In the first half of 2020, the U.S. stock market, A-share market and Hong Kong stock market welcomed 67 medical and health listed companies, raising more than 100 billion yuan. Compared with the data of 79 companies listed in the first half of 2019, the impact of the economic recession after the epidemic on medical and health IPOs is not as serious as imagined, especially in Q2 2020, IPOs are even more active than before. Of the 67 listed companies, 32 are from China. Combined with the current situation of my country’s secondary market, the pharmaceutical and biological sector led the A-share market with a half-year increase of 40.28%. It can be seen that after the outbreak of the epidemic, the demand of the global medical industry is in a period of rapid increase, making the medical sector a counter-cyclical sector, or even an industry that grows against the market. The degree of investment activity has increased unabated. In 2020, the epidemic has driven up IPOs and financing in the life sciences industry against the trend, and a new decade is about to begin. Looking back on the past ten years, it was a crucial period of foundation-laying. The new medical reform was launched in 2009, and the development of China’s medical and health industry, especially the research and development of innovative drugs, has entered the fast lane.
Looking for growth points for the next decade
It has been eleven years since the start of the new medical reform. After ten years of exploration, the “new medical reform” has established three major directions for the reform of medical institutions, the reform of the medical security system and the system reform of drug production and distribution. Among them, the reform of the pharmaceutical production and distribution system is advancing the fastest and has the most significant driving force for innovation in China’s medical and health industry. In 2015, the “Opinions of the State Council on Reforming the Review and Approval System for Drugs and Medical Devices” was issued, which kicked off the reform of drug review. The large document solicitation draft, the document supports the hospital to carry out clinical trials, requires the improvement of the ethics committee mechanism, and the acceptance of overseas clinical trial data to further improve the efficiency of clinical trials and drug approval. The domestic new drug creation industry has entered a period of accelerated development.
In 2010, with the rise of the “Internet +” wave, the concept of “Internet + medical care” entered the public eye, and a large number of Internet medical companies emerged in the market. A few years later, the leading companies among them completed multiple rounds of financing and successfully went public, and integrated the industry’s “hospital side”, “doctor side” and “patient side” resources to form a multi-level coverage of mobile medical services. The healthcare industry is entering the digital age.
In addition to online medical treatment, emerging fields such as gene therapy, new methods of small molecule screening, cell therapy, immunotherapy, and gene sequencing are rapidly heating up. Domestic substitution and self-developed medical devices have become a major line of continuous investment. In the first half of 2020, under the global epidemic that lasted for more than half a year, the medical and health industry was one of the few industries where the investment and financing amount did not drop but instead increased. In the first half of the year, there were 2,469 investment and financing events in the global medical and health industry, with a total financing amount. reached 229.71 billion yuan.
At the same time, the financing channels for startups in many sub-sectors have continued to expand, and IPOs have accelerated significantly. On the capital side, the new listing regulations of the Hong Kong Stock Exchange and the Science and Technology Innovation Board (“Chapter 18A” and “Fifth Set of Standards”) have played a role in helping many biopharmaceutical companies. The ability to replenish capital after listing has been improved, allowing companies to complete new drug research and development more quickly and efficiently. In particular, the “Chapter 18A” of the Hong Kong Stock Exchange has been promulgated for more than two years and has attracted more than 20 biopharmaceutical companies to list in Hong Kong so far. Although the haze of the epidemic has not completely dissipated, the upsurge of biotechnology listings on the Hong Kong Stock Exchange and the Science and Technology Innovation Edition has continued one after another.
Ten years of sharpening a sword. Since the launch of the new medical reform, China’s medical and health industry is entering the fast lane thanks to the advantages of policies, technologies and talents.
The new crown epidemic at the beginning of 2020 has brought many variables. In addition to the variables, medical health and life sciences have once again become the focus of attention. This is not only because this field is related to human life and health, but also because the medical and health field with high barriers has staged waves of capital enthusiasm this year.
From capital to policy, from market to technology, the medical and health field has reached an inflection point, and technological innovation is still advancing, but who is driving the path from technology to commercialization? What is the future trend of the boom brought by the secondary market? Where are the “new” drugs and therapies? Will devices and digital health bring new growth points?
DeepTech and Shenghui jointly create an annual event for the life science industry
“SciPhi” is a brand of DeepTech that focuses on the content and data of the entire chain of life science industrialization. SciPhi, namely Science & Philosophy, means that technological progress in the field of life sciences will eventually link the industry and shine in the history of human medical care. As an emerging brand, Shenghui insists on looking at the status and opportunities of technological innovation and commercial investment in China’s medical and health field from a global perspective.
In 2020, standing at the beginning of the golden age of China’s medical and health care, and standing at various possible crossroads, we sincerely invite you to participate in the medical and health industry summit hosted by Shenghui – “Shenghui Life Science Conference”.
From December 18th to 19th, 2020, from Flagship Pioneering, BeiGene, Junshi Bio, Innovent Bio, Fosun Kite, Hillhouse Capital, Sequoia Capital, Westlake University, focusing on the top leaders in the fields of healthcare and life sciences Scientists, business leaders and capital tycoons will gather in Shanghai to discuss the current state of technology and industry development, and the huge impact it is and will have on human business and society.
The two-day summit will be divided into five forums, focusing on capital, innovative drugs, innovative therapies, medical devices, and digital medicine.
Focus on capital
Beginning in 2017, Hong Kong stocks, A-shares, the Science and Technology Innovation Board, and the Growth Enterprise Market have successively extended olive branches to unprofitable biopharmaceutical companies. The IPO channel has suddenly widened, and the listing time has moved forward. With the emergence of new liquidity opportunities, the price of the underlying market in the primary market has also risen, and investment institutions are facing huge challenges. Under the delicate transmission relationship between the primary and secondary markets, how to build a real and effective valuation system for biopharmaceutical companies and tap potential investment, financing and M&A opportunities in the pharmaceutical field?
This forum will invite well-known investors and financial practitioners to seek answers together.
Focus on innovative drugs
With the support of national policy dividends, pharmaceutical companies are scrambling to deploy new drug research and development. From target discovery to molecular screening, from testing to approval, how can local companies accelerate the new drug R&D chain to break through the headwinds? Where are the opportunities and where are the barriers?
This section will invite entrepreneurs and scientists in the field of innovative drug research and development to discuss the innovative discovery methods of several types of traditional small molecule drugs that are relatively optimistic in the market, the latest progress and future trends of biological drugs, how to create a “new drug research and development ecosystem” in China, and domestic Issues such as differences in capital flows in different subdivisions in foreign capital markets.
Focus on innovative treatments
Cell therapy is a brand-new drug development model. With the development of basic immunology, gene editing, synthetic biology, etc., therapies and tools represented by CAR-T and CRISPR are in the ascendant. one of the areas of potential. So what are the popular innovative treatments in China? What is the most challenging part of the transition from basic research to clinical products? How to implement the idea of ”industry-university-research” throughout so as to overcome the barriers of clinical translation? This will be the question this section attempts to answer.
Focus on medical devices
With the technological progress of my country’s medical device enterprises and the continuous maturity of the supporting industry chain, the market structure of medical imaging, in vitro diagnosis, wearable devices, orthopedics, cardiovascular and cerebrovascular intervention, minimally invasive surgery and other fields is undergoing profound changes. Local innovation forces are rising rapidly. What are the opportunities for global medical device investment and financing, mergers and acquisitions and listing? There will be in-depth exchanges on the advantages of domestic device innovation companies, the challenges and opportunities they will face in the future.
Focus on digital health
From digitization to networking, to today’s intelligence, medical institutions are also experiencing changes brought about by technological development. The huge population base makes China’s accumulated data volume and advantages in the medical field unmatched by other countries. However, due to the prominent data sharing problems such as “data silos”, the development of commercial value of medical data still has great obstacles. Digital medical ecological enterprises are experiencing a critical moment from to realization.
On the afternoon of December 19, the finals of the “Life Science Entrepreneurship Competition” hosted by MIT Technology Review will also be held, and several top start-ups and innovative teams will be selected. This competition aims to explore emerging technology start-ups with real potential in the field of life sciences, while giving them the attention they deserve, while providing joint support from representatives of industry giants, top academic experts, and professional capital forces focusing on life science investment. Help it obtain more abundant growth resources, further realize commercialization, and stand on a broader international stage.
At the same time, Shenghui will also announce a series of lists and interpretations to take stock of the latest, most sophisticated and fastest startups and innovative teams emerging in the industry.
We are waiting for you in Shanghai from December 18th to 19th!
Founded in 2016, DeepTech continues to focus on original emerging technologies such as advanced medical and life sciences, artificial intelligence, semiconductors and the Internet of Things, and financial technology and their commercialization paths. DeepTech focuses on emerging technologies with great industrialization potential within 3-5 years. It is the preferred cooperation platform for world-renowned technology media, including its exclusive MIT Technology Review and CB Insights, to enter the Chinese market.
Shenghui is a full-chain content and data brand focusing on the industrialization of life sciences, and is committed to in-depth exploration of the commercial value and capital value of scientific and technological innovation in this field.
The event adopts the registration review system, click “read the original text” to pre-register to participate in the Shenghui Life Science Conference.