Good News on Listing | Frost & Sullivan Assists Tengsheng Bio-Technology Co., Ltd. to Successfully List in Hong Kong (2137.HK)

Tengsheng BOP Bio-Technology Co., Ltd. (hereinafter referred to as 'Tengsheng BOP') was successfully listed on July 13, 2021, with an issue size of 128 million shares. The offering price ranged from HK$21.00 to HK$22.25, raising approximately HK$2.855 billion. Frost & Sullivan (Frost & Sullivan, hereinafter referred to as 'Frost & Sullivan') provided exclusive industry advisory services for the listing of Tengsheng BOP, 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 the 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.

Antimicrobial drugs are widely used in various infectious diseases and complications caused by other diseases. They can be classified into antiviral drugs, antibacterial drugs, and antifungal drugs based on the type of pathogen they target.

Frost & Sullivan research shows that from 2015 to 2019, the market size of anti-infective drugs in China increased from $312 billion to $326 billion. The market for anti-infective drugs in China is expected to continue growing in the future, reaching $582 billion by 2034. Among them, the antiviral drug market has significant growth potential. From 2015 to 2019, the market size of antiviral drugs in China increased from $3.1 billion to $3.8 billion and is expected to grow to $252 billion by 2034.

BRII-179 is a novel recombinant protein-based therapeutic vaccine for HBV that can activate both B cell and T cell immunity. The components of BRII-179 include all three surface antigens of the HBV virus—PreS1, PreS2, and S. The third-generation preventive HBV vaccine Sci-B-Vac®, composed of these three antigens, has been approved for marketing in Israel and has submitted a BLA application for marketing in the United States. BRII-835 is a small nucleic acid drug (siRNA) that degrades all RNA transcripts of the HBV virus by targeting the highly conserved DR2 region within the HBV genome, thereby eliminating all HBV proteins and disrupting their viral function. The combination therapy of BRII-179 and BRII-835 could potentially provide a functional cure for HBV patients.

Existing nucleoside drugs and interferon therapies can inhibit the replication of HBV, but they cannot achieve functional cure. Patients need to take medication for life, and there is a huge global demand for drugs that can achieve functional cure. China has the largest HBV patient population in the world, and 80% of primary liver cancers and 60% of cirrhosis in China are related to HBV infection. Therefore, China has an especially urgent need for drugs that can achieve HBV functional cure. Frost & Sullivan research shows that it is expected that after 2024, with more innovative HBV drugs coming to market in China, especially those that can achieve functional cure, the market will begin to grow significantly. It is estimated that the Chinese HBV drug market will grow from $1.6 billion in 2019 to $15.9 billion by 2034.

BRII-778/BRII-732 is an oral antiretroviral cocktail tablet medication that uses three viral suppression mechanisms: nucleotide reverse transcriptase inhibitors (NRTI), nucleotide reverse transcriptase inhibitor-transactivator inhibitors (NRTTI), and non-nucleotide reverse transcriptase inhibitors (NNRTI). It can effectively inhibit the replication of HIV virus. Its long-acting formulation also enables once-a-week oral administration, improving patient medication compliance.

The HIV drug market in China can be divided into free drugs and self-paid drugs. Some self-paid drugs, including some innovative single-tablet drugs, have also been included in the medical insurance reimbursement catalog. Frost & Sullivan research shows that the market for HIV self-paid drugs in China increased from $32.5 million in 2015 to $99.8 million in 2019, with a compound annual growth rate of 32.4% from 2015 to 2019. It is expected that by 2034, the market will grow to $3.37 billion.