Shandong Bao'an Biotechnology Co., Ltd. (hereinafter referred to as 'Bao'an Biotech') successfully listed on December 30, 2022, with the company planning to issue 1,069.48 million H shares. Among them, 1.0696 million H shares will be issued in Hong Kong, China, and 9.6252 million H shares will be issued internationally. The issue price per share is HK$19.80, raising a net amount of approximately HK$153 million.
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 sections), facilitating communication between the issuer and the Hong Kong Stock Exchange and investors, helping investors quickly understand the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange.
Investment highlights
The company is a comprehensive biopharmaceutical company;
The company has an advanced and scalable antibody drug discovery and construction platform, as well as the ability for bidirectional development of biologics and biosimilars;
The company's focused therapeutic areas have broad market space, ensuring long-term and sustainable revenue growth;
The company owns a high-end biopharmaceutical industrial production base, with production lines that meet Chinese and international GMP standards;
The company has an excellent team with rich experience spanning from scientific research to industrialization across the entire industrial chain;
The company has established its strong commercial capabilities by building a vast network of distributors and promoters.
According to a report by Frost & Sullivan,Bo'An Bio's Boyunuo®Avastin®biosimilars) and Boyuebei®(Proli®Biosimilars) were approved by the National Medical Products Administration in 2021 and 2022 respectively. Boyunuo®In about eight months of 2021, the revenue was nearly 160 million RMB. As of June 30, 2022, the revenue for the six months ended was about 220 million RMB. Avient is one of the few companies in China whose sales revenue exceeded 150 million RMB within one year after its initial launch.®One of the biosimilars.
Global/China Biopharmaceutical Market Size and Forecast
Biopharmaceuticals are pharmaceutical products produced using biological methods and sources. They can consist of complex combinations of sugars, proteins, nucleic acids, or other substances, and may also be living entities such as cells and tissues. The main types of biopharmaceuticals include antibodies, fusion proteins, ADCs, recombinant proteins, vaccines, gene therapies, and cell therapies.
The global biopharmaceutical market increased from $239.6 billion in 2017 to $338.4 billion in 2021, with a compound annual growth rate of 9.0%. It is expected that the market will further grow at a compound annual rate of 10.3% from 2021 to 2030, reaching $814.8 billion by 2030.
Data source: Annual reports of listed companies, Frost & Sullivan reports
The Chinese biopharmaceutical market increased from RMB 218.5 billion in 2017 to RMB 410 billion in 2021, with a compound annual growth rate of 17.0%. It is expected that the market will further grow at a compound annual rate of 12.7% from 2021 to 2030, reaching RMB 1,199.1 billion by 2030.
Data source: Annual reports of listed companies, Frost & Sullivan reports
Global/China Therapeutic Antibody Market Size and Forecast
The therapeutic antibody market includes monoclonal antibodies, bispecific antibodies, and ADC drugs.
The global therapeutic antibody market increased from $128.1 billion in 2017 to $205.4 billion in 2021, with a compound annual growth rate of 12.5%. It is expected that the market will continue to grow at a compound annual rate of 8.9% from 2021 to 2030, reaching $443.1 billion by 2030.
Data source: Annual reports of listed companies, Frost & Sullivan reports
The therapeutic antibody market in China increased from RMB 118 billion in 2017 to RMB 585 billion in 2021, with a compound annual growth rate of 49.2%. It is expected that the market will further grow at a compound annual rate of 26.5% from 2021 to 2030, reaching RMB 484 billion by 2030.
Data source: Annual reports of listed companies, Frost & Sullivan reports
Market Scale and Forecast of Bevacizumab in China
Bevacizumab is a monoclonal antibody that can inhibit vascular endothelial growth factor. By producing anti-angiogenic effects on the blood vessels around tumors, it is used to suppress tumor growth and shrink tumors.
The market scale of bevacizumab in China increased from RMB 1.7 billion in 2017 to RMB 9 billion in 2021, with a compound annual growth rate of 51.4%. It is expected to increase to RMB 184 billion by 2030, with a compound annual growth rate of 8.3% from 2021 to 2030.
Data source: Annual reports of listed companies, Frost & Sullivan reports
Boyouno®Avastin®Biologics, after their initial approval in 2021, have been successively approved in China for the treatment of metastatic colorectal cancer, advanced metastatic or recurrent non-small cell lung cancer, recurrent glioblastoma, epithelial ovarian cancer, fallopian tube cancer or primary peritoneal cancer, and cervical cancer. Lung cancer and colorectal cancer are two of the cancers with the highest prevalence and mortality rates in both China and globally.
Bo'An Bio's independently developed Boyunuo®It is the third Avastin approved for marketing in China.®biosimilar. In May 2021, Bioan Biotech announced the launch of Boyunuo®An agreement (March 2022, revised supplementary agreement) was signed with AstraZeneca China, granting AstraZeneca China exclusive promotion rights in multiple provinces, municipalities, and autonomous regions across the Chinese mainland. The competitive landscape of bevacizumab in China has been approved as follows:
Source: National Medical Products Administration, Frost & Sullivan report
The market scale and forecast of trastuzumab deruxomab in China
(Proli®and its biosimilars)
Desevelimab is a fully human monoclonal antibody that can bind to RANKL, preventing RANKL from activating its receptor RANK on the surface of osteoclasts. Amgen Biologics' Proli®For original research drug.
China Proli®The market sales revenue of Desevelimab, its biosimilar, increased from RMB 210 million in 2021 to an expected RMB 7.82 billion by 2030, with a compound annual growth rate of 49.5% from 2021 to 2030.
Data source: Annual reports of listed companies, Frost & Sullivan reports
Bo'an Biology's Boyoubei®(Proli®The biosimilar (Proli) was approved by the National Medical Products Administration in November 2022 for postmenopausal women at high risk of fracture due to osteoporosis. Proli has been approved globally and in China.®The competitive landscape of dalsartan and its biosimilar is shown in the following table:
Source: US Food and Drug Administration, European Medicines Agency, National Medical Products Administration, Frost & Sullivan report
In the biopharmaceutical sector, Frost & Sullivan has served companies in various sub-sectors such as innovative antibody drug research and development, tumor immunotherapy research and development, and biosimilars.
Data source: Frost & Sullivan
Frost & Sullivan, integrating 61 years of global consulting experience, has been serving the booming Chinese market with dedication for 24 years. With a global perspective, we help clients accelerate their business growth and achieve benchmark positions in industry growth, innovation, and leadership. The healthcare industry is one of Frost & Sullivan's core research areas. 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: IDEC (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), Ding Dang Health (9886.HK), Bai'ao Saitu (2315.HK), Zhiyun Health (9955.HK), Mein Genes (6667.HK), Prenetics (PRE.NASDAQ), Yunkang Group (2325.HK), Ruike Biotech (2179.HK), Lepu Biotech (2157.HK), Clear Medical (1406.HK), Bai Xin An (2185.HK), Yonghe Medical (2279.HK), Kailai Ying (6821.HK), Beihai Kangcheng (1228.HK), Gusheng Tang (2273.HK), Yingpeng Technology (2251.HK), Clover Biotech (2197.HK), Minimally Invasive Robotics (2252.HK), He Yukan (2256.HK), Kunbo Medical (2216.HK), Xianruida (6669.HK), Kang Sheng Global (9960.HK), Yimai Tong (2192.HK), Tengsheng Bopharm (2137.HK), CanSino (2162.HK), Chaopu Ophthalmology (2219.HK), Guichuang Tongqiao (2190.HK), Huihuang Medicine (0013.HK), Koi Pharmaceutical (2171.HK), Zhaoke Ophthalmology (6622.HK), Nature Pharmaceuticals (UPC.NASDAQ), Saiseng Pharmaceutical (6600.HK), Zhaoyan New Drugs (6127.HK), Novogene Health (6606.HK), Tianyan Pharmaceuticals (ADAG.NASDAQ), Beikang Medical (2170.HK), Jian Bimiao Miao Miao (2161.HK), Minimally Invasive Xin Tong (2160.HK), Rui Li Medical Beauty (2135.HK), Jiaosisi Pharmaceutical (1167.HK), Hepo Pharma (2142.HK), JD Health (6618.HK), Deqi Pharmaceutical (6996.HK), Rongchang Biotech (9995.HK), WuXi AppTec (2126.HK), Xian Sheng Pharmaceutical (2096.HK), Yunding Newray (1952.HK), Jiahe Biotech (6998.HK), Zai Ding Pharmaceutical (9688.HK), Ocular Biotech (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), Tian Jing 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 Pharmaceuticals (2181.HK), Fangda Holdings (1521.HK), Via Biotech (1873.HK), CStone Pharmaceuticals (2616.HK), Junshi Biosciences (1877.HK), WuXi AppTec (2359.HK), Innovent Biologics (1801.HK), Hualing Medicine (2552.HK), BeiGene (6160.HK), Gilead Sciences (1672.HK), WuXi AppTec (2269.HK), China Resources Medicine (3320.HK), Yakuten Scientific Research Pharmaceutical (2633.HK), Huihuang China Medicine (HCM.NASDAQ), Biotechnology (1548.HK), BBI Life Sciences (1035.HK), etc. In terms of the number of filings, 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 2021.
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: Kangwei Century (688426.SH), Jinnan Protein (688137.SH), Nuo Cheng Jianhua (688428.SH), Aopu Mai Biotech (688293.SH), MicroPort Electrophysiology (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), Xidiwei (688173.SH), Mawei Biotech (688062.SH), Yahong Medicine (688176.SH), BeiGene (688235.SH), Jiahe Meikang (688246.SH), Dizhe Medicine (688192.SH), Novogene (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., which 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 healthcare industry, and build a healthy future.
Recommended Reading
01. Frost & Sullivan assists Ideasight in successfully going public in Hong Kong (1244.HK)
12. Frost & Sullivan assists Prenetics in successfully going public in the US (NASDAQ: PRE)
13. Frost & Sullivan assists YunKang Group in successfully going public in Hong Kong (2325.HK)
Frost & Sullivan helps Clover Biotech successfully list on the Hong Kong Stock Exchange (2197.HK)
36. Frost & Sullivan assists Nature's Way Pharmaceuticals in successfully going public on the NASDAQ:UPC)
54. Frost & Sullivan assists Zai Lab to successfully list on the Hong Kong Stock Exchange (9688.HK)
62. Frost & Sullivan assists Tianjing Biology in successfully going public in the US (NASDAQ: IMAB)
