2022China Grand Health Industry Summit
11month30On the day, the first China (Macau) International High-Quality Consumption Expo and Hengqin World Bay Area Forum were officially held. The forum was guided by the Macao Special Administrative Region Government, the People's Government of Guangdong Province, the State-owned Assets Supervision and Administration Commission of the State Council, the Liaison Office of the Central People's Government to the Macao Special Administrative Region, and the China Council for the Promotion of International Trade. It was sponsored by Nanguang (Group) Co., Ltd., the Foreign Trade Development Bureau of the Ministry of Commerce of the People's Republic of China, and the Guangdong Provincial Department of Commerce, and undertaken by Jinsha China Co., Ltd. and Nanguang International Conference & Exhibition Co., Ltd.
As one of the sub-forums under the above forum theme, guided by Southern Finance & Economics All-media Group,21Century Economic Report and21Sponsored by Century New Health Research Institute “ The First Hengqin World Bay Area Forum on Biomedicine2022The China Grand Health Industry Summit ” was grandly held. The conference revolved around “Innovative and High-Quality Development Accelerating the Internationalization of Medicine" theme, focusing in-depth discussions on major changes in China's healthcare industry, the biomedical industry cluster in the Bay Area, the survival and development of innovative pharmaceutical companies, and the construction of a "Healthy Bay Area", to explore the future together. Frost & SullivanFrost & SullivanMao Hua, Partner and Managing Director of Frost & Sullivan's Greater China Region, was invited to attend the event and delivered a speech on the challenges and strategies for the transformation and upgrading of biopharmaceutical innovation enterprises.
Partner and Managing Director, Greater China, Frost & Sullivan fattening
Mao Hua first introduced to you2021Year-end2022The listing situation of Chinese pharmaceutical companies globally in the third quarter of the year. According to their report, the number of Chinese medical companies going public has been at a high level, indicating that the demand for corporate listing and financing has not changed. In terms of listing locations,2022Before the New Year, because18aWith the rapid development of the market, Hong Kong stocks have always been the preferred destination for Chinese medical enterprises to go public.2022In [year], affected by the correction of Hong Kong stock valuations and sluggish trading volumes, domestic healthcare companies went public withAMost are stocks. In addition, this year there were also some with market value exceeding200Enterprises worth hundreds of millions have startedGDRListing has opened up a new listing route.
Subsequently, the texturing is done separately fromBiotechThe core challenges andBiopharma companyThe advanced path is analyzed from two aspects.
Mao Hua pointed out, ChinaBiotechDeveloping intoBiopharma companyof4In this stage, there will mainly be challenges such as product homogenization, fierce price competition, and serious talent loss.3Great challenge.
The data shows,2015Year-end2021In the year, the amount of investment and financing in China's pharmaceutical market was from371Rise by hundreds of millions to2,691Yuan, a growth of over7times, with an average annual compound growth rate as high as39.1%. "The enthusiasm in the capital market has led to a surge in the number of innovative drugs in China, but the weak basic medical research capabilities in China result in a backlog of basic researchThe development ability is still insufficient. ” Mao Hua further explained that, taking the number of documents as an example, the number of documents in China has decreased from2015approximately4Around a thousand pieces, which has been increasing year by year to2021approximately9Thousands, but still close to the United States6A multiple gap.
For the above reasons, ChinaBiotechEnterprises tend to choose more mature targets, leading to a high concentration of selected targets, serious homogenization of drug R&D routes, and a large number of them. However, the National Medical Products Administration's Center for Drug Evaluation (CDE) on2021A new policy released this year is expected to end this current situation.
CDEThe new policy emphasizes that the research and development of anti-tumor drugs should be guided by clinical value, and efforts should be made to provide participants with the best treatment methods in clinical practice./Medications, and the development of new drugs, should aim to provide patients with better treatment options as their highest priority. CDEThe new policy has raised the listing threshold for innovative drugs, affecting localBiotechThe R&D strength of enterprises poses more challenges.
Mao Hua said that the limited payment capabilities of Chinese patients and the pressure from medical insurance negotiations to reduce prices have affected the sustainable profitability of enterprises.
China's healthcare expenditure from2019of6.5Trillion yuan rose to2021year7.6trillion yuan, while in the same period, the United States was about3.5times. The payment ability of Chinese patients is significantly lower compared to that of American patients, which makes Chinese pharmaceutical companies relatively conservative in setting local prices. On the other hand, China's medical insurance has a strong cost control policy; for example, the price cut for Zanubrutinib was70.2%The price cut of flumetinib winning bid is63.1%This forces pharmaceutical companies to rely on price cuts to drive sales. In this context, diversified and innovative payment models, as well as the construction of a pipeline ladder, will help improve the situation.
BiotechThe company is eager to recruit professional senior management talent, but how to quickly adapt to the corporate culture, leverage talent strengths, and retain them is another key proposition. According to a study by Frost & Sullivan,2019Since the beginning of this year, senior executives in China's pharmaceutical industry have left frequently, with several cases occurring in the same year552name2020till2022Over the past three years, the average number of executives leaving the company each year was approximately300People. The demand for mid-to-high-end talents in China's biopharmaceutical industry is increasing continuously, coupled with a significant injection of capital that has driven up salaries. This has led to an average job-hopping cycle for mid-to-high-end talents in the industry from2019year4.10Decreased by2022year3.42year.
Mao Hua pointed out that due toBiotechThe pipeline of products that a company can go on to list with has always been limited, and a relatively complete commercial lifecycle for a product requires at least5In [year], frequent departures of senior executives can have a significant impact on the long-term commercialization of products. Therefore, companies need to recruit executives who recognize the company's vision and product positioning, agree with the corporate culture's values, and are capable of building teams and implementing equity incentives.
how to becomeBiopharma companyMao Hua summarized the commercialization path of innovative drugs as 'bringing in', 'grabbing market share', and 'going global'. The commercialization capability of an enterprise largely determines whether it can becomeBiopharma company.
License InTarget concentration, severe product homogenization, in the past3within the year,License InFocusing on disease areas such as anti-tumor therapy, the targets are commonly found inCD47,LAG-3,JAK,FGFRs,c-MetIn recent years, pharmaceutical companies have gradually recognized the risks of product homogenization and begun to make arrangementsLicense InNew targets, and strengthen their competitive edge through technology licensing. "License inIt has shifted from 'grabbing in' to 'selective entry'. Faced with various challenges, pharmaceutical companies are paying more attention to products that can be combined with their own technological strength, aiming to build a pipeline layout with long-term barriers,” said Mao Hua.
Currently, Chinese innovative pharmaceutical companies are actively seizing the forefront through independent research and development. Data shows that ChinaBiotechThe number of self-developed pipelines is almost three times that of imported pipelines, and there are multipleCAR-TTargeted research is at the forefront of the world.
Mao Hua said that innovative drugs face different problems at different stages of commercialization, such as the intense competition mentioned earlier regarding medical insurance. Therefore, innovative drug companies need to prepare a full life cycle commercialization strategy before the drug is launched on the market.
As the domestic innovation drug ecosystem gradually takes shape, biotech companies are continuouslyLicense-out of the MainlandTransactions have brought domestic technology abroad, and by collaborating with multinational corporations, we are better able to participate in global competition. In the past four years, Chinalicense-outThe number of transactions has reached300In subsequent times, it can be seen that the domestic R&D strength has been significantly enhanced.License expirationModel for ChinaBiotechReducing R&D risks, expanding sales reach, optimizing cash flow3Advantages in one aspect:1) The two parties share the R&D costs, leveraging their respective strengths in R&D capabilities.Make up for deficiencies;2The transferee is responsible for market entry and sales in overseas markets, helping local pharmaceutical companies break through the domestic sales ceiling;3The transferor obtains cash replenishment through downpayments and milestone payments, thereby enhancing the company's operating cash flow.
Finally, Mao Hua introduced the consulting services of Frost & Sullivan's healthcare team to the attendees. Frost & Sullivan has a wide range of life science consulting clients, including small molecule targeted drugs and gene therapy.&In recent years, Frost & Sullivan has assisted a large number of biotech companies in listing on the Hong Kong stock market in areas such as cell therapy and antibody drugs.18AAnd the Sci-tech Innovation Board. At the same time, based on continuous research into China's biotechnology industry, Frost & Sullivan has recently released several blue books on industry development, providing important reference perspectives for market stakeholders.
