Good News on Listing | Frost & Sullivan Assists Guichuangtongqiao Medical Technology Co., Ltd. to Successfully Go Public in Hong Kong (2190.HK)

Guichuangtongqiao Medical Technology Co., Ltd. (hereinafter referred to as 'Guichuangtongqiao') successfully went public on July 5, 2021, with a global issuance of 60 million shares at a price of HK$42.70 per share, raising approximately HK$2.397 billion. Frost & Sullivan (Frost & Sullivan, hereinafter referred to as 'Frost & Sullivan') provided exclusive industry advisory services for the listing of Guichuangtongqiao, and we hereby extend our warmest congratulations on its successful listing.

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.

Vascular interventional therapy is a technique that involves puncturing into blood vessels to perform diagnosis or treatment. Due to its advantages such as minimal trauma, quick recovery, and high safety, there is an urgent need for it in clinical practice. Interventional therapy is mainly used to treat vascular diseases, including neurovascular diseases and peripheral vascular diseases that affect the circulatory system. Peripheral vascular diseases can lead to neurological and cardiovascular diseases, such as heart disease and stroke, and neurovascular diseases are currently one of the main causes of death in China.

Neurovascular disease

Neurovascular diseases mainly include ischemic and hemorrhagic stroke. Due to technological innovation, these diseases can now be treated through neurointerventional surgery. Neurointerventional surgery is usually performed endovascularly, using selective angiography, embolization, dilation, mechanical removal, drug delivery, and other specific methods to diagnose and treat neurovascular diseases.

Neurointerventional device market

The market scale of neurointerventional medical devices in China increased from 2.6 billion yuan in 2015 to 4.9 billion yuan in 2019, with a compound annual growth rate of 17.3%. It is expected that by 2030, the market will further increase to 371 billion yuan, with a compound annual growth rate of 20.2% from 2019 to 2030. The following chart shows the historical and forecasted market scale of neurointerventional medical devices in China during the indicated period.

Acute ischemic stroke

Ischemic neurovascular diseases occur when fat and cholesterol form clots that block blood vessels. In this case, blood cannot reach the brain, and neurons lack nutrients and oxygen. Generally speaking, ischemic neurovascular diseases can be clinically divided into different subtypes, including ischemic stroke or acute ischemic stroke (AIS), transient ischemic attack (TIA), steal syndrome, intracranial atherosclerotic disease, and intracranial stenosis (a type of narrowing of an intracranial artery that can lead to AIS and TIA).

China Market for Neurointerventional Devices for Ischemic Stroke

The number of ischemic stroke treatment surgeries in China increased from 13,500 in 2015 to 45,800 in 2019, and it is expected to further increase to 881,300 by 2030. The annual compound growth rate from 2019 to 2030 is 30.8%. The following chart shows the historical and forecasted market size of ischemic stroke treatment surgeries in China during the period shown.

Overview of Intracranial Stenosis

Intracranial stenosis refers to the narrowing of arteries inside the brain, which can lead to a reduction in blood flow to the brain regions supplied by the affected vessels. Intracranial stenosis occurs when plaques accumulate in small twisted blood vessels deep within the brain, narrowing the arteries (i.e., atherosclerosis), which restricts blood flow. If left untreated, intracranial stenosis greatly increases an individual's risk of developing AIS (acute ischemic stroke) and TIA (transient ischemic attack). Intracranial stenosis causes stroke through three mechanisms: (i) Plaques can grow larger, severely narrowing the artery and reducing blood flow to the brain, eventually completely blocking the artery; (ii) Plaques can roughen and deform the arterial wall, leading to the formation of blood clots that prevent blood from flowing to the brain; (iii) Plaques can rupture and detach, moving downstream and lodging in smaller arteries, thereby preventing blood from flowing to the brain.

The number of intracranial stenosis interventional surgeries in China increased from 13,100 in 2015 to 27,600 in 2019, and it is expected that by 2030, the number will further increase to 349,500. The annual compound growth rate from 2019 to 2030 is 26.0%. The following chart shows the historical and predicted market size of intracranial artery stenosis interventional surgeries in China during the indicated period.

Overview of Intracranial Aneurysms

Intracranial aneurysms are abnormal expansions and congestions of the arterial walls in the cerebral blood vessels, usually occurring near the bifurcation points of the vessel segments and most commonly seen in people aged 35 to 60. The enlarged aneurysm can compress nerves or brain tissue, with symptoms including fatigue, peripheral visual impairment, cognitive dysfunction, speech complications, loss of balance and coordination, etc. The most serious sequelae of intracranial aneurysms are aneurysm rupture and subsequent subarachnoid hemorrhage (SAH). In 2019, the mortality rate from intracranial aneurysms was 50%, leading to a possibility of neurological disease of 30% to 50%. Currently, the causes of intracranial aneurysms are not clear. The causes of intracranial aneurysms are abnormal degenerative changes (i.e., rupture or weakening of the arterial wall), as well as the compressive effect produced by blood flowing forward through the cerebral arteries.

China Intracranial Aneurysm Interventional Devices Market

The number of intracranial aneurysm interventional surgeries in China increased from 30,600 in 2015 to 60,000 in 2019, and it is expected to further increase to 443,700 by 2030, with an annual compound growth rate of 19.9% from 2019 to 2030. The following chart shows the historical and predicted market size of intracranial aneurysm interventional surgeries in China by product type during the indicated period.

Peripheral vascular diseases include peripheral arterial disease and peripheral venous disease.

Overview of Peripheral Artery Disease

Peripheral arterial disease (PAD) refers to vascular diseases located outside the heart and brain, which occur when platelets block arteries that deliver blood to the limbs and internal organs or cause them to narrow. Atherosclerosis, inflammation, trauma, injury, abnormal anatomy of ligaments or muscles, or radiation exposure are common causes of peripheral arterial disease. Peripheral arterial disease is the third leading cause of atherosclerosis after coronary heart disease and stroke. With the continuous increase in the aging population and the improvement of public health awareness in China, the prevalence of peripheral arterial disease is also rising. Early detection and treatment can prevent heart disease, stroke, transient ischemia (or cerebral hypoxia), leg ischemia, and possible amputation.

China Peripheral Artery Disease Interventional Devices Market

The market scale of interventional devices for peripheral arterial diseases in China increased from 1.4 billion yuan in 2015 to 2.4 billion yuan in 2019, with an annual compound growth rate of 15.7%. It is expected that by 2030, the market will further increase to 122 billion yuan, with an annual compound growth rate of 15.7% from 2019 to 2030. The following chart shows the historical and forecast market scale of medical devices for peripheral arterial diseases in China during the indicated period.

Overview of Peripheral Vascular Diseases

Peripheral venous diseases are divided into two main categories: chronic venous disease (CVD) and acute venous disease. Chronic venous disease refers to a complex characterized by a series of symptoms and signs caused by abnormal venous structure or function, providing insufficient venous return and excessive venous pressure. The main clinical manifestations include lower limb heaviness, fatigue, swelling, edema, varicose veins, skin nutritional changes, and venous ulcers. The most common peripheral venous diseases include deep vein thrombosis, iliac vein compression syndrome, and varicose veins.

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, achieving industry growth, innovation, and leading benchmarks. 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, 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: Hutchison MediTech (0013.HK), Kite Pharma (2171.HK), Zhaokai Ophthalmology (6622.HK), Nature's Way Pharmaceuticals (UPC.NASDAQ), Sino Biologics (6600.HK), Zhaoyan New Drugs (6127.HK), Novogene Health (6606.HK), Tianyan Pharmaceuticals (ADAG.NASDAQ), Beicang Medical (2170.HK), Jianbimiao Miao (2161.HK), Minimally Invasive Cardiac Therapy (2160.HK), RuiLi Medical Beauty (2135.HK), Jiaosisi Pharmaceutical (1167.HK), Hepalink Biopharmaceuticals (2142.HK), JD Health (6618.HK), Deqi Pharmaceuticals (6996.HK), Rongchang Biotech (9995.HK), WuXi AppTec (2126.HK), Sino-BioPharma (2096.HK), Yunding Newray (1952.HK), Jiahe Biotech (6998.HK), ZaiDi Pharmaceuticals (9688.HK), OcularVista (1477.HK), Yongtai Biotech (6978.HK), Hapre Biotech (9989.HK), Kechuang Pharmaceuticals (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 Pharmaceuticals (1875.HK), Yasheng Pharmaceuticals (6855.HK), Fosun Pharma (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 Pharmaceuticals (2552.HK), BeiGene (6160.HK), Gilead Sciences (1672.HK), WuXi Biologics (2269.HK), China Resources Pharmaceutical (3320.HK), Yakult Biopharmaceuticals (2633.HK), Hutchison China Medicine (HCM.NASDAQ), Biotechnology (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 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 HuaXi Biotech (688363.SH), Junshi Biosciences (688180.SH), Zhejiang Genomics & Biotechnology Co., Ltd. (688266.SH), Bio-Thera Biologics (688177.SH), and Shenzhou Cells (688520.SH). It is 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 in China's healthcare industry, and build a healthy future.