Dizhe Medicine (Jiangsu) Pharmaceutical Co., Ltd. (hereinafter referred to as 'Dizhe Medicine') successfully went public on December 10, 2021, issuing a total of 40,000,010 shares at an issue price of 52.58 yuan per share.
The company is a globally leading innovative biopharmaceutical enterprise, focusing on the exploration, research and commercialization of innovative drugs. It possesses a world-leading technology platform for translational medicine, new drug molecule design and screening, and has a complete and independent ability to develop new drugs. It has particularly rich experience in the research of new drugs for major diseases such as malignant tumors, immune diseases, and kidney diseases. Its research scope covers medical fields such as respiratory immunity, oncology, cardiovascular and metabolism. Relying on technologies such as medicinal chemistry, bioscience, drug metabolism and pharmacokinetics, drug safety and histopathology, it focuses on the research and development of small molecule new drugs. The company adheres to the R&D concept of source innovation, is committed to the exploration of new targets and the verification of their mechanisms of action. With its own translational scientific research capabilities and technology platform, it explores the relationship between disease clinical characteristics and possible abnormal driving genes and protein structures. Aiming to launch globally first-in-class drugs and treatment methods with breakthrough potential, it strives to fill unmet clinical needs and lead the development direction of the industry. Frost & Sullivan has long been paying attention to the global and Chinese biopharmaceutical industries, released 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 their growth.
Overview of the Global Pharmaceutical Market
Under the combined influence of factors such as accelerating aging, increased social healthcare expenditures, and increased R&D investment, the global pharmaceutical market has maintained stable growth in the past. In 2019, the total global pharmaceutical market was $1,324.5 billion, and it is expected to reach $1,639.5 billion by 2024, with a compound annual growth rate of 4.4%. The global pharmaceutical market consists of two major sectors: chemical drugs and biologics. In terms of revenue composition, chemical drugs are the most significant component of the global pharmaceutical market. In 2019, the global biologics market size reached $286.4 billion, accounting for 21.6% of the global pharmaceutical market; the global chemical drug market size reached $1,038 billion, accounting for 78.4% of the global pharmaceutical market. Driven by many factors such as demand growth, advancements in biochemical technology, and the discovery of new targets and pathways, especially the growth of small molecule targeted drugs, it is expected that the global chemical drug market size will continue to rise, reaching $1,182.8 billion by 2024, with a compound annual growth rate of 2.6%. By 2030, the global chemical drug market size will reach $1,310.4 billion, with a compound annual growth rate of 1.7%.
Innovative drugs have higher prices and return on investment, which is why leading pharmaceutical companies invest heavily in the research and development of innovative drugs. In 2019, the global innovative drug market was approximately $887.7 billion, accounting for 67% of the overall pharmaceutical market. Due to the continuous development of global biotechnology and chemistry, new targets and mechanisms are being discovered, leading to more innovative drugs meeting the needs of more patients. The global innovative drug market is expected to expand rapidly. It is estimated that by 2024, the global innovative drug market size will reach $1,079 billion, with a compound annual growth rate of about 5.0%.
Global Pharmaceutical Market Segmentation, 2015-2024E
Source: Frost & Sullivan report
Overview of the Chinese pharmaceutical market
In 2019, the market size of innovative drugs in China was approximately $132.5 billion, slightly higher than the market size of generic drugs, accounting for 56.1% of the Chinese pharmaceutical market. Due to favorable policies related to innovative drugs, adjustments in medical insurance, increased R&D expenditures, and other factors, the market for innovative drugs has grown rapidly. It is estimated that by 2024, the market for innovative drugs in China will reach $201.9 billion, with a compound annual growth rate of 8.8%.
China Pharmaceutical Market Segmentation, 2015 - 2024E
Source: Frost & Sullivan report
Market scale of small molecule targeted drugs in China
Over the past decade, the discovery and development of small molecule targeted drugs have had a revolutionary impact on cancer treatment. Due to their small molecular weight, small molecule targeted drugs can pass through the plasma membrane and interact with intracellular domains of cell surface receptors and intracellular signaling molecules. Therefore, compared to conventional chemotherapy drugs, small molecule targeted drugs are more effective in treating malignant tumors and provide higher quality of life for patients because they can specifically target cancer cells with fewer side effects. Unlike biologics with complex structural components, small molecule drugs have advantages such as simple and clear structures, good stability, and ease of production. At the level of medical insurance reimbursement, small molecule drugs are basically covered by medical insurance, while biologics are outside the scope of medical insurance reimbursement.
Targeted therapy is an important method in cancer treatment. It works by using small molecule protein kinase inhibitors, biological monoclonal antibodies, and other drugs to specifically recognize or block the proliferation process of cancer cells, thereby achieving therapeutic effects. Unlike global tumor treatment, which is currently dominated by traditional chemotherapy, the Chinese tumor treatment market mainly relies on traditional chemotherapy. In 2019, the Chinese small molecule targeted drug market reached 141 billion yuan, with a compound annual growth rate of 17.5% from 2015 to 2019, higher than the 15.4% compound annual growth rate of the tumor drug market during the same period. In the future, the Chinese small molecule targeted drug market will continue to grow to 315 billion yuan and 666 billion yuan in 2024 and 2030, mainly affected by factors such as an increase in the number of cancer patients, continuous introduction of innovative drugs, and dynamic expansion of the medical insurance system.
Market Size of Small Molecule Targeted Drugs in China, 2015-2030E
Source: Frost & Sullivan report
Market size of Chinese JAK1 inhibitors
Different JAK kinase subtypes are activated by different cytokines. Currently, most JAK inhibitors have poor selectivity and generally inhibit multiple JAK kinases. The inhibitory curve of these drugs is dose-dependent, and since they can inhibit JAK2, they affect the production of blood cells and lymphocytes, resulting in significant toxic and side effects. New-generation selective JAK inhibitors can reduce non-selective pan-JAK inhibition, targeting specific diseases for treatment without reducing clinical efficacy while reducing adverse reactions.
Since the approval of Chinese JAK1 inhibitors in 2017, the market size has grown rapidly. In 2019, it was about 400 million RMB. It is expected to grow rapidly to 10 billion RMB and 481 billion RMB by 2024 and 2030, respectively. The annual compound growth rates from 2019 to 2024 and from 2024 to 2030 are 92.2% and 30.0%, respectively.
Market Size of Chinese JAK1 Inhibitors, 2015 - 2030E
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, they help clients accelerate their business growth, achieving benchmark positions in industry growth, innovation, and leadership. 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 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: Yingtong Technology (2251.HK), Clover Biotech (2197.HK), MicroPort Robotics (2252.HK), Huarun Pharma (2256.HK), Kunbo Medical (2216.HK), Xianruida (6669.HK), Kangsheng Global (9960.HK), Yimaitong (2192.HK), Tengsheng Bopharm (2137.HK), CanSino (2162.HK), Chaoyu Eye Hospital (2219.HK), Guichuang Tongqiao (2190.HK), Hua Huang Medicine (0013.HK), Koi Pharmaceutical (2171.HK), Zhaoke Eye Hospital (6622.HK), Nature Pharmaceuticals (UPC.NASDAQ), Sino Biologics (6600.HK), Zhaoyan New Drugs (6127.HK), Novogene Health (6606.HK), Tianyan Pharmaceuticals (ADAG.NASDAQ), Beikang Medical (2170.HK), Jianbimiao Miao Miao (2161.HK), MicroPort Heart Link (2160.HK), Rui Li Medical Beauty (2135.HK), Gaoke Pharmaceutical (1167.HK), Hepcon Pharma (2142.HK), JD Health (6618.HK), Deqi Medicine (6996.HK), Rongchang Biotech (9995.HK), WuXi AppTec (2126.HK), SinoBIO (2096.HK), Yunding New Energy (1952.HK), Jiahe Biotech (6998.HK), Zai Ding Medicine (9688.HK), Ocular Biotech (1477.HK), Yongtai Biotech (6978.HK), Hapre Biotech (9989.HK), Kechuang Pharmaceutical (9939.HK), Peijia Medical (9996.HK), Kangfang Biotech (9926.HK), Novogene Health (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), Mabtech Pharma (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 Biologics (2269.HK), China Resources Pharmaceutical (3320.HK), Jacobus Busschere Research & Pharma (2633.HK), Hua Huang China Medicine (HCM.NASDAQ), Gensent Bioinformatics (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 over 90% of the market share from 2018 to 2020.
Since the first batch of companies on the Sci-tech Innovation Board (STAR Market) were listed in July 2019, Frost & Sullivan reports have also been widely cited in the prospectuses of leading STAR Market-listed companies in the industry. These include: Novogene (688105.SH), Chengda Biology (688739.SH), Geckov Microelectronics (688728.SH), Huaxi Biotechnology (688363.SH), Junshi Biosciences (688180.SH), Zhejiang Genomics & Biotechnology Co., Ltd. (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 healthcare industry, and build a healthy future.
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