Good News on Listing | Frost & Sullivan Assists Mes Health Holdings Limited to Successfully List on the Hong Kong Stock Exchange (2415.HK)

Messe Health Holdings Limited (hereinafter referred to as 'Messe Health') successfully listed on April 27, 2023. The company plans to issue 6,678.9 million H shares, of which 90% will be for international placement and 10% for public offering. The issue price per share is HK$9.10, raising a net amount of approximately HK$608 million.

During the Hong Kong listing process, 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, sponsor, and other professional intermediary institutions in completing the writing of relevant parts of the prospectus (such as the overview, competitive advantages and strategy, industry overview, business, and other important sections), facilitating communication between the issuer and the Stock Exchange and investors, helping investors quickly understand the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on industry-related issues from the Stock Exchange.

The company operates one of the largest online professional physician platforms in China;

The company's medical expertise and research support capabilities are highly recognized in the industry;

The company's digital marketing platform can generate synergies with various business lines;

The company possesses R&D capabilities to capture industry trends;

The company has a management team with rich industry experience and foresight;

The company has a strong investor base.

According to the Frost & Sullivan report, in terms of registered physician users and average monthly active users for 2021, the company:

Operates one of the largest online professional physician platforms in China;

According to the Frost & Sullivan report, in terms of the proportion of platform physician users with deputy chief physician or above titles among all physicians in China in 2021, the company:

Ranked first on the China Physician Platform;

According to the Frost & Sullivan report, in terms of business revenue for 2021, the company:

Ranked second in the digital healthcare marketing market based on physician platforms in China;

Ranked sixth in the real-world research market in China.

Medical marketing helps pharmaceutical and medical device companies promote sales by enabling healthcare professionals to understand the characteristics of medical products more deeply. It can typically be divided into traditional marketing based on medical representatives and digital medical marketing. Against the backdrop of continuous advancement in drug and medical device centralized procurement policies, enhanced innovative R&D capabilities, intensified competition among innovative drugs and medical devices, limitations on traditional marketing models under COVID-19, and rapid development of digital technology, pharmaceutical and medical device companies are constantly seeking more economical marketing solutions to accelerate the commercialization process of their products. Digital medical marketing, as an emerging marketing method, achieves precise and cost-effective marketing through multiple channels such as telephone, text messages, emails, and social media.

Therefore, the Chinese digital healthcare marketing market grew from 2.5 billion yuan in 2017 to 269 billion yuan in 2021, with a compound annual growth rate of 80.3% during this period. It is expected that by 2025 and 2030, the Chinese digital healthcare marketing market will further grow, reaching 112 billion yuan and 368.6 billion yuan respectively.

In China's digital healthcare marketing, digital healthcare marketing based on physician platforms can integrate high-quality clinical research and scientific achievements to achieve precise marketing. The market for digital healthcare marketing based on physician platforms in China grew from 2017's RMB 200 million to RMB 1.3 billion in 2021, with a compound annual growth rate of 68.1% during this period. It is estimated that the markets for digital healthcare marketing based on physician platforms will increase to RMB 148 billion and RMB 1205 billion in 2025 and 2030 respectively, with a compound annual growth rate of 82.4% from 2021 to 2025 and 52.1% from 2025 to 2030.

China's digital healthcare marketing market2017 - 2030E

Source: Frost & Sullivan report

The physician platform brings together knowledge and resources related to healthcare and life sciences, serving as a professional social network for physicians, medical institutions, pharmaceutical professionals, and life science specialists. For physicians, the platform provides foundational, advanced, and extended medical support services, including but not limited to medical exam tutoring, guidelines, consensus documents, and medical literature resources, physician communities, case discussions, surgical case and academic conference resources, clinical research tools, cutting-edge medical information exchange, and analysis of the latest academic research findings, to meet the career development needs of physicians at different stages of their careers.

Analysis of services provided by the physician platform for physicians at different career stages

Source: Frost & Sullivan report

Compared to developed countries such as Europe and America, the Chinese physician platform is still in the early stages of development. In terms of leading physician platforms in Japan and the United States for 2021, the average revenue contributed by each registered physician user to the platform was RMB 2,001 and RMB 1,021 respectively. In contrast, registered physician users on Meisheng Health and another leading Chinese physician platform contribute only a hundred yuan to the platform on average. There is tremendous potential for the future development of the Chinese physician platform, and it is expected that the average revenue contributed by Chinese registered physician users to the platform will further increase.

Real-world research refers to the collection of data related to the health of study subjects or summary data derived from such data in a real-world environment, targeting predefined clinical issues. Through analysis, it aims to obtain real-world evidence on drug use patterns and potential benefits and risks. Real-world evidence can be used to support drug development and regulatory decisions, as well as for clinical decisions not aimed at registration. Real-world research can reflect the application of pharmaceuticals and medical devices in real-world environments, assist in safety and effectiveness evaluations, expand the scope of indications for pharmaceutical and medical device products, accelerate product commercialization, and integrate real-world evidence to achieve efficient and precise marketing.

The real-world research market in China has grown from 2017's RMB 200 million to RMB 700 million in 2021, with a compound annual growth rate of 142.5% during this period. Driven by factors such as the growing patient demand, the increasing demand for medical evidence in the marketing of pharmaceutical and medical device manufacturers, and the ability of real-world research to solve problems found in randomized controlled trials, it is expected that the real-world market in China will increase to RMB 740 billion and RMB 4280 billion in 2025 and 2030, respectively. The compound annual growth rate from 2021 to 2025 is expected to be 77.3%, and from 2025 to 2030, it will be 42.1%.

China's real-world research market2017 - 2030E

Source: Frost & Sullivan report

According to a Frost & Sullivan report, ranked second in the digital healthcare marketing market based on physician platform business revenue in China for 2021.

In the healthcare platform and internet healthcare sectors, Frost & Sullivan has served healthcare platform companies such as Meisheng Health and Yimaitong, as well as internet healthcare enterprises including JD Health, Haiwang Xingchen, Yiyao.com, Kangaiduo, Dingdang Kuaoyao, Rongtai Pharmaceutical, Ping An Good Doctor, New Oxygen, Zhiyun Health, WeDoctor, Yuanxin Technology, Health Road, Rainbow Doctor, iFlytek, Jiahe Meikang, Neusoft Wanghai, Changtian XingDou, Lingkrypton Technology, Neusoft Xikang, Taima Technology, Jianhui Information, Qunxiang Technology, Magnesium Health, etc.

Frost & Sullivan, with 62 years of global consulting experience and 25 years of dedicated service to the booming Chinese market, uses a global perspective to help clients accelerate their business growth and achieve industry-leading benchmarks in terms of growth, innovation, and leadership. The healthcare industry is one of Frost & Sullivan's core areas of focus. Over the past 20-plus years, the Frost & Sullivan team has provided financing and financial advisory services, IPO industry advice, strategic consulting, management consulting, and other services to hundreds of outstanding domestic and international biopharmaceuticals, medical devices, healthcare services, and internet healthcare companies. Successful listings include: PHECR, ZJYL, YS, Meiliyuan (2373.HK), Kangfeng Biotech (6922.HK), Bo'an Biotech (6955.HK), Sididi (1244.HK), Meihao Medical (1947.HK), Gaoshi Medical (2407.HK), Leptis (2291.HK), Jianshi Technology (9877.HK), Health Yuan (JCARE.SW), Leptis Medical (LEPU.SW), Dingdang Health (9886.HK), Bio-Thera (2315.HK), Zhiyun Health (9955.HK), MeinGene (6667.HK), Prenetics (PRE.NASDAQ), Yunkang Group (2325.HK), Rike Biotech (2179.HK), Leptis Biotech (2157.HK), Clear Medical (1406.HK), Bexian An (2185.HK), Yonghe Medical (2279.HK), Kailaiying (6821.HK), Beihai Kangcheng (1228.HK), Gusheng Tang (2273.HK), Yingtong 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), CanSino (2162.HK), Chaoyujue Ophthalmology (2219.HK), Guichuang Tongqiao (2190.HK), Huihuang Medicine (0013.HK), Codelife Pharma (2171.HK), Zhaokew Pharmaceutical (6622.HK), Nature Pharmaceuticals (UPC.NASDAQ), Sino Biopharmaceuticals (6600.HK), Zhaoyan New Drugs (6127.HK), Novogene Health (6606.HK), ADAG.NASDAQ, Beikang Medical (2170.HK), Jianbimiao Miao Miao (2161.HK), Minimally Invasive Heart Center (2160.HK), Rui Li Medical Beauty (2135.HK), Jiaosisi Pharmaceutical (1167.HK), HepoB (2142.HK), JD Health (6618.HK), Deqi Pharma (6996.HK), Rongchang Biotech (9995.HK), WuXi AppTec (2126.HK), SinoBIO (2096.HK), Tencent Cloud New Energy (1952.HK), Harvest Biotech (6998.HK), Regeneron (9688.HK), Oncovision (1477.HK), Yongtai Biotech (6978.HK), Haipu Pharmaceutical (9989.HK), Kuaipo Pharmaceutical (9939.HK), Peijia Medical (9996.HK), Kangfang Biotech (9926.HK), Nuo Cheng Jian Hua (9969.HK), Tianjing Biotech (IMAB.NASDAQ), Kanglong Chemical (3759.HK), China Antibody (3681.HK), Dongyao Pharmaceutical (1875.HK), Yasheng Medicine (6855.HK), Fuhong Hanlin (2696.HK), Hansoh Pharmaceutical (3692.HK), Mabtech (2181.HK), Fangda Holdings (1521.HK), Via Bio (1873.HK), CStone Pharma (2616.HK), Junshi Biotech (1877.HK), WuXi AppTec (2359.HK), Xinda Biotech (1801.HK), Hualing Medicine (2552.HK), BeiGene (6160.HK), Gilead Sciences (1672.HK), WuXi AppTec (2269.HK), China Resources Medicine (3320.HK), Yacogen Scientific Research Pharmaceutical (2633.HK), Huihuang China Medicine (HCM.NASDAQ), Biotech (1548.HK), BBI Life Sciences (1035.HK), etc. In terms of the number of submitted projects, the Frost & Sullivan healthcare team maintains an absolute leading position in Hong Kong's healthcare IPO market, consistently ranking first in market share from 2018 to 2022.

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. These include: Kangwe Century (688426.SH), Jinqian Protein (688137.SH), Nuo Cheng Jianhua (688428.SH), Aopu Mai Biotech (688293.SH), MicroPort Neurophysiology (688351.SH), Mengke Pharmaceutical (688373.SH), Yifang Biotech (688382.SH), Jicui Yaokang (688046.SH), Haichuang Pharmaceutical (688302.SH), Rongchang Biotech (688331.SH), Rendu Biotech (688193.SH), Shouyao Holdings (688197.SH), Heyuan Biotech (688238.SH), Yaxin Security (688225.SH), Xidi Micro (688173.SH), Mawei Biotech (688062.SH), Yahong Medicine (688176.SH), BeiGene (688235.SH), Jiahe Meikang (688246.SH), Dizhe Medicine (688192.SH), Novozyme (688105.SH), Chengda Biotech (688739.SH), Geke Micro (688728.SH), Huaxi Biotech (688363.SH), Junshi Biotech (688180.SH), Zhejiang Oncology (688266.SH), BeiGene (688177.SH), Shenzhou Cells (688520.SH), etc. They are considered one of the most powerful, professional, and influential industry research institutions in the sector. We hope to work with enterprises to understand industry trends, seize development opportunities, jointly promote innovation and upgrading of China's health industry, and build a healthy future.