Nanjing Novogene Biotech Co., Ltd. (hereinafter referred to as 'Novogene') successfully went public on November 15, 2021, issuing a total of 40 million shares at an issue price of 55.00 yuan per share.
The company is a biotechnology enterprise focusing on the research and development of functional proteins such as enzymes, antigens, antibodies, and polymer organic materials, as well as product development. Relying on its independently established key common technology platform, the company has successively entered the fields of biological reagents and in vitro diagnostic services. It is currently conducting research and development on antibody drugs and is one of the few domestic R&D and innovation enterprises with both independent upstream technology development capabilities and terminal product production. The customer base is extensive, covering more than 1,000 scientific research institutions such as Peking University, Tsinghua University, and the Chinese Academy of Sciences; over 700 high-throughput sequencing service enterprises such as BGI Genomics, Novogene, and Bioriginal; more than 700 molecular diagnostic reagent manufacturers such as Shengxiang Biotech, Aide Biotech, and Kep Bio; as well as over 200 pharmaceutical companies and CRO enterprises such as WuXi AppTec, Hengrui Medicine, and BeiGene. Frost & Sullivan has long been paying attention to the global and Chinese biopharmaceutical industries, publishing 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 growth.
Overview of Life Science Research Fields
The field of life sciences includes a series of disciplines that study various forms of life and explore their potential applications, such as animal science, agronomy, biotechnology research, bioengineering, food science, horticulture, pharmaceutical science, etc. Depending on the research subject, life sciences can be divided into zoology, botany, and microbiology. They respectively study the morphology, classification, physiology, ecology, distribution, occurrence, genetics, evolution of animals, plants, or microorganisms, as well as their relationship with humans; according to the characteristics of the research content, life sciences can be further divided into taxonomy, morphology, embryology, paleontology, genetics, ecology, biochemistry, biophysics, etc. From the structural level of organisms, life sciences can be divided into molecular biology, cell biology, histology, organ biology, population biology, etc. In addition, with the continuous expansion of human activities, biosciences such as cosmobiology, radiobiology, deep-sea biology, and environmental protection research have been developed successively.
Important advancements and breakthroughs in modern biotechnology are accelerating their penetration into application fields, showing great promise in solving health, environmental, and resource issues faced by human development. As a result, research funding in the global life sciences has also grown rapidly, increasing from $116.6 billion in 2015 to $151.4 billion in 2019, with an annual compound growth rate of 6.7%.
As biotechnology's strategic position in leading future economic and social development becomes increasingly prominent, China's comprehensive national strength has significantly improved, and the construction of the scientific and technological innovation system has been continuously perfected. Research funding in the field of life sciences in China has seen a rapid increase, rising from 434 billion yuan in 2015 to 866 billion yuan in 2019, with an annual compound growth rate of up to 18.8%.
Research funding investment in the field of life sciences in China, 2015 to 2019
Source: Frost & Sullivan report
Looking at the regional distribution of global investment in life science research funding, in 2019, the United States invested approximately $729 billion, accounting for 48.2% of the total global investment in research funding. Following closely behind is Europe, which invested about 22.1% of its total research funding. Currently, China's investment intensity in life science research funding still has a certain gap compared to world-leading scientific and technological powers such as the United States, accounting for about 8.3% of the global total investment. Against the backdrop of increased global investment in life science research, China has successively introduced a number of policy plans such as the 'National Biotechnology Development Strategy Outline' and the 'Several Opinions of the State Council on Comprehensively Strengthening Basic Scientific Research' in recent years to support life science research, and it is expected that this proportion will continue to rise.
Global Overview of Biological Research Reagents and Services
The market for biological research reagents and services includes products such as biological reagents and professional outsourcing services that assist in biological research and experiments. Based on product type, biological research reagents can be divided into proteins, nucleic acids, and cells; based on service type, biological research services can be categorized into R&D and production services, as well as testing and analysis services. The application fields of biological research reagents and services are extensive, and they are an indispensable part from basic research to achievement transformation for customers such as university laboratories, medical research centers, scientific research institutions, and pharmaceutical R&D enterprises. Biological research reagents can be divided into three categories: proteins, nucleic acids, and cells. Common protein products include recombinant proteins and antibodies, nucleic acid products include customized synthetic nucleic acids and cloning vectors, and cell products cover transfection reagents and culture media. The application fields of biological research reagents are rich and they are an indispensable part from basic research to achievement transformation.
Globally, biological research reagents have a huge market. The global biological research reagent market reached $128 billion in 2015 and grew at an annual compound rate of 8.1% to reach $175 billion by 2019. This investment is expected to reach $246 billion by 2024, with an annual compound growth rate of 7.1% from 2019 to 2024.
Overview of China's Biological Research Reagent and Service Industry
The Chinese biotech reagent market has also grown with the continuous investment and rapid development of life science research. The market size of biotech reagents in China reached 72 billion yuan in 2015 and grew to 136 billion yuan by 2019 at a compound annual growth rate of 17.1%, which is higher than the global biotech reagent market during the same period. This investment is expected to reach 260 billion yuan by 2024, with a compound annual growth rate of 13.8% during that period.
Market scale and forecast of bio-research reagents in China, 2015 to 2024
Source: Frost & Sullivan report
In 2019, the market scale of molecular reagents accounted for 50.9% in China, making it the largest category among biological research reagents. The market scale of protein reagents accounted for 29.4%, and that of cell reagents accounted for 19.7%.
The market scale of molecular reagents in which the company operates was 3.9 billion yuan in 2015, and it grew to 6.9 billion yuan by 2019 at an average annual compound growth rate of 15.8%. It is expected to reach 124 billion yuan by 2024, with an average annual compound growth rate of 12.3% during the period from 2019 to 2024.
Market scale and forecast of molecular reagents in China, 2015 to 2024
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, we help clients accelerate their business growth and achieve benchmark positions in industry growth, innovation, and leadership. The healthcare industry is one of Frost & Sullivan's core areas of focus. Over the past sixteen years, the Frost & Sullivan healthcare team has provided financing and financial advisory, IPO industry advisory, 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: Yingtong Technology (2251.HK), Clover Biotech (2197.HK), MicroPort 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), Canopy Biosciences (2162.HK), Chaopu Ophthalmology (2219.HK), Guichuang Tongqiao (2190.HK), Hua Huang Medicine (0013.HK), Kexi Pharmaceutical (2171.HK), Zhaoke Ophthalmology (6622.HK), Nature Medicine (UPC.NASDAQ), Sain Life Sciences (6600.HK), Zhaoyan New Drugs (6127.HK), Novogene Health (6606.HK), Tianyan Pharmaceutical (ADAG.NASDAQ), Beikang Medical (2170.HK), Jianbimiao Miao Miao (2161.HK), MicroPort HeartLink (2160.HK), Rui Li Medical Beauty (2135.HK), Gaoke Pharmaceutical (1167.HK), HepoB Biopharmaceuticals (2142.HK), JD Health (6618.HK), Deqi Medicine (6996.HK), Rongchang Biosciences (9995.HK), WuXi AppTec (2126.HK), Siasun Pharmaceutical (2096.HK), Yunding New Energy (1952.HK), Jiahe Biotech (6998.HK), Zai Ding Medicine (9688.HK), Ocular Care Biotech (1477.HK), Yongtai Biotech (6978.HK), Hapu Pharmaceutical (9989.HK), Kepai Pharmaceutical (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 Antibody (3681.HK), Dongyao Pharmaceutical (1875.HK), Yasheng Pharmaceutical (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 Biologics (2269.HK), China Resources Pharmaceutical (3320.HK), Jacobus Pharmaceutica (2633.HK), Hua Huang China Medicine (HCM.NASDAQ), Kingsbridge Biosciences (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, continuously occupying over 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 in the industry, including: Chengda Biology (688739.SH), Geke Microelectronics (688728.SH), Huaxi Biotechnology (688363.SH), Junshi Biotechnology (688180.SH), Zhejiang Genomics & Therapeutics Co., Ltd. (688266.SH), Bio-Thera Biotech Co., Ltd. (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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