Shanghai Bairen Biotechnology Co., Ltd. (hereinafter referred to as 'Bairen') successfully listed on December 23, 2021, with an issue of 23,937,000 shares (including 2,394,000 shares sold in Hong Kong and 21,543,000 shares sold internationally), at an issue price of HK$21.25 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 relevant parts of the prospectus (such as the 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.
Percutaneous coronary intervention (PCI) medical device market
Coronary artery disease (CAD):Coronary artery disease (CAD), also known as ischemic heart disease, is a cardiovascular condition caused by narrowing or blockage of the coronary arteries, usually due to atherosclerosis. CAD is the most common cardiovascular disease. Due to population aging and sedentary lifestyles, the number of CAD patients in China and globally has increased at an alarming rate in recent years and is expected to continue growing in the future. The prevalence of CAD in China increased from 2.2 million patients in 2015 to 2.46 million patients in 2019, with a compound annual growth rate of 2.8%. It is expected that by 2030, the number will further increase to 31.7 million patients, with a compound growth rate from 2019 to 2030 of 2.3%.
PCI surgical market:With the increase in CAD patients, the number of PCI surgeries in China has also risen significantly. However, there is still a huge gap between China and developed countries and regions in terms of the number of surgeries per million population, which also indicates that the future Chinese market for PCI medical devices has great potential. The following chart shows the number of PCI surgeries per million population in the United States, Japan, Europe, and China in 2019.
Number of PCI surgeries in major countries and regions around the world in 2019
1When calculating the number of PCI surgeries per million population in Europe, the relevant data from the following countries/regions have been included: Belgium, Denmark, France, Israel, Italy, Macedonia, Poland, Portugal, Serbia, Spain, Sweden, Switzerland, and the United Kingdom.
Source: Frost & Sullivan report
Global market size of stents used in PCI surgeries
PCI surgery has gradually become the preferred option for CAD patients due to its advantages such as minimal trauma, quick recovery, and high safety. Interventional treatment for CAD has developed over 40 years, with methods evolving from PTA balloons to bare metal stents (BMS), drug-eluting stents (DES), and then to fully degradable stents (BRS). With the increasing demand for PCI surgery, the number of stents used in these procedures has also shown strong growth in recent years. Among them, BRS has shown a prominent growth trend in the global market due to its excellent operability and flexibility, good vascular wall apposition after implantation, and easier absorption by the human body. Its market size compound growth rate from 2015 to 2019 was 9.9%, and it is expected to grow from $2 billion in 2019 to $9 billion in 2024, and to $23 billion in 2030. The compound growth rate between 2019 and 2024 is expected to reach 32.5%, and between 2024 and 2030, it will reach 17.0%. The following chart shows the historical and predicted market size of stents used in global PCI surgery during the indicated period.
History and forecast market size of stents used in global PCI surgeries
(Classified by type)
2015 - 2030 (forecast)
Source: Frost & Sullivan report
Market scale of stents used in PCI surgeries in China
Affected by the new centralized procurement policy for DES adopted by the Chinese government in 2020, it is expected that the market scale of DES products in China will drop significantly from RMB 6.9 billion in 2019 to RMB 1.9 billion in 2021. At the same time, due to the lack of policy constraints on BRS and its various advantages, it is expected to reach RMB 2.7 billion by 2024, with a compound growth rate of 71.8% between 2019 and 2024; it is estimated that by 2030, the scale will increase to RMB 66 billion, with a compound growth rate of 15.8% between 2024 and 2030. The following chart shows the historical and forecasted market scale of stents used in PCI surgeries in China during the indicated period.
History of stents used in PCI surgery in China and predicted market scale
(Classified by type)
2015 - 2030 (forecast)
Note: The market size of stents has been calculated taking into account the impact of the novel coronavirus in 2020 and the impact of centralized procurement of stents starting from October 2020. The above forecast is still based on available data as of the third quarter of 2020.
Source: Frost & Sullivan report
Competitive landscape of the BRS product market for CAD treatment in China
As of the latest practicable date, only two BRS products have been commercialized in China. Both are first-generation (stent strut thickness exceeding 150 micrometers) BRS products produced by domestic enterprises. Currently, the Chinese market lacks second-generation BRS (stent strut thickness less than 150 micrometers), with only four products still in the research phase. Both BAIOR and Minimally Invasive's products have entered the randomized controlled trial phase, but BAIOR completed patient enrollment for the randomized controlled trial earlier than Minimally Invasive. Pioneer Technology recently received approval for a randomized controlled clinical trial in China, but as of the latest practicable date, it has not started patient enrollment for this clinical trial. The following figure shows the characteristics of BRS products that have been commercialized and are in clinical stages in the Chinese market.
Competitive landscape of the BRS product market for CAD treatment in China
Note: The data in this table is updated to December 5, 2021.
*The public bidding prices may vary among provinces, so the median price is used for all products listed in the table.
Source: Frost & Sullivan report
Renal Nerve Block (RDN) medical device market
Uncontrolled (UH) and refractory hypertension (RH):As of 2019, more than one-fourth of Chinese adults suffer from hypertension, with only 22.0% of these patients having controlled conditions. On the other hand, when a patient cannot maintain their blood pressure below the therapeutic target of 140/90 millimeters mercury column after taking at least three different types of antihypertensive drugs at maximum tolerated doses, it is considered refractory hypertension.
Prevalence of hypertension in China and Japan
In China and Japan, due to factors such as population aging and unhealthy lifestyles, the prevalence of hypertension is on the rise. The number of hypertensive patients in China increased from 290 million in 2015 to 320 million in 2019 at a compound annual growth rate of 2.3%, and is expected to grow to 350 million by 2024 at a compound annual growth rate of 2.1%; reaching 390 million by 2030, with a compound annual growth rate of 1.7% from 2024 to 2030. The number of hypertensive patients in Japan increased from 38 million in 2015 to 40 million in 2019 at a compound annual growth rate of 1.7%, and is expected to continue increasing at a compound annual increase rate of 0.5% from 2019 to 2030, reaching 42 million by 2030.
Approximately 15% of hypertensive patients in China and about 13% in Japan are considered to have refractory hypertension. Due to their significant genetic influence, it is expected that this proportion will not change significantly over time. However, with increasing attention to health and improvements in diagnostic methods, the number of uncontrolled hypertensive patients in China and Japan is expected to gradually decrease in the coming years, calculated as a percentage. But in absolute numbers, the number of uncontrolled hypertensive patients is expected to continue to increase. The following chart shows the historical and predicted prevalence of hypertension in China and Japan during the period shown.
History and predicted prevalence of hypertension in China (classified by type)
2015 - 2030 (forecast)
Source: Frost & Sullivan report
History and Predicted Prevalence of Hypertension in Japan (by Type)
2015 - 2030 (forecast)
Source: Frost & Sullivan report
RDN is a minimally invasive procedure that uses radiofrequency or ultrasound ablation to destroy the nerves in the renal artery without damaging the artery itself. By reducing nerve activity through this process, it helps lower blood pressure. RDN has great potential to redefine hypertension treatment due to its non-permanent implantation, low invasiveness, few side effects, and rapid recovery.
Market competition landscape of RDN products in China and Japan
The RDN products in China and Japan are still in the early stages of development. As of the latest practicable date, neither China nor Japan has commercially available RDN products, and there are only three RDN products in clinical trials in both countries. The RDN product developed by Biotronica is expected to become China's first approved multi-electrode RDN product. Moreover, currently, the RDN product developed by Biotronica is the only one in the world that allows for transfemoral arterial (TFI) and transradial arterial (TRI) interventional methods. The following figure shows the characteristics and development status of the RDN products under development in the Chinese and Japanese markets.
Characteristics and development of RDN products under research in the Chinese market
Note: The data in the above table is updated to December 5, 2021.
Source: Frost & Sullivan report
Characteristics and development of RDN products under research in the Japanese market
Note: The data in the above table was updated to December 5, 2021.
Source: Frost & Sullivan report
Frost & Sullivan, integrating 60 years of global consulting experience, has dedicated 23 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 technology. The healthcare industry is one of the core areas of focus for Frost & Sullivan. Over the past sixteen years, the Frost & Sullivan healthcare team has provided financing and financial advisory, IPO industry advisory, strategic consulting, and management consulting services to hundreds of outstanding domestic and international biopharmaceuticals, medical devices, healthcare services, and internet healthcare companies. Successful listings include: 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 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), Huihuang Medicine (0013.HK), Koi Pharmaceutical (2171.HK), Zhaokexiao Ophthalmology (6622.HK), Nature Pharmaceuticals (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 (2161.HK), Minimally Invasive Heart Center (2160.HK), Ruili Medical Beauty (2135.HK), Jiake Pharmaceutical (1167.HK), HepB Biopharmaceuticals (2142.HK), JD Health (6618.HK), Deqi Pharmaceutical (6996.HK), Rongchang Biotech (9995.HK), WuXi AppTec (2126.HK), SinoBIO (2096.HK), Yunding New Energy (1952.HK), Jiahe Biotech (6998.HK), ZaiDi Pharmaceutical (9688.HK), OcumView (1477.HK), Yongtai Biotech (6978.HK), Hapu Pharmaceutical (9989.HK), Pioneering Pharmaceuticals (9939.HK), Peijia Medical (9996.HK), Kangfang Biotech (9926.HK), Novogene Health (9969.HK), 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 (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), Valar Health (2552.HK), BeiGene (6160.HK), Gilead Sciences (1672.HK), WuXi AppTec (2269.HK), China Resources Medicine (3320.HK), Jacobus Bussing Scientific & Pharmaceutical (2633.HK), Huihuang China Medicine (HCM.NASDAQ), Gensent Bio-Tech (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, continuously occupying more than 90% of the market share from 2018 to 2020.
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 BeiGene (688235.SH), Jiahe Meikang (688246.SH), Dizhe Medicine (688192.SH), Novogene (688105.SH), Chengda Biology (688739.SH), GeKo Microelectronics (688728.SH), Huaxi Biotechnology (688363.SH), Junshi Biosciences (688180.SH), Zhejiang Genomics & Therapeutics (688266.SH), BeiGene-Thera (688177.SH), and Shenzhou Cells (688520.SH). They are considered the most powerful, professional, and influential industry research institutions in the industry. 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.
Recommended Reading
19. Frost & Sullivan assists Nature Pharma on its successful listing in the US (UPC.NASDAQ)
37. Frost & Sullivan assists Zai Lab to successfully list on the Hong Kong Stock Exchange (9688.HK)
45. Frost & Sullivan assisted Tianjing Biology in successfully going public in the US (IMAB.NASDAQ)
