QuantumPharm Inc. to Successfully List on the Hong Kong Stock Exchange (2228.HK)

QuantumPharm Inc. (referred to as 'QuantumTech') was successfully listed on June 13, 2024. QuantumTech is the first company to be successfully listed under the Hong Kong Stock Exchange's 18C Specialised Tech Companies Listing Rules since the rules came into effect on March 31, 2023. The company plans to issue 187 million shares globally at a price of HK$5.28 per share, raising approximately HK$1.043 billion in net proceeds.

During the process of listing in Hong Kong this time, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support and highlight the issuer's competitive advantages, assisting the issuer, investment banks and other intermediaries in completing the writing of relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business and other important chapters), helping the issuer complete communication with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange.

The company is a globally leading innovative R&D platform based on quantum physics, empowered by artificial intelligence, and driven by robotics;

The company took the lead in applying quantum physics-based computing, artificial intelligence, and automation technologies, along with expertise in drug research and development, to the design and discovery of drugs and new materials;

The company has established a comprehensive technical platform that closely integrates quantum physics dry laboratories with advanced wet laboratories;

The company boasts a visionary senior management team and outstanding employees with scientific expertise.

According to a report by Frost & Sullivan:

As of May 29, 2024, the company's small molecule crystal structure prediction success rate is one of the few in the world that can reach 100%;

As of December 31, 2023, the company has raised a total of $7.32 billion in the private equity market, ranking first among global AI drug R&D companies in terms of total financing;

It is expected that the market for artificial intelligence solutions in China will grow to $168.3 billion by 2030, with a compound growth rate of 37.0% starting from 2023;

It is expected that the automation market in China will grow to $114.6 billion by 2030, with a compound annual growth rate of 13.0% starting from 2023.

Artificial Intelligence (AI) is a branch of computer science aimed at enabling machines to simulate human intelligence and achieve cognitive functions related to learning, reasoning, and problem-solving. AI is mainly divided into two stages: training and inference. During the training phase, developers provide the model with a carefully selected dataset so that the model can 'learn' all the knowledge necessary about the data types to be analyzed. In the inference phase, the model can predict based on real-time data to produce actionable results. AI is now one of the fastest-growing fields in the entire scientific community and one of the most discussed topics in society. It represents a transformative foundational technology for future computing, expected to change the interactions between people, between machines, and between machines and between machines over the next few decades. In the foreseeable future, the impact of AI will continue to penetrate deeply into many other industries.

The market scale of artificial intelligence solutions in China increased from $3.5 billion in 2018 to $13.9 billion in 2022, with a CAGR of 40.8%. It is expected to further increase to $168.3 billion by 2030, with a CAGR of 37.0%, from $18.5 billion in 2023.

Source: Frost & Sullivan report

The traditional drug research and development process is costly and time-consuming. The 'Octopus Rule' that has been circulating in the industry for a long time states that it takes an average of ten years from the start of new drug research and development to product approval for market launch, with an investment cost of about one billion dollars. In particular, it generally takes about one to two years to discover a drug, requiring an investment of about four hundred million to four hundred and fifty million dollars. In addition, during the drug discovery phase, it is usually necessary to select one commercially viable drug from thousands of compounds. The total cost of a new drug research and development activity can reach 2.6 billion dollars. Currently, the application of new technologies such as artificial intelligence in the drug research and development process can significantly reduce the time and cost required for drug research and development and improve success rates, which has gradually become an industry consensus. As the application of artificial intelligence in various stages of drug research and development increases day by day, global pharmaceutical companies have established their own artificial intelligence platforms or have cooperated with AI companies for drug research and development.

Source: Frost & Sullivan report

In the field of AI drug discovery, the company is one of the few in the world that possesses both quantum physical first-principles computing, artificial intelligence technology, and automated wet experimental capabilities.

Source: Frost & Sullivan report

Solid-state research and development is crucial for evaluating the physical and chemical properties of solid materials. For example, characteristics such as bioavailability, solubility, dissolution rate, and stability are vital for the success of candidate drugs, as they affect the extent to which the drug is absorbed by the human body and how it is stored under specified conditions. The global solid-state research and development service market includes two segments: pharmaceuticals and materials science.

The global solid-state R&D service market size increased from $1.3 billion in 2018 to $2.9 billion in 2022, with a CAGR of 21.4%. It is expected to further increase to $20.9 billion by 2030, with a CAGR of 27.7%.

Source: Frost & Sullivan report

In the field of artificial intelligence applications in China, Frost & Sullivan has served companies such as SenseTime, iFlytek, Baidu Cloud PaddlePaddle, Megvii, SenseTime Healthcare, iFlytek AI, iFlytek Cloud Speech, and Yitu Technology.

Frost & Sullivan, integrating 63 years of global consulting experience, has dedicated 26 years to serving the booming Chinese market with a global perspective, helping clients accelerate their corporate growth and achieve benchmark positions in industry growth, innovation, and leadership. The healthcare industry is one of the core areas of focus for Frost & Sullivan. Over the past 20-plus years, the Frost & Sullivan team has provided financing financial advisory, IPO industry advisory, strategic consulting, management consulting, and other services to hundreds of outstanding domestic and international biopharmaceutical, medical device, healthcare services, and internet healthcare companies. Successful listings include: Yilv Sunshine (2522.HK), Shenghe Biotech (2898.HK), Quanxin Biotech (2509.HK), Meizhong Jiahe (2453.HK), WuXi AppTec (2268.HK), Anuo Medicine (NASDAQ:ANL), Neusoft Xikang (9686.HK), Youzhiyou (2496.HK), Yiming Angke (1541.HK), Corning Biotech (6990.HK), LaiKai Medicine (2105.HK), Kedil Group (2487.HK), Lvt Bio (2480.HK), Meis Health (2415.HK), PHECR, Zhongjin Medical (NASDAQ:ZJYL), Yisheng Biotech (NASDAQ:YS), Meili Tianyuan (2373.HK), Kangfeng Biotech (6922.HK), Bao'an Biotech (6955.HK), Sidi (1244.HK), Meihao Medical (1947.HK), Gao Shi Medical (2407.HK), Lepu Xin Tai (2291.HK), Jian Shi Technology (9877.HK), Health Yuan (JCARE.SW), Lepu Medical (LEPU.SW), Dingdang Health (9886.HK), BAIOSAT (2315.HK), Zhiyun Health (9955.HK), MeinGene (6667.HK), Prenetics (PRE.NASDAQ), Yunkang Group (2325.HK), Ruike Biotech (2179.HK), Lepu Biotech (2157.HK), Clear Medical (1406.HK), Baxin An (2185.HK), Yonghe Medical (2279.HK), Kailaiying (6821.HK), Beihai Kangcheng (1228.HK), Gusheng Tang (2273.HK), Yingpeng Technology (2251.HK), Clover Biotech (2197.HK), Minimally Invasive Robotics (2252.HK), Harmony Kampan (2256.HK), Kunbo Medical (2216.HK), Xianruida (6669.HK), Kangsheng Global (9960.HK), Yimai Tong (2192.HK), Tengsheng Bopai (2137.HK), Canopy (2162.HK), Chaoyu Eye Hospital (2219.HK), Guichuang Tongqiao (2190.HK), Huihuang Medicine (0013.HK), Koi Pharmaceutical (2171.HK), Zhaoke Eye Hospital (6622.HK), Nature Medicine (UPC.NASDAQ), Saiseng Pharmaceutical (6600.HK), Zhaoyan New Drug (6127.HK), Novogene Health (6606.HK), Tianyan Pharmaceutical (ADAG.NASDAQ), Beikang Medical (2170.HK), Jianbimiao Miao (2161.HK), Minimally Invasive Xin Tong (2160.HK), Rui Li Medical Beauty (2135.HK), Jiaosisi Pharmaceutical (1167.HK), HepB Pharma (2142.HK), JD Health (6618.HK), Deqi Pharmaceutical (6996.HK), Rongchang Biotech (9995.HK), WuXi AppTec (2126.HK), SinoBIO (2096.HK), Yunding Newray (1952.HK), Jiahe Biotech (6998.HK), Zai Ding Medicine (9688.HK), Ocular Biotech (1477.HK), Yongtai Biotech (6978.HK), Hapu Pharmaceutical (9989.HK), Kuaide Pharmaceutical (9939.HK), Peijia Medical (9996.HK), Kangfang Biotech (9926.HK), Nuo Cheng Jianhua (9969.HK), Tianjing Biotech (IMAB.NASDAQ), Kanglong Chemical (3759.HK), China Antibody (3681.HK), Dongyao Pharmaceutical (1875.HK), Yasheng Pharmaceutical (6855.HK), Fuhong Hanlin (2696.HK), Hansoh Pharmaceutical (3692.HK), Mabtech (2181.HK), Fangda Holdings (1521.HK), Via Biotech (1873.HK), CStone Pharmaceuticals (2616.HK), Junshi Biotech (1877.HK), WuXi AppTec (2359.HK), Xinda Biotech (1801.HK), Hualing Medicine (2552.HK), BeiGene (6160.HK), Galle Pharmaceutical (1672.HK), WuXi AppTec (2269.HK), China Resources Medicine (3320.HK), Yajichen Scientific Research Pharmaceutical (2633.HK), Huihuang China Medicine (HCM.NASDAQ), Gensent BioTech (1548.HK), BBI Life Sciences (1035.HK), etc. In terms of the number of listed projects, the Frost & Sullivan healthcare team maintains an absolute leading position in Hong Kong healthcare IPOs, consistently ranking first in market share from 2018 to 2023.

Since the listing of the first batch of companies on the Sci-tech Innovation Board in July 2019, Frost & Sullivan reports have been widely cited in the prospectuses of leading Sci-tech Innovation Board listed companies in the industry, including: Zhongyan Co., Ltd. (688716.SH), Zhejiang Rongtai (603119.SH), Optoelectronics Technology Group Co., Ltd. (688450.SH), Jinghe Integration (688249.SH), Wuxi Rilian (688531.SH), Maolai Optics (688502.SH), Kangwei Century (688426.SH), Jinchuan Protein (688137.SH), Novogene Biologics (688428.SH), Aopu Medical Biotechnology Co., Ltd. (688293.SH), Minimally Invasive Electrophysiology (688351.SH), Mengke Pharmaceutical (688373.SH), Yifang Biologics (688382.SH), Jicui Pharmaceutical (688046.SH), Haichuang Pharmaceutical (688302.SH), Rongchang Biologics (688331.SH), Rendu Biologics (688193.SH), Shouyao Holdings (688197.SH), Heyuan Biologics (688238.SH), Yaxin Security (688225.SH), Xidi Micro (688173.SH), Mawei Biologics (688062.SH), Yahong Medicine (688176.SH), BeiGene (688235.SH), Jiamhe Meikang (688246.SH), Dizhe Medicine (688192.SH), Novozyme (688105.SH), Chengda Biologics (688739.SH), Geke Micro (688728.SH), Huaxi Biologics (688363.SH), Junshi Biologics (688180.SH), Zhejiang Oncology Pharmacy (688266.SH), BeiGene (688177.SH), Shenzhou Cells (688520.SH), etc., are considered to be one of the most powerful, professional, and influential industry research institutions in the industry. We hope to work with enterprises to understand industry trends, seize development opportunities, jointly promote innovation and upgrading of China's big health industry, and build a healthy future.