Absorption of more than 60 billion, under the epidemic of pharmaceutical investment and financing is still "flying against the wind", why?

Despite the turmoil in capital markets caused by the new crown outbreak, in the healthcare sector, whether it is early investment and financing, or late IPOs and M.A., there is a "counter-current" trend.
The move comes after Silicon Valley Bank's global investment and financing report for the first half of 2020 said venture capital funding focused on investing in the healthcare industry in the first half of 2020 was close to the record for the whole of 2019, and venture capital firms' investment and financing of healthcare sectors broke the record for the first half of 2019.
to the domestic market, the health care industry in the first half of 2020 can be described as flying against the wind - has become the mainstay of the capital market in 2020.
inflow of capital to bring strong support to the development of enterprises in the field of health care.
01 investment and financing market is more optimistic in the first half of 2020, the health care sector investment and financing enthusiasm continues unabated.
market covers multiple rounds, from angel turn to pre-market, with a maximum investment of more than $1 billion.
the first half of 2020, the domestic health care industry completed 322 financing incidents, with 111 investments of more than RMB 100 million, accounting for 34.4%, according to Hao Yue Capital Database.
also included three huge financing incidents of more than Rmb2bn, from Huada Zhizhi, Yunding Xinyao and Hualan Bio-Vaccines.
China's largest funding in gene sequencing with $1 billion, including IDG Capital, CITIC Securities and Huatai Securities.
Huada Zhi-made focus on the upstream of the industry gene sequencer and reagents, which is currently the highest technical barriers in the gene sequencing industry chain link, but also the field of domestic technology gaps.
, the company is the third company in the world to capable of mass-producing clinical-grade sequencer.
the second-highest-ranked fund-raiser in the world was Yunding Xinyao.
In March this year, Yunding Xinyao announced that it had reached a strategic cooperation agreement with Jiashan National Economic and Technological Development Zone and Jiashan County State-owned Assets Investment Co., Ltd., and established a joint venture in Jiashan, Zhejiang Province- Yunding Xinyao Pharmaceutical Technology Co., Ltd., dedicated to establishing a global production base and headquarters of innovative pharmaceuticals for clinical research and development, large-scale production and commercial operations.
June 5, Yunding Xinyao announced the completion of a $310 million round of C financing, making it the largest financing in the domestic biotechnology sector this year.
another investment and financing event of more than 2 billion yuan came from Hualan Biopharmaceity Vaccine, which is led by Gao's capital.
March 26, Hualan Bio disclosed that the subsidiary Hualan vaccine was introduced into the war pitch.
Gaoxuan Capital and Morningside Fund invested 1,242 million yuan and 828 million yuan, respectively, and were assigned a 15% stake in Hualan Vaccines, which was completed with four shareholders.
, the controlling shareholder, Hualan Bio, owns 75%, the second shareholder, Cokang Co., Ltd., holds 10%, and Gao Andi and Chenxuan hold 9% and 6% respectively.
Hualan Biopharmaceuser is a controlling subsidiary of Hualan Bioengineering Co., Ltd., which mainly develops and produces high-tech products such as human bacterial vaccines, viral vaccines and genetically engineered vaccines.
the company is currently working on a new crown vaccine.
the record amount of investment and financing cases, is a group of concentrated major firepower investment in the pharmaceutical field of "senior players", such as High Capital.
pharmaceutical industry has always been the area of high capital heavy capital layout, according to public data show that high capital in the field of health care has invested a total of 160 enterprises, of which 52 are innovative pharmaceutical fields.
the first half of 2020, in addition to participating in two huge financing events of more than $2 billion, Gao's capital market continued to sell.
In addition to long-term active investment institutions in the domestic medical and health sector, it is worth noting that in the first half of 2020, capital investment in the domestic health sector surged, a number of foreign institutions entered the domestic primary health care market for the first time, but also a growing number of institutions that have not participated in the domestic health sector investment in the past began to turn to biotechnology, pharmaceuticals and devices.
is a very positive sign for the domestic health sector.
the first half of 2020, as many as 21 investment institutions participated in more than three investment and financing incidents, according to the statistics of institutions with significantly increased willingness to invest in the domestic health care sector.
in terms of investment, biopharmaceuticals remained the most gold-sucking sector, with 132 financing incidents completed.
Affected by the increased demand for medical devices such as monitors, ventilators and ECMO in the outbreak, the medical device sector completed a total of 62 financing incidents in the first half of the year, surpassing the IVD and precision medicine sectors that completed 53 financing incidents and the smart medical sector, which completed 57 financing events, becoming the second "gold-sucking" sector.
of financing in the medical device sector peaked in March, with 20 financing incidents completed, while the amount of financing reached a new high of 3,696 million yuan in May.
also affected by the new crown outbreak, and vaccines have become the most capital-sought segment of the Tier 1 market.
in the face of new crown pneumonia, vaccines have become a strategic area in which countries around the world are advancing their research.
has not yet developed a vaccine to effectively suppress the new coronary pneumonia, but the battle for vaccines has already begun.
the first half of 2020, a total of 13 financings have been completed in the domestic vaccine sector, and mRNA vaccines are the most closely watched technology direction.
from the investment round, according to incomplete statistics, in the first half of 2020, the disclosed first-tier market health care sector, the average single financing amount reached 421 million yuan.
early project financing has been decreasing and projects after round B have gradually increased.
, Pre-IPO financing has increased significantly as the GEM registration system provides an effective exit channel for capital.
2019, the number of IPOs in China's medical and health sector has increased dramatically since the opening of the IPO in 2019.
affected by the outbreak in the first half of 2020, the pace of IPOs has slowed.
the first quarter by the impact of the outbreak, but with the gradual stabilization of the domestic epidemic, the steady progress of the resumption of production, the second quarter of the IPO process has become particularly hot.
total number of IPO medical enterprises in the first half of 2020 reached 31, of which A-share main board, Science and Technology board, Hong Kong Stock Exchange, NASDAQ have ushered in new domestic health care projects.
figure is much higher than the 11 H1 in 2019.
June was the most intense month for IPOs in the first half of the year, with three big 10 billion companies - Gan Li Pharmaceuticals, Haigia Healthcare and Conki Healthcare - ringing the bell on June 29, 2020 alone.
From a policy point of view, with the GEM registration system to provide an increase in exit channels, the landing of the new three-board board listing system, the Hong Kong Stock Exchange for unprofitable biotechnology companies to revise the new listing rules, all foreshadow the future of domestic health IPO will be further enlarged, will also drive the first-tier market investment, stimulate capital entry, accelerate the development of domestic health care enterprises.
, according to the latest PwC report, there were 64 new listings in Hong Kong in the first half of 2020, raising a total of HK$87.5bn, up 22 per cent on the same period last year.
sector distribution, Hong Kong IPOs in the first half of this year were mainly concentrated in the medical and biotechnology sectors.
In the first half of 2020, Hong Kong's IPO earnings TOP 3 were all in the medical and pharmaceutical sector, and their biggest rise on the first day of listing was more than 50%.
can also be seen in the field of medical pharmaceutical investment is very hot.
in addition to the impact of good policies, the outbreak has become another driving force in the medical IPO outbreak.
the new crown epidemic made the public's attention to the health industry, especially the biopharmaceutical industry further increased, the outbreak ignited the secondary market of the medical and health industry, the concept of new crown pneumonia stocks rose and stopped once became the norm.
detailed first half of the medical and health IPO projects covered by the field, including innovative drugs, medical devices, biological products, pharmaceutical circulation, hospital management, API, Chinese medicine 7 sub-sectors.
, innovative pharmaceutical companies had the highest number of listings, with 12, followed by medical devices with nine, and biologics with four, ranking third.
from the industrial trends of innovative drugs, in the first half of 2020, the oncology innovative drug project ushered in the peak of IPO.
And the previous IPO boom in Xinda Bio, Junshi Bio and other large-molecule tumor innovative drug projects are different, the past six months listed in Zexi Pharmaceuticals, Tianyi Bio, No cheng Jianhua and other mainly around the small molecular tumor innovation drug layout in the research pipeline.
, the continued development of diabetes drug targets has received capital market attention.
one of the world's most morbid diseases, diabetes has always been a research and development priority for pharmaceutical companies.
, one of china's three major domestic recombinant insulin similar suppliers, GlynLe Pharmaceuticals has achieved the full listing of the main domestic insulin suppliers.
03 merger and acquisition integration has become the main theme of 2019 is China's mergers and acquisitions market is more active year, Anjin with $2.7 billion to buy Baiji Shenzhou, China's pharmaceutical and life sciences sector in the history of the largest mergers and acquisitions.
According to Thomson Reuters, Investment China and PwC analysis, although not as large as overseas super-sized pharmaceutical companies, domestic mergers and acquisitions have remained active overall for a long time, with total annual transactions remaining above $20 billion after 2015 and more than 400 annual transactions.
2019, China's pharmaceutical and life sciences mergers and acquisitions amounted to US$25 billion, or 588, accounting for 6% of the world's total mergers and acquisitions (10% in 2018).
into 2020, mergers and acquisitions integration or will continue to be the main theme of this year's pharmaceutical industry.
mergers and acquisitions are accelerating as the pharmaceutical industry becomes more fragmented.
mergers and acquisitions has played a positive role in promoting the allocation of resources in the biopharmaceutical industry and accelerating the development of the industry.
Under the influence of a series of policies, such as consistent evaluation and auxiliary drug regulation, the vast majority of pharmaceutical companies in China have entered the knockout stage, and many sub-circuits have begun to accelerate actively or passively into the stage of change and integration.
The impact of policies such as volume procurement and two-vote system has enabled pharmaceutical companies to adjust their marketing business by reducing staffing and reducing costs, increasing sales of assets, shrinking research and development pipelines, further incussing assets, optimizing resource allocation, focusing on core business, and controlling operational risks.
and globally, the growth history of multinational pharmaceutical companies is also a history of acquisitions.
mergers and acquisitions and restructuring of the biopharmaceutical industry around the world has greatly improved the ability of developed countries and multinational companies to seize markets, monopolize technology and obtain excess profits.
companies, including Mercedon, GSK, Pfizer, Novarma and AbbVie, have split or acquired their businesses.
2019, BMS bought Celgene for $95bn, AbbVie for $63bn and Takeda for $62bn.
for domestic pharmaceutical companies, overseas mergers and acquisitions will also become a trend.
, biotech companies and pharmaceutical companies, as well as pharmaceutical companies, have been active since the pharmaceutical industry began a major merger in 2014, according to a research and analysis by The Associated States.
With the acceleration of domestic innovation drug development and overseas expansion, for large pharmaceutical companies in the rapid development, the future through mergers and acquisitions to introduce new technologies, expand research and development pipelines and product lines will be an important means for pharmaceutical companies to expand the scale of operations.
, acquisition and restructuring is also an effective means for large-scale pharmaceutical companies to expand overseas markets and establish a global production and sales network.
future, biopharmaceutical merger and acquisition integration will become the key to industrial ecological optimization.
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