chinaBiotechThe Road to Global Evolution
An innovative drug requires strong capabilities in aspects such as project establishment, clinical trials, registration, market access, sales, etc., from research and development to market launch and sales. At present, these capabilities mainly includeBiopharma companyandBig pharma companiesOnly then are they fully realized. Therefore, aBiotechFor a company to evolve into a globalizedBiopharma companyorBig pharma companies, requires innovation in technology application, target and compound discovery, preclinical research,CMCresearch,IND,Non-Disclosure AgreementTo stand at the forefront, efforts need to be strengthened in these areas. At the same time, it is also necessary to reinforce forward-looking arrangements in early globalization product pipelines, investment and financing, etc.
9month9day, from the headCDMOThe listed company Boteng Co., Ltd. initiated the “ChinaBiotechGlobal Evolution Road | Boteng Innovation Medicine Salon · Shanghai Station" themed salon was successfully held. The event invited top-notch front-line experts.PROTACexperts,BDtransaction/LicenseCross-border transaction expert, global pharmaceutical consulting expert, and innovative drugCMC/INDExperts jointly carried out discussions and exchanges. Frost & SullivanFrost & SullivanMao Hua, Partner and Managing Director of Frost & Sullivan Greater China, was invited to attend the event and delivered a speech on2022A speech was delivered on the review and prospects of the biopharmaceutical investment and financing market.
Partner and Managing Director of Frost & Sullivan Greater China Region fattening
During the speech, Mao Hua first said2022A brief analysis of the investment and financing situation in the global and Chinese biopharmaceutical industries during the first half of the year was conducted. According to its introduction,2022China in the first half of the yearAThe stock has become the largest in the worldIPO listingcityVenue, the Shanghai Stock Exchange and the Shenzhen Stock Exchange shall be located at2,563HK$10 billion,1,201The financing amount of HK$10 billion ranks first and second globally, NASDAQ, NYSE, and HKEX did not appear in the top five. In the healthcare sector,2022First half of the yearAThe stock market is also more active than the Hong Kong market.AshareIPO listingAlthough the quantity decreased year-on-year, the raised funds increased year-on-year33%Hong Kong stocksIPO listingBoth the quantity and raised funds have declined significantly year-on-year.
The data shows,2020 - 2021Over the year, in the healthcare sectorIPO listingVolumes have been increasing across major global sectors.2022In the first half of the year, all segments experienced a cooling-off. During this period, Chinese healthcare enterprisesIPO listingYear-on-year quantity2021Decrease in the first half of the year40.8%ButAEquity remains the capital market with the largest number of listings in China's healthcare industry at present, and Hong Kong stocks18AIt is even more favored by unprofitable Chinese healthcare enterprises. 2022First half of the yearAStock market, healthcare industryIPO listingfinancing scale,IPO listingThe number of enterprises ranks sixth and fourth among all industries.
Mao Hua pointed out, Judging from the listed valuation level, As of2022year6month30dayAThe overall price-to-earnings ratio (excluding negative values) of the healthcare industry is higher than that of the US and Hong Kong healthcare industries. For unprofitable listed healthcare companies,AThe stock exhibits a significant valuation advantage, in addition toAIn addition to the valuation premium of the equity itself, andAThe Sci-tech Innovation Board has higher requirements for the R&D progress of unprofitable enterprises seeking listing (for innovative drugs, at least one core product must enter pivotal clinical trials). At present, the limited number of innovative drugs on the market is also related to the lack of profitable innovative medical device companies.
Judging from the stock price on the first day, 2022In the first half of the year, healthcare companiesAThe break-even rate for stocks and Hong Kong stocks is comparable. In response to some issues in previous practices, such as offline investors focusing more on strategy than research, engaging in 'group bidding' to secure inclusion, and disrupting the issuance order, the China Securities Regulatory Commission (CSRC), Shanghai and Shenzhen Stock Exchanges, and the Securities Association have issued relevant reform documents regarding the current new share issuance system. After the release of the new regulations, the pricing center for new share issuance has increased.AThe myth of 'new shares never going under' has been shattered.2022First half of the yearAAmong the listed healthcare companies, there have been7The company's shares broke below their issue price on the first day.
Looking at the average daily trading volume after listing, AThe secondary market trading activity in the healthcare sector is higher than that of Hong Kong stocks. Both the overall sector and unprofitable biotech companies have far more active trading volumes than Hong Kong stocks.AThe median daily turnover of equity healthcare companies exceeds that of Hong Kong stocks in the past5times, and the median daily turnover of unprofitable biotech companies on the Sci-tech Innovation Board is also close to that of Hong Kong stocks3More than twice.
Mao Hua said that it is expected that withAWith the full implementation of the share registration system and market policy reforms, more pharmaceutical companies will choose toAThe shares were financed.
Subsequently, Mao Hua reviewed2022First half of the year and2021Key trends in China's biopharmaceutical market in 2023.
Firstly, under the impact of the COVID-19 pandemic,2021The list of the world's top ten best-selling drugs has changed -- Pfizer/BioNtechCOVID-19mRNAThe vaccine made it onto the list and ranked first, surpassing the leader that has held the top spot for many yearsHumira,ModernaCOVID-19mRNAVaccines also rank at the top.
Secondly, looking at the whole2021In [year], biotech companies were active in financing, directly promoting R&D investment. Domestic biopharmaceutical companies also continued to increase their R&D investment to support innovation.
The successful financing activities in the primary and secondary markets have greatly supported the company's R&D layout. On one hand, there is an adequate pipeline for capital introduction, and on the other hand, the more abundant funds have also strengthenedIn-house staffR&D, with our own R&D efforts bearing fruitlicense-out operationThe total transaction volume of varieties has reached20Billion-dollar club.
Mao Hua believes that, under the current competitive landscape,BiotechOn the path of commercial exploration, it is necessary to possess the ability to integrate existing pipelines and resource operations in order to secure survival and develop space.
In addition, in terms of new drug approvals,2021National Medical Products AdministrationNMPA) Approved in total83A new drug, with a number2016New highs were recorded in recent years, mainly driven by oncology drugs and infectious disease medications.2022Approved in the first half of the year29New drugs (excluding new indications, new dosage forms, biosimilars; if the active ingredient in a compound is not approved for the first time, it is not included in the statistics), among which oncology drugs account for approximately48%（14/29).
2021US Food and Drug AdministrationFDA) Approved in total50A new drug product (excluding cell therapies and vaccines), with no significant difference in quantity compared to previous years, including36A new molecular entity and14A new biologic product, with oncology drugs still being the majority, accounting for30%.2022First half of the yearFDAA total of16novel molecular entity/New biological products, as well as those that have been approved1modelmRNACOVID-19 vaccine and1modelCAR-TCell therapy, with the total number of approvals falling short2021Half of the year, it is still mainly distributed in the field of anti-tumor research, accounting for approximately22%.
Finally, Mao Hua summarized that the COVID-19 pandemic has brought biopharmaceutical investment and financing to an unprecedented level of enthusiasm. With the influx of hot money, it has inevitably led to crowded R&D and homogeneous competition. The wave of homogenized innovation brought about by hot money has gradually shown signs of market decline. Biopharmaceutical companies need to start from clinical needs, explore the most fundamental ones, and only innovations that address unmet clinical needs can gain market recognition and bring returns to capital.
"In recent years, with national policy guidance for Chinese pharmaceutical companies to innovate, the level of domestic innovative drugs has been continuously improving under the policy dividend. The R&D level of innovative drugs is growing day by day. On the other hand, the R&D of COVID-19 vaccines is also driving rapid technological development in the industry. We believe that China's biopharmaceutical industry will increasingly integrate into the global innovation pulse," said Mao Hua.
The Frost & Sullivan healthcare team has rich project experience in innovative biomedicine, and recently20For many years, the Frost & Sullivan team has provided financing and financial advisory services to hundreds of outstanding domestic and international biopharmaceuticals, medical devices, healthcare services, and internet healthcare companies.IPO listingIndustry consulting, strategic consulting, management consulting, and other services. Since2019year7Since the listing of the first batch of companies on the Sci-tech Innovation Board, Frost & Sullivan reports have also been widely cited in the prospectuses of leading Sci-tech Innovation Board-listed companies in the industry.
