Distance from Hong Kong stocks “18A"The implementation of the listing rules has been in effect for five years, since2018year4New additions to the reform of Hong Kong stock market regulations in the month18ASince the beginning of this year, companies in fields such as innovative drugs, rare disease treatment, and high-tech medical devices have successively gone public in Hong Kong, leading to a major boom in the biotech sector of the Hong Kong stock market. 2023year5month17Today, Frost & Sullivan, LeadLeo Research Institute, Live Reportbig data , "TradeGo" co-authored with2023Hong Kong stocks for the year18AThe White Paper on the Development of Biotechnology Industry has been officially released.
Frost & SullivanFrost & SullivanDr. Wang Xin, Global Partner and Chairman of Frost & Sullivan Greater China, was interviewed by CBN to discuss18AThe development of biotech companies listed on the stock market since the implementation of the policy.
CBN
Q
The analysis in the report18AAmong listed companies, which sectors or tracks have higher valuations? What are the commonalities behind these high valuations (including investment enthusiasm, company operations, etc.)?
Dr. Wang Xin
Global Partner and Chairman of Frost & Sullivan Greater China Region
According to the division in our report18ABiotech companies currently have relatively high valuations in the fields of cell therapy and oncology.
Commonalities in the high valuations of these two tracks:
1Investment enthusiasm: These two areas have received widespread attention and investment from investors, venture capital firms, private equity funds, etc., globally. The influx of capital is not only due to the high profitability potential of these areas but also because basic scientific theories have made relatively mature progress and technological breakthroughs are available.
2Market demand: Against the backdrop of continuous growth in global healthcare market demand, this will support current biotech companies in expanding their marketing and product lines. There are better treatment methods for diseases faced by cell therapy or tumor treatment.
Q
What do you think18AWhat are the technical attributes, maturity, and advancement of listed companies exactly?
Dr. Wang Xin
Global Partner and Chairman of Frost & Sullivan Greater China Region
18AThe listed company focuses on biotechnology research and development and innovation, operating in fields such as biopharmaceuticals, medical devices, and cutting-edge technologies. Local pharmaceutical companies' innovation and R&D capabilities are gradually maturing and they are moving towards internationalization.18AThe listed companies in this sector are highly cutting-edge, with a diverse and inclusive portfolio ranging from small molecule targeted drugs, immunotherapy, cell genes, tomRNATechnology, from monoclonal antibodies, bispecific antibodies,PROTACOncolytic virus,ADCTo bispecificADC, from innovative drugs, innovative devices, innovative vaccines toCXOFully covered. Leading companies such as BeiGene, Innovent Biologics, and Junshi Biosciences have alreadyPD-1The team is far ahead in the race track segment and is focusing more on innovative research and development on new tracks.
Q
What specific improvements are needed in the capital market environment to enable biotech companies to achieve sustainable and healthy development?
Dr. Wang Xin
Global Partner and Chairman of Frost & Sullivan Greater China Region
1The healthy competition among new-generation biotech companies will bring new vitality to pharmaceutical innovation in our country. However, for sustainable and healthy development, it is necessary to promote differentiated innovation oriented towards clinical value to avoid homogeneous competition. At the same time, research and development (R&D) and financing plans need to be adjusted constantly.
2Biotech companies face a long R&D cycle and high uncertainties, with the policies and trends of the capital market having a significant impact on their development. The standardized development of the capital market and the introduction of favorable new regulations are expected to promote further development of enterprises.
3Primary and secondary markets need to have a deeper understanding and more sober valuation of the biotechnology industry. Attention to the biotechnology sector requires a long-term perspective to assist in the healthy development of biotech companies, reduce market vicious cycles, and avoid market backlash after bubbles burst.
*This interview was published in "CBN Business News". The reporter is Zou Zhenjie Original title is "The Released by Frost & Sullivan18ABiotechnology Industry Report: The Valuation of the Cell and Tumor Therapy Track is the Highest >> (Click "Read Full Article" at the end of the text to read the complete report).
