The proportion of biological drugs in the overall pharmaceutical market has increased year by year, which is the fastest compound growth field among the three subdivided industries of chemical drugs, traditional Chinese medicine and biological drugs. With the improvement of the affordability of beneficiaries, the growth of beneficiary groups and the expansion of medical insurance coverage, China Meheco Group Co.Ltd(600056) industry market scale will reach 1.6 trillion yuan in 2020, and it is expected to grow at a compound annual growth rate of 6.8%, In 2025, the market scale is expected to expand to 23000 yuan. Biological drugs accounted for about 14% of the overall pharmaceutical market in 2016 and about 21% by 2020. It is the industry with the fastest compound growth rate among the three subdivided industries of chemical drugs, traditional Chinese medicine and biological drugs
In terms of capital market, the overall market value of A-share Biopharmaceutical Enterprises has increased 100 times compared with that in 2010. Biopharmaceutical Enterprises account for nearly 63% of Hong Kong stock 18a enterprises, and the industry has extremely strong growth potential > among the pharmaceutical industry segments, the pharmaceutical segment accounts for 53.1% of the whole pharmaceutical industry. Among them, the overall market value of biopharmaceuticals is high. As of November 19, 2021, the total market value of biopharmaceuticals is as high as 8.5 trillion yuan, 100 times higher than that of biopharmaceuticals in 2010. China’s biopharmaceutical market is still in its early stage of development and has extremely strong growth potential. Compared with the chemical preparations and traditional Chinese medicine sub industries in the pharmaceutical market, the growth rate of biological drugs is leading. As of December 31, 2021, there were 75 enterprises in Hong Kong stock 18A enterprises, of which 47 were Biopharmaceutical Enterprises, and the enterprises focused on nine fields, including cancer, autoimmune diseases, ophthalmology, biological vaccines, cell therapy, diabetes, infectious diseases, respiratory diseases and rare diseases.
The favorable policies of the government, the recognition and support of funds, a large number of unmet clinical needs, the landing of car-t qualified hospitals and other driving factors will promote the development of China’s CGT market. In terms of policies, the state and governments at all levels continue to issue industrial incentive policies to support the development of gene therapy industry. In terms of capital, at present, cell and gene therapy companies are subject to the green skin of the capital market. Various transaction forms such as private financing, IPO, M & A and cooperation are booming, and heavy transactions occur frequently. As for the demand side, CGT provides a new choice for the treatment of refractory diseases and brings long-term efficacy. China’s huge potential beneficiary base continues to increase the demand for CGT. At the same time, the supply of more hospitals with car-t treatment qualification will promote the development of China’s CGT market
