Shanghai Rendu Biotechnology Co., Ltd. (hereinafter referred to as 'Rendu Biotech') successfully went public on March 30, 2022, issuing a total of 10 million shares at an issue price of 72.65 yuan per share.
The company is one of the earliest life science enterprises in China to focus on RNA molecular diagnostic technologies and products, dedicated to developing innovative diagnostic technologies and products that meet clinical needs not yet satisfied. The company owns an exclusive patented technology platform for real-time fluorescence constant temperature amplification (SAT) of RNA, which differs from traditional diagnostic technologies that target DNA and proteins. SAT technology uses RNA as the detection target, achieving innovation in both targets and methodology. The company's main business is the research, development, production, and sales of integrated molecular diagnostic reagents and equipment based on this technology platform, focusing on providing solutions for the precise diagnosis, effective prevention and control, and personalized treatment of pathogens in fields such as reproduction, respiratory, digestive, blood, food, and environmental safety. Frost & Sullivan has long been paying attention to the global and Chinese biopharmaceutical industries, publishing a large number of research reports, which have been widely cited in the prospectuses of leading science and technology innovation board listed companies in the industry, helping customers accelerate their growth.
Overview of the Molecular Diagnostics Industry
Molecular diagnosis is a technology that applies molecular biology methods to provide information and basis for the prevention, diagnosis, and treatment of diseases by detecting changes in the structure or content of the genetic material of the individual being tested or the viruses and pathogens they carry. The main detection targets are nucleic acids and proteins, with nucleic acid molecular diagnosis being the primary method. In recent years, molecular diagnosis has increasingly been used in patient management from diagnosis to treatment, especially in areas such as cancer, infectious diseases, and congenital abnormalities. Molecular diagnostic methods play a crucial role in risk assessment, screening, diagnosis, staging and prognosis, treatment selection, and monitoring. Molecular diagnosis is widely applied in the field of infectious disease diagnosis, including virology, bacteriology, parasitology, and mycology.
The Chinese molecular diagnostics market is mainly divided into infection detection, tumor detection, reproductive health and genetic disease sectors. Among them, the infection detection sector is the largest single sub-market, including areas such as blood-borne diseases, human papillomavirus (HPV) infections, respiratory system infections, and sexually transmitted diseases. The revenue of the infection detection sector grew from 2 billion yuan in 2015 to 5 billion yuan in 2019, with a compound annual growth rate of 25.2%. Due to the outbreak of the COVID-19 pandemic, it is expected that the market size of molecular diagnostics in the infection detection sector will reach 18.9 billion yuan in 2020. It is estimated that by 2024, the market size of the infection detection sector will remain at 14.4 billion yuan, making it the largest sub-market in the field of molecular diagnostics.
Market size of molecular diagnostics in China, segmented by disease area
2015-2024E
Note: Other sections include reproductive health, genetic diseases, etc.
Source: Frost & Sullivan report
Market Overview of the Infectious Diseases Domain
In the field of infectious disease diagnosis, pathogen detection has evolved from the level of pathogens to molecular and genetic levels. For example, technologies such as PCR technology, gene chip technology, and SAT constant temperature amplification technology have emerged. These new technologies are characterized by automated detection, short processing time, high accuracy, and sensitivity, enabling timely diagnosis and identification of pathogens. Molecular diagnostic markets are divided into three parts based on whether the detection marker is DNA or RNA: DNA molecular diagnosis (such as conventional PCR method, where both the detection marker and amplification product are DNA), RT-PCR method in RNA molecular diagnosis (where the detection marker is RNA but it still needs to be reverse transcribed into DNA before using PCR technology for detection, resulting in amplification products that are DNA but capable of detecting RNA), and RNA constant temperature amplification method in RNA molecular diagnosis (different from PCR technology, which amplifies RNA under constant temperature conditions, with both the detection marker and amplification product being RNA).
Technical development path of pathogen detection in the field of infection
Source: Frost & Sullivan report
The Chinese anti-infection diagnostic market can be divided into immunodiagnosis, pathogen microbiology, and molecular diagnosis sectors. The molecular diagnosis sector can further be categorized into DNA molecular diagnosis, RT-PCR, and RNA molecular diagnosis based on testing technologies. Among them, the immunodiagnosis market increased from 7.355 billion yuan in 2015 to 11.096 billion yuan in 2019, with a compound annual growth rate of 10.8%. The pathogen microbiology diagnostic market increased from 1.526 billion yuan in 2015 to 3.189 billion yuan in 2019, with a compound annual growth rate of 20.2%. The DNA molecular diagnosis market increased from 1.59 billion yuan in 2015 to 3.503 billion yuan in 2019, with a compound annual growth rate of 21.8%. The RT-PCR market increased from 459 million yuan in 2015 to 1.324 billion yuan, with a compound annual growth rate of 30.3%. The RNA molecular diagnosis market size increased from less than 10 million yuan in 2015 to 287 million yuan in 2019. It is expected that by 2024, the market size will reach 2.03 billion yuan, with compound annual growth rates of 135.9% and 47.9%, respectively. In the future, due to the improvement of people's health awareness, it is estimated that by 2024, the anti-infection diagnostic market will reach 39.76 billion yuan.
China's anti-infection diagnostic market, segmented by diagnostic technology
2015-2024E
Source: Frost & Sullivan report
Overview of the Molecular Diagnostics Market in Infectious Diseases
The infection detection segment is the largest single sub-market within molecular diagnostics, including areas such as sexually transmitted diseases, respiratory infections, blood-borne diseases, and human papillomavirus (HPV) infections. The total market space for this segment grew from 2 billion yuan in 2015 to 5 billion yuan in 2019, with a compound annual growth rate of 25.2%. Due to the outbreak of the COVID-19 pandemic, it is expected that the molecular diagnostics market size for the infection detection segment will reach 189 billion yuan in 2020, and is projected to maintain at 144 billion yuan by 2024.
Sexually transmitted infections mainly include chlamydia trachomatis, gonococcus, ureaplasma urealyticum, and mycoplasma genitalium infections. The molecular diagnostic market for sexually transmitted infections in China increased from RMB 0.9 billion in 2015 to RMB 2.36 billion in 2019. In the future, with advancements in diagnostic technology for sexually transmitted infections and enhanced health awareness, the molecular diagnostic market for sexually transmitted infections will gradually grow. By 2024, the market for molecular diagnosis of sexually transmitted infections in China is expected to reach RMB 12 billion, with a compound annual growth rate of 38.5% from 2019 to 2024.
The market scale of molecular diagnosis for sexually transmitted infections in China2015 - 2024E
Source: Frost & Sullivan report
Respiratory pathogens mainly include Mycobacterium tuberculosis, novel coronavirus, influenza A virus, Mycoplasma pneumoniae, and other fields. The molecular diagnostic market for respiratory diseases in China has grown from 960 million yuan in 2015 to 2390 million yuan in 2019. Due to the outbreak of COVID-19, the molecular diagnostic market for respiratory diseases in China has shown a high-speed growth trend, with an estimated market size reaching 14 billion yuan in 2020. However, with the rollout of vaccines and accelerated herd immunity, there is a guaranteeing foundation for controlling the COVID-19 pandemic, which will lead to a decrease in the frequency of routine testing for key populations. In addition, the continuous implementation of centralized procurement has significantly reduced the price of COVID-19 testing reagents, so the molecular diagnostic market in China will not continue to grow rapidly. By 2024, the molecular diagnostic market for respiratory diseases in China is expected to reach 2.7 billion yuan.
Molecular diagnostic market size for respiratory diseases in China, 2015-2024E
Source: Frost & Sullivan report
Blood-borne infectious diseases mainly include areas such as human immunodeficiency virus (HIV), hepatitis B virus, and hepatitis C virus. The molecular diagnostic market for blood-borne diseases in China has grown from 1.007 billion yuan in 2015 to 2.597 billion yuan in 2019, with a compound annual growth rate of 26.7%. Due to the increasing emphasis on blood-borne diseases such as AIDS and hepatitis B in China, as well as the enhancement of people's health awareness, the molecular diagnostic market for blood-borne diseases will gradually grow. By 2024, the molecular diagnostic market for blood-borne diseases in China is expected to reach 58 billion yuan, with a compound annual growth rate of 17.3% from 2019 to 2024.
Molecular Diagnostics Market Size for Bloodborne Diseases in China, 2015-2024E
Source: Frost & Sullivan report
The market for molecular diagnosis of human papillomavirus (HPV) infection in China has grown from 771 million yuan in 2015 to 1.77 billion yuan in 2019. In the future, with increased health awareness, deeper understanding of HPV infection, and continuous progress in molecular diagnostic technology, the market for HPV infection molecular diagnosis will gradually grow. By 2024, the market for HPV infection molecular diagnosis in China is expected to reach 4.4 billion yuan, with a compound annual growth rate of 20.0% from 2019 to 2024.
Molecular diagnostic market size for human papillomavirus infection
2015 - 2024E
Source: Frost & Sullivan report
Overview of RNA Molecular Diagnostic Technology
RNA molecular diagnosis is a new molecular diagnostic technology that uses RNA as the detection target. Compared with traditional DNA molecular diagnostic techniques, it has higher sensitivity and stronger specificity, and can be widely applied in clinical medicine testing, blood screening, food safety testing, and the prevention and control of infectious diseases.
Currently, there are mainly two approaches to RNA amplification. One is based on reverse transcription combined with PCR amplification (RT-PCR). This technique can be interfered with by DNA during RNA detection, especially in prokaryotes where the DNA and RNA sequences are identical. It is necessary to remove DNA before amplifying and detecting RNA, and the process of removing DNA inevitably causes degradation and loss of RNA. The other approach is represented by the patented technology of Simultaneous Amplification and Testing (SAT), which is a constant temperature RNA amplification technique based on reverse transcription of RNA followed by transcription amplification.
SAT technology is a new nucleic acid detection technique that combines the latest generation of nucleic acid thermostatic amplification technology with real-time fluorescence detection technology. SAT technology is a newly developed nucleic acid detection technique based on Transcription Mediated Amplification (TMA), a patented technology independently developed by Rendu Biotech. This technology has advantages such as high sensitivity, high specificity, low contamination, and stable reaction. It has currently been applied in fields such as pathogen detection, blood virus screening, and environmental microbiological detection, showing broad application prospects.
Frost & Sullivan, integrating 61 years of global consulting experience, has dedicated 24 years to serving the booming Chinese market with a global perspective. It helps clients accelerate their business growth, achieving industry-leading benchmarks in terms of growth, innovation, and leadership. The healthcare industry is one of the core areas of focus for Frost & Sullivan. Over the past seventeen years, the Frost & Sullivan healthcare team has provided financing financial advisory, IPO industry advisory, strategic consulting, management consulting, and other services to hundreds of outstanding domestic and international biopharmaceutical, medical device, healthcare services, and internet healthcare companies. Successful listings include: Leopar Biotech (2157.HK), Clearway Medical (1406.HK), Bexcellence (2185.HK), Yonghe Medical (2279.HK), Kailiang Biotech (6821.HK), Beihai Kangcheng (1228.HK), Gushengtang (2273.HK), Yingpeng Technology (2251.HK), Clover Biotech (2197.HK), Minimally Invasive Robotics (2252.HK), Harmony Kamang (2256.HK), Kunbo Medical (2216.HK), Xianruida (6669.HK), Kangsheng Global (9960.HK), Yimaitong (2192.HK), Tengsheng Bopharm (2137.HK), Canopy (2162.HK), Chaoyu Ophthalmology (2219.HK), Guichuang Tongqiao (2190.HK), Hua Huang Medicine (0013.HK), Kozhi Pharmaceutical (2171.HK), Zhaoke Ophthalmology (6622.HK), Nature Medicine (UPC.NASDAQ), Saiseng Pharmaceutical (6600.HK), Zhaoyan New Drugs (6127.HK), Novogene Health (6606.HK), Tianyan Pharmaceuticals (ADAG.NASDAQ), Beikang Medical (2170.HK), Jianbimiao Miao Miao (2161.HK), Minimally Invasive Heart Link (2160.HK), Rui Li Medical Beauty (2135.HK), Gaoke Pharmaceutical (1167.HK), Hepcon Pharma (2142.HK), JD Health (6618.HK), Deqi Pharmaceuticals (6996.HK), Rongchang Biotech (9995.HK), WuXi AppTec (2126.HK), SinoBIO (2096.HK), Yunding New Energy (1952.HK), Jiahe Biotech (6998.HK), Zai Ding Pharmaceuticals (9688.HK), Ocular Biotech (1477.HK), Yongtai Biotech (6978.HK), Hapre Pharmaceutical (9989.HK), Kechuang Pharmaceuticals (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 Pharmaceuticals (2181.HK), Fangda Holdings (1521.HK), Via Biotech (1873.HK), Cornerstone Pharmaceuticals (2616.HK), Junshi Biosciences (1877.HK), WuXi AppTec (2359.HK), Innovent Biologics (1801.HK), Hailun Medicine (2552.HK), BeiGene (6160.HK), Gilead Sciences (1672.HK), WuXi AppTec (2269.HK), China Resources Pharmaceutical (3320.HK), Yacon Scientific Research Pharmaceutical (2633.HK), Hua Huang 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'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: CapitalBio (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 Biology (688739.SH), Geke Micro (688728.SH), Huaxi Biotech (688363.SH), Junshi Biosciences (688180.SH), Zhejiang Genomics & Bioinformatics (688266.SH), BeiGene (688177.SH), Shenzhou Cells (688520.SH), etc. They 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 healthcare industry, and build a healthy future.
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