Ningbo GenScript Biotech Co., Ltd. (hereinafter referred to as 'GenScript Biotech') successfully went public on October 10, 2022, with a global issuance of 8.076 million shares at an issue price of HK$27.8 per share, raising a net amount of HK$155 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), facilitating communication between the issuer and the 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 Exchange.
Treatment of structural heart disease
Driven mainly by population aging, the prevalence of structural heart disease continues to climb in China and worldwide. Valvular heart disease is the most common type of structural heart disease. In 2021, there were approximately 2.214 billion valvular heart disease patients globally, including about 3.75 million in China.
Currently, there are three categories of clinical treatment for structural heart disease, including medication, traditional surgical procedures, and interventional therapy. In 2021, the global market size for interventional medical devices for structural heart disease reached $83.307 billion, with a compound annual growth rate of 16.9% from 2017 to 2021. It is estimated that by 2025, this number will reach $161.533 billion, with a compound annual growth rate of 18.0% from 2021 to 2025. By 2030, the market size is estimated to reach $437.468 billion, with a compound annual growth rate of 22.0% from 2025 to 2030.
The market scale of medical devices with Chinese involvement increased from RMB 4.142 billion in 2017 to RMB 20.017 billion in 2021, with an annual compound growth rate of 48.3%. The market scale will continue to rise and is estimated to reach RMB 104.700 billion by 2025 and RMB 490.622 billion by 2030, with a compound annual growth rate of 36.4% from 2025 to 2030.
The prevalence of valvular heart disease is expected to grow globally. Given the aging population, interventional treatments such as transcatheter valve therapy, combined with their minimally invasive nature, hold great market potential.
tricuspid valve
Overview of tricuspid regurgitation
Tricuspid regurgitation is caused by the inability of the tricuspid valve to close completely, leading to blood flowing back from the right ventricle into the right atrium during systole. In the long run, tricuspid regurgitation can lead to right-sided congestive heart failure, with symptoms including peripheral edema, ascites, and congestive liver disease.
Tricuspid regurgitation accounts for about 60% of all tricuspid diseases, and the prevalence of tricuspid regurgitation is related to age. The number of patients with moderate to severe tricuspid regurgitation globally increased from 4.76 million in 2017 to 5.17 million in 2021, and it is expected to increase to 6.07 million by 2030. In China, the number of patients with moderate to severe tricuspid regurgitation increased from 880,000 in 2017 to 930,000 in 2021, and it is expected to increase to 1060,000 by 2030.
Patients with tricuspid regurgitation generally have a low quality of life and a high mortality rate (about 36% of patients with severe tricuspid regurgitation die within one year after diagnosis, and about 47.8% within five years), therefore there is usually a strong demand for treatment. According to the ESC/EACTS guidelines, patients with severe symptomatic secondary tricuspid regurgitation who are not suitable for surgery are recommended to undergo transcatheter tricuspid intervention. The guidelines also emphasize the importance of early intervention in patients with severe tricuspid regurgitation to avoid irreversible right ventricular injury and organ failure.
The treatment of tricuspid regurgitation includes medical therapy, traditional surgical tricuspid intervention, and transcatheter tricuspid intervention. Transcatheter tricuspid intervention refers to the global advanced cardiovascular interventional technology that involves implanting artificial valves through a catheter pathway to treat tricuspid valve diseases.
Number of surgeries
Globally, the number of transcatheter tricuspid valve interventions continues to grow: in 2021, approximately 340 transcatheter tricuspid valve interventions were performed globally to treat moderate to severe tricuspid regurgitation. It is expected that by 2030, there will be 457,800 transcatheter tricuspid valve interventions, with an annual compound growth rate of 140.1% from 2021 to 2025 and an annual compound growth rate of 109.6% from 2025 to 2030. The following chart illustrates the history and projected growth of global transcatheter tricuspid valve interventions.
Global volume of transcatheter tricuspid intervention
2017 to 2030 (estimated)
Data source: Annual report of the company, Frost & Sullivan analysis
In the Chinese market, it is expected that approximately 600 transcatheter tricuspid valve interventions will be performed in China in 2023. By 2030, it is estimated that there will be 200,900 transcatheter tricuspid valve interventions, with a compound annual growth rate of 232.2% from 2023 to 2025 and a compound annual growth rate of 97.1% from 2025 to 2030.
Number of transcatheter tricuspid interventions in China
2017 to 2030 (estimated)
Note:
The expected market size for transcatheter tricuspid valve intervention procedures in China in 2023 is calculated based on the following items: (i) The number of cardiac pacemaker implantations and left heart valve surgeries announced in the National Cardiovascular Disease Center's annual report on cardiovascular health and diseases, as well as the prevalence of tricuspid regurgitation; and (ii) The expected commercialization of the GWG Biologics' LuX-Valve in 2023 and its potential to become the only approved transcatheter tricuspid valve replacement product in China for that year.
Source: Annual Report on Cardiovascular Health and Diseases, Literature Review, Frost & Sullivan Analysis
aortic valve
Overview of Aortic Valve Regurgitation
Aortic valve regurgitation is caused by incomplete closure of the aortic valve, leading to blood flowing back from the aorta into the left ventricle during cardiac diastole. The pathological causes of aortic valve regurgitation include valvular degeneration and enlargement of the aortic root, rheumatic fever, endocarditis, myxomatous degeneration, aortic root dissection, and connective tissue or rheumatic diseases. The aortic valve controls the flow of blood from the heart to other parts of the body. In cases of aortic valve stenosis, the valve narrows, restricting blood flow out of the heart. In cases of aortic valve regurgitation, the valve opening does not close completely, allowing blood to leak backward into the heart.
Either of the above two conditions can cause the heart muscle to pump harder, reducing the amount of blood flowing to the body and potentially leading to heart failure. Aortic valve stenosis and aortic regurgitation may occur with age (common in people over 70). However, patients with other heart conditions, such as bicuspid aortic valves (with two leaflets instead of three) and rheumatic valvular diseases, may experience aortic valve stenosis or regurgitation earlier. Common symptoms of aortic valve stenosis and regurgitation may include fainting or dizziness, weakness or chest tightness (usually associated with increased activity), palpitations (rapid, noticeable heartbeat), shortness of breath, and/or leg swelling.
The number of patients with global aortic valve regurgitation has gradually increased from 2.55 million in 2017 to 2.75 million in 2021, and it is expected to rise to 3.16 million by 2030. The number of patients with moderate to severe aortic valve regurgitation in China has increased from 370,000 in 2017 to 400,000 in 2021, and it is predicted that it will reach 460,000 by 2030.
Aortic valve stenosis is often associated with other valvular heart diseases, or to some extent confused with aortic regurgitation, causing physiological and pathological as well as clinical impacts. In 2017, the global number of patients with aortic valve stenosis was 1.9 million, which reached 2.04 million in 2021, with an annual compound growth rate of 1.8%. It is predicted that this number will reach 2.21 million and 2.39 million in 2025 and 2030 respectively, with an annual compound growth rate of 2.0% from 2021 to 2025 and 1.6% from 2025 to 2030. In 2021, the number of patients with aortic valve stenosis in China reached 450,000, with an annual compound growth rate of 2.0% from 2017 to 2021. It is estimated that this number will reach 520,000 in 2030. Approximately 75% of patients initially diagnosed with aortic valve stenosis also suffer from a certain degree of aortic regurgitation.
Number of transcatheter aortic valve replacement surgeries globally
The number of transcatheter aortic valve replacement (TAVR) cases is expected to grow at a compound annual rate of 14.9% and 12.0%, respectively, from 2021 to 2025 and from 2025 to 2030, driven by population aging, increasing acceptance of TAVR among patients, and an increase in the number of eligible hospitals and physicians. The following chart presents the history and projected growth of global TAVR cases. *
Global number of transcatheter aortic valve replacement surgeries
2017 to 2030 (estimated)
Data source: Annual report of the company, Frost & Sullivan analysis
The total number of patients eligible for treatment with each transcatheter aortic valve replacement product includes (i) those only suffering from aortic stenosis, (ii) those only suffering from aortic regurgitation, and (iii) those with both aortic regurgitation and aortic stenosis. The transcatheter aortic valve replacement product Ken-Valve developed by Transcatheter Valve Technologies (TVT) is not suitable for patients with only aortic stenosis, which accounts for 20% of the total number of eligible patients for various transcatheter aortic valve replacement products.
Number of transcatheter aortic valve replacement surgeries in China
In 2021, China performed approximately 6,630 transcatheter aortic valve replacement (TAVR) surgeries. With the increasing acceptance of TAVR, the number of eligible hospitals continues to grow, and it is expected that low- and intermediate-risk patients undergoing surgical aortic valve replacement will be included in the indications. It is projected that China will perform approximately 109,500 TAVR surgeries by 2030. The following chart lists the history and predicted growth of TAVR surgeries in China. *
Number of transcatheter aortic valve replacement surgeries in China
2017 to 2030 (estimated)
Source: National Cardiovascular Disease Center, Frost & Sullivan analysis
The total number of patients eligible for treatment with each transcatheter aortic valve replacement product includes (i) those only suffering from aortic stenosis, (ii) those only suffering from aortic regurgitation, and (iii) those with both aortic regurgitation and aortic stenosis. The transcatheter aortic valve replacement product Ken-Valve developed by Transcatheter Valve Technologies is not suitable for patients with only aortic stenosis, which account for 20% of the total number of patients eligible for treatment with various transcatheter aortic valve replacement products.
mitral valve
Overview of Mitral Regurgitation
Mitral regurgitation refers to the inability of the mitral valve to close completely, leading to blood flowing back from the left ventricle into the left atrium during ventricular contraction. The prevalence of mitral regurgitation is related to aging. Studies have shown that patients diagnosed with severe mitral regurgitation, if not treated surgically, generally have a mortality rate of 20% within one year and 50% within five years from diagnosis. The number of patients with moderate to severe mitral regurgitation globally increased from 9.35 million in 2017 to 9.99 million in 2021, and it is expected to reach 1.22 billion by 2030. In China, the number of patients with moderate to severe mitral regurgitation increased from 1 million in 2017 to 1.11 million in 2021, and is expected to reach 1.34 million by 2030.
Treatment of mitral regurgitation
The treatment methods for mitral regurgitation include medication, traditional surgical procedures, and interventional therapy. Interventional therapy is more effective than medication and safer than traditional surgical procedures. Transcatheter mitral intervention is a catheter-based method suitable for patients with moderate to severe mitral regurgitation who cannot undergo traditional surgery. Treatment options include transcatheter mitral repair and transcatheter mitral replacement (implanting a new mitral valve).
Number of global transcatheter mitral intervention cases
In 2021, a total of 28,800 transcatheter mitral interventions were performed globally to treat moderate to severe mitral regurgitation. The number of global transcatheter mitral interventions is expected to increase at a compound annual growth rate of 36.2% from 2021 to 2025, and at a compound annual growth rate of 22.5% from 2025 to 2030. The following chart lists the history and projected growth of global transcatheter mitral interventions.
Global volume of transcatheter mitral intervention
2017 to 2030 (estimated)
Data source: Annual report of the company, Frost & Sullivan analysis
Number of transcatheter mitral intervention surgeries in China
In China, the number of transcatheter mitral intervention cases for the treatment of moderate to severe mitral regurgitation is estimated to increase from about 200 cases in 2021 to 10,600 cases in 2025, with an annual compound growth rate of 173.2%. The number of transcatheter mitral intervention cases is expected to continue to rise, with an estimated 54,100 cases by 2030, and an annual compound growth rate from 2025 to 2030 of 38.6%. The following chart lists the history and projected growth of transcatheter mitral intervention cases in China.
Number of transcatheter mitral valve interventions in China
2017 to 2030 (estimated)
Source: National Cardiovascular Disease Center, Frost & Sullivan analysis
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, they help clients accelerate their business growth, achieving 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 and financial advisory services, IPO industry advice, strategic consulting, and management consulting to hundreds of outstanding domestic and international biopharmaceuticals, medical devices, healthcare services, and internet healthcare companies. Successful listings include: Health Yuan (JCARE.SW), Lepu 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), Lepu Biotech (2157.HK), Clear Medical (1406.HK), BaiXinAn (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 Cayman (2256.HK), Kunbo Medical (2216.HK), Xianruida (6669.HK), Kangsheng Global (9960.HK), Yimaitong (2192.HK), Tengsheng Bopai (2137.HK), CanSino (2162.HK), Chaoyu Ophthalmology (2219.HK), Guichuang Tongqiao (2190.HK), Huihuang Medicine (0013.HK), Koi Pharmaceutical (2171.HK), Zhaoke Ophthalmology (6622.HK), Nature Pharmacy (UPC.NASDAQ), Saiseng Pharmaceutical (6600.HK), Zhaoyan New Drugs (6127.HK), Novogene Health (6606.HK), Tianyan Pharmaceuticals (ADAG.NASDAQ), Beikang Medical (2170.HK), JianbimiaoMiao (2161.HK), Minimally Invasive XinTong (2160.HK), RuiLi Medical Beauty (2135.HK), Jiaosisi Pharmaceutical (1167.HK), HepoBayer (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), ZaiDing Pharmaceuticals (9688.HK), Ocular Biotech (1477.HK), Yongtai Biotech (6978.HK), Haipure Pharmaceutical (9989.HK), Kechuang Pharmaceutical (9939.HK), Peijia Medical (9996.HK), Kangfang Biotech (9926.HK), NuoCheng 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 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 Pharmaceutical (3320.HK), Yajie 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. These include: Nearshore Protein (688137.SH), Novogene Biologics (688428.SH), AopuMai Biotechnology (688293.SH), MicroPort Neurosurgery (688351.SH), Mengke Pharmaceutical (688373.SH), Yifang Biotechnology (688382.SH), Jicui Yaokang (688046.SH), Haichuang Pharmaceutical (688302.SH), Rongchang Biotechnology (688331.SH), Rendu Biotechnology (688193.SH), Shouyao Holdings (688197.SH), Heyuan Biotechnology (688238.SH), Yaxin Security (688225.SH), Xidiwei (688173.SH), Mawei Biotechnology (688062.SH), Yahong Medicine (688176.SH), BeiGene (688235.SH), Jiamhe Meikang (688246.SH), Dizhe Medicine (688192.SH), Novozyme (688105.SH), Chengda Biotechnology (688739.SH), Geke Micro (688728.SH), Huaxi Biotechnology (688363.SH), Junshi Biotechnology (688180.SH), Zhejiang Gene Therapy Co., Ltd. (688266.SH), BeiGene (688177.SH), and Shenzhou Cells (688520.SH). 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 healthcare industry, and build a healthy future.
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