The global CDMO (Contract Development, Manufacturing and Outsourcing) market size has grown from $39.4 billion in 2017 to $632 billion in 2021, and is expected to reach $2310 billion by 2030, maintaining a growth rate of over 12% annually from 2017 to 2030. Overall, the global CDMO industry continues to expand, and will maintain a high level of market prosperity in the future.   On April 21st, at the industry report launch event of the Boao Forum for Asia's Health Industry International Forum, Frost & Sullivan (Frost & Sullivan, abbreviated as 'Frost & Sullivan'), a strategic partner of the forum, jointly released the 'Research Report on the Current Situation and Development Trends of the CDMO Industry' (hereinafter referred to as the 'Report') with the Organizing Committee of the Global Health Forum of the Boao Forum for Asia, which made predictions about the global CDMO market. CDMO is an institution that provides process development and preparation, process optimization, registration, validation, approval production, and commercial customization R&D and production services for products, especially innovative products, of pharmaceutical companies and biotechnology firms. Guo Jing, Senior Consulting Director of Frost & Sullivan's Greater China Healthcare Team, pointed out that CDMO evolved and iteratively upgraded from CMO (Contract Manufacturing Outsourcing). As competition among pharmaceutical companies becomes increasingly fierce, simple contract manufacturing by traditional CMO enterprises can no longer meet the needs of pharmaceutical companies for cost reduction and efficiency improvement. Therefore, CDMO enterprises that can use their own production equipment and technical advantages to help pharmaceutical companies optimize production processes and carry out customized large-scale production have emerged. The CDMO industry has been continuously developing since its infancy and has now entered a stable development period.   Its services cover the entire process of drug R&D and production, including preclinical, clinical, and commercial stages. CDMO companies can provide one-stop solutions to continuously assist in the commercialization process of drug listing. According to the type of drug, the sub-sectors of CDMO are mainly divided into three categories: small molecule CDMO, large molecule CDMO (including peptides/antibodies/proteins/vaccines, etc.), and cell gene therapy (CGT) CDMO. The Report shows that when broken down by drug type, the largest proportion of the entire CDMO market is in the chemical drug field, followed by the antibody/protein/non-nucleic acid vaccine field, then the recently very popular cell gene therapy field, and finally the peptide field.   Under the wave of innovative R&D, competition in the pharmaceutical industry has intensified, and the division of labor in the pharmaceutical industry chain has gradually become more specialized, refined, and customized. The Report points out that CDMO companies, with their own technical advantages and production capabilities, assist pharmaceutical companies in realizing from concept to product, from process development to large-scale production. Entrusting CDMO companies has become an important path for innovative R&D and production. Both start-up pharmaceutical companies and large pharmaceutical companies can benefit from the high-quality services provided by CDMO. CDMO also keeps up with the ever-changing changes in the pharmaceutical market, continuously optimizing its technical platform, expanding business scope, and extending the industry chain to meet the actual needs of different types of customers.   ‘CDMO is a core participant in the drug R&D industry chain, and cooperation with CDMO can enhance the core competitiveness of pharmaceutical companies.’ Guo Jing further explained that CDMO has four major advantages: assisting in R&D and production, reducing enterprise costs, improving R&D production efficiency, and promoting technological iteration.   Since 2019, there have been several large-scale financing events in the domestic CDMO industry. The injection of capital has helped the CDMO industry develop rapidly. From the perspective of sub-sectors, biopharmaceutical CDMO and cell gene therapy CDMO companies are highly favored by the capital market.   The competitiveness of CDMO companies mainly focuses on multiple aspects such as R&D capabilities, emerging technology development and application, quality systems, raw material supply, cost optimization, and production capacity. In order to further improve their industry competitiveness and provide customers with better solutions, CDMO companies continuously expand production capacity, expand business scope, and extend service chains through a strategic model that combines internal development and external mergers and acquisitions.   The Report shows that from 2019 to 2022, leading domestic CDMO companies such as Jiu Zhou Pharmaceutical, WuXi AppTec, WuXi Biologics, Kanglong Chemical, and Tengsheng Bio-pharmaceuticals, while developing internally, launched several mergers and acquisitions to extend the industry chain through external development strategies, optimize strategic layout to expand business scope and production capacity. For example, Via Biologics acquired 80% of the equity of Langhua Pharmaceutical for 2.56 billion yuan; Jiu Zhou Pharmaceutical acquired 100% of the equity of Suzhou Novartis for 790 million yuan; WuXi Biologics acquired the British gene therapy technology company OXGENE for hundreds of millions of dollars.   Guo Jing said that the future development of China's CDMO industry will gradually become more segmented, and it is expected that the market will continue to expand in the future.   *This article is reprinted from 'The Beijing News', Reporter: Wang Kala

Investment and financing are the lifeline of pharmaceutical innovation and crucial for promoting the development of the healthcare industry. In 2022, there were a total of 1,218 financing events in China's healthcare industry investment and financing market, with a total financing amount of $15.6 billion. Although this is a decrease compared to 2021, it is conducive for innovative enterprises to further penetrate the blue ocean market where the pattern has not yet solidified.   On April 21st, at the industry report launch event of the Boao Forum for Asia's International Health Industry Conference, Frost & Sullivan (Frost & Sullivan, referred to as 'Frost & Sullivan') and the Organizing Committee of the Global Health Forum of the Boao Forum for Asia jointly released the 'Vision 2030: White Paper on the Development Prospect of China's Big Health Industry' (hereinafter referred to as the 'White Paper'). The data was presented and it was pointed out that the deepening of population aging means that the future demand side will have higher demands for medical and health services in terms of quantity and quality. Medical insurance policies continue to promote pharmaceutical innovation, which is beneficial to truly innovative varieties.   With continuous favorable policies, the synthetic biology industry is in a period of rapid development   The 'White Paper' shows that in 2021, there were 16 investment and financing events in synthetic biology in China, with an investment and financing amount of 2.3 billion yuan, a 10-fold increase and a 140 million yuan increase respectively compared to 2020. Among the 16 investment and financing events, each round of financing was involved in the early stages, indicating that capital continues to pay attention to the progress of domestic synthetic biology companies.   Yang Xiaocheng, Partner and Managing Director of Frost & Sullivan Greater China, analyzed that during the 13th Five-Year Plan period, the country listed synthetic biology as one of the disruptive technologies leading industrial transformation. Subsequently, the state introduced a series of policies to support the development of synthetic biology, and the 14th Five-Year Plan particularly emphasized the application of biotechnology synthesis. The synthetic biology industry has also encountered important development opportunities. Synthetic biology is also one of the tracks that capital particularly focuses on, with rapid financing growth in China's synthetic biology sector. From a comprehensive perspective of policies, investment and financing, technological development, etc., synthetic biology is in the industry's growth phase. With its broad application prospects in various fields, it is expected to drive the upgrading of production and manufacturing in the future, leading to a new round of industrial revolution.   In addition, synthetic biology is widely applied in the field of healthcare. Chinese synthetic biology companies use cutting-edge technologies such as gene editing and cell therapy to develop products related to rare diseases and solid tumors, including cell immunotherapy, gene editing applications, and pharmaceutical enzymes. For example, they use mRNA technology to rapidly synthesize vaccines artificially, use gene editing technology to treat genetic diseases, and treat diseases by modifying microorganisms or synthesizing artificial bacteriophages. " The success rate of clinical research and development of rare disease drugs is higher than that of drugs for other diseases   The development of the rare disease industry is also worthy of discussion and attention, and favorable policies will continue to promote pharmaceutical companies to conduct research and development of rare disease drugs.   The 'White Paper' shows that the success rate of clinical research and development (R&D) for rare disease drugs is higher than that for drugs for other diseases. For example, the success rate for rare disease drugs from Phase I to Phase II clinical trials is 67.4%, while the success rate for all disease drugs R&D is 52%. Looking at the entire cycle from R&D to market launch, the success rate from Phase I clinical trials to approval for rare disease drugs is 17%, while the success rate for all disease R&D is 7.9%, which is only half that of rare disease drugs.   "The higher R&D success rates for rare disease drugs will give pharmaceutical companies confidence in their research and development efforts. Additionally, against the backdrop of preferential policies for rare disease drug clinical trials, more pharmaceutical companies will engage in rare disease research and development in the future." Yang Xiaocheng pointed out that the research and development of rare disease drugs is booming, with CAR-T therapy, bispecific antibodies, and ADCs accounting for about 14.9% of the total. The number of innovative drug clinical trials (INDs) approved in China for rare diseases has increased from 33 in 2017 to 78 in 2021, and the number of marketing applications (NDAs) approved has risen from 4 in 2017 to 17 in 2021.   Yang Xiaocheng analyzed that, judging from the growth in IND numbers, the number of new rare disease drugs on the market is expected to continue to rise in the future. Compared with nearly 300 million rare disease patients in the EU and about 2.8 billion rare disease patients in the US, there are approximately 120 million rare disease patients in China. Among the 121 rare diseases included in China's 'First Batch of Rare Disease Catalogs', only 60% are treatable with drugs. The Chinese rare disease community has a large number of unmet clinical needs, and the market prospects are broad. " The Healthcare Metaverse Track - Brain-Computer Interfaces or the First to Be Commercialized   At the end of interpreting the 'White Paper', Yang Xiaopin also shared insights on the healthcare metaverse industry.   "Against the backdrop of innovation-driven development and digital transformation, leveraging the metaverse to accelerate urban digital layout and achieve a curve overtaking in the digital economy is a major fulcrum for governments promoting the metaverse," said Yang Xiaocheng. With policy support, the healthcare metaverse is expected to promote the diversification of application scenarios and achieve deep integration of the digital economy with the real economy.   On one hand, the underlying technologies of the metaverse will assist in new explorations in healthcare, nurturing diverse medical scenarios. Virtual imaging technologies represented by VR/AR/MR, brain-computer interfaces, and 5G technology break down the boundaries between the digital virtual world and the physical real world. Through intelligent wearable interactive devices, relevant information and corresponding solutions can be provided timely and accurately based on specific scenarios. Therefore, the medical metaverse has advantages in medical imaging, surgical assistance, telemedicine, medical robots, and drug research and development, which are conducive to optimizing traditional medical processes, improving medical outcomes, and reducing the workload of healthcare staff.   On the other hand, since brain-computer interface technology can directly achieve interaction between the brain and external devices, bypassing conventional brain information output pathways, it has broad application prospects in the field of healthcare. It mainly includes areas such as physical examination diagnosis, screening monitoring, treatment, and rehabilitation for neurological and psychiatric system diseases. Looking ahead, Yang Xiaocheng pointed out that brain-computer interfaces are expected to become one of the first commercialization tracks in the medical metaverse. " Top 10 Most Potential Companies in Cell and Gene Therapy, Synthetic Biology   The released 'White Paper' also includes two lists. Frost & Sullivan comprehensively evaluated emerging biotech companies from Series A to Series C financing based on dimensions such as financing status, strategic cooperation capabilities, and innovative technologies. The final results identified the Top 15 'Most Potential Companies in China's Cell and Gene Therapy Field' and the Top 15 'Most Potential Companies in China's Synthetic Biology Industry'.   "China's Most Promising Enterprise in Cell and Gene Therapy" Top 15 Gimerisone Jiangsu Aierkang Stanbio Bosengji Hode Biology Alp Huida Genomics Boya Jyin Qihan Biology epistatic gene Aike Biotechnology Ruifeng Biology Dingxin Gene Yuesai Biology Aisa Biotechnology "Top 15 Most Potential Enterprises in China's Synthetic Biology Industry" Enhe Biology Hisun Gene Huali Biology Blue Crystal Microorganisms Yikelei Biology Ruiding Biology BaiKuiRui Kaidi Medical General Biology Oxana Xinbeile Bio Yatu Biology Hengrui Biology Born in union with all things Hong Kong pharmaceutical tumorolytic (Note: Rankings are not in any particular order.) *This article is reprinted from 'The Beijing News', Reporter: Wang Kala

As of 4 month 13 Since the implementation of the new regulations on interconnectivity and custody vouchers A The stocks include Yangjie Technology, Zhongkong Technology, Fangda Carbon, Hangke Technology, Orient Shenghong, Giant Technology, Xinwangda, Healthyuan, Lepu Medical, Guoxuan High-Tech, Green Energy Materials, Shanxiang Co., Ltd., Keda Manufacturing, MingYang Intelligence, etc. 14 Enterprises successfully issued GDR The total fundraising amount has exceeded 50 billion dollars, reached 50.37 dozens of millions, with an average fundraising per company 3.6 billions of US dollars, far exceeding the same period A share IPO listing Average fundraising scale (about 10 (Yuan).   It is worth noting that, 14 All enterprises are private companies. 9 Home is the main board company, 3 The home is the ChiNext. 2 Home is the Sci-tech Innovation Board.   A equity company GDR The issuance exhibits several notable characteristics: first, it is entirely composed of private enterprises; second, the 'mass entrepreneurship and innovation' segment is showing a trend of catching up. This year 4 Among the successfully issued enterprises, 2 Home for the Sci-tech Innovation Board, 1 Home is for ChiNext, proportion 75% Thirdly, the industry distribution has become more diversified. It has gradually spread from mainly new energy industries such as lithium batteries to sectors like pharmaceutical biology, petrochemicals, steel, and electronics. How do you view this? GDR The average fundraising scale exceeded that of the same period A share IPO listing ? 14 What phenomenon does it reflect that all the companies in the family are private enterprises? Frost & Sullivan Frost & Sullivan The executive director of Frost & Sullivan's Greater China region, Mr. Xiang Weili, was interviewed by Securities Daily to discuss the above topics. Securities Daily Q Securities Daily Reporter: Overall speaking, how do you view GDR The average fundraising scale exceeded that of the same period A share IPO listing ?   GDR Issuance ratio A share IPO listing The process for private placements is relatively short and the review is more lenient, allowing issuers to raise funds overseas more quickly. currently, overall GDR Fundraising scale compared with the same period A The larger share issuance amount is partly due to the successful issuance at present GDR The enterprises are basically leading companies in their respective domestic and even global niche industries. They already have a relatively complete overseas business layout and clear plans for overseas expansion. Manufacturing industries, such as the battery supply chain, are capital-intensive industries with a large overall financing scale. A The funds raised during the same period from share offerings amounted to a larger amount than those of all other industries, covering a wider range of sectors and not all of which are capital-intensive enterprises. Q Securities Daily: 14 What phenomenon does it reflect that all enterprises in the family are private ones? Currently, the issuance has been successful GDR of 14 All private enterprises are leading companies with global competitive advantages in their respective fields, and they mostly come from the manufacturing industry. This reflects that the call for private enterprises to 'go global' is being continuously implemented and deepened. Private enterprises have a relatively flexible business layout and equity structure, and issuance GDR It can meet its overseas business layout and financing M&A needs, as well as its corporate strategic layout requirements.   * This interview was published in "Securities Daily", with reporter Xing Meng as the correspondent. Original title:    "The    GDR After the implementation of the new regulations A The listed company's fundraising in Europe exceeded expectations 50 billion dollars Over 60% of the enterprises are from Guangdong and Zhejiang    >>    (Click "Read Full Article" at the end of the text to read the complete report).

Boao Forum for Asia International Health Industry Forum From April 20th to April 21st, the Boao Forum for Asia International Health Industry Forum was held at the Beijing Economic-Technological Development Area. This forum is an event within the framework of the Boao Forum for Asia Global Health Forum, hosted by the Boao Forum for Asia and the People's Government of Beijing Municipality, organized by the Organizing Committee of the Boao Forum for Asia Global Health Forum and the Management Committee of the Beijing Economic-Technological Development Area, and supported by relevant government departments of China as the host country, as well as international organizations and institutions such as the World Health Organization, Bill & Melinda Gates Foundation, and Médecins Sans Frontières (MSF) France.   As a strategic partner of the forum, Frost & Sullivan (referred to as 'Frost & Sullivan') jointly released a report with the Organizing Committee of the Boao Forum on Global Health and LeadLeo Research Institute at the forum's Industry Report Release Event on April 21. Mr. Li Zheng, Dean of LeadLeo Research Institute, provided an in-depth interpretation of the report titled 'The Heritage of Great Powers, Enduring Renewal: New Opportunities for the Modernization and Development of China's Traditional Chinese Medicine Industry'.   Mr. Li Zheng, Dean of the 'LeadLeo' Research Institute, and Dr. Wu Zhisheng, a specially-appointed researcher at Beijing University of Chinese Medicine and doctoral supervisor, jointly participated in the report release ceremony. Li Zheng, Dean of LeadLeo Research Institute   Li Zheng stated that in recent years, the traditional Chinese medicine industry has been developing positively and presents various opportunities, which are mainly elaborated from two aspects.   Firstly, in terms of traditional Chinese medicine (TCM) import and export trade, international recognition has been continuously increasing. Overall, the export trend of TCM products in China is positive, with both imports and exports thriving. The total value of TCM import and export trade in China increased from $7.12 billion in 2021 to $8.57 billion in 2022. Reflecting the initial effectiveness of traditional Chinese medicine (TCM) internationalization, future export volumes and amounts are expected to maintain rapid growth. In fact, since the outbreak of the COVID-19 pandemic in 2020, TCM has played a significant role in global epidemic prevention and control. The clinical efficacy of TCM in treating COVID-19 is remarkable, and it has been widely promoted both domestically and internationally.   In January 2022, led by the state, efforts were made to export traditional Chinese medicine culture and industry along the Belt and Road countries, promote cooperation in traditional Chinese medicine epidemic prevention and control, as well as scientific research and medical collaboration. Enterprises capable of going global are expected to find new development directions. Driven by policies, the export volume and value of Chinese herbal medicines and Chinese patent medicines both witnessed rapid growth in 2022. The export volume reached 148,000 tons, and the export value amounted to 9.12 trillion yuan.   Secondly, the new registration category encourages innovative development of traditional Chinese medicine from a policy perspective. Li Zheng conducted a comparative analysis from two aspects: the status of drug applications and approvals.   He pointed out that in the past few years, quality issues, non-standard applications, and lack of evaluation have held back the development of new traditional Chinese medicine drugs. From 2016 to 2020, the number of traditional Chinese medicine applications or approvals was relatively low. On one hand, there are frequent risk accidents involving traditional Chinese medicine injections, and quality, technology, and safety issues have not been comprehensively improved. On the other hand, this is due to the incomplete traditional Chinese medicine review and approval system. Traditional Chinese medicine research and development is characterized by high innovation difficulty, unclear mechanisms and evaluation systems, long R&D cycles, and high investment risks, which have led traditional Chinese medicine pharmaceutical companies to adopt a cautious attitude towards new drug research and development.   In 2016, due to the strict investigation of new drug clinical data fraud by the National Medical Products Administration, only 259 traditional Chinese medicine (TCM) applications were submitted that year, and only two TCM products were approved. In 2020, with the proposal of new registration categories, the characteristics and advantages of TCM were better utilized to meet clinical needs. In 2021, the number of TCM applications increased to 1,371, a year-on-year increase of 191.1%; 12 TCM products were approved for marketing, four times that of 2020, exceeding the total from 2017 to 2020. With the continuous improvement of the registration process and approval efficiency, the approval time for TCM has shown a trend of decreasing year by year.   Li Zheng believes that, against the backdrop of favorable policies, the market scale of the traditional Chinese medicine industry is growing in a stepped manner. The traditional Chinese medicine industry is a relatively mature sector with a relatively stable competitive landscape and high market concentration. Leading companies include China National Medicine Group Co., Ltd., Baiyunshan Pharmaceutical Group Co., Ltd., China Resources Sanjiu Pharmaceutical Co., Ltd., Yunnan Baiyao Group Co., Ltd., Paidu Pharmaceutical Group Co., Ltd., and Tongrentang. The total market share is about 60%. Leading enterprises possess resources of authentic medicinal materials upstream, master classic prescriptions, have a long history and high brand value, as well as a complete sales system. These four aspects constitute their core competitiveness, which in turn gives them pricing power.   The market scale of the traditional Chinese medicine industry was determined through interviews with over 30 experts and subsequent calculations. From 2017 to 2022, the market scale of China's traditional Chinese medicine industry showed a slow growth, increasing from 66.23 billion yuan to 80 billion yuan. Since 2017, the state has been rectifying chaos in the traditional Chinese medicine industry by canceling licenses of non-compliant enterprises, revoking qualification certificates for substandard varieties, and tightening policies on medical insurance control and cost management, as well as key monitoring of adjuvant drugs and new drug approvals. These policies have led to slow industry growth.   It is expected that from 2023 to 2027, the market scale of China's traditional Chinese medicine industry will show a stepwise growth. 2022 is the first year to implement policies supporting traditional Chinese medicine (TCM) in medical insurance, and it is expected that the use of TCM in medical institutions will increase. Industry policies such as the acceleration of the implementation of support for TCM and essential medicines in medical insurance, the reform of the registration classification standards for TCM, and the approval mechanism for TCM are being implemented. The growth in upstream raw material prices, strengthened supervision over the traditional Chinese medicine industry, research and development of new drugs, and population aging are all expected to drive the traditional Chinese medicine sector. Industry growth, therefore, the annual growth rate is expected to be about 4.0% over the next five years By 2027, the market scale of the traditional Chinese medicine industry is expected to reach 97.33 billion yuan.   Li Zheng further pointed out that traditional Chinese medicine production has always relied on raw materials of medicinal herbs from the upstream. Improving industrial layout, promoting the transformation and upgrading of the supply chain, and ensuring its security and integrity are crucial. This helps to form an industrial chain supply chain that is more innovative, has higher added value, and is safer and more reliable. In the past 10 years, affected by weather factors and strengthened supervision of traditional Chinese medicine quality, the price index of Chinese medicinal materials has risen steadily and is currently at a high level. Since the second half of 2021, prices of various Chinese medicinal materials have shown significant increases, especially for mineral-based ones. Mineral-based medicinal materials, particularly fossilized ones, are scarce resource varieties, with most being non-renewable resources The mining cost is relatively high, Driven up the price of mineral-based Chinese medicinal materials.   The downstream of the traditional Chinese medicine industry is the sales terminal. The opening of off-campus markets has made it possible to expand into lower-tier markets. With the implementation and enforcement of healthcare reform policies, medical insurance varieties, centrally procured varieties, and essential medicines will become the types used in hospitals. The number of traditional Chinese medicine (TCM) varieties that have lost their hospital access qualifications is increasing, shifting from within hospitals to outside them, opening up new markets. The expansion of the grassroots market will attract more mature market varieties and non-centralized procurement and non-medical insurance varieties from tertiary hospitals to the grassroots market. The grassroots market is expected to become a new growth point for TCM development. Additionally, the proposal of the 'dual-channel' policy makes it more convenient and faster for insured patients to purchase medications, allowing for more flexible and timely use. As can be seen from the chart, in 2022, among China's TCM sales channels, the hospital segment accounted for 50%, physical pharmacies 40%, and e-commerce platforms 10%. In the future, with the opening of off-campus markets, it is expected to enrich drug sales channels, increase the proportion of online pharmacy sales, provide patients with more convenient ways to purchase drugs, and further expand the sales scope.   In terms of Chinese herbal medicines, Li Zheng said that driven by policy dividends, the planting scope of Chinese herbal medicines has been increasing year by year, and the planting areas have achieved nationwide coverage. Promoting the construction of authentic medicinal material bases helps to boost the development of characteristic agriculture.   Judging from the planting area of Chinese medicinal materials In 2020, the cultivation area of Chinese medicinal materials covered the entire country. In 2021, the planting area of Chinese medicinal materials continued to rise, reaching 56.38 million mu. In 2022, affected by policies, many regions vigorously implemented measures such as returning forests to farmland and re-planting with grain crops. The planting area of Chinese medicinal materials has been greatly reduced. Coupled with climate factors and rising planting costs, the general income of herbal farmers is not high, leading to a decline in planting area.   According to Li Zheng, the industrialization, commercialization, and moderate scale-up development of Chinese medicinal materials will promote the construction of advantageous and characteristic industrial clusters. A statistical analysis of some traditional Chinese medicine enterprises shows the distribution of their planting bases for medicinal materials in the following table. Many traditional Chinese medicine (TCM) enterprises, especially leading ones, have established layouts of TCM material planting bases, which to a certain extent ensure the supply of raw materials for their products through medicinal material cultivation. For example, China National Pharmaceutical Group Co., Ltd. has 207 GACP bases, covering 74 varieties of medicinal materials with an area exceeding 150,000 mu; Baiyun Mountain and its joint ventures have more than 60 GAP medicinal material bases; Tongrentang and its subsidiaries have multiple production bases located in regions such as Beijing and Hebei; Red Sun Pharmaceutical Group Co., Ltd. has more than 120 Chinese medicinal material planting bases, involving 110 varieties.   In terms of traditional Chinese medicine decoction pieces, Li Zheng introduced that the implementation of the first inter-provincial joint procurement of traditional Chinese medicine decoction pieces will guide the development towards high quality and high prices. In 2018, the state carried out a cleanup and rectification of the pharmaceutical industry, recovering a total of 224 GMP certificates. Among them, the traditional Chinese medicine decoction piece industry recovered 96 pieces, accounting for as high as 43% of the total. In 2020, the National Medical Products Administration issued the 'Implementation Opinions on Promoting the Inheritance and Innovative Development of Traditional Chinese Medicine', encouraging the development of traditional Chinese medicine. Driven by policies, traditional Chinese medicine decoction pieces have seen development opportunities. In 2021, the main business income of traditional Chinese medicine decoction pieces was 205.7 billion yuan, a year-on-year increase of 13.7%; the total profit was 24.93 billion yuan, a year-on-year increase of 106.9%. Compared to Chinese patent medicines, which account for about 70% of the market share, the growth rate of traditional Chinese medicine decoction pieces has an obvious advantage, reflecting a good growth momentum. The joint procurement of traditional Chinese medicine decoction pieces is more integrated with industry characteristics. The concept of 'ensuring quality, upgrading standards, and stabilizing supply' is proposed, with the primary goal not being price cuts but rather focusing on system and standard construction.   Regarding traditional Chinese medicine formula granules, Li Zheng believes that the introduction of the new national standard has accelerated the development of these granules. Leading enterprises have a first-mover advantage in formulating national standards and among suppliers, thus benefiting first. The new national standard for traditional Chinese medicine formula granules has established precise guiding standards around items, indicators, limits, etc. It particularly includes quality control in aspects such as raw materials, material transfer, stability, and safety. As of September 2022, the national standard filing progress for Kangren Tang, Jiangyin Tianjiang Pharmaceutical and Shenwei Pharmaceutical has reached 200 cases, with nearly 200 cases for leading enterprises such as China Resources Sanjiu and Yiling Pharmaceutical. It turns out that there are obstacles in the process of integrating enterprise standards with the new national standards, leading to rising costs. Therefore, it is an inevitable trend for enterprises to raise prices to cover costs.   For a long time, the domestic traditional Chinese medicine formula granule market has been monopolized by six major enterprises including Sinopharm and Red Sun Pharmaceutical. The competitive landscape will not change in the short term. For traditional Chinese medicine formula granule enterprises to achieve profitability, they need integrated scale advantages in aspects such as medicinal material procurement, process technology, production, quality control, and sales terminals. Leading enterprises have obvious advantages in channels, varieties, technology, and market access.   The National Healthcare Security Administration and the National Administration of Traditional Chinese Medicine encourage the procurement of Traditional Chinese Medicine Formula Granules It has been included in the provincial medical centralized procurement platform for online transactions, promoting open and transparent trading. With the relaxation of policies, the number of insured varieties has gradually increased.   Li Zheng pointed out that in the future, Chinese patent medicines may accelerate their entry into the national centralized drug procurement process. In terms of production volume: From 2014 to 2021, the output of Chinese patent medicines showed a fluctuating trend. Starting from 2017, the production capacity of Chinese patent medicines continued to shrink. The reason is the negative news impact on Chinese patent medicine injections, as well as the reduced demand due to increased national supervision of traditional Chinese medicine. After being disrupted by the pandemic in 2020, the output in 2021 was less different from that of 2020.   From the historical process of centralized procurement: centralized procurement has shown a trend towards expansion and normalization, and traditional Chinese patent medicines may be accelerated into the national drug centralized procurement process. The price reduction rate for traditional Chinese patent medicine centralized procurement is moderate. The average price reduction in Hubei Province's centralized procurement was 42%, in Guangdong it was 45%, and in Shandong Province it was 44%. Compared to the overall average price reduction of 53% in the seven rounds of generic drug centralized procurement, the overall price reduction in Chinese patent medicine centralized procurement is relatively smaller.   Regarding the innovation trend of traditional Chinese medicine, Li Zheng believes that with policy support, the innovation of traditional Chinese medicine is accelerating. In 2021, 12 new traditional Chinese medicine (TCM) drugs were approved for marketing, setting a new high in the number of approvals, including 9 Class 1 new drugs. In terms of clinical trial indications, TCM new drugs are mainly concentrated in five areas: psychiatry and neurology, respiratory medicine, gastroenterology, cardiovascular medicine, and gynecology, showing a trend towards diversified indications. Regulations and documents related to multiple new traditional Chinese medicine (TCM) drugs have been introduced one after another, and more systems that conform to the development path of TCM are being gradually improved. The R&D process for new TCM drugs is gradually becoming clearer and standardized.   Multinational enterprises entering the field of traditional Chinese medicine are expected to accelerate the launch of new varieties. Multinational pharmaceutical companies possess excellent promotional resources and technological advantages in R&D innovation, which can help the traditional Chinese medicine industry solve problems related to quality standards and pharmacological principles. To some extent, this can generate a 'catfish effect', driving the development and progress of the traditional Chinese medicine industry. Finally, Li Zheng summarized that with strong policy support, corporate R&D advancement, and the gradual introduction of innovative traditional Chinese medicines, the traditional Chinese medicine market will be further stimulated, and the future development of the traditional Chinese medicine industry is promising.

  From April 20th to 21st, 2023, the Boao Forum for Asia International Health Industry Forum was held at the Beijing Economic and Technological Development Area. This forum is an event within the framework of the Boao Forum for Asia Global Health Forum Conference, organized by the Boao Forum for Asia and the People's Government of Beijing Municipality, undertaken by the Organizing Committee of the Boao Forum for Asia Global Health Forum Conference and the Management Committee of the Beijing Economic and Technological Development Area, and supported by relevant Chinese government departments as well as international organizations and institutions such as the World Health Organization, Bill & Melinda Gates Foundation, and Mérité Foundation in France.   As a strategic partner of the forum, Frost & Sullivan (referred to as 'Frost & Sullivan') jointly released the 'Research Report on the Current Situation and Development Trends of the CDMO Industry' (hereinafter referred to as the 'Report') with the Organizing Committee of the Boao Forum on Global Health at the industry report launch event of the forum on April 21. Ms. Guo Jing, Senior Consulting Director of the Healthcare Team at Frost & Sullivan Greater China, attended the report release ceremony and provided an in-depth interpretation of the report. Ms. Guo Jing, Senior Consulting Director of the Healthcare Team at Frost & Sullivan Greater China   CDMOs are primarily institutions that provide process development and preparation, process optimization, registration, validation batch production, as well as commercial customized R&D and production services for products of pharmaceutical companies and biotechnology firms, especially innovative products.   Ms. Guo Jing pointed out that CDMO evolved from CMO and has been iteratively upgraded. As competition among pharmaceutical companies intensifies, the simple contract manufacturing production carried out by traditional CMO enterprises can no longer meet the needs of pharmaceutical companies for cost reduction and efficiency improvement. On this basis, CDMO enterprises that can utilize their own production equipment and technical advantages to help pharmaceutical companies optimize production processes and carry out customized large-scale production have emerged. The CDMO industry has been continuously developing since its inception and has now entered a stable development phase. CDMO services cover the entire process of drug research and development, including preclinical, clinical, and commercial stages. CDMO companies can provide one-stop solutions to continuously assist in the commercialization process of drug launches. According to the type of drug, the current CDMO sub-sectors can be mainly divided into three categories: small molecule CDMO, large molecule CDMO (including peptides/antibodies/proteins/vaccines, etc.), and cell and gene therapy (CGT) CDMO. The Report details the specific service content and technical barriers of CDMOs in these areas for small molecules, large molecules, and CGT. Under the wave of innovative research and development, competition in the pharmaceutical industry is becoming increasingly fierce. The division of labor within the pharmaceutical industry chain is gradually becoming specialized, refined, and customized. CDMOs, leveraging their technological advantages and production capabilities, assist pharmaceutical companies in realizing the transition from concept to product, from process development to large-scale production. Entrusting CDMO services has become an important pathway for innovative research, development, and production. Both start-up pharmaceutical companies and large pharmaceutical enterprises can benefit from the high-quality services provided by CDMOs. CDMOs also continuously optimize their technology platforms, expand business scopes, and extend the industrial chain in response to the ever-changing pharmaceutical market, in order to meet the actual needs of different types of customers.   "CDMOs are core participants in the drug research and development industry chain, and collaborating with CDMOs can enhance the core competitiveness of pharmaceutical companies," Ms. Guo Jing further explained. CDMOs have the following four advantages:   1) Assist in R&D and production, CDMO can assist in completing research and development, as well as production work during the preclinical, clinical, and commercialization stages of pharmaceuticals. This enables enterprises to optimize resource allocation and invest more in core technology research and development.   2) Reduce enterprise costs CDMOs can help pharmaceutical companies reduce capacity construction and lower fixed asset costs; CDMOs' bargaining power with upstream suppliers will help pharmaceutical enterprises optimize costs, strategically bind with upstream suppliers to increase profit margins;   3) Improve R&D production efficiency, CDMOs can intervene at the early stages of new drug development, overall layout process flows, improve service efficiency, and ensure the stability and sustainability of drug quality;   4) Promote technology iteration, CDMOs and pharmaceutical companies focusing on R&D and production processes can develop synergistically through specialized division of labor, overcome technical difficulties, accelerate product technology platform iterations, and achieve faster R&D speeds.   According to a study by Frost & Sullivan, the global CDMO market size has grown from $39.4 billion in 2017 to $632 billion in 2021, and is expected to reach $231 billion by 2030, maintaining an annual growth rate of over 12% from 2017 to 2030. Breaking down by drug type, the largest proportion of the entire CDMO market is in the field of chemical drugs, followed by the antibody/protein/non-nucleic acid vaccine sector. Then comes the recently very popular CGT (Cell and Gene Therapy) field, followed by the peptide sector. Overall, the global CDMO industry continues to expand in volume and will maintain a high market prosperity level in the future. Since 2019, there have been several large-scale financing events in the domestic CDMO industry. The injection of capital has helped the CDMO industry develop rapidly. Looking at sub-sectors, biopharmaceutical CDMO and CGT CDMO companies are particularly favored by the capital market.   The competitiveness of CDMO companies mainly focuses on several aspects such as R&D capabilities, development and application of emerging technologies, quality systems, raw material supply, cost optimization, and production capacity. In order to further improve their industry competitiveness and provide customers with higher-quality solutions, CDMO companies continuously expand their production capacity, business scope, and service chain through an integrated strategy of internal development and external mergers and acquisitions. The Report summarizes the financing situations, key mergers and acquisitions events, and service cases of several CDMO companies in the industry over recent years. The last section of the Report provides a detailed introduction and analysis of representative Chinese CDMO companies from multiple aspects such as company history, business layout, production capacity scale, and core strengths. Including WuXi AppTec, WuXi Biologics, KanglunhuaCheng, Dongyao Pharmaceutical, Yaohai Biologics, Fucheng Biologics, Jianxin Yuanli, Novogene Biologics, Heyuan Biologics, Kailaiying, Puxin Biologics, Boteng Pharmaceutical,, HepuRX, Mabray, ViaBio, etc.   Ms. Guo Jing stated that the future development of China's CDMO industry will gradually become more segmented, with an expected continuous expansion of the market in the future. The 'Research Report on the Current Situation and Development Trends of the CDMO Industry' released this time aims to conduct an in-depth analysis of China's CDMO industry, uncovering the industry value of CDMO from various aspects such as industry overview, capital enthusiasm, and competitive landscape, exploring the driving factors behind industry development, and tracking the technological iteration of drug production processes.   "The Report focuses on the overall operational status of the CDMO industry while also highlighting the development status of various sub-sectors within it. It analyzes the market size of the overall landscape and key tracks of the CDMO industry in China and globally, aiming to reflect the development history of various sub-sectors in China's CDMO industry over the past and to make forward-looking predictions about the growth potential of the CDMO market in the future," said Ms. Guo Jing.

Boao Forum for Asia International Health Industry Forum From April 20th to April 21st, the Boao Forum for Asia International Health Industry Forum was held at the Beijing Economic-Technological Development Area. This forum is an event within the framework of the Boao Forum for Asia Global Health Forum and is organized by the Boao Forum for Asia and the Beijing Municipal People's Government, undertaken by the Organizing Committee of the Boao Forum for Asia Global Health Forum and the Management Committee of the Beijing Economic-Technological Development Area, and supported by relevant government departments of China as the host country, as well as international organizations and institutions such as the World Health Organization, Bill and Melinda Gates Foundation, and the Mérité Foundation of France.   As a strategic partner of the forum, Frost & Sullivan, together with the Organizing Committee of the Boao Forum for Asia Global Health, released 'Outlook 2030: A White Paper on the Development of China's Greater Health Industry' at the industry report launch event of the forum on April 21. Mr. Yang Xiaocheng, Partner and Managing Director of Frost & Sullivan Greater China, provided an in-depth interpretation of the report.   Mr. Yang Xiaocheng, Partner and Managing Director of Frost & Sullivan Greater China, and Professor Wang Yu, Expert Advisor to the Boao Forum for Global Health and a representative of the co-publishing party, participated in the report release ceremony. Yang Xiaocheng, Partner and Managing Director of Frost & Sullivan Greater China Region   Yang Xiaocheng stated that, against the backdrop of the current population structure, market environment, payment environment, etc., the Chinese government has made new top-level plans for the healthcare industry, clarifying the overall development roadmap for the industry over the next 5 to 15 years. With 2030 as the time node, some phased goals will be achieved. Based on this background, the speech will mainly revolve around three topics: 1. The development background, current situation, and prospects of the synthetic biology industry with broad prospects. 2. Current developments related to rare diseases and tumor treatment in China. 3. The development background, current situation, and future prospects of the medical metaverse under the context of innovation-driven development and digital transformation.   In terms of population structure, in 2022, the proportion of China's population aged 65 and above accounted for 14.9% of the total population, an increase of 4.4% compared to 2015. Against the backdrop of declining birth rates, continuous progress in medical technology and quality of life, China's average life expectancy will continue to rise, and population aging will intensify. Overall, the deepening of population aging means that in the future, the demand side will have higher demands for medical and health services in terms of quantity and quality.   In terms of the market environment, Yang Xiaocheng pointed out that investment and financing are the lifeline of pharmaceutical innovation and are crucial for promoting the development of the healthcare industry. In 2022, due to geopolitical conflicts, the rise in US dollar interest rates, and the COVID-19 pandemic, there were a total of 1,218 financing events in China's healthcare industry investment and financing market, with a total financing amount of $15.6 billion, which was on average lower than that of 2021. Although the amount and number of incidents have decreased, it is beneficial for innovative companies to further penetrate into blue ocean markets where the pattern has not yet solidified.   In terms of the payment environment, Yang Xiaocheng believes that medical insurance policies continue to promote pharmaceutical innovation, which is beneficial for truly innovative products. The average reduction in the payment standard for the seventh batch of negotiated drugs in 2022 was 48.0%. Preliminary estimates show that compared to the market price before negotiation, it has reduced the burden on patients by nearly 170 billion RMB, benefiting 100 million patients. From a policy perspective, At the demand side, The medical insurance fund will provide certain development space for innovative drugs that truly have clinical benefits and are still in the early stages of development, outside of centralized procurement. On the supply side For pipelines under development with significant homogenization and poor competitive landscape, more stringent policies are implemented to encourage practical and differentiated innovation.   Next, Yang Xiaocheng conducted an in-depth analysis of the synthetic biology industry. First of all, he stated that China's synthetic biology industry is in a stage of rapid development, with the state continuously introducing policies to support industrial growth. Since the 13th Five-Year Plan, the country has listed synthetic biology as one of the disruptive technologies leading industrial transformation. Subsequently, the state has introduced a series of policies to support the development of synthetic biology, with the 14th Five-Year Plan particularly emphasizing the application of biotechnology. Against the backdrop of strong policy support, the synthetic biology industry has also embraced important development opportunities.   Secondly, synthetic biology is one of the tracks that capital particularly focuses on, with rapid growth in financing for synthetic biology in China. In 2021, there were 16 investment and financing events in synthetic biology in China, with an investment and financing amount of 2.3 billion RMB, a 10-fold increase and a 140 million RMB increase respectively compared to 2020. Among the 16 investment and financing events throughout 2021, each round of financing involved them earlier in the process, indicating that capital continues to pay close attention to the progress of domestic synthetic biology companies. From a comprehensive perspective of policies, investment and financing, technological development, etc., synthetic biology is in the industry's growth phase. With its broad application prospects in various fields, it is expected to drive the upgrading of production and manufacturing in the future, leading to a new round of industrial revolution.   In addition, synthetic biology is widely applied in the field of healthcare. Chinese synthetic biology companies are using cutting-edge technologies such as gene editing and cell therapy to develop products related to rare diseases and solid tumors. Synthetic biology is widely applied in the field of healthcare, including cell immunotherapy, gene editing-related applications, pharmaceutical enzymes, and more. For example, using mRNA technology to rapidly synthesize vaccines artificially, treating genetic diseases with gene editing technology, and treating diseases by modifying microorganisms or synthesizing artificial bacteriophages. Looking at specific enterprises, Chinese synthetic biology companies are using gene editing technology and cell therapy to develop products related to rare diseases and solid tumors.   On the other hand, the development of the rare disease industry is also worthy of discussion and attention. Yang Xiaocheng pointed out that favorable policies will continue to encourage pharmaceutical companies to conduct research and development of rare disease drugs. In January 2022, the National Medical Products Administration issued the 'Technical Guidelines for Clinical Research and Development of Rare Disease Drugs', clearly stating that it is necessary to follow the general rules of drug research and development, while also closely integrating with the characteristics of rare diseases. On the basis of ensuring scientific rigor, more flexible designs should be adopted, making full use of limited patient data. The success rate of clinical research and development of rare disease drugs is higher than that of drugs for other diseases For example, the success rate of rare disease drugs from Phase I clinical trials to Phase II is 67.4%, while the success rate of all disease drug research and development is 52.0%.   Looking at the entire cycle from research and development to listing The success rate from Phase I clinical trials to approval for rare disease drugs is 17.0%, while the success rate for all diseases in research and development is only 7.9%, which is half that of rare disease drugs. The higher R&D success rate of rare disease drugs will give pharmaceutical companies confidence in their research and development efforts. Moreover, against the backdrop of preferential policies for rare disease drug clinical trials, more pharmaceutical companies will engage in rare disease drug research and development in the future.   At the same time, rare disease drug research and development are booming, with cutting-edge technologies such as CAR-T, bispecific antibodies, and ADC therapies receiving significant attention. The enthusiasm for rare disease drug research and development is on the rise, with an increasing number of drugs coming to market each year and a stable growth rate. The number of innovative drugs (INDs) approved in China for rare diseases has increased from 33 in 2017 to 78 in 2021, while the number of new drug applications (NDAs) has grown from 4 in 2017 to 17 in 2021. From the perspective of the growth in IND numbers, it is expected that the number of new rare disease drugs coming to market will continue to rise in the future. The research and development of new drugs for rare diseases in China mainly focuses on three directions: CAR-T, bispecific antibodies, and ADCs, accounting for approximately 14.9% in total. Frontier technology therapies are receiving much attention in the treatment of rare diseases.   Yang Xiaocheng further pointed out that there are a large number of unmet clinical needs among the rare disease population in China, presenting broad market prospects. The EU has nearly 300 million rare disease patients, the US about 280 million, and China about 120 million. The number of rare disease patients is nearly four times that of the EU and the US combined. Among the 121 rare diseases included in China's 'First Batch of Rare Disease Catalogue', only 60% are treatable with drugs, leaving a large number of unmet needs.   In addition to rare diseases, cancer treatment issues in China remain prominent. Yang Xiaocheng stated that innovative therapies will revolutionarily change the effectiveness of cancer treatment and lead to a thriving industry in the future.   In 2020, the number of cancer deaths in China accounted for 30.2% of the global total, ranking first. In addition, the combined number of top ten cancer deaths in China accounted for 83.0%. Facing such a huge and concentrated number of cancer deaths, there is a huge unmet demand for tumor treatment. Innovative tumor therapies revolutionize cancer treatment outcomes and have broad industrial prospects in the future. With the launch of innovative tumor drugs, improved patient affordability, and policy promotion, it is expected that the proportion of innovative tumor therapies in China will reach 85.8% by 2030.   Yang Xiaocheng believes that in this field, pharmaceutical companies with core advantages such as leading technology platforms, faster commercial progress, and extensive international cooperation need attention. For example, Hebei Cancer Bio-pharmaceutical Co., Ltd. (HBCBP) is a biopharmaceutical company focusing on innovative drug research and development, commercialization, and global operations. It mainly develops new biologics with great clinical value in the fields of oncology and immunology diseases and is comprehensively advancing the research and development process of new generation innovative therapies globally.   Finally, Yang Xiaocheng shared on the metaverse healthcare industry. Under the backdrop of innovation-driven development and digital transformation, leveraging the metaverse to accelerate urban digital layout and achieve a curve overtaking in the digital economy is a major pillar for governments to promote the metaverse. He said, With policy support, the healthcare metaverse is expected to promote diversified application scenarios and achieve deep integration of the digital economy with the real economy. For example, Shanghai has incorporated the 'Metaverse' into its '14th Five-Year Plan'. On December 31, 2021, the 'Shanghai Electronic Information Manufacturing Industry Development 14th Five-Year Plan' was issued, which highlighted the following: Shanghai should make forward-looking arrangements in areas such as quantum computing, third-generation semiconductors, 6G communication, and the metaverse. At the same time, it encourages the application of the metaverse in fields such as healthcare, industrial manufacturing, and safety production.   On the one hand, underlying technologies of the metaverse will assist in new explorations in healthcare, nurturing diverse medical scenarios. Virtual imaging technology represented by VR/AR/MR, brain-computer interfaces, and 5G technology have broken down the boundaries between digital virtual worlds and physical reality. Through intelligent wearable interactive devices, relevant information and corresponding solutions can be provided in a timely and accurate manner based on specific scenarios. Therefore, The medical metaverse has advantages in medical imaging, surgical assistance, telemedicine, medical robots, and drug research and development. It is conducive to optimizing traditional medical processes, improving medical outcomes, and reducing the workload of medical staff.   On the other hand, since brain-computer interface technology can directly achieve interaction between the brain and external devices, bypassing conventional brain information output pathways, it has broad application prospects in the field of healthcare. It mainly includes areas such as physical examination diagnosis, screening and monitoring, treatment, and rehabilitation for neurological and psychiatric system diseases. Looking ahead, Yang Xiaocheng pointed out that brain-computer interfaces are expected to become one of the first tracks in the medical metaverse to achieve commercialization.   The white paper released this time also includes two lists. Frost & Sullivan focuses on technological breakthroughs in areas related to cell and gene therapy, synthetic biology, aiming to deeply explore the development potential of enterprises and help the health industry unleash new vitality. For emerging biotech companies in Series A to Series C financing, After comprehensive consideration from dimensions such as financing, BD and strategic cooperation capabilities, and innovative technologies, the top 15 'Most Potential Enterprises in China's Cell and Gene Therapy Field' and the top 15 'Most Potential Enterprises in China's Synthetic Biology Industry' were identified.   Finally, Yang Xiaocheng concluded by stating that standing at a new starting point, China's healthcare industry is facing new development opportunities and challenges. Among them, highly promising Chinese industries such as synthetic biology, rare disease and oncology treatment, and metaverse healthcare will ride on the wave of policy support. More stars from the medical field will emerge actively, and the industry will show a prosperous trend in the future. Frost & Sullivan will continue to place significant bets on the healthcare and big health sectors in China, and remain unwaveringly optimistic about the development of China's big health industry.

  From April 20th to 21st, 2023, the Boao Forum for Asia International Health Industry Forum was held at the Beijing Economic-Technological Development Area. This forum is an event within the framework of the Boao Forum for Asia Global Health Forum Conference, organized by the Boao Forum for Asia and the People's Government of Beijing Municipality, undertaken by the Organizing Committee of the Boao Forum for Asia Global Health Forum Conference and the Management Committee of the Beijing Economic-Technological Development Area, and supported by relevant Chinese government departments of the host country as well as international organizations and institutions such as the World Health Organization, Bill & Melinda Gates Foundation, and Mérité Foundation in France.   As a strategic partner of the forum, Frost & Sullivan (referred to as 'Frost & Sullivan') jointly released the 'White Paper on the Global Pharmaceutical and Healthcare Industry Layout and Development Trends' with the Organizing Committee of the Boao Forum for Asia Global Health Forum at the industry report launch event on April 21. Dr. Wang Xin, a global partner at Frost & Sullivan and President of Greater China, provided an in-depth interpretation of the report.   Dr. Wang Xin, Global Partner and President of Frost & Sullivan Greater China, and Professor Wang Yu, Expert Advisor to the Boao Forum for Global Health and a representative of the co-publishing party, jointly participated in the report release ceremony. Dr. Wang Xin, Global Partner and President of Frost & Sullivan Greater China Region Dr. Wang Xin stated that through observation and analysis of the global pharmaceutical and healthcare industry, Frost & Sullivan believes that the industry is currently facing three major challenges.   The first challenge comes from the external funding environment. Since 2022, due to factors such as geopolitical conflicts, energy shortages, the COVID-19 pandemic, and high inflation, the global healthcare industry capital market has seen a significant decline. In 2022, there were a total of 3,057 financing events in the global healthcare industry, a 43% decrease compared to 2021, indicating an overall trend towards calmness and prudence.   In terms of total financing, the amount in 2022 was $729 billion, a 15% decrease from 2021, approaching the level of 2020. Nevertheless, the capital structure in 2022 was significantly different. Compared to the obvious clustering of funds in 2020, capital was more rational. In 2022, investors' strategies tended to favor more certain high-quality targets, and the number of financing enterprises participating and the amount they could raise were both decreasing.   Dr. Wang Xin stated that investment and financing are the lifeline of pharmaceutical innovation and are crucial for promoting the success of R&D and commercialization in healthcare enterprises. For capital markets, identifying 'hard innovation capability' enterprises has become more challenging, and pharmaceutical companies will also face more intense competition for funds. The second challenge is in the payment environment. From the perspective of income levels, the gap in per capita medical expenditure among countries with different income levels has further widened. The disparity between high-income and low-income countries has increased from 51 times in 2000 to 58 times in 2019. Looking at specific economies, a clear bipolar distribution has gradually formed globally. The per capita medical expenditure in wealthy countries is much greater than that in low-income countries. For example, in 2019, the per capita medical expenditure in the United States was about 20.4 times that of China and 60.4 times that of Vietnam. The distribution of global healthcare resources is positively correlated with regional economies. In developed regions, high healthcare expenditures enable patients to receive more advanced treatments in terms of medical health. In low-income areas, it is more about maintaining basic essential medicines and medical services. It is expected that the distribution of healthcare resources worldwide may become even more imbalanced in the future. The last challenge comes from supply and demand. Driven by factors such as urbanization development, improved medical standards, and gradually extended human lifespan, the world's population is growing at a rapid rate. Population aging has become an inevitable trend in global population development, with a particularly significant acceleration in developing countries. The deepening degree of population aging means that the future demand side will have higher demands for medical and health services in terms of quantity and quality. Therefore, healthcare services and even social infrastructure systems, which were previously targeted at the young population, will find it difficult to effectively meet the severe diagnostic and treatment needs brought about by the aging society. "Despite the global pharmaceutical and healthcare industry facing a series of risks and challenges, our research has still identified highlights in different segments of the industry," said Dr. Wang Xin.   Looking at the global pharmaceutical market, the biopharmaceutical sector has shown strong growth momentum, while the scale of traditional drugs has been squeezed. Data shows that the global pharmaceutical market size grew from $1.2 trillion in 2017 to $1.4 trillion in 2021, with a CAGR of about 3.8%. It is expected to reach $1.8 trillion by 2026, with the global pharmaceutical market maintaining stable growth. Looking at the two types of drugs in the pharmaceutical market, biologics have a completely new therapeutic concept compared to chemical drugs. They provide new ideas for treating difficult and complicated diseases such as cancer and psoriasis, and currently their growth rate is much higher than that of chemical drugs. In the future, driven by factors such as enhanced efficacy of biologics, development of biotechnology, increased R&D investment, and continuous approval of biologics, the compound annual growth rate of global biologics is expected to be 11.9% from 2022 to 2026, still significantly leading over the 2.3% growth rate of chemical drugs. Looking at the major economies, the United States occupies a world-leading position in biomedicine and its industrialization, with the biomedicine industry becoming one of the core drivers of high-tech industry development in the US. The biopharmaceutical industry is an emerging technology-intensive industry in the United States and a pillar of its economic development, exerting a significant influence. As of June 10, 2022, according to market capitalization divided into $50 billion and $10 billion segments, there are 11 companies with a market capitalization of over $50 billion, accounting for 2.6% of the number of companies in the US biopharmaceutical sector, but they account for 84.9% of the market capitalization. There are a total of 8 companies with a market capitalization between $10 and $50 billion, accounting for about 7.1% of the market capitalization. The top 39 companies with a market capitalization of over $10 billion only account for 4.5% of the number of companies in the US biopharmaceutical sector, with a total market value reaching $2.3 trillion, accounting for 92.1% of the biopharmaceutical sector's market capitalization. In terms of regional distribution, global biomedicine is developing in clusters. In terms of invention patents in biomedicine, the United States, China, Japan, and Europe are the major patent-contributing countries globally, and the clustering effect of their biomedicine industries is becoming increasingly evident.   United States As the global center for biopharmaceutical development, it has established five major biopharmaceutical industry bases including Boston, San Diego, and the North Carolina Triangle. It has achieved comprehensive development and innovation in sub-specialty drug fields such as oncology drugs, immunology drugs, cardiovascular drugs, anti-infective drugs, vaccines, and neurological drugs. Europe The biomedical industry cluster has gathered large pharmaceutical enterprises, leading global biotech innovation. It has significant advantages in monoclonal antibody drugs, vaccines, blood products, recombinant protein drugs, gene therapy, and other areas; Japan There are numerous specialized enterprises, with advantageous fields including regenerative medicine research, drugs for the prevention and treatment of hypertension, diabetes, and tumors; china The biomedical industrial parks are mainly distributed in four regions: the Bohai Rim, Yangtze River Delta, Greater Bay Area, and Chengdu-Chongqing Metropolitan Area. In terms of development characteristics, not only do chemical raw materials drugs and preparations, traditional Chinese medicine, etc., have development advantages, but also cutting-edge technologies such as bispecific antibodies, antibody-drug conjugates (ADCs), and cell gene therapy are also booming. Looking at the global medical device market, European and American countries remain the leaders. Asia-Pacific is expected to surpass Europe as the second-largest medical device market in the future, with innovation in emerging markets also receiving much attention.   In terms of the global market share of medical devices, North America and Europe account for 34.4% and 26.3%, respectively, holding a dominant position in the global market competition landscape. In addition, due to the early start of the medical device industry in European and American countries, mature technological development, high market penetration rates, and an already mature market cycle, the market scale growth rate is stable. Currently, the incremental demand for medical devices mainly comes from the replacement needs of existing devices.   Driven by population changes, economic growth, and the continuously developing healthcare landscape, coupled with rising prevalence of lifestyle-related diseases and growing healthcare demand, Asia-Pacific and Latin America are becoming the fastest-growing medical device markets in the world. In the future, Asia-Pacific is expected to surpass Europe to become the second-largest medical device market. "In the future, with increasing healthcare spending and insurance coverage rates, as regulatory environments continue to develop, review systems are continuously improved, and innovative technologies are adopted, emerging markets such as China in Asia-Pacific, India, Brazil and Colombia in Latin America will become more attractive, attracting more medical device companies to locate there." Dr. Wang Xin further added. "It is worth noting that, in addition to the Asia-Pacific region and Latin America, medical devices in the Middle East have also maintained an innovative development trend. Among them, the cutting-edge technologies and innovation capabilities of medical devices represented by Israel have also attracted much market attention."   Israel is a small country with scarce resources and a weak industrial chain, but it is renowned worldwide for its strong innovation capabilities and developed high-tech industries. As a globally recognized leader in the field of life sciences, Israel currently has nearly 2,000 life science industry companies. Through a comprehensive review of these enterprises, Frost & Sullivan has found that Israel's life science industry can be divided into four major areas: medical devices, biotechnology, digital health, and pharmaceuticals. The industry focuses on the medical device sector and has significant advantages in medical device innovation. In addition, strong industrial support policies, active capital market development, cutting-edge innovation capabilities, and excellent digital technology application skills are powerful driving factors for Israel's device innovation. Looking at the global healthcare service sector, the industry is showing a trend towards higher added value and a wider age range of patients. High-value medical services such as medical aesthetics, chronic disease management, health management, and assisted reproduction are emerging continuously. High-end choices in traditional fields like oral and ophthalmic medicine are becoming increasingly abundant. Under the influence of a series of social factors, fields such as hair transplantation, medical aesthetics, ophthalmology, and physical examinations have penetrated deeper into the relatively younger population. At the same time, medical consumption is shifting from 'subsistence-oriented' to 'expansion-oriented', with service demands derived from 'healthcare' increasing day by day. In the survival phase, medical expenditures are mainly used to cover 'survival-oriented' healthcare costs, such as medications and hospital visits. With the upgrade of 'medical services' consumption, medical spending is no longer limited to the original model. It is gradually shifting from 'survival-oriented' to 'expansion-oriented' consumption. The potential demand in more niche areas such as elderly care, medical aesthetics, ophthalmology, and health management has been further unleashed. The expansion of demand and the empowerment of technology have continuously extended the boundaries of medical services. In addition, elderly people have an even more urgent need for medical services in the future compared to middle-aged and young adults, especially as the situation of longevity with sub-health in an aging society will become more common. Therefore, the related medical service industries that revolve around the 'silver-haired economy' have broader development prospects, and more market opportunities for emerging niche tracks will emerge. Sub-sectors such as finance, home care, culture, real estate, medical devices, information systems, and education and training are expected to become potential markets for future development. Finally, Dr. Wang Xin shared Japan's experience in elderly care services through case analysis. The fundamental reason why Japan has internationally leading elderly care services is due to the aging of its population. Japan entered an aging society in 1971 and, after 50 years of development, currently has nearly 30% of its population over the age of 65, ranking first globally. Therefore, Japanese society has carried out age-friendly renovations in medical facilities, medical services, and other aspects, cultivating a large-scale elderly care service industry to ensure social stability.   The advancement of elderly care in Japan is reflected in two aspects: the elderly care system and the elderly care model. In the pension system, to ensure the payment capacity of pensions, Japan adopts the 'three-pillar' model pension system framework, optimizing the composition of insurance benefits to enhance payment capacity. Japanese pensions combine 'public annuities + private annuities' to meet consumers' growing needs for multi-level, high-quality, safe and stable long-term pension security.   At the same time, Japan has ensured the demand for elderly care services through mandatory legal measures. For example, as one of its most important institutional designs, the nursing insurance provides care expenses or services for the elderly who are ill, elderly or have lost the ability to carry out daily life activities. Since Japan began implementing the Nursing Insurance Law in 2000, a large number of enterprises providing home medical devices, rehabilitation equipment, telemedicine, and nursing services have started to offer specialized elderly care services.   In terms of the elderly care model, Japan adopts a 'home-based care as the mainstay, supplemented by institutional care' model. Through refined operations, it ensures that residents are provided for in their old age. Home-based elderly care is Japan's largest segmented market, with as many as 14 types of home care services available in Japan. These include remote medical care, community health, and other services required by elderly people in need of home-based care.   Dr. Wang Xin stated that in the past three years, under a complex investment environment, the industrial landscape has been impacted. In 2020 and 2021, there was a surge in investment enthusiasm. Since 2022, capital investment has tended to favor more certain high-quality targets. It is believed that with the full development of sub-sectors such as biomedicine and healthcare services, there is still tremendous potential for high-quality development in the global healthcare field in the future.   Against this backdrop, Frost & Sullivan, in collaboration with the Organizing Committee of the Boao Forum for Asia Global Health, has jointly released the 'White Paper on the Global Pharmaceutical and Healthcare Industry Layout and Development Trends', aiming to analyze the layout and trends of the global pharmaceutical and healthcare industry and to uncover certainty amidst the uncertainties of global economic development.   "We aim to gain insights into the mechanisms of success and failure by analyzing the industrial layout in the three major sectors of global biomedicine, medical devices, and healthcare services. We will identify focal points for future development within the context of China's industrial operations, thereby exploring feasible directions for promoting orderly and healthy development of industries, achieving autonomous stability in the industrial chain and supply chain, constructing a dual circulation system for domestic and foreign economies, and driving the recovery and prosperity of the world economy," said Dr. Wang Xin.

paragraph 50 The second Statistical Report on the Development of Internet in China shows that as of 2022 year 6 In the month, the scale of Internet users in China was 10.51 1000 million, among which, the scale of online live streaming users reached 7.16 Yi, accounting for the total number of netizens 68.1% .   Changes are quietly taking place. From the fitness routines live-streamed by Liu Xianghong, known as the 'fitness guru,' who went viral online and gained nearly ten million followers in a day; to Oriental selection, which became popular due to the 'knowledge-driven e-commerce' halo of anchors like Dong Yuhui; to the rise of virtual live-streaming augmented by the metaverse and digital humans.    Watching dramas, performances, learning knowledge, buying houses, and finding jobs in live streaming rooms are becoming the 'new way of consuming' for young people.   How do you view the overall development of the live streaming ecosystem over the past year? Have there been any new changes in live streaming content?” "Live Streaming + "The live streaming ecosystem is becoming increasingly rich under the model. Does this mean the emergence of new live streaming business forms? Compared to the past, more people who made a name for themselves through live streaming were e-commerce experts such as Dong Yuhui and Liu Xianhong. Does this mean live streaming is becoming more professional? How do you view the new form of virtual live streaming? What new changes and impacts will it bring to the live streaming content ecosystem and brand marketing in the future?"   Frost & Sullivan Frost & Sullivan Zhang Xiaojing, Executive Director of Frost & Sullivan Greater China, was interviewed by 'Economic Daily' to discuss the new changes in live consumption. Daily Economic News Q How do you view the overall development of the live streaming ecosystem over the past year? Have there been any new changes in live streaming content?   2022 The year was a difficult one for the internet industry. The once-thriving 'metaverse' concept has continued to 'subside', with Facebook's parent Meta CEO Mark Zuckerberg has repeatedly stated that he will “ All in Metaverse", but 2022 The year was marred by a significant wave of layoffs; digital collectibles were once extremely popular in China but quickly fell into the vortex of speculation... Looking back on the past year, the internet industry, overshadowed by the shadow of cost reduction and efficiency improvement, seemed to have little to offer. However, this did not apply to the live streaming industry. Among all live streaming industries, live e-commerce has been particularly dynamic. 2022 The year can be considered the inaugural year for the development of live e-commerce. From the user perspective, as of 2022 year 6 In the month, the scale of Internet users in China was 10.51 1000 million, Internet penetration rate 74.4% Among them, the scale of online live streaming users has reached 7.16 hundreds of millions, relatively 2021 year 12 Monthly growth 1290 Ten thousand, accounting for the overall number of internet users 68.1% The scale of e-commerce live streaming users in our country has reached 4.69 100 million, accounting for approximately [missing number] percent of the total number of internet users in China 44.6% Although the growth rate of live streaming user scale is very rapid, there is still potential to be tapped. From the enterprise perspective, there are already live streaming-related companies in China 78.9 Ten thousand families, only 2022 In the first half of the year, new live streaming-related enterprises were registered 18.1 Ten thousand, with a year-on-year growth rate of 195% In terms of market scale, it is expected 2022 Annual live e-commerce GMV approximate 3.5 trillion yuan, with an annual growth rate of 53% . In terms of live streaming formats, they can mainly be divided into traditional performances, game live streaming, interactive live streaming, virtual live streaming, etc., with diverse forms. In terms of live streaming content, the live streaming ecosystem is even more colorful and varied. According to the ' 2022 The 'Kuaishou Live Streaming Ecosystem Report' shows that live streaming content has undergone significant exploration and expansion. From inheriting intangible cultural heritage to supporting agriculture and benefiting the public, from science education to daily life demonstrations, the small live streaming rooms carry the uniqueness of anchors and the diversity of the live streaming ecosystem. This has further deepened users' understanding and recognition of the live streaming content ecosystem. Q Currently, “live streaming + "The live streaming ecosystem is becoming richer in modes, no longer limited to e-commerce. For example, live streaming." + Knowledge, live streaming + The increase in intangible cultural heritage and other content, does it mean the emergence of new live streaming formats? What other new trends are there?   In fact, looking at the entire live streaming industry, the upgrade of live content is already evident—besides traditional performance live streaming, there has been a gradual increase in content such as traditional culture live streaming, celebrity broadcasts, and online concerts, with diverse high-quality content flourishing. For example, Douyin live streaming has collaborated with the Central National Orchestra, leveraging the influence of the 'National Music Conference' event to attract over a hundred artists to broadcast regularly, contributing to the development of musical instrument live streaming content. Another example is in live e-commerce; 'Oriental Selection' is like a lotus that emerges from the mud yet remains unstained. With its gentle live streaming style, it sells products while explaining knowledge. The sales method of 'Oriental Selection' has surprised consumers and shaken the entire industry, revealing that live streaming sales can be done in this way. It is evident that the entire live streaming industry has become more standardized, with a healthier and more robust ecosystem. Anchors now have more and richer features, and the industry has higher demands for high-quality content. Under this trend, the live streaming industry has actually put forward higher requirements for content and professionalism. In the future, the polarization of live streaming will intensify. Firstly, there will be an increasing number of business models deploying live streaming ecosystems, and more outstanding talents will flock into the live streaming industry. Whether they are grassroots individuals, domestic or international celebrities, or even some professional institutions such as academies, orchestras, media, etc., all have the opportunity to join the live streaming industry. Secondly, as more entrants join the market, there will inevitably be an emergence of excellent live streaming and products. In this process, the strong become stronger, while the weak are eliminated.   The professionalization level of platform anchors will continue to improve, providing users with more high-quality live streaming content.   Finally, competition in the entire industry will become increasingly fierce. However, platforms' strong support for high-quality content, continuous exploration of top hosts, and emphasis on enhancing guild operational capabilities provide more fertile ground for high-quality content, offer greater room for top hosts to rise, and give guilds with stronger operational capabilities, who persist in investment and refined operations, more opportunities to break through. Q 2022 In [year], Dong Yuhui and Liu Kehong from New Oriental became popular, attracting significant attention. Compared to previous times, more people became known for their live streaming activities through e-commerce. Have Dong Yuhui and Liu Kehong become more professional in live streaming? How do you view this change? The profession of anchor, from its inception to development, has been inseparable from a process of professionalization. 2012 After a year, due to the continuous popularization of smartphones, live streaming platforms both domestically and internationally have also begun to explode in a burst mode. At this time, the live streaming industry has shifted from a seller's market to a buyer's market. In the long run, anchors can only meet the needs of audiences with their talents or specific expertise in certain fields. This is not only true for ordinary anchors but also applies to phenomenon-level figures during certain periods. The popularity of Dong Yuhui and Liu Genghong represents an iteration in live streaming formats and content, enriching the live streaming ecosystem with more diversity. However, although the live streaming industry is booming today, for long-term development within this sector, anchors still need to have a systematic understanding of live streaming. The live streaming industry itself has accompanied professional development. Anchors should not only have their own characteristics and features that hit the audience's pain points but also understand the 'techniques' of live streaming, grasp the laws of communication, and ensure that their good works are fully exposed and displayed. Although live streaming content is transmitted from top down by anchors, whether it can be received by the audience and form a 'symbiotic' relationship with them, benefiting both parties, is also of utmost importance in the live streaming industry. It is difficult for an ordinary person or grassroots individual to achieve this alone. In summary, live streaming requires professionalism, professional ethics, respect for and awe of the audience. Only when anchors and their teams possess certain professional qualities can they establish a more solid foundation in the industry, and thus the entire industry can be more stable. Q With the boom of the metaverse and virtual technology, virtual live streaming has rejuvenated online consumption scenarios and become a new weapon for brand marketing. How do you view this new form of virtual live streaming? What new changes and impacts will it bring to the live streaming content ecosystem and brand marketing in the future?   from Web2.0 reach Web3.0 From the internet to the metaverse, with the advancement of digitization, the connection between virtual space and real space has increasingly become an explicit reality, undoubtedly setting the stage for a broad future for the development of digital virtual industries. Currently, virtual live streaming involves a relatively wide range of industries. The first is the e-commerce industry. For the entire live streaming e-commerce sector, with the continuous development of technology, more and more merchants are starting to be dissatisfied with real-person anchors. After all, as long as it's 'human,' they will be tired, emotional, physically uncomfortable, and may not be in the best working state. However, if it's a virtual image, there are no restrictions on the working hours or fluctuations in performance for virtual anchors. In addition to the most common e-commerce, virtual idols IP address After transformation, entering the commercial endorsement field is also one of the most conventional paths. Take 'Liu Yexi' as an example. Although 'Liu Yexi' currently mainly produces videos, judging from its popularity, a relatively mature 'Liu Yexi' IP address Imaging enters live streaming, enhancing it IP address Business value remains an expectation. However, from another perspective, the extension of digital virtuality into the real world also implies the collapse and reconstruction of the original real order. In terms of digital virtual live streaming, the popularity of virtual idols and virtual anchors signifies a huge development potential within the industry. But at the same time, the derivatives of the virtual live streaming industry's development IP address Problems such as the relationship between the ongoing virtual idol 'Zhongzhi Ren' and virtual humans still require further observation and prudence in handling. In live e-commerce, the role played by anchors is of utmost importance. Their responsibilities are not limited to simply selling products, promoting products, answering questions in the live room, or carrying out a series of templated tasks. Instead, they need to string together the relational chain of 'people, goods, and venues' found in traditional e-commerce. Although virtual live streaming is an inevitable trend in live e-commerce scenarios, at present, behind virtual anchors often lies an entire team, with divisions of labor involving design, technology, content, and operations. The completeness of this team is no less than that of creating a real-life anchor.   Q What potential issues exist with current live streaming?   From the perspective of consumers, what they care most about is whether there are clear and favorable mechanisms behind the live streaming industry, as well as the protection of consumer rights. For example, last year, L'Oréal Group claimed to offer products at the lowest prices across China in Li Ka Shing's live streaming room. However, consumers found that this was actually false advertising, which caused dissatisfaction among them. The user and consumer rights protection mechanisms will be an important part of the live streaming ecosystem and need further standardization and strengthening. For live streaming platforms, although the threshold for becoming an anchor is relatively low, as the industry matures, platform-level requirements for online celebrities and anchors should continue to rise, and platform screening standards should be established and improved. In addition, if negative issues arise within the platform, the platform itself should actively promote self-inspection and governance, taking on the responsibility of ' A villain who 'locks people up'. PK Prominent issues such as vulgar speculation and live streaming black industries should be targeted for special crackdowns to ensure a healthy live streaming environment. Currently, relevant policies have also been issued at the national level to standardize the live streaming industry. The 'Code of Conduct for Online Streamers' jointly released by the National Radio and Television Administration and the Ministry of Culture and Tourism includes 18 Item “Specifications” and 31 The category prohibits behaviors such as counterfeit products, provocative language, violence, and flaunting wealth, helping the entire live streaming industry achieve standardization and professionalism across the entire industry.   * This interview was published in "Daily Economic News". APP Reporter for Wen Menghua Original title is    "The    3 · 15 Consumer vitality & New live streaming | Breaking content boundaries and revitalizing the industry ecosystem Learn knowledge, buy a house, find a job - all done with one click    >>    (Click "Read Full Article" at the end of the text to read the complete report).

For a long time, there have been consumers complaining about the high cost of pet medical care. How do you view this phenomenon? Why do consumers feel that the fees are high but the companies are not making a profit? What is the current situation of domestic pet medications? Are imported drugs used more frequently in pet hospitals? What is the current status of pet medical talent in our country? How does it compare to other veterinarians in terms of level? What is the role of pet medical insurance? What impact will pet medical insurance have on the industry? What stages does the pet medical industry divide into? What factors restrict the development of the industry? How do you view the prospects of the pet medical industry?   Frost & Sullivan Frost & Sullivan Cao Sijie, a consulting analyst for the consumer industry in Greater China at Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), was interviewed by Southern Weekend to discuss the current development status of the pet healthcare market. Southern Weekend Q Currently, there are several pet healthcare companies seeking to go public. The prospectus of Xinruipeng shows that its revenue has been growing year by year, but net profit has been incurring losses for several consecutive years. Moreover, there have always been complaints from consumers about the high cost of pet medical care. How do you view this phenomenon? Why does it occur that consumers feel the fees are high but the company is not making a profit?   For a regular pet hospital, the initial investment cost is very high. In addition to venue rent and renovation costs, the purchase of medical equipment is also quite expensive, with the initial investment for a small community hospital often exceeding one million. At the same time, labor costs are also an important part of hospital operations. A community hospital, in addition to having doctors on staff, usually also requires corresponding assistants, beauticians, front desk staff, etc.   Meanwhile, regarding current pet medical services, there is still a relatively high dependence on overseas products in some products. For example, in terms of commonly used vaccines, medications, and health supplements, the main reliance also lies on overseas brands.   These reasons have led to the current low profits of pet hospitals compared to expectations, but they are also related to the industry being in its early stages and a low localization rate of medical devices and products. Pet healthcare is a long-term and challenging field. From the perspective of foreign development, it is believed that future profit levels will gradually return to a reasonable level. Q Time ratio between the initial investment in medical devices and the cash recovery phase / What is the cost? Does this also affect the cost of a single inspection?   Usually, based on the size of the pet hospital, it can be divided into 150 Community hospitals of about [X] square meters, 200 Specialized hospitals with over 1,000 square meters and central hospitals only available in first- and second-tier cities. Take community stores as an example. For fixed equipment such as medical devices, at least 100 Ten thousand yuan, including pet photography X light DR One machine 15 ten thousand ~20 Ten thousand yuan, a color Doppler ultrasound machine is nearly 30 Ten thousand yuan; costs of drugs, food, pet supplies, etc. 20 ten thousand ~30 Ten thousand yuan. The payback period of community hospitals may be close to 2 ～ 3 In [year], large pet hospitals will need 8 ～ 10 Returns the investment in a year, but the equipment 3 It will age in about a year, and if it continues to operate, it will require continuous capital investment. Hospitals of a certain scale have more equipment, and all equipment has depreciation costs, which are converted into the customer's 'bill'. Since the domestic pet healthcare industry started relatively late, most specialized pet equipment and medications rely on imported brands, resulting in high costs. Q What is the current situation of domestic pet drugs? Are imported drugs used frequently in pet hospitals? What is the price range of imported pet drugs? How is the research and development of domestic pet drugs progressing?   In the field of pet medications and vaccines, there are no leading domestic enterprises in this sector, and China's pet medication and vaccine industry is still in its infancy. In the past, the pet market was small, with insufficient profit margins to support pharmaceutical companies' research and development. Moreover, new drug development is a high-investment, time-consuming process. Therefore, at present, China's pet medications and vaccines are mainly imported from foreign brands. In the short term, relying on policy promotion to shift from human and veterinary drugs to pet use can lead to more domestic pet medications being available on the market; in the long run, pet hospitals + The cooperation between pet pharmaceutical companies will accelerate the development of the domestic pet drug market.   Q Talent has always been a factor restricting the development of pet healthcare. What is the current situation of pet healthcare talent in our country? How does their level compare to that of other veterinarians? Why is it said that there are many pet doctors now, but few high-end talents?   Overall, there is no particularly shortage of talent in pet healthcare, but there is a lack of high-end professionals and experts. This is largely due to the relatively short development time of the pet healthcare industry in our country, and consumers' acceptance of pet healthcare is still in the process of cultivation. Similar to seeing a doctor with an ordinary person, in the medical field, the importance and influence of senior experts are far greater than those of regular doctors. However, how to cultivate high-end talent and specialists has always been one of the industry's challenges. High-end talent often requires a long career experience and extensive diagnostic skills, but consumers are often reluctant to trust young doctors, making talent cultivation even more difficult. Leading healthcare groups have an advantage in this regard by creating an internal talent development system, organizing learning and training, and integrating internal resources to cultivate high-end talent.   Q Pet medical insurance is also on the rise. What is its role? What impact will pet medical insurance have on the industry?   In recent years, many commercial insurance companies have been entering the pet insurance market. The products are roughly divided into two categories: one is pet medical insurance, and the other is pet accident insurance. This is mainly because the demand for pet insurance is real, and insurance can reduce the burden on pet owners when their pets are sick. On one hand, as the pet ownership community continues to expand, high pet medical expenses have added economic pressure on many pet owners. Reducing the medical burden through insurance has become an inevitable need for pet owners. Approximately 65% of 90 later, 95 Subsequently, it is also the primary audience that has a high acceptance of insurance, as they need insurance to diversify risks and alleviate economic burdens. On the other hand, the penetration rate of pet insurance in China is currently low. Compared to developed countries such as Europe and America, there is still significant room for growth in pet medical insurance. However, the development of pet insurance in China is still in its initial stages, and business models need further exploration. To move towards standardization, scientification, and planning, the industry needs the joint efforts of all parties to promote the healthy development of the industry. Q In recent years, what stages do you think the pet healthcare industry has developed through? What are the factors that have constrained the development of this industry? How do you view the prospects for the pet healthcare industry? The development of the pet healthcare industry in our country started relatively late. 1985 Year-end 1999 The industry has only entered the exploration phase, during which the overall domestic pet consumption market size is relatively small, with only some large animal hospitals having opened small animal clinics; entering 21 In the century, China's pet healthcare industry began to germinate and activate. The number of domestic pets grew rapidly, and a small-scale industry standard system began to be gradually established; 2011 Year-end 2019 In China, the pet healthcare industry began to develop rapidly, especially in 2017 - 2018 In the industry, China's pet healthcare sector has seen a considerable peak in investment and mergers and acquisitions. Currently, the number of pet hospitals owned by the leading company Xinruipeng Group has exceeded 1,800 home; 2020 Since [start year], like all consumer industries, the pet industry has been greatly affected by the pandemic. However, compared to developed countries in Europe and America, the current Chinese pet market still has a significant gap in terms of per capita pet ownership and pet spending compared to these regions. There is still great room for development in the future, especially among leading chain enterprises. The main factors restricting industry development include the difficulty in cultivating deep-seated pet medical talents, shallow exploration of customer needs, and low supply chain efficiency. These are also areas where leading companies make key investments. In addition, many sub-sectors such as high-end pet food, pet insurance, tourism, and funeral services offer many investment and development opportunities.   * This interview was published in Southern Weekend, with reporter Song Bingchen. Original title is    "The    Seeing a doctor is more expensive than getting treatment for humans, so why do some pet hospitals find it difficult to make money?    >>    (Click "Read Full Article" at the end of the text to read the complete report).

What is the current situation of the domestic growth hormone market? What proportion does long-acting growth hormone account for in the growth hormone market? Apart from the long-acting growth hormone already on the market by Jinse, what are the long-acting growth hormones in clinical trials in China? How is the market competitive? Compared with short-acting growth hormones, what are the advantages and disadvantages of long-acting growth hormones? In terms of research and development, what are the difficulties in developing long-acting growth hormones? For growth hormone companies, what are the core barriers to product commercialization? In terms of commercialization, what difficulties do long-acting growth hormones face in competing with short-acting growth hormone products? Currently, there is a significant difference in the annual costs for injections, aqueous injections, and long-acting growth hormones among patients (consumers). Does the cost affect their choice? Besides cost, what other factors can influence patient choice? Frost & Sullivan Frost & Sullivan Liang Yanyu, consulting manager of the Healthcare Business Unit at Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), was interviewed by 'Hexun Finance' to discuss the long-acting growth hormone market. Hexun Finance   Q What is the current market situation of growth hormone in China? What proportion does long-acting growth hormone account for in the growth hormone market?   At present, the growth hormone market maintains a growth trend. 2021 Annual achievement 109 The scale is in the hundreds of millions of yuan. Moreover, it is expected that with the increased supply of long-acting growth hormone and the continuous improvement in the penetration rate of growth hormone among patients, this market will continue to grow. 2021 In [year], the proportion of long-acting growth hormone based on sales was approximately 14.9% . Q Apart from the already marketed long-acting growth hormone by Jinse, what are the other long-acting growth hormones in clinical trials domestically? How is the market competitive? And Weisheng Pharmaceutical /Ascendis Products such as Tianjing, Novogene, Anhui Kangfu Biotechnology Co., Ltd., Yifan Biotech Group Co., Ltd., Xiamen Tebao Biotechnology Co., Ltd., Younoujin Biotech Co., Ltd., and Qianhong Pharmaceutical Co., Ltd. are available, but each company has its own technical platform with differences. There are certain barriers to the development of long-acting technologies, so there are currently relatively limited competitors. Q What are the advantages and disadvantages of long-acting growth hormone compared to short-acting growth hormone? The greatest advantage of long-acting growth hormone for patients lies in its ability to significantly reduce the occurrence of missed injections, alleviate the pain of daily injections, improve patient compliance, and thus help patients achieve more ideal results. Secondly, some studies have shown that long-acting growth hormone has a better growth-promoting effect. Currently, it seems that the safety of long-acting growth hormone is similar to that of short-acting growth hormone, with no particular side effects. If there are any disadvantages, they may mainly be related to the slightly higher price, which places a slightly heavier economic burden on patients. Q In terms of research and development, what are the challenges in developing long-acting growth hormone? The key lies in how long-acting technology ensures effectiveness and safety. In terms of effectiveness, if it is used alone PEG Connection may be affected by steric hindrance, which limits the binding of growth hormone to receptors and thus affects the efficacy. In terms of safety, some long-acting products, such as a previously launched sustained-release microsphere long-acting growth hormone product, were withdrawn from the market due to significant side effects. Q For growth hormone companies, what are the core barriers to product commercialization? Growth hormone is an industry with still low permeability, and there are many patients with short stature who have not received adequate treatment. Therefore, there is significant room for development. For these untreated patients, a large portion are unaware that short stature is a treatable disease and its medication options, and even many doctors in remote areas are not familiar with the diagnosis and treatment of this type of disease. For growth hormone companies, therefore, doing a good job in educating doctors and patients is of utmost importance, which to a certain extent determines whether their products can further penetrate the grassroots market. Secondly, currently companies such as Jin Sai, Anke, and United Sair have established a first-mover advantage in the markets they have already explored. How to enter the market, build product brands, and establish differentiated competitive advantages in the market are also full of challenges. Q In terms of commercialization, what difficulties does long-acting growth hormone face in competing with short-acting growth hormone products? The clinical application of long-acting growth hormone has been relatively short-lived, and some doctors and patients still have some doubts about it. More academic and popular science information is needed to be disseminated. At the same time, the price of long-acting growth hormone is relatively high, which will limit the use of this drug to some extent. Q Currently, there is a significant difference in the annual costs for short-acting growth hormone injections (in powder form), aqueous injections, and long-acting growth hormone. For patients (consumers), will cost affect their choice? Besides cost, what other influencing factors could impact patient selection? Cost is an influencing factor, but not the only one. Currently, both short-acting intravenous and sublingual injections are mainstream in the market. The advantage of sublingual injections is that the annual cost is only about half that of intravenous injections. 1/3 However, freeze-drying can affect the spatial structure of peptide chains, impact protein activity, and lead to antibody production. In contrast, the protein structure in aqueous solutions is more natural. Moreover, powder requires patients to dissolve it and use it evenly by themselves, which is prone to contamination and lacks the convenience and ease of operation of water injections. The price of long-acting drugs is much higher than that of short-acting ones, but the convenience of only needing one injection a week is very attractive to patients. This greatly facilitates daily travel for patients, avoids needle misses, and can also reduce the pain of injections. Therefore, in summary, the main influencing factors include convenience of use, safety, and efficacy.   * This interview is published in "Hexun Finance & Economics". APP Reporter for Qiu Zhenxiang Original title is    "The    IPO listing observe | The independent R&D capability of Weisheng Pharmaceutical may need verification. The core product market is highly competitive.    >>    (Click "Read Full Article" at the end of the text to read the complete report).