Liaoning Chengda Biological Co., Ltd. (hereinafter referred to as 'Chengda Biological') successfully went public on October 28, 2021, issuing a total of 41.65 million shares at an issue price of 110.00 yuan per share.
Changda Biotech is a biotechnology company focusing on the research, development, production, and sales of human vaccines. Its currently listed products include human rabies vaccine and inactivated Japanese encephalitis vaccine. As an innovative vaccine company, it has overcome technical challenges in large-scale cell culture for high-quality vaccine production through independent research and innovation, filling a gap in related domestic technology and reaching international advanced levels. Building on its existing products, the company continues to increase R&D efforts, focusing on the upgrading of traditional vaccines and the development of innovative vaccines, further expanding its product pipeline to provide safer and more effective disease prevention measures for humanity. Frost & Sullivan has long been monitoring the global and Chinese vaccine 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 their growth.
Overview of the Global Vaccines Market
Thanks to the global aging process, increased awareness of disease prevention, and an increase in public healthcare spending, the global vaccine market continues to grow. Frost & Sullivan research shows that from 2015 to 2018, the global vaccine market size increased from $27.55 billion to $31.83 billion, with an average annual compound growth rate of 4.9%. In 2018, the vaccine market accounted for 2.5% of the global pharmaceutical market. In the future, driven by the launch of innovative vaccines and sales expansion in emerging markets such as China, India, and South America, the global vaccine market will further expand, expected to reach $55.98 billion in 2023, accounting for 3.5% of the pharmaceutical market.
Global vaccine market size and forecast, 2015 to 2023
Source: Frost & Sullivan report
Overview of the Chinese Vaccination Market
Currently in our country, vaccines are divided into immunization program vaccines (category I) and non-immunization program vaccines (category II) based on the payer of the vaccination. Immunization program vaccines are provided free of charge by the state and are mandatory for all citizens. There are currently 14 types of vaccines including BCG, DPT, and hepatitis B vaccine. Non-immunization program vaccines refer to other vaccines that are not part of the immunization program and are voluntarily administered by citizens at their own expense, with some included in medical insurance.
Frost & Sullivan research shows that the vaccine market size in China was 33.17 billion yuan in 2018, accounting for 15.7% of the global vaccine market. It is expected to grow to 101.77 billion yuan by 2023, with a compound growth rate of 25.1%. By then, it will account for 26.4% of the global vaccine market. The immunization program vaccine market reached a scale of 3 billion yuan in 2018 and is expected to increase to 4.41 billion yuan by 2023, with an annual compound growth rate of 7.5% from 2018 to 2023. The non-immunization program vaccine market size reached 30.09 billion yuan in 2018 and is expected to grow to 97.36 billion yuan by 2023, with a compound growth rate of 26.5% from 2018 to 2023. Non-immunization program vaccines accounted for 90.7% of the vaccine market in 2018 and dominate the Chinese vaccine market. With the significant growth of the non-immunization program vaccine market in the coming years, this proportion will continue to rise.
China's vaccine market scale and forecast, 2015 to 2023
Source: Frost & Sullivan report
Overview of the rabies vaccine market in China
The human rabies vaccine market can also be divided based on the cell lines used for vaccine production. Vero cells are currently the mainstream cell line for rabies vaccines and also have the highest cultivation efficiency. Vero cells cultured using suspension culture methods have high cultivation efficiency and good quality, with a lower risk of exogenous contamination. Chengda Biological uses bioreactor high-density culture technology to enable large-scale production of human rabies vaccines in Vero cells.
Frost & Sullivan research shows that in 2018, China was the largest market for human rabies vaccines globally, accounting for 30.5% of the global market. From 2015 to 2018, China's human rabies vaccine market increased from 1.68 billion yuan to 2.84 billion yuan and is expected to reach 4.25 billion yuan by 2023. The annual compound growth rate from 2018 to 2023 is expected to be 8.4%. China's human rabies vaccine market accounted for 21.3% of the global market share in 2015 and increased to 30.5% in 2018. It is expected that it will remain within the range of 28% to 30% from 2019 to 2023.
The market scale and forecast of rabies vaccine for Chinese people from 2015 to 2023
Source: Frost & Sullivan report
Overview of the Japanese Encephalitis Vaccine Market in China
Japanese encephalitis is a natural focal disease caused by the neurotropic virus, transmitted by mosquitoes carrying the Japanese encephalitis virus. The peak incidence occurs from spring to summer each year. There are two types of vaccines used globally: live attenuated and inactivated vaccines. Compared with the live attenuated Japanese encephalitis vaccine, the inactivated vaccine is favored by many developed countries due to its superior safety and effectiveness, as well as better applicability in populations with weaker immune function. The Japanese encephalitis vaccine product produced by Chengda Biological Products is currently the only domestically produced inactivated vaccine on sale in the Chinese market.
The Japanese encephalitis vaccine approved for use in China can be divided into live attenuated vaccines and inactivated vaccines according to the type of vaccine. The Japanese encephalitis live attenuated vaccine is a vaccine included in the immunization program and is relatively inexpensive. It accounted for the majority of the market share from 2013 to 2018, reaching 480 million yuan in 2018. The Japanese encephalitis inactivated vaccine is a non-immunization program vaccine and is more expensive. Based on the enhancement of the affordability of general recipients, the improvement of disease prevention awareness, and the increasing demand for lower-risk vaccines, it is expected that the market scale of the Japanese encephalitis inactivated vaccine will reach 140 million yuan in 2023, accounting for 27.3% of the total Japanese encephalitis vaccine market.
The market scale and forecast of Japanese encephalitis vaccine in China, from 2015 to 2023
Source: Frost & Sullivan report
Frost & Sullivan integrates nearly 60 years of global consulting experience and has been serving the booming Chinese market with dedication for 23 years. With a global perspective, it helps clients accelerate their business growth and achieve benchmark positions in industry growth, innovation, and leadership. The Greater Health Industry is one of Frost & Sullivan's core areas of focused research. Over the past sixteen years, the Frost & Sullivan healthcare team has provided financing financial advisory, IPO industry advisory, technical advisory, strategic advisory, management advisory, and other services to hundreds of outstanding domestic and international biopharmaceuticals, medical devices, healthcare services, and internet healthcare companies. Successful listings include: WuXi AppTec (2359.HK), BeiGene (6160.HK), Sino Biologics (2096.HK), China Resources Medicine (3320.HK), IMAB.NASDAQ (Tianjing Biotech), Rongchang Biotech (9995.HK), WuXi AppTec (2126.HK), Yundian New Hope (1952.HK), Ophthalmic Sciences (1477.HK), Hapu Pharmaceuticals (9989.HK), Pregna Biotech (9996.HK), Kangfang Biotech (9926.HK), Kanglong Chemical (3759.HK), China Antibody (3681.HK), Dongyao Pharmaceuticals (1875.HK), Fosun Pharma (2696.HK), Hansoh Pharmaceutical (3692.HK), Mabtech (2181.HK), Fangda Holdings (1521.HK), Via Biotech (1873.HK), CStone Pharmaceuticals (2616.HK), Innovent Biologics (2359.HK), Hailong Medicine (2552.HK), Gilead Sciences (1672.HK), WuXi AppTec (2269.HK), Janssen Research & Development (2633.HK), HCMNasdaq (Hapu China Pharmaceutical), (1548.HK), Sany Life Sciences (1530.HK), Tengsheng Bio-pharmaceuticals (02137.HK), etc. In terms of the number of filings, the Frost & Sullivan healthcare team maintains an absolute leading position in Hong Kong healthcare IPOs, continuously occupying more than 90% of the market share from 2018 to 2020.
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