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At the event site, Mr. Yang Xiaocheng, Partner of Frost & Sullivan Greater China and Dean of the Frost & Sullivan China Research Institute, delivered a keynote speech titled 'The Chinese Medical Market in the Face of Great Changes'.
Last year, affected by the COVID-19 pandemic, the biotechnology industry has been a focus of market attention. Yang Xiaocheng pointed out that"Innovation begins with technology and is achieved through capital." The biotechnology industry is a typical technology-intensive, innovation-driven sector. The inherent uncertainty of industrial development makes it difficult to combine the biomedical field with traditional financial markets, which are precisely matched by the characteristics of shared interests and risks in the capital market. From a global perspective, driven by both technological progress and demand growth, the biotechnology industry has entered a golden period of development.Since 2014, biopharmaceutical-related companies have accounted for the largest proportion in the U.S. market IPO industry. From 2017 to 2019, the number of NASDAQ pharmaceutical company IPOs reached 50, 86, and 79 respectively, showing a decrease in 2019, but the total fundraising amount still rose to reach 72.34 billion yuan. Overseas investors continue to show enthusiasm for the pharmaceutical industry. The Hong Kong stock market has grown steadily, and its attractiveness is constantly strengthening. From 2017 to 2019, the number of Hong Kong stock market pharmaceutical company IPOs increased from 6 to 17, with the total fundraising amount for the pharmaceutical sector reaching 33.67 billion yuan in 2019.
He believes that with the launch of the Sci-tech Innovation Board and the acceleration of IPO review speed, the role played by the pharmaceuticals and biotechnology sectors in China's capital market will gradually increase.Since most biopharmaceutical companies are characterized by high upfront R&D investment, long investment cycles, high risks but also long-term high returns, their net profits in the early stages are relatively low, or even non-existent. The trial implementation of the registration-based system on the Sci-tech Innovation Board has given these companies greater inclusivity, no longer treating net profit as a rigid standard, but rather taking into account net profit, R&D capabilities, the industry the company is in, and development prospects. 'The fifth set of criteria allows unprofitable enterprises to go public. Pharmaceutical companies only need one core product to have completed phase II clinical trials to apply for listing on the Sci-tech Innovation Board (with an expected market value of not less than 4 billion yuan), bringing huge opportunities for biopharmaceutical companies to go public,' he said.
Yang Xiaocheng is full of anticipation for the development of the biotechnology industry. He said:"We believe that in the future, a group of domestic biotechnology companies with innovative technologies and products will emerge, achieving success through financing in the capital market."
It is reported that as a national-level technology enterprise incubator, Yanyixitang & HiMed platform organizes cross-year forums at the end of each year to promote exchanges and cooperation among incubated enterprises. The forum invites industry experts from various fields such as production, academia, research, investment, incubation, and application to jointly discuss the general trends and investment directions of the medical industry in 2021.
