MeinGene Biotech Co., Ltd. (hereinafter referred to as 'MeinGene') was successfully listed on June 22, 2022, with an issue volume of 11,961,800 shares and a selling price of HK$22.00 per share.
During the Hong Kong listing process, Frost & Sullivan mainly undertook the following tasks: helping the company accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the company's competitive advantages, assisting the company, investment banks, and other intermediaries in completing the relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business, and other important sections), facilitating communication with the Hong Kong Stock Exchange and investors, helping investors quickly understand the market ecosystem and competitive landscape, and assisting the company in completing feedback on various industry-related issues from the Hong Kong Stock Exchange.
China's genetic testing market
The market scale of genetic testing in China reached 151 billion yuan in 2020, with a compound annual growth rate of 20.3% from 2016 to 2020. The market scale of genetic testing in China is expected to further increase to 487 billion yuan by 2025, with a compound annual growth rate of 26.4% from 2020 to 2025, and to reach 1536 billion yuan by 2030, with a compound annual growth rate of 25.8% from 2025 to 2030.
Past and Forecasted Market Size of China's Gene Detection Industry
2016-2030E
Note: Does not include novel coronavirus testing.
Source: Frost & Sullivan report
Consumer-grade genetic testing market
The market size of consumer-grade genetic testing in China reached $68.5 million in 2020, with a compound annual growth rate of 31.0% from 2016 to 2020. The market size of consumer-grade genetic testing in China is expected to increase to $4.451 billion by 2025, with a compound annual growth rate of 45.4% from 2020 to 2025, and further to $26 billion by 2030, with a compound annual growth rate of 42.4% from 2025 to 2030, exceeding the growth rate of the US market.
Past and forecasted market scale of the consumer gene testing market in China
2016 - 2030E
Source: Frost & Sullivan report
Cancer screening market
Cancer remains a major cause of death globally, and its medical needs are far from being met. In 2020, China had the highest number of new cancer cases in the world. In 2020, China had 4.6 million new cancer cases, and it is estimated that the incidence of cancer will reach 5.2 million cases by 2025 and 5.8 million cases by 2030. In 2020, there were 2.7 million cancer deaths in China, and it is expected that the national cancer death statistics will increase to 3.1 million cases by 2025 and 3.5 million cases by 2030. The top five cancers in the Chinese cancer screening market include gastric cancer, colorectal cancer, lung cancer, breast cancer, and liver cancer; in 2020, the comprehensive cancer screening market size for these five types of cancer was RMB 8.8 billion.
Colorectal cancer screening
In 2020, the incidence of colorectal cancer ranked third in both China and globally. In China, 453,400 new cases were reported and 218,200 deaths occurred in 2020. In recent years, due to various environmental factors such as lifestyle and poor dietary habits, the incidence of colorectal cancer in China has been on the rise. Although the mortality rate of colorectal cancer is relatively high, the medical community widely believes that if detected early, it is one of the cancers most likely to be cured and prevented. This is because compared with other types of cancer, colorectal cancer progresses more slowly and has a clear precancerous stage, providing a time window for effective colorectal cancer screening and early intervention.
According to Frost & Sullivan's data, in China, if colorectal cancer can be diagnosed at the stage where it is still confined to its origin, the 5-year relative survival rate is 90.1%. Therefore, screening and identification of colorectal cancer have profound clinical significance and economic value, especially for asymptomatic patients. Considering the dietary habits of the general population in China and the relatively low average age of colorectal cancer patients, the Chinese Anti-Cancer Association recommends that people aged between 40 and 74 years old (especially urban residents) receive routine colorectal cancer screening. The number of people recommended in China to undergo regular colorectal cancer screening has increased from 6.023 million in 2016 to 6.464 million in 2020, and is expected to further increase to 7.62 million by 2030.
The market scale of colorectal cancer screening in China increased from RMB 2.6 billion in 2016 to RMB 3.3 billion in 2020, with a compound annual growth rate of 6.4% from 2016 to 2020. It is expected that this will further increase to RMB 76 billion by 2025, with a compound annual growth rate of 18.4% from 2020 to 2025. From 2025 to 2030, the market scale is expected to grow to RMB 188 billion by 2030, with a compound annual growth rate of 19.7% from 2025 to 2030. The compound annual growth rate of the colorectal cancer screening market in China is expected to increase from 2020 to 2025 and maintain a relatively high level, mainly due to population aging, enhanced health management awareness, increased availability of genetic testing, and continuous government support.
Past and forecasted market size of colorectal cancer screening in China
2016 - 2030E
Note: The colorectal cancer screening market is calculated based on the revenue from IVD products used for cancer screening at ex-factory prices only.
Source: Frost & Sullivan report
Frost & Sullivan, with a global consulting experience spanning 61 years and dedicated service to the booming Chinese market for 24 years, uses a global perspective to help clients accelerate their business growth, achieving benchmark positions in industry growth, innovation, and leadership. The healthcare industry is one of Frost & Sullivan's core areas of focus. Over the past seventeen years, the Frost & Sullivan healthcare 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: Prenetics (NASDAQ: PRE), Yunkang Group (2325.HK), Ruike Biotech (2179.HK), Leop Bio (2157.HK), Clear Medical (1406.HK), Bexin 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 Cayman (2256.HK), Kunbo Medical (2216.HK), Xianruida (6669.HK), Kangsheng Global (9960.HK), Yimaitong (2192.HK), Tengsheng Bopharm (2137.HK), CanSino (2162.HK), Chaopu Ophthalmology (2219.HK), Guichuang Tongqiao (2190.HK), Hua Huang Medicine (0013.HK), Koi Pharmaceutical (2171.HK), Zhaoke Ophthalmology (6622.HK), Nature Pharmacy (UPC.NASDAQ), Sainfo Pharmaceuticals (6600.HK), Zhaoyan New Drugs (6127.HK), Novogene Health (6606.HK), ADAG.NASDAQ, Beikang Medical (2170.HK), Jianbimiao Miao (2161.HK), Minimally Invasive Heart Link (2160.HK), Rui Li Medical Beauty (2135.HK), Gaoke Pharmaceutical (1167.HK), HepB Biopharmaceuticals (2142.HK), JD Health (6618.HK), Deqi Pharma (6996.HK), Rongchang Biotech (9995.HK), WuXi AppTec (2126.HK), SonoPharmaceuticals (2096.HK), Yunding New Energy (1952.HK), Jiahe Biotech (6998.HK), Zai Ding Pharma (9688.HK), Ocular Biotechnology (1477.HK), Yongtai Biotech (6978.HK), Haipu Pharmaceutical (9989.HK), Kaiseng 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 Pharma (2181.HK), Fangda Holdings (1521.HK), Via Bio (1873.HK), Cornerstone Pharmaceuticals (2616.HK), Junshi Biosciences (1877.HK), WuXi AppTec (2359.HK), Xinda Biosciences (1801.HK), Hualing Medicine (2552.HK), BeiGene (6160.HK), Gilead Sciences (1672.HK), WuXi Biologics (2269.HK), China Resources Medicine (3320.HK), Yakult Scientific Research Pharmaceutical (2633.HK), Hua Huang China Medicine (HCM.NASDAQ), (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'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 also been widely cited in the prospectuses of leading Sci-tech Innovation Board listed companies in the industry. This includes: Jicui Pharmaceutical (688046.HK), 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 Biosciences (688180.SH), Zhejiang Oncology (688266.SH), BeiGene (688177.SH), Shenzhou Cells (688520.SH), etc., which are considered 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 big health industry, and build a healthy future.
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