Sino Biologics (Shanghai) Co., Ltd. (hereinafter referred to as 'Sino Biologics') successfully went public on December 15, 2022, with a global issuance of 16.35 million shares at an issue price of HK$24.98 per share, raising a net amount of HK$251 million.
During the process of listing in Hong Kong, 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), helping the issuer communicate 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.
Investment highlights
The company is a major market participant in the field of cancer treatment (especially for patients requiring long-term treatment);
The company has a multi-mechanism and highly collaborative innovative drug pipeline;
The company has successfully explored innovative tumor therapies by integrating resources, developing businesses, conducting clinical trials, and obtaining registration;
The company has comprehensive research and clinical development capabilities from drug discovery to NDA stage, as well as a good track record;
The company's management team has profound industry experience at international institutions such as the FDA and global pharmaceutical companies;
According to the Frost & Sullivan report, as of 2021, the company:
Possesses the world's first subcutaneous injection PD-L1 product;
The company's Envercept is China's first approved PD-L1 inhibitor for the treatment of previously treated MSI-H/dMMR advanced solid tumors;
The company's 3D011 is the only TKI prodrug targeting angiogenesis that is undergoing clinical development in China.
Overview of the Oncology Drug Market
Global and China cancer incidence
The incidence of cancer globally and in China has been continuously rising. In 2021, the global number of cancer cases was 1.97 million, with an estimated increase to 2.4 million by 2030. Cancer is the second leading cause of death in China, with 470,000 new cancer cases in 2021 and an estimated increase to 580,000 by 2030.
Global and China Oncology Drug Market Size
The global and Chinese market sizes for oncology drugs are expected to continue to grow significantly. The global oncology drug market size is projected to increase from $181.7 billion in 2021 to $341.1 billion in 2026 and $484.5 billion in 2030, with compound annual growth rates of 13.4%, 9.2% between 2021 and 2026, and 9.2% between 2026 and 2030. The Chinese oncology drug market size is expected to increase from $35.8 billion in 2021 to $69.5 billion in 2026, with a compound annual growth rate of 14.2%, and further to $101 billion in 2030, with a compound annual growth rate of 9.8%, both exceeding global growth rates.
Global Oncology Drug Market Size, 2017 to 2030 (estimated)
Data sources: Annual reports of listed pharmaceutical companies, China National Medical Products Administration, Center for Drug Evaluation, National Essential Medicines List, FDA, Frost & Sullivan report
PD-1/PD-L1 monoclonal antibody
PD-1/PD-L1 are immune checkpoints that have been clinically validated for tumor immunotherapy. The introduction of immune checkpoint inhibitors has brought breakthrough treatment options to several cancer indications that previously lacked effective therapies. To date, all immune checkpoint inhibitors on the market are antibodies administered via intravenous infusion.
In recent years, the clinical development strategy of PD-1/PD-L1 monoclonal antibodies has gradually shifted from monotherapy to combination therapy. According to an article published in the journal Nature in November 2018, 76.3% of global clinical trials have combined PD-1/PD-L1 monoclonal antibodies with other therapies (including immunotherapy, targeted therapy, chemotherapy, or radiotherapy). At the same time, multiple experimental results have shown that combination therapy can significantly improve the efficacy of monotherapy.
Global and China's market size of PD-1/PD-L1 inhibitors
In 2021, the global market size for PD-1/PD-L1 monoclonal antibodies was $34.4 billion, expected to reach $56.3 billion by 2026, with a compound annual growth rate of 10.4%. It is expected to decline to $47.4 billion by 2030, mainly due to the gradual expiration of patents on existing PD-1/PD-L1 inhibitors and the commercialization of biosimilars and multi-target drugs, which will lead to a decrease in average selling prices. In 2021, the market size in China was $2.3 billion, expected to reach $5.1 billion by 2026, with a compound annual growth rate of 17.2% from 2021 to 2026, far exceeding the growth rate of the global market during the same period.
Global PD-1/PD-L1 monoclonal antibody market size
2017 to 2030 (estimated)
Data sources: Annual reports of listed pharmaceutical companies, China National Medical Products Administration, Center for Drug Evaluation, National Essential Medicines List, FDA, Frost & Sullivan reports
Comparison between intravenous injection and subcutaneous injection
The company's core product, Envykizumab, is a subcutaneous injection PD-L1 inhibitor. Compared to other competing products, the company's core product is administered via subcutaneous injection rather than intravenous injection. The variety of injection methods provides the possibility of treating cancer as a chronic disease. Compared to intravenous injection, subcutaneous injection offers alternative options in terms of injection timing and appointment flexibility, and may be more suitable for patients requiring long-term treatment. The table below lists the comparison between intravenous injection and subcutaneous injection:
Sources: Int J Pharm. 2015 Jul 25;490(1-2):308-15., JA Clin Rep. 2021 Feb 27;7(1):18., Stud. Nat. Prod. Chem. 2018 Aug 14;58:161-212., Anticancer Res. 2014 Apr;34(4):1579-86., Patient Prefer Adherence. 2015; 9:923–942., The Patient, 8 (2). pp. 145-153., Expert Rev. Pharmacoecon. Outcomes Res. 2019, Br J Cancer. 2021 Apr 12; 124(8):1346–1352, Breast. 2016 Oct; 29:140-6., British Journal of Cancer. 2021 Feb;124(Suppl.2), Geburtshilfe Frauenheilkd. 2015;75:566-573, Roche's Herceptin Hylecta Phase II PrefHER Study, Roche's Public Report, Frost & Sullivan Report
MSI-H/dMMR tumor
MSI-H refers to microsatellite instability, while dMMR represents DNA mismatch repair deficiency. MSI-H/dMMR can occur when cells are unable to repair errors that occur during their division. The normal tissue DNA repair system, known as mismatch repair (MMR), can correct errors that occur during DNA replication. However, due to the lack of DNA mismatch repair or defects in the replication and repair process in tumor cells, the likelihood of gene mutations increases. Microsatellite instability is highly prevalent in various cancer types, such as endometrial cancer (25%), Lynch syndrome (16.3%), colorectal cancer (12%), and gastric cancer (9%).
Global and China's Market Size of MSI-H/dMMR Oncology Drugs
In 2021, the global market size for MSI-H/dMMR oncology drugs reached $23.26 billion, with an expected growth to $49.53 billion by 2026. The compound annual growth rate from 2021 to 2026 is 16.3%, and it will further increase to $55.565 billion by 2030. It is expected that the market size will slightly decline from 2028 to 2030, mainly due to the commercialization of biosimilars leading to a decrease in average selling prices and market saturation as treatment methods for this indication mature. In 2021, the market size for MSI-H/dMMR oncology drugs in China was $1.571 billion, with an expected growth to $5.018 billion by 2026. The compound annual growth rate from 2021 to 2026 is 26.1%, and it will further reach $6.678 billion by 2030. Pan-cancer characteristics will drive the growth of the global and Chinese markets for MSI-H/dMMR oncology drugs.
Global market size of MSI-H/dMMR solid tumor drugs
2017 to 2030 (estimated)
Data sources: Annual reports of listed pharmaceutical companies, China National Medical Products Administration, Center for Drug Evaluation, National Essential Medicines List, FDA, Frost & Sullivan report
Cholangiocarcinoma
Cholangiocarcinoma (BTC or cholangial cancer) is a rare and highly lethal malignant tumor that can form in any part of the bile ducts. In 2021, there were approximately 261,000 new cases of BTC globally, with an estimated increase to about 354,900 cases by 2030. In 2021, there were about 120,200 new cases of BTC in China, with an estimated increase to about 157,100 cases by 2030, accounting for 44.4% of the global incidence.
Global and China's BTC Medicinal Market Size
In 2021, the global market size for BTC (cholangiocarcinoma) drugs was $5.587 billion, with projections reaching $10.926 billion and $23.085 billion by 2026 and 2030 respectively. In 2021, the market size for BTC drugs in China was $2.550 billion, with projections reaching $6.199 billion and $15.342 billion by 2026 and 2030 respectively. The shortage of effective treatments and approved drugs indicates that there is huge market potential for BTC drugs globally and in China.
Global BTC market size, 2017 to 2030 (estimated)
Data sources: Annual reports of listed pharmaceutical companies, China National Medical Products Administration, Center for Drug Evaluation, National Essential Medicines List, FDA, Frost & Sullivan report
Frost & Sullivan, integrating 61 years of global consulting experience, has dedicated 24 years to serving the booming Chinese market. With a global perspective, we help clients accelerate their business growth, achieving industry-leading benchmarks in terms of growth, innovation, and technology. 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: Meihao Medical (1947.HK), Gao Shi Medical (2407.HK), Leptospiro (2291.HK), Jian Shi Technology (9877.HK), Health Yuan (JCARE.SW), Leptospiro Medical (LEPU.SW), Ding Dang Health (9886.HK), Bio-Thera (2315.HK), Zhiyun Health (9955.HK), MeinGene (6667.HK), Prenetics (PRE.NASDAQ), Yunkang Group (2325.HK), Ruike Biotech (2179.HK), Leptospiro Biotech (2157.HK), Clear Medical (1406.HK), Baxin An (2185.HK), Yonghe Medical (2279.HK), Kailai Ying (6821.HK), Beihai Kangcheng (1228.HK), Gusheng Tang (2273.HK), Ying Tong Technology (2251.HK), Clover Biotech (2197.HK), Minimally Invasive Robotics (2252.HK), Harmony Cayman (2256.HK), Kunbo Medical (2216.HK), Xianruida (6669.HK), Kangsheng Global (9960.HK), Yimaitong (2192.HK), Tengsheng Biao Yao (2137.HK), Canopy Biosciences (2162.HK), Chaoyu Eye Hospital (2219.HK), Guichuang Tongqiao (2190.HK), Huihuang Medicine (0013.HK), Kite Pharma (2171.HK), Zhaoke Ophthalmology (6622.HK), Nature Pharmacy (UPC.NASDAQ), Sain Life Sciences (6600.HK), Zhaoyan New Drugs (6127.HK), Novogene Health (6606.HK), ADAG Pharmaceuticals (ADAG.NASDAQ), Beikang Medical (2170.HK), Jianbimiao Miao Miao (2161.HK), Minimally Invasive Heart Center (2160.HK), Rui Li Medical Beauty (2135.HK), Gaoke Pharmaceutical (1167.HK), HepB Pharma (2142.HK), JD Health (6618.HK), Deqi Pharmaceutical (6996.HK), Rongchang Biotech (9995.HK), WuXi AppTec (2126.HK), Sino-BioPharma (2096.HK), Yunding New Energy (1952.HK), Jiahe Biotech (6998.HK), Zai Ding Pharmaceuticals (9688.HK), Ocular Care Biotechnology (1477.HK), Yongtai Biotech (6978.HK), Hapu Pharmaceutical (9989.HK), Kechuang 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 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), Gencell Biotechnology (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 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. These include: Kangwei Century (688426.SH), Jinqian 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), Xidi Micro (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), Zeping Pharmaceuticals (688266.SH), Biotec (688177.SH), Shenzhou Cells (688520.SH), and others, which are considered to be 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.
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