He Yuan Biotechnology (Shanghai) Co., Ltd. (hereinafter referred to as 'He Yuan Biotech') successfully went public on March 22, 2022, with an issue price of RMB 13.23 per share. A total of 100 million shares were issued this time, raising a financing amount of RMB 1.323 billion.
Hefei Heyuan Biotechnology Co., Ltd. is a biotech company focusing on the field of gene therapy. It specializes in providing CRO services such as gene therapy vector development, gene function research, drug target and efficacy studies for basic research in gene therapy, and CDMO services including process development and testing, IND-CMC pharmacological research, and GMP production of clinical samples for the R&D of gene drugs. Hefei Heyuan Biotechnology joined the market early when the competitive landscape of domestic gene therapy was not yet defined and has benefited from its strategic first-mover advantage, accumulating a first batch of high-quality customers including well-known gene therapy new drug companies and institutions. Hefei Heyuan Biotechnology has also developed two core technology clusters: gene therapy vector development technology and gene therapy vector production process and quality control technology. It has established a large-scale and highly flexible GMP production system suitable for various gene drugs, providing services in the field of gene therapy: ① Vector products such as plasmids, adeno-associated viruses, and lentiviruses; ② Various oncolytic herpes virus and oncolytic pox virus products; ③ Technical research, process development, and GMP production services for cell therapy products such as CAR-T. Frost & Sullivan has long been monitoring the global and Chinese biopharmaceutical industries, publishing a large number of research reports, which are widely cited in the prospectus documents of leading science and technology innovation board listed companies in the industry, helping customers accelerate growth.
Global Gene Therapy Market Size and Prospects
Since 2015, with the continuous development of gene therapy clinical trials and the successive approval of a series of gene therapy products, the global gene therapy industry has begun to develop rapidly. From 2016 to 2020, the global gene therapy market size increased from $50.4 million to $2.08 billion, with a compound annual growth rate of 153.3%. With more gene therapy products being approved, it is expected that by 2025, the global gene therapy market size will reach nearly $30.54 billion, with a compound annual growth rate of 71.2% from 2020 to 2025.
Global Gene Therapy Market, 2016 - 2025E
Data source: Analysis by Frost & Sullivan
The market scale and prospects of gene therapy in China
From 2016 to 2020, the market scale of gene therapy in China increased from 15 million yuan to 23.8 million yuan, with a compound annual growth rate of 12.2%. However, the growth rate was not particularly significant. With the extensive clinical trials conducted in recent years, the gradual approval and market launch of gene therapy products, and the support of favorable industrial policies, it is expected that the domestic gene therapy market will expand rapidly. By 2025, it is projected to reach 17.89 billion yuan, with a compound annual growth rate of 276.0% from 2020 to 2025.
China Gene Therapy Market, 2016 - 2025E
Data source: Analysis by Frost & Sullivan
Overview of the Gene Therapy R&D and Production Outsourcing Service Industry
Medical R&D and Production Outsourcing Services
The pharmaceutical R&D and production outsourcing service industry chain covers all stages from drug discovery to market commercialization production, providing services for drug research, development, and production for pharmaceutical companies, hospitals, and other entities of different scales.
From 2016 to 2020, under the combined influence of rapid growth in the pharmaceutical market, continuous investment in pharmaceutical research and development, and the rise of small biotech companies, the scale of China's pharmaceutical R&D and production outsourcing services market grew rapidly. The market size increased from 325 billion yuan to 839 billion yuan, with an overall compound annual growth rate of 26.8% for the Chinese pharmaceutical outsourcing market. It is estimated that by 2025, the market size will grow to 2520 billion yuan, with an overall compound annual growth rate of 24.6% from 2020 to 2025.
Market scale of pharmaceutical outsourcing in China, segmented by CRO and CDMO
2016 - 2025E
Data source: Analysis by Frost & Sullivan
The scale and prospects of the gene therapy CRO industry
From 2016 to 2020, the global market size for gene therapy CRO services grew from $400 million to $710 million, with a compound annual growth rate of 15.5%. With the rapid development of the gene therapy industry, the global market size for gene therapy CRO services is expected to continue to grow steadily in the future, reaching $1.74 billion by 2025, with a compound annual growth rate of 19.8% from 2020 to 2025.
Global Gene Therapy CRO Market, 2016 - 2025E
Note: The market size of gene therapy CRO services mentioned here only includes businesses in drug discovery and preclinical stages, excluding clinical-stage services.
Data source: Analysis by Frost & Sullivan
From 2016 to 2020, the market scale of China's gene therapy CROs grew from 170 million yuan to 310 million yuan, with a compound annual growth rate of 15.1%. With the rapid development of the overall gene therapy industry, the market for gene therapy CROs in China is expected to increase to 1.2 billion yuan by 2025, with a compound annual growth rate from 2020 to 2025 of 31.4%.
China's Gene Therapy CRO Market, 2016 - 2025E
Note: 1. The market size of gene therapy CRO services here only includes businesses in drug discovery and preclinical stages; 2. The Chinese gene therapy CRO market refers to the revenue from outsourcing CRO services implemented locally in China, but business orders come from around the world.
Data source: Analysis by Frost & Sullivan
Market Scale and Prospects of Gene Therapy CDMO
The global gene therapy CDMO industry is in a stage of rapid development. From 2016 to 2020, the global gene therapy CDMO market size grew from $770 million to $1720 million, with a compound annual growth rate of 22.4%. It is estimated that by 2025, the global gene therapy CDMO market size will reach $7860 million, with a compound annual growth rate of 35.5% from 2020 to 2025.
Global Gene Therapy CDMO Market, 2016 - 2025E
Data source: Analysis by Frost & Sullivan
The domestic gene therapy CDMO industry has entered a stage of rapid development after nearly a year of stable growth. From 2018 to 2022, the market size of CDMO increased from 870 million yuan to an estimated 3.26 billion yuan, with a compound annual growth rate of 39.3%. It is expected that by 2027, the market size will grow to 19.74 billion yuan, with an expected compound annual growth rate of up to 43.3% from 2022 to 2027.
China's Gene Therapy CDMO Market, 2018-2027E
Note: The China gene therapy CDMO market refers to the revenue generated by Chinese enterprises implementing CDMO outsourcing services globally, with business orders coming from all over the world.
Data source: Analysis by Frost & Sullivan
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 leadership. The health industry is one of Frost & Sullivan's core research areas. 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: Leopar Biotech (2157.HK), Clear Medical (1406.HK), Bexian An (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 Kampan (2256.HK), Kunbo Medical (2216.HK), Xianruida (6669.HK), Kangsheng Global (9960.HK), Yimaitong (2192.HK), Tengsheng Bo Yao (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 Pharmaceuticals (UPC.NASDAQ), Saisun 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), Jiake Pharmaceutical (1167.HK), Hepcon Pharma (2142.HK), JD Health (6618.HK), Deqi Pharma (6996.HK), Rongchang Biotech (9995.HK), WuXi AppTec (2126.HK), SonoBIO (2096.HK), Yunding Newray (1952.HK), Jiahe Biotech (6998.HK), Regeneron (9688.HK), Ocular Oncology (1477.HK), Yongtai Biotech (6978.HK), Haipure Pharmaceutical (9989.HK), Pioneering Pharmaceuticals (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 Antibodies (3681.HK), Dongyao Pharmaceutical (1875.HK), Yasheng Medicine (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), Hailun Medicine (2552.HK), BeiGene (6160.HK), Gilead Sciences (1672.HK), WuXi AppTec (2269.HK), China Resources Pharmaceutical (3320.HK), Jacobus Burchen Research & Pharma (2633.HK), Hua Huang China Medicine (HCM.NASDAQ), 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, including: AsiaInfo Security (688225.SH), Xidi Microelectronics (688173.SH), Mawei Biotechnology (688062.SH), Yarong Medicine (688176.SH), BeiGene (688235.SH), Jiamicang (688246.SH), Dizhe Medicine (688192.SH), Novogene (688105.SH), Chengda Biology (688739.SH), Geke Microelectronics (688728.SH), Huaxi Biotechnology (688363.SH), Junshi Biosciences (688180.SH), Zhejiang Genomics & Bioinformatics Co., Ltd. (688266.SH), BeiGene Pharma (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 healthcare industry, and build a healthy future.
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