Under the upsurge of biomedical enterprises listing in Hong Kong, what other tracks deserve attention?
Recently, the report on investment activities issued by Hong Kong 18a biotechnology company (hereinafter referred to as the report) released by Frost & Sullivan and other institutions said that since the implementation of the new regulations of HKEx 18a, 18a biotechnology company has mainly focused on three aspects: Pharmaceutical track, medical device track and cutting-edge medical technology, accounting for 66.2%, 28.2% and 5.6% of the total number of 18a enterprises respectively. The report may be of reference value to biotechnology enterprises planning to list in Hong Kong.
In fact, the top-level policies are increasingly supporting the biomedical industry. On December 30, 2021, the national plan for drug safety and promoting high-quality development in the 14th five year plan jointly issued by the State Food and Drug Administration and other eight departments also proposed the goals of "approving a batch of innovative drugs urgently needed clinically", "accelerating the listing of innovative drugs with clinical value", "global innovative drugs and Innovation Medical Management Co.Ltd(002173) devices applied in China to be listed in China as soon as possible".
continuous biotechnology innovation
18a mentioned in the report, that is, chapter 18a of the "main board listing rules" of the new listing rules of the Hong Kong stock exchange, allows unprofitable and income free biotechnology companies to be listed, which has come into force on April 30, 2018.
As of December 31, 2021, a total of 48 companies, including Geli pharmaceutical-b, Baiji shenzhou-b, Cansino Biologics Inc(688185) bio-b, zaiding pharmaceutical-sb, clover bio-b and minimally invasive Siasun Robot&Automation Co.Ltd(300024) , have been listed through 18a rules, and a total of HK $112.6 billion has been raised through IPO.
From the track selected by the above 18a company, biopharmaceuticals are mainly liver cancer, lung cancer, gastric cancer, hemangioma and lymphoma, while medical device enterprises are mainly heart valve diseases, vascular diseases and AI medical image diagnosis. In addition, AI diagnosis and treatment auxiliary diagnosis equipment is also an important part.
For example, on the biopharmaceutical track, there are 35 listed companies with a total market value of HK $737.43 billion, and 16, 9 and 3 companies with a market value of HK $10 billion, HK $20 billion and HK $50 billion respectively. For another example, on the medical device track, 12 listed enterprises have a total market value of HK $137.05 billion, of which minimally invasive Siasun Robot&Automation Co.Ltd(300024) ranks first with a total market value of HK $56.13 billion, accounting for 41% of the total market value of medical devices.
From the data of the issuance stage, the report shows that 18a company has a high financing frequency before issuance. Most companies have 2-6 financing rounds before listing, and Qiming medical-b, Beihai kangcheng-b and Xinda biological-b have more than 10 rounds; In addition, the time from submission to issuance of company 18a is generally shorter than that of other companies, ranging from 61 days to 301 days.
Li Zheng, President of toubao (Shenzhen) Research Institute, said in an interview with China first finance that under the background of National Encouragement of biotechnology innovation, the report compares the above listed companies' valuation in the issuance stage, intermediaries, heat during the issuance and other indicators, and lists the valuation growth rate of listed companies under the track The capital investment of cornerstone investors in the track has certain reference significance for investors.
Li Zheng also said that in view of the company's issuance structure (which is an important information rarely mentioned in the secondary market), the report also analyzed the proportion of cornerstone investors, anchor investors and public offering investors after the company's listing, and made trend judgments for key indicators such as turnover rate.
new track in biotechnology
In the field of biopharmaceuticals, medical devices and cutting-edge technology, what other tracks deserve attention?
Hao Shichao, chief analyst of the medical industry of toubao (Shenzhen) Research Institute, told reporters, "First of all, we should pay attention to the track of cellular immunotherapy. The reason is that under the background of the steady increase in the number of cancer patients in the past few years and the limited effective cancer treatment methods, once new treatment solutions such as car-t cell therapy show excellent efficacy in the field of treating solid tumors, it will promote the development of cellular immunotherapy."
According to the data of frost Sullivan, in June 2021, China's first car-t therapy akirensai injection was approved for listing. With the approval of more cellular immunotherapy products, the market scale in this field is expected to reach 58.4 billion yuan in 2030, with a CAGR of 21.6% from 2026 to 2030.
"Secondly, we should pay attention to cutting-edge medical technologies. For example, Yingtong technology, as the first share of medical AI, was listed in Hong Kong stocks in November 2021. In the future, the AI + medical industry will accelerate its development." Hao Shichao said, "the potential applications of AI diagnostic equipment include cancer, infectious diseases, cardiovascular and cerebrovascular diseases and trauma, etc. the introduction of AI medical devices in hospitals can significantly improve the efficiency of clinical work processes and fill the gap in the diagnosis and treatment resources inversion."
The report also shows that in the field of medical devices, vascular intervention is the sub industry with the largest enterprise layout, and a total of 12 listed companies are involved in this sector.
In this regard, Hao Shichao said, "from the perspective of China's major vascular interventional medical devices (coronary artery, peripheral blood vessel and nerve intervention) market, its market scale has increased from 6.72 billion yuan (RMB, the same below) in 2016 to 11.26 billion yuan in 2020, with a CAGR of 13.8%, and the CAGR is expected to be 14.9% from 2021 to 2025."
He said that affected by factors such as the intensification of population aging, the improvement of residents' affordability and the strengthening of domestic substitution, the demand for vascular intervention surgery will also continue to increase in the future, and the market penetration of relevant medical devices in third and fourth tier cities is expected to continue to grow.
