HKEx's New Regulatory Stimulus | More than 200 Medical Investment Institutions

Medical Network May 28th With the safety of a good doctor, WuXi MingKang was listed on the market, and the big healthcare industry quickly entered the market tide. PingYing doctors can successfully go public with a total loss of about RMB 2 billion in the past three years. It can be said that it benefited from the new regulations of the HKEx. At the end of April, the Hong Kong Stock Exchange formally launched the new listing rules, exempted the biotechnology companies and life science companies from the financial qualification test, zero-income can also be listed, and allows companies to use the dual equity structure To attract US$1 billion worth of 'Unicorns' to Hong Kong for listing. Hong Kong Stock Exchange CEO Li Xiaojia said that a number of mainland pharmaceutical companies are preparing to queue up for listing in Hong Kong.

All of this quickly led to medical and health investment in the primary market, the market became extremely hot, medical and health investment quickly became popular, and became the top three investment areas with enterprise services and consumer industries.

'China's medical and health market can be divided into three major segments: medicine, medical devices and medical services. Among them, pharmaceuticals and medical devices have an annual growth rate of 15% to 20%, which is a very good investment track. Look, China's health care expenditure accounts for about 6% of GDP, and the United States is 18%. The gap is obvious; from 2017 global drug According to the sales rankings of TOP10, the top priority was Humira, a drug for rheumatism, with sales of 18.427 billion U.S. dollars. From the top 10 rankings of drug sales in Chinese hospitals in 2017, the first place was sodium chloride. Sales amounted to 8.87 billion RMB. 0.9% sodium chloride injection is normal saline, which is used as an aid when it is used. In contrast, China's future medical expenditure has a huge room for growth. ' Gao Dao Investment Managing Director Zhou Pei to China Wealth King said.

Yikai Capital reported that as China gradually entered an aging society, China’s healthcare industry has grown into a nearly 4 trillion market. This market has maintained a compound annual growth rate of over 20% for the past five years. It is expected to double its size in the next five years to reach 8 trillion yuan, close to 10% of China's GDP at that time.

According to "Healthy China 2020 Strategic Plan" and "Healthy China 2030" Strategic Plan, the total scale of the health service industry will reach 8 trillion in 2020 and reach 16 trillion in 2030.

The 16 trillion market, huge outlets, and investors who love the trend will certainly not miss. The number of institutions has increased with the development of medical enterprises. In 2007, there were only 12 medical investment institutions in China, and now there are 226, more and more. Many professionals started to embrace the medical investment industry and tried to get a few cups. The founder of Goldtech Investment Group, chairman Cai Dajian, said before.

According to the OECD Health Statistics 2017 released by the OECD, China’s health care expenditure as a percentage of GDP has increased from 5.0% in 2011 to 6.2% in 2016, but it is still lower than the OECD average of 9.0%; per capita health care In terms of expenditure, China has increased from US$27.8 billion to US$51.6 billion, CAGR is 13.2%, but it is still only 12.9% of the average OECD. It can be said that China, as one of the representatives of emerging markets, will gradually become the next five years. In the world's second-largest medical consumer market, the proportion of GDP and per capita consumption expenditure will be further increased, and the medical industry has a huge growth potential.

'At the same time, comparing the global medical device sales situation with China's medical device sales, we can see that China's medical device sales accounted for only medicine versus medical instruments About 21% of total sales, far below the global average of about 49%; Through domestic and foreign medicines enterprise The revenue statistics of 2017 (not related to pharmaceutical R&D and manufacturing not included) found that the top ten Chinese pharmaceutical companies have revenues ranging from 1.2 billion to 2-3 billion U.S. dollars, with the top ten international pharmaceuticals. The income gap between enterprises is about 20 times. The level of R&D investment of domestic pharmaceutical companies only accounts for about 3% to 5% of their sales revenue, compared to 15% of international giants' R&D expenses. Liu Mulong told China Fortune Wealth King.

Pan Aimin Partners Pan Aimin said that innovative drugs have become one of the hottest investment areas in the capital market. The capital market provides strong protection for pharmaceutical companies in the development of new drugs, the expansion of production capacity, and the high standard operation of industrialized bases. stand by.

So far, many innovative pharmaceutical companies have successfully listed on the A-shares and overseas markets, and have achieved outstanding results. For example, Beida Pharmaceutical (300558), Baekje (NASDAQ: BGNE), and Zaiding (NASDAQ: ZLAB) ) Wait.

In the past two years, with the improvement of research and development capabilities of pharmaceutical companies, innovative drugs have become a hot spot in the VC/PE investment mainstream investment field. In 2017, the financing amount of pharmaceutical companies increased by 50% compared to 2016, accounting for the proportion of the total financing of the medical industry. 73%, stable.

Prospect Industry Research Institute report shows that in 2017, the pharmaceutical industry segmented field of investment, bio-pharmaceutical accounted for the highest proportion, 69 cases of investment, accounting for 20.18%; investment amount of 6.003 billion yuan, accounting for 24.21%. As biotechnology The development of antibody coupling technology and the development of CRO have greatly shortened the cycle of research and development of biopharmaceuticals and the rapid development of biopharmaceuticals; followed by the manufacture of chemical drugs, the number of investment cases and the amount of investment accounted for 14.33%, respectively. And 8.60%.

However, from an investment point of view, from the 1970s to the present, the entire R&D investment for new drugs and single drugs rose from more than 100 million U.S. dollars to more than 2 billion U.S. dollars, and the investment valuation of a single new drug has increased a lot. This is not only a pressure on companies. Large, it is also a huge challenge for investment institutions. From a global point of view, innovative drug investment, how to manage risk?

'Before the clinical phase to the first phase, we have to study very thoroughly. One of the targets we have identified consists of mechanisms, animal models, and safety mechanisms. By grasping this target at each stage, the probability of success in the next phase will have a certain degree of Controllability. This piece of work, we prefer to grasp the transformational turning point. We have done more in-depth earlier. China is now the best era, capital is abundant, but there are some sub-sectoral scientific research is still not special Solid, In this case, continuing to add additional investment, the risk is still relatively large. 'He Xin, founding partner of Huiding Cornerstone Investment Company, said.

Wu Mingbin, a partner of Mingming Investment, said that there are some new drugs that are not only technical in nature, but also pay for things. The United States has a large commercial insurance system to support, China's current system is mainly based on medical insurance, but medical insurance is currently In the field of new drugs should be more than enough.

Starting from May 1, China will impose zero tariffs on imported anti-cancer drugs, use drugs that include anti-cancer drugs at a tentative rate, alkaloids and other drugs that have anti-cancer effects, and import tariffs on Chinese imports that are actually imported. It is reduced to zero. Liu Mulong said: This is an event with important landmark significance. This shows that there are not many genuine innovative drugs in China, especially high-quality drugs for the treatment of cancer.

Huang Qing, executive deputy general manager of Goldtech Investment Group and managing partner, believes that the new policy environment will create new opportunities for medical and health investment, such as huge potential in the fields of biomedicine, in vitro diagnostics, high-end imaging equipment, and the medical industry. M & A will also become the main direction for future development.

The basic logic of overseas mergers and acquisitions is to graft good medical products or services in the Chinese market. The 5-year survival rate of all types of cancer in China is estimated to be 36% in 2015, compared with 70% in the United States in 2012. The five-year survival rate is the highest in the world and exceeds 70%. To this end, Gundam invested in the Australian sovereign fund Queensland Investment Corporation (QIC Limited) last year. The Goldman Sachs Direct Investment Department completed the largest integrated cancer chain in Australia. hospital ICON Group's share purchase. We hope to graft this resource to China, use the scene of domestic hospitals, bring in the application technology and management experience of radiotherapy. Zhou Pei said to China Fortune Fortune.

In 2017, the investment hotspots in the pharmaceutical industry focused on cancer, gene sequencing, artificial intelligence, and large-scale medical equipment. Last year, BGI was successfully listed and its market value exceeded RMB 100 billion. According to investment research institute “2018 Investment and Financing in China's Medical Field The White Paper stated that the keen expectations of the capital market for the era of precision medicine can be seen in the continued fiery heat of tumor immunotherapy (KITE and JUNO were respectively acquired by high premiums) brought by the first CAR-T drug approval.

Hao Hao, founder and CEO of Haoyue Capital, said that this year, innovative bio-medicine is undoubtedly a hot spot for investment this year, especially CRO (medical R&D outsourcing service) and CMO (medical production outsourcing service). On March 27th, WuXi PharmaTech IPO The conference will not only have a symbolic significance for the A-listed stocks, but also inject CSR into the CRO industry.