Shouyao Holdings (Beijing) Co., Ltd. (hereinafter referred to as 'Shouyao Holdings') successfully went public on March 23, 2022, issuing 37.18 million shares at an issue price of RMB 39.90 per share.
Shouyao Holdings is a small molecule innovative drug company with a product pipeline covering key tumor indications such as non-small cell lung cancer, lymphoma, hepatocellular carcinoma, pancreatic cancer, thyroid cancer, ovarian cancer, leukemia, and other major areas including diabetes. It has established a full-process innovative drug R&D system integrating AI drug design, medicinal chemistry, target biology, pharmacology, pharmacodynamics, pharmacokinetics, toxicology, pharmacy, clinical medicine, and translational medicine research. The company adheres to the business philosophy of 'creating first-class new drugs that Chinese patients can afford', deeply engages in new drug R&D, and is committed to enhancing the international status of innovative drugs in China. Frost & Sullivan has long been concerned about the global and Chinese biopharmaceutical industries, has published a large number of research reports, which are widely cited in the prospectuses of leading science and technology innovation board listed companies in the industry, helping customers accelerate their growth.
Under the combined influence of factors such as accelerating aging, increased social healthcare expenditures, and rising R&D investment, the global pharmaceutical market has maintained stable growth in the past. The global pharmaceutical market size increased from $1153 billion in 2015 to $1324.5 billion in 2019, with a compound annual growth rate of 4.6% from 2015 to 2019. It is estimated that by 2024, the global pharmaceutical market size will reach $1639.5 billion, with a compound annual growth rate of 4.4% from 2019 to 2024.
Global Pharmaceutical Market Size, 2015-2030E
Source: Frost & Sullivan report
Overview of the Chinese pharmaceutical market
With the continuous high development of the Chinese economy, the increase in per capita disposable income of residents, the continuous expansion of national medical insurance expenditures, and the improvement of residents' health awareness, the scale of China's pharmaceutical market has continued to grow at a high rate. From 2015 to 2019, the overall compound annual growth rate of China's pharmaceutical market reached 7.5%, with the market size reaching 1.633 trillion yuan in 2019. It is estimated that by 2030, the scale of China's pharmaceutical market will reach 3.1945 trillion yuan, with a compound annual growth rate of 6.4% from 2019 to 2024, which is higher than the global compound annual growth rate of the pharmaceutical market (4.4%) during the same period.
China's pharmaceutical market size, 2015-2030E
Source: Frost & Sullivan report
Market scale of small molecule targeted anti-tumor drugs in China
The sales of anti-tumor drugs in China have been showing a steady growth trend in recent years. From 2015 to 2019, the market size reached 182.7 billion yuan in 2019, with a compound annual growth rate of 13.5% in the past five years. It is estimated that the Chinese anti-tumor drug market will reach 367.2 billion yuan by 2024, with an annual compound growth rate of 15.0%, and reach 662 billion yuan by 2030.
Market Size of Antitumor Drugs in China, 2015 - 2030E
Source: Frost & Sullivan report
Targeted drugs have become one of the main development directions in the field of anti-tumor drugs due to their good safety and effectiveness. Among them, small molecule targeted drugs have a relatively small molecular weight and can enter cells to act on internal targets. Small molecule targeted drugs can usually be administered orally and have relatively low production costs.
In 2019, the market scale of targeted anti-tumor small molecule drugs in China was 265 billion yuan, with a compound annual growth rate of 37.6% from 2015 to 2019. Considering the impact of factors such as an increase in the number of cancer patients, continuous introduction of innovative drugs, and dynamic expansion of the medical insurance system model, the compound annual growth rate from 2019 to 2024 is expected to be 28.7%. It is estimated that by 2024, the market will reach 938 billion yuan, with a compound annual growth rate of 12.6% from 2024 to 2030, reaching 1916 billion yuan by 2030.
Market size of small molecule targeted anti-tumor drugs in China, 2015-2030E
Source: Frost & Sullivan report
Market scale of ALK inhibitors in China
Lung cancer is the most prevalent type of cancer in China. Based on different pathological types, lung cancer can be divided into non-small cell lung cancer and small cell lung cancer. Non-small cell lung cancer accounts for about 85% of all lung cancers.
Common sensitive driver gene mutations in non-small cell lung cancer include EGFR, ALK, KRAS G12C, RET, ROS1, etc., among which ALK mutations account for 5%-7%. For patients with non-small cell lung cancer with ALK mutations, small molecule targeted drugs targeting the ALK target can be used for treatment. Currently, these drugs have been developed to the third generation.
In 2019, the market size of ALK inhibitors in China reached 1.89 billion yuan, with a compound annual growth rate of 69.0% from 2015 to 2019. The Chinese ALK inhibitor market has a large demand and development potential, with an expected growth to reach 72.5 billion yuan by 2024, a compound annual growth rate of 30.9% from 2019 to 2024. It is estimated that by 2030, the Chinese ALK inhibitor market will reach 138.8 billion yuan, with a compound annual growth rate of 11.4% from 2024 to 2030.
Market size of ALK inhibitors in China, 2015 - 2030E
Source: Frost & Sullivan report
Market scale of BTK inhibitors in China
Bruton's tyrosine kinase (BTK) is a key component of the B cell receptor signaling pathway and plays an important regulatory role in the survival and growth of various B-cell lymphomas. BTK inhibitors block the BCR signaling pathway by inhibiting the activation of BTK, thereby achieving therapeutic effects of suppressing B-cell growth and inducing their death.
Currently, the incidence of lymphoma in China is about 6.3 per 100,000 people, with approximately 90,000 new cases each year. Of these, 90% are non-Hodgkin lymphomas. Mantle cell lymphoma (MCL) is a subtype of B-cell lymphoma, accounting for 6%-8% of all non-Hodgkin lymphomas. There are more than 30,000 new patients globally each year, and about 6,000 new patients in China each year.
Since the first BTK inhibitor was approved in China in 2017, the Chinese BTK market has grown rapidly, reaching 700 million RMB in 2019 and is expected to grow to 780 million RMB by 2024 at a compound annual growth rate of 60.1%. The market will expand to 178 billion RMB by 2030, with a compound annual growth rate of 14.8% from 2024 to 2030.
Market size of BTK inhibitors in China, 2017 - 2030E
Source: 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 by demonstrating industry benchmarks for growth, innovation, and leadership. The healthcare industry is one of Frost & Sullivan's core research areas. Over the past seventeen years, our healthcare 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: Leopar Biotech (2157.HK), Clearway Medical (1406.HK), Bexon (2185.HK), Yonghe Medical (2279.HK), Kailaiying (6821.HK), Beihai Kangcheng (1228.HK), Gushengtang (2273.HK), Yingpeng Technology (2251.HK), Clover Biotech (2197.HK), Minimally Invasive Robotics (2252.HK), Harmony Kamman (2256.HK), Kunbo Medical (2216.HK), Xianruida (6669.HK), Kangsheng Global (9960.HK), Yimaitong (2192.HK), Tengsheng BOPY (2137.HK), Canopy (2162.HK), Chaoyu Ophthalmology (2219.HK), Guichuang Tongqiao (2190.HK), Hua Huang Medicine (0013.HK), Kexier Pharmaceutical (2171.HK), Zhaokew Pharmaceutical (6622.HK), Nature Cure (UPC.NASDAQ), Saiseng Pharmaceutical (6600.HK), Zhaoyan New Drugs (6127.HK), Novogene Health (6606.HK), Tianyan Pharmaceutical (ADAG.NASDAQ), Beikang Medical (2170.HK), Jianbimiao Miao (2161.HK), Minimally Invasive Heart Center (2160.HK), Ruili Medical Beauty (2135.HK), Gaoke Pharmaceutical (1167.HK), Hepcon Pharma (2142.HK), JD Health (6618.HK), Deqi Pharmaceutical (6996.HK), Rongchang Biotech (9995.HK), WuXi AppTec (2126.HK), XianSong Pharmaceutical (2096.HK), Yunding New Energy (1952.HK), Jiahe Biotech (6998.HK), Zai Ding Pharmaceutical (9688.HK), Ocular Biotech (1477.HK), Yongtai Biotech (6978.HK), Hapu Pharmaceutical (9989.HK), Kuaipo 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 Pharma (2181.HK), Fangda Holdings (1521.HK), ViaBio (1873.HK), CStone 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 Medicine (3320.HK), Jacobus Buchen Research Pharmaceutical (2633.HK), Hua Huang China Medicine (HCM.NASDAQ), Kingsbridge Biosciences (1548.HK), BBI Life Sciences (1035.HK), etc. In terms of the number of filings, our 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, including: 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 GeneTech (688266.SH), BeiGene (688177.SH), and Shenzhou Cells (688520.SH). 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 health industry, and build a healthy future.
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