Good News on Listing | Frost & Sullivan Assists Changfeng Pharmaceutical Co., Ltd. to Successfully List on the Hong Kong Stock Exchange (2652.HK)

Changfeng Pharmaceutical Co., Ltd. (hereinafter referred to as 'Changfeng Pharmaceutical') successfully listed on October 8, 2025. The company plans to issue 4,119.80 million H shares, of which 90% will be international offerings and 10% will be public offerings. The maximum offering price per share is HK$14.75, raising approximately HK$608 million in net proceeds.

During the process of listing in Hong Kong this time, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, 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 chapters), helping the issuer complete communication with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange, etc.

Frost & Sullivan has always been a leader in helping companies go public in Hong Kong. According to LiveReport's big data (statistical data as of June 30, 2025), from January to June 2025, and during the past 12 and 36 months, Frost & Sullivan provided listing industry advisory services for 29 (market share 71%), 60 (market share 67%), and 164 (market share 69%) Hong Kong IPOs respectively, ranking first in terms of number. It has rich industry experience and communication skills with regulatory authorities, exchanges, investment and financing institutions, and various related agencies.

• The company has developed a product portfolio covering a wide range of patients, medical specialties, and treatment areas. Currently, the company has obtained six product approvals from both the National Medical Products Administration (NMPA) and the US Food and Drug Administration (FDA).

   

• The company is advancing the development of more than 20 candidate products for major markets such as China, the United States, and/or Europe, as well as emerging markets in Southeast Asia and South America;

   

• Since its approval in May 2021, the company's CF017 has successfully covered over 10,000 hospitals in China;

   

• The company's CF018, as China's first aztreonam fluticasone nasal spray approved for the treatment of allergic rhinitis, has penetrated into more than 500 hospitals and medical institutions across multiple provinces after being included in the 2023 National Medical Insurance Drug List.

According to the Frost & Sullivan report, in terms of revenue for 2024, the company:

• CF017 accounts for about 16% of the Chinese budesonide inhalation drug market in 2024 based on sales;

   

• CF018 accounts for approximately 94% of the market share of fluticasone furoate nasal spray in China in terms of sales volume in 2024, ranking first.

In 2024, respiratory diseases accounted for about 6.5% of the global pharmaceutical market. Due to high prevalence rates, population aging, and increased exposure to environmental pollutants, the global market size for respiratory drugs was valued at $999 billion in 2024 and is expected to reach $1572 billion by 2033, with an annual compound growth rate of 5.2%. In China, the market size for respiratory drugs reached RMB 831 billion in 2024 and is expected to reach RMB 1355 billion by 2033. The annual compound growth rates from 2024 to 2028 and from 2028 to 2033 are 4.5% and 6.5%, respectively.

Inhaled preparations are usually described as pharmaceutical-device combinations, as they combine a drug compound with specialized delivery devices such as inhalers, nebulizers, or aerosol devices. These devices are crucial for accurately targeting the respiratory tract with drugs and achieving therapeutic effects. Inhaled preparations are the main means of treating respiratory diseases such as asthma, chronic obstructive pulmonary disease (COPD), and allergic rhinitis.

Inhalation preparations have many key advantages over traditional administration methods such as oral medications and injectable forms. Unlike oral medications, inhalation therapy can deliver drugs directly to the site of action—lung, allowing for rapid absorption and bypassing intestinal metabolism, thereby increasing bioavailability and reducing the required dosage. Compared to injectable forms, inhalation avoids mechanical damage to tissues and can reduce or eliminate some adverse drug reactions. When using inhalation preparations, patients are more likely to follow the prescribed treatment regimen due to the elimination of injection-related discomforts, thereby improving patient compliance (i.e., patients consistently take medication as directed). As a combination of pharmaceutical and medical device products, the development of inhalation preparations is usually more challenging than oral or injectable medications due to its complex design requirements, which necessitate ensuring particle size, stability, and lung delivery efficiency, as well as specialized devices for correct administration.

Respiratory diseases remain the main indication for inhalation preparations, accounting for 86.4% of the global inhalation preparation market in 2024 and 88.3% of the Chinese market. Leveraging the advantage of drugs that can be directly delivered to the lungs and systemic circulation, the application scope of inhalation therapy is continuously expanding into other therapeutic areas such as neurological diseases and infectious diseases. Central nervous system (CNS) diseases have become the second-largest application area, accounting for 10.3% of the global market in the same year and 11.6% of the Chinese market. Overall, the global inhalation preparation market is expected to grow from $31 billion in 2024 to $616 billion by 2033, with a compound annual growth rate of 7.9% from 2024 to 2033. It is expected that the Chinese market will experience even faster growth during the same period, with its scale increasing from RMB 26.3 billion to RMB 44.8 billion, at a compound annual growth rate of 6.1%. This is mainly due to the continuous improvement in people's awareness of inhalation preparations and their increasingly widespread application in various therapeutic areas.

In 2024, the global inhalation formulation market for the treatment of respiratory diseases reached $26.8 billion, and it is expected to grow to $46.2 billion by 2033, with a compound annual growth rate of 6.2% from 2024 to 2033. In China, this market size reached RMB 232 billion in 2024 and is expected to reach RMB 351 billion by 2033, with a compound annual growth rate of 4.7% from 2024 to 2033. Budesonide holds a leading position in China's inhalation formulation market, with a market share of 25.0% in 2024; budesonide/formoterol ranks second, accounting for 14.4% of the Chinese market.

The following table lists the top ten best-selling inhaled preparations drugs globally for 2024.

Budesonide is a glucocorticoid medication that is widely used for the treatment of various diseases due to its anti-inflammatory effects. It acts on the airways and lung tissue, constricting and dilating mucosal blood vessels through multiple mechanisms. It increases the sensitivity of bronchial smooth muscle and inflammatory cells to β2 receptor agonists, thereby enhancing their therapeutic effect in asthma treatment. In 1997, AstraZeneca marketed Pulmicort under the brand name...^®The launch of Budesonide for the brand name quickly made it a leading inhaled therapy for treating asthma and COPD.

Budesonide inhalation drugs have been developed and are available in various dosage forms, each suitable for different populations. Clinically, budesonide suspension is mainly used to treat asthma symptoms, and the market is mainly driven by these suspension dosage forms.

Based on sales revenue in 2024, budesonide inhalation drugs ranked first among inhalation preparations for respiratory diseases in China, with total sales revenue of RMB 58 billion, accounting for about 25.0% of the overall Chinese market. The market size is expected to reach RMB 76 billion by 2033, growing at an annual compound rate of 3.1% from 2024 to 2033. The following table shows the competitive landscape of the Chinese budesonide suspension market in 2022, 2023, and 2024.

● National healthcare initiatives

In September 2024, the National Health Commission announced the inclusion of COPD services into the national basic public health service project to improve the accessibility of respiratory healthcare services in China. The initiative aims to improve disease detection and management in areas with inadequate past services by conducting free routine examinations at the grassroots level and strengthening doctor training. With the support of increased medical subsidies and standardized programs, this systematic approach to respiratory healthcare indicates that there will continue to be a growing demand for effective treatment plans.

● The incidence of respiratory system diseases is constantly rising

Urbanization and industrial growth have led to an increase in pollution levels, exacerbating respiratory diseases globally. The incidence of respiratory diseases such as asthma and COPD continues to rise, with nearly 40 million and 20 million patients worldwide respectively in 2024, requiring more effective and convenient treatment methods to control these diseases. This has driven the demand for innovative inhalation therapies, which can provide targeted rapid relief. Moreover, many respiratory diseases are chronic and require long-term treatment, creating a huge and stable market for these therapies. Patient preferences. Inhalation therapy is increasingly favored by patients because it acts quickly, delivers drugs directly to the lungs, and can effectively relieve symptoms without invasive surgery. Patients appreciate the immediate benefits, targeted action, and convenience brought by these therapies, which help improve satisfaction and compliance.

● Formulation and technological progress

Innovation in formulation and delivery technologies continues to expand the potential of inhalation preparations in modern medicine. These advancements include the development of combination API products that can improve therapeutic effects, as well as optimized dosage forms (such as liposomes) that can enhance clinical outcomes and production efficiency. Advances in delivery technologies (such as siRNA technology) and the expiration of single-drug patents have further driven this transformation.

● Expanded indications

Inhalation therapy is expanding from traditional respiratory uses (such as asthma and COPD) to other lung diseases (such as IPF, PAH, and MAC lung disease), as well as systemic diseases and CNS disorders. Researchers are exploring the use of this approach for treating migraines and Parkinson's disease. Advances in drug formulations, delivery techniques, and medical devices have brought advantages such as targeted delivery, rapid absorption, and bypassing the blood-brain barrier. This method provides rapid therapeutic effects for acute diseases by minimizing gastrointestinal degradation and first-pass metabolism, and also offers new avenues for treating systemic diseases. This expansion is expected to greatly broaden the therapeutic prospects of inhalation products.

● Favorable government policies

In China, government initiatives and policy support play a crucial role in the development of the inhalation formulation market. Plans such as the National Medical Insurance Catalog and centralized procurement programs aim to reduce patients' economic burden by including inhalation therapies in the medical insurance plan. The '14th Five-Year Plan for the Development of the Pharmaceutical Industry' emphasizes the development of high-end formulation technology and promotes the registration of generic drugs in developed countries. In addition, the 'Guiding Principles for the Bioequivalence Study of Orally Inhaled Generic Drugs' have facilitated the rapid evaluation of generic drugs. This favorable regulatory environment encourages pharmaceutical companies with strong R&D capabilities to innovate inhalation products, while simplifying the compliance processes for high-quality producers and eliminating participants with poor compliance.

Frost & Sullivan, with 64 years of global consulting experience and 27 years of dedicated service to the booming Chinese market, uses a global perspective to help clients accelerate their business growth, achieving industry-leading benchmarks in growth, innovation, and leadership. The health industry is one of the core areas of focus for Frost & Sullivan. Over the past 20-plus years, the Frost & Sullivan team has provided financing and financial advisory services, IPO industry advisory services, 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: King Pharma (2595.HK), Health160 (2656.HK), Yinuo Medicine (2591.HK), Zhonghuiyuantong (2627.HK), Dongguangyang Medicine (6887.HK), Weilizhibo (9887.HK), Dakaoshiyun (2592.HK), Yunzhisheng (9678.HK), TED Medicine (3880.HK), Baize Medical (2609.HK), Yaojie Kang'an (2617.HK), Jiangsu Hengrui Medicine (1276.HK), Mire (2629.HK), Ying'en Biotech (9606.HK), Weisheng Pharmaceutical (2561.HK), Yasheng Medicine Group (NASDAQ:AAPG), Brain Motion Aurora (6681.HK), Health Road (2587.HK), Huahao Zhongtian (2563.HK), Yinosi (688710.SH), Jingtai Technology (2228.HK), Yimai Sunshine (2522.HK), Shenghe Biotech (2898.HK), Quanxin Biotech (2509.HK), Meizhong Jiahé (2453.HK), WuXi AppTec (2268.HK), Neusoft Xikang (9686.HK), Youzhiyou (2496.HK), Yiming Angke (1541.HK), Corning Biotec (6990.HK), LaiKai Medicine (2105.HK), Lüzhú Biotech (2480.HK), Meis Health (2415.HK), PHECR, Zhongjin Medical (NASDAQ:ZJYL), Meiliyuan (2373.HK), Kangfeng Biotech (6922.HK), Bao'an Biotech (6955.HK), Sidaidi (1244.HK), Meihao Medical (1947.HK), Gaoshi Medical (2407.HK), Lepu Xintai (2291.HK), Jianshi Technology (9877.HK), JCARE.SW, Lepu Medical (LEPU.SW), Dingdang Health (9886.HK), Biotec (2315.HK), Zhiyun Health (9955.HK), Mein Gene (6667.HK), PRE.NASDAQ, Yunkang Group (2325.HK), Ruike Biotech (2179.HK), Lepu Biotech (2157.HK), Baxin Anhuan (2185.HK), Yonghe Medical (2279.HK), Kailaiying (6821.HK), Beihai Kangcheng (1228.HK), Gusheng Tang (2273.HK), Yingpeng Technology (2251.HK), Minimally Invasive Robotics (2252.HK), Harmony Kaiman (2256.HK), Xianruida (6669.HK), Kangsheng Global (9960.HK), Yimai Tong (2192.HK), Tengsheng Bopai (2137.HK), Canopy (2162.HK), Chaoyuju Eye Hospital (2219.HK), Guichuang Tongqiao (2190.HK), Hehuang Medicine (0013.HK), Koji Pharmaceutical (2171.HK), Zhaoke Eye Hospital (6622.HK), Nature Pharmacy (UPC.NASDAQ), Sain Life Sciences (6600.HK), Zhaoyan New Drugs (6127.HK), Novogene Health (6606.HK), ADAG.NASDAQ, Beikang Medical (2170.HK), Jianbimiao Miao (2161.HK), Minimally Invasive Xin Tong (2160.HK), Jiaosisi Pharmaceutical (1167.HK), Hepato Oncology (2142.HK), JD Health (6618.HK), Deqi Pharmaceutical (6996.HK), Rongchang Biotech (9995.HK), WuXi AppTec (2126.HK), Sino Biologics (2096.HK), Yunding Newray (1952.HK), Jiahe Biotech (6998.HK), Zai Ding Medicine (9688.HK), Oucang Vision (1477.HK), Yongtai Biotech (6978.HK), Hapu Pharmaceutical (9989.HK), Kaidai Pharmaceutical (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 Medicine (6855.HK), Fuhong Hanlin (2696.HK), Hansoh Pharmaceutical (3692.HK), Mabotech (2181.HK), Fangda Holdings (1521.HK), Via Biotech (1873.HK), Cornerstone Pharmaceuticals (2616.HK), Junshi Biotech (1877.HK), WuXi AppTec (2359.HK), Xinda Biotech (1801.HK), Hualing Medicine (2552.HK), BeiGene (6160.HK), Gilead Sciences (1672.HK), WuXi AppTec (2269.HK), China Resources Pharmaceutical (3320.HK), Yager Scientific Research Pharmaceutical (2633.HK), HCM.NASDAQ, Kingsbridge Biotechnology (1548.HK), BBI Life Sciences (1035.HK), Tongyuan Kang Medicine (2410.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, consistently ranking first in market share from 2018 to 2023.

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 companies listed on the Sci-tech Innovation Board, including: Hanbang Technology (688755.SH), Zhongyan Shares (688716.SH), Optoelectronics Technology Group Co., Ltd. (688450.SH), Jinghe Integration (688249.SH), Wuxi Rilian (688531.SH), Maolai Optics (688502.SH), Kangwe Century (688426.SH), Jinchuan Protein (688137.SH), Novogene Biologics (688428.SH), Aopu Mabio (688293.SH), MicroPort Electrophysiology (688351.SH), Mengke Pharmaceutical (688373.SH), Yifang Biologics (688382.SH), Jicui Pharmaceutical (688046.SH), Haichuang Pharmaceutical (688302.SH), Rongchang Biologics (688331.SH), Rendu Biologics (688193.SH), Shouyao Holdings (688197.SH), Heyuan Biologics (688238.SH), Yaxin Security (688225.SH), Xidi Micro (688173.SH), Mawei Biologics (688062.SH), Yahong Medicine (688176.SH), BeiGene (688235.SH), Jiahe Meikang (688246.SH), Dizhe Medicine (688192.SH), Novozyme (688105.SH), Chengda Biologics (688739.SH), Geke Micro (688728.SH), Huaxi Biologics (688363.SH), Junshi Biologics (688180.SH), Zhejiang Oncology Sciences (688266.SH), BeiGene (688177.SH), Shenzhou Cells (688520.SH), etc., are considered one of 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 healthier future.