In the past two years, the financing environment for innovative drugs in China has begun to change, with investors becoming more cautious and calm. How do they view the current capital 'cold winter'?2023What changes will occur in the annual investment style? Biopharmaceutical technology innovation pharmaceutical companies in the past two yearsIPO listingFrequent "price cuts" have hit even leading companies, leaving them in a difficult situation. Considering the current macro environment,2023What are some suggestions for pharmaceutical companies planning to go public in the coming year?
From the perspective of investment and financing, from which dimensions can we judge the feasibility of an innovative drug company's R&D pipeline? For innovative drug companies in2023What suggestions are there regarding the product layout pipeline selection and partner selection for the year? In terms of outbound strategies, in addition to Europe and the US,2023What other international markets are worth investing in for the year? How can a pharmaceutical company survive and achieve good development in a complex environment? Frost & SullivanFrost & SullivanMao Hua, Partner and Managing Director of Frost & Sullivan Greater China, was interviewed by2121st Century Business Herald Interview, to jointly discuss the aforementioned topics.
21Century Economic Report
Q
In the past two years, the financing environment for innovative drugs in China has begun to change, with investors becoming more cautious and rational. How do you view the current capital 'cold winter'?2023What changes will occur in the annual investment style?
fattening
Partner and Managing Director of Frost & Sullivan Greater China Region
Against the backdrop of the global economy's macro situation,2022The cooling of the domestic innovation drug investment and financing environment is not a local phenomenon. This applies to both primary market financing and secondary market transactions in China.IPO listingJudging from the current situation, market sentiment is relatively low, and investors tend to be cautious and rational.2022End of the year2023At the beginning of the year, the market's tight conditions gradually eased, and it was clear that signs of market recovery were emerging. The valuations of listed companies in the healthcare sector were adjusted to a reasonable level, investment and financing activity picked up, and participants in the industry began to regain confidence.
In the dynamic changes of the external environment, market logic has undergone corresponding shifts. Investors now focus on the innovative value of corporate products and long-term strategic layout. In the face of the current phenomenon in China where innovation drug targets are concentrated and homogenized, investors are also paying attention to early-stage enterprises. Technological innovation, long-term product layout strategies, commercialization capabilities, and the manifestation of value returns after investment are all areas of concern.
Q
Biopharmaceutical technology innovation pharmaceutical companies in the past two yearsIPO listingFrequent "price cuts" have left even leading companies struggling with the dilemma of "price cuts". Considering the current macro environment, your view is that2023What are some suggestions for pharmaceutical companies planning to go public in the coming year?
fattening
Partner and Managing Director of Frost & Sullivan Greater China Region
In the face of volatile capital markets, many projects globally, including those in China, have chosen to postpone their schedules or even enter a 'suspended' state, hoping to wait until a better issuance window arrives. This is a very passive choice. In the current macro environment,IPO listingIt is no longer just the endpoint for a company's sprint, but rather a landmark on the development path. In the coming period, pharmaceutical companies intending to go public need to look further ahead, proactively transform their development strategies, enhance their investment value from within, and gain market recognition.
Q
From the perspective of investment and financing, from which dimensions can we assess the feasibility of an innovative drug company's R&D pipeline? For innovative drug companies in2023What are your suggestions regarding the product layout pipeline selection and partner selection for the year?
fattening
Partner and Managing Director of Frost & Sullivan Greater China Region
When assessing the value and risks of an innovative pharmaceutical company's R&D pipeline, one can focus on comprehensive considerations such as technological innovation, commercial profitability potential, including current clinical value development, market capacity, competitive landscape, and technology platform. For example, whether it can solve clinical pain points, whether there are R&D and commercial teams capable of better allocating resources to conduct clinical research, production, and subsequent commercialization.
2023In [a certain year], for innovative pharmaceutical companies, product layout should be advanced, whetherlicense-in grantWhether it is independent research and development, it is necessary to clarify the product's technological innovation and subsequent commercialization model early on. Moreover, there should be a product pipeline so that in the increasingly fierce market competition, there can be an accumulation and layout, which can support the decline in the sales of listed products in the future. In the face of international markets, enterprise choiceslicense-out operationWhen considering other business cooperation models, you can pay attention to the partner's resource integration capabilities and past R&D or business experience.
Q
How do you view it2022What are the achievements of the enterprise's "going global" in [FY] ? In terms of going global strategy, besides Europe and America,2023What other international markets are worth investing in for the year?
fattening
Partner and Managing Director of Frost & Sullivan Greater China Region
The 'going global' of innovative pharmaceutical companies is an important trend under the transformation and upgrading of the industry. In order to seek new business growth points and expand new growth space, 'going abroad' has become one of the strategic deployments of many innovative pharmaceutical companies. Overseas market competition requires going through strict 'value' tests.2022There are also many companies that have achieved good results after 'going global'. The European and American markets with high healthcare spending have always been the main battleground for global pharmaceutical companies. In addition, some Asian countries are also attractive. For example, Singapore, with its rich industrial clusters, has attracted many well-known multinational pharmaceutical companies to set up operations. For instance, the pharmaceutical outsourcing service company WuXi AppTec plans to invest in building a modern biopharmaceutical production base in Singapore.
Q
What do you think2023How can pharmaceutical companies in 2021 survive and achieve good development in a complex environment?
fattening
Partner and Managing Director of Frost & Sullivan Greater China Region
2023Annual pharmaceutical companies need to adapt to changes, actively adjust their expectations and strategies. In the current more complex market environment, capital flows towards technology innovation, differentiation, and enterprises with unique characteristics. Therefore, companies need to carry out long-term layout plans with a forward-looking perspective. In addition to achieving technological innovation and clinical value for products, companies need to plan their commercialization paths as early as possible. For example, making reasonable plans for the future sales model of products in the pre-clinical stage is crucial in deciding whether to develop them independently or seek suitable partners, thereby realizing market value and generating investment returns in the future.
In addition, enterprises can flexibly adjust their development models and learn to utilize available resources to ensure their survival in complex environments. For example In the context where pharmaceutical companies find it difficult to 'open source', they can appropriately 'cut costs' and use idle capacity for developmentCDMO companyorCRO companyBusinesses, or streamlining those less clear-cut lines of business, should direct core resources towards more promising and rewarding areas.
*This interview was published in21Economic Times of the Century, reporter: Ji Yuanyuan Original title is "The Can investment in innovative drugs return to the 'spring' period? >> (Click on "Read the Original Article" at the end of the text to read the full report).
