Good News on Listing | Frost & Sullivan Congratulates Shanghai Mengke Pharmaceutical Co., Ltd. for Successfully Listing on the Sci-tech Innovation Board

Shanghai Mengke Pharmaceutical Co., Ltd. (hereinafter referred to as 'Mengke Pharmaceutical') was successfully listed on August 5, 2022, with an issue of 13,000,000 shares at an issue price of 8.16 yuan per share.

Mengke Pharmaceutical is an innovative drug company centered on the treatment of infectious diseases, with global independent intellectual property rights and international competitiveness. It is committed to discovering, developing, and commercializing innovative drugs for unmet clinical needs. The company has established R&D centers in China and the United States and possesses an international core R&D team. The company's R&D team has many years of experience in international innovative drug research and management, having led or participated in the development of several marketed anti-infective new drugs. The company adheres to independent research and development, delves into specialized niche areas, and has established an integrated antibacterial new drug R&D system within the company, covering all aspects of new drug development including early design and screening, preclinical evaluation, global clinical development, registration application, and production management.

The company's first antibacterial drug product, Contizolam Tablets (trade name: Uxetan), is a new generation oxazolidone antibacterial drug designed and developed independently by the company. It can be used to treat infections caused by multidrug-resistant Gram-positive bacteria. Compared with existing drugs, Contizolam not only ensures excellent efficacy against multidrug-resistant Gram-positive bacteria but also improves drug safety. It provides doctors and patients with safer medication options and better treatment plans. Contizolam has the potential to replace current similar antibacterial drugs and is expected to become the clinical first choice for treating multidrug-resistant Gram-positive bacteria in the future. Contizolam was approved for marketing on June 1, 2021, through the priority review and approval process of the National Medical Products Administration and entered the medical insurance system in January 2022. In addition, the company has several core products that have entered the clinical stage and/or commercialization stage, as well as new anti-drug-resistant bacterial drugs in preclinical stages, including kidney cancer and nephritis drugs, and anti-COVID drugs pipelines.

Frost & Sullivan has long been monitoring the global and Chinese biopharmaceutical industries, publishing a large number of research reports that are widely cited in the prospectuses of leading companies listed on the Sci-Tech Innovation Board, helping clients accelerate growth.

From 2016 to 2019, the market scale of antibacterial drugs in China showed a stable growth trend. In 2020, affected by the epidemic, the sales of antibacterial drugs were impacted due to reduced bacterial infectious diseases caused by wearing masks. The Chinese antibacterial drug market declined from 166.2 billion yuan in 2019 to 122.4 billion yuan. From 2016 to 2020, the market scale of antibacterial drugs in China decreased from 153.5 billion yuan to 124.4 billion yuan, with a compound annual growth rate of -5.1%. It is expected that by 2025, the market will reach 138 billion yuan, with a compound annual growth rate of 2.1% from 2020 to 2025.

Antibacterial drugs for infections caused by multidrug-resistant Gram-positive bacteria are mainly used empirically in China. In China, the number of days of antibacterial drug treatment for multidrug-resistant Gram-positive bacterial infections is expected to continue to grow in the future, increasing to 16.1 million days by 2025. The compound annual growth rate from 2020 to 2025 is 7.4%, and it will increase to 21.4 million days by 2030, with a compound annual growth rate of 5.9% from 2025 to 2030.

China is one of the largest markets for antibacterial drugs against multidrug-resistant Gram-positive bacterial infections globally, with a market size of 41 billion yuan in 2020. The compound annual growth rate from 2016 to 2020 was 6.1%. Although there was a slight decline compared to 2019, mainly due to the outbreak of the pandemic and the widespread use of masks that reduced the number of people infected with bacteria, driven by favorable government policies and increasing research and development costs, the market size of antibacterial drugs in China will begin to show an upward trend in 2021, increasing to 82 billion yuan by 2025 and to 108 billion yuan by 2030. The compound annual growth rate from 2025 to 2030 is expected to be 5.8%.

Oxazolidone drugs account for a certain market share in the antibacterial drug market for multidrug-resistant Gram-positive bacterial infections in China, and there is a growth trend. In 2020, the market size of oxazolidone antibacterial drugs in China was 1.5 billion yuan, higher than 700 million yuan in 2016, with a compound annual growth rate of 21.2%. The market size of oxazolidone antibacterial drugs in China will increase to 3.9 billion yuan by 2025 and to 6 billion yuan by 2030, with a compound annual growth rate of 8.7% from 2025 to 2030.

The total treatment days of antibacterial drugs for multidrug-resistant Gram-negative bacterial infections in China increased from 33.6 million days in 2016 to 46.9 million days in 2020, with a compound annual growth rate of 8.8% during this period. In the future, the treatment days of antibacterial drugs for multidrug-resistant Gram-negative bacterial infections in China will continue to show an upward trend, increasing to 87.3 million days by 2025, with a compound annual growth rate of 13.2% from 2020 to 2025, and increasing to 110 million days by 2030, with a compound annual growth rate of 5.2% from 2025 to 2030.

From 2016 to 2019, the market for antibacterial drugs for multidrug-resistant Gram-negative bacterial infections in China maintained stable growth. In 2020, due to the pandemic, the market for antibacterial drugs for multidrug-resistant Gram-negative bacterial infections in China slightly declined compared to the previous year, but overall it still showed an upward trend, increasing from 14 billion yuan in 2016 to 18.9 billion yuan in 2020, with a compound annual growth rate of 7.9%. From 2020 to 2025, the market will grow to 339 billion yuan, with a compound annual growth rate of 12.4%, and will eventually reach 422 billion yuan by 2030.