Capital carnival, economic sing-down? Behind the outbreak of the healthcare company's IPO.

Since June, with the full resumption of work, as well as a large amount of money running into the field, the secondary market gradually reached boiling point.
the bull market is coming, the market is crazy, the IPO is throwing money... The sound of revelry is endless, the first half of the anxiety instantly into the power to open an account, the economic decline seems to be the last century, and even some people lamented "2020 is so good, why restart?" "Medical companies, but also firmly occupy the central c side of the market, some of the old medical bull stocks are still hot: Hengrui firmly stood at $500 billion market value;
on the other hand, the newly listed enterprises are more pleasantly surprised: the first domestic orthopaedic surgery robot Tianzhihang, issued 7 days, the market value of 1076%, insulin leader Gan Li Pharmaceuticals listed for two weeks, breaking the market value of 100 billion, vaccine and IVD enterprise Wantai Bio out of this year's longest 27-plate.
one explosive news after another, bombarding the market at a rate that is unabated, it's hard to imagine that these things happen in just 30 days. According
to cvSource, the total number of ipscare companies with IPOs in the first half of 2020 is 28, up 155 percent from the first half of 2019.
it is clear that the impact of the post-epidemic recession on health-care IPOs has not been as severe as expected, or even doubled from 2019.
Buffett says people must be afraid when they are greedy.
behind the frenzied bull market, the need to think about whether the 2020 health-care IPO explosion is inevitable? How long will the revelry last? Who will survive the bursting of the bubble? The recession caused by the global water-boosting, health-care sector-led "main line" outbreak continues, and in order to boost the economy, the world has embarked on a simple and crude "money-throwing" model.
led by the Federal Reserve, central banks around the world are taking turns to cut reserve requirements, reduce the discount rate... The U.S. has launched four rounds of $2.9 trillion stimulus, the fifth round of $3 trillion is still on its way; the Japanese government has not let much effort, with a budget of 234 trillion yen for fighting epidemics and stimulus, and the European Union is planning a comprehensive recovery plan worth 1.85 trillion euros... On the Chinese side, since February, the central bank has increased liquidity by more than trillion spending through counter-buybacks and other operations. On July 7,
, Xiao Gang, a former chairman of the China Securities Regulatory Commission, said publicly at the meeting that the central government had never attached such importance to capital markets.
Reuters estimates that the world's central banks and governments together "print money" amounted to $15 trillion, equivalent to 17% of global GDP for the year.
a significant portion of that money and turned out to be in the stock market.
in China, from July 6 to July 9, the turnover of the Shanghai and Shenzhen markets exceeded 1.5 trillion yuan for the fourth consecutive day, the market is very active, a number of indicators have exceeded the level of the 2015 bull market.
it is clear that the cumulative "money-throwing" effect is the global opening of the era of financial water, the stock market opened a new wave of market.
"share language" has a cloud: any round of the rise of the market, need to have a main line.
even in the water release era, other industries have mostly experienced highs and downs, ride a roller coaster, and only the health care sector from scratch to tail, to beat the road index.
's pharmaceutical index performance (data from: wind) since the beginning of 2019 shows that as of May 25, a total of 93 funds had risen by more than 30 per cent in less than half a year.
, the number of funds for medicine, medical, health, biology and other words reached 57, accounting for 60%.
obviously, medical stocks have become the main line of this round of the market, well-deserved.
2020 28 industry ups and downs, data from: Wind listings such as "catch-up", medical companies staged fancy IPOs this year, the healthcare sector has become the IPO "scent."
the first half of 2020, A-shares, U.S. stocks, Hong Kong stocks ushered in 67 medical IPO projects, raising more than 100 billion yuan, of which: biopharmaceutical fund-raising, reached 92.079 billion yuan, 47 IPO projects;
Q2 2020, China's medical listed companies tripled month-on-month, and in the "gold everywhere" secondary market, medical companies staged a "catch-up" style of fancy IPOs.
2020 H1 IPO total amount and number of events (RMB 100 million) data from: Arterial Orange Research Institute Hong Kong shares: biotech companies explosive landing on the Hong Kong Stock Exchange since 2018 to carry out listing reform, allowing biotechnology companies that have not yet made a profit or income to list in Hong Kong, has ignited the enthusiasm of the domestic unprofitable innovative medical enterprises IPO.
this year ushered in a node-style outbreak, mainland medical companies in Hong Kong stocks have been oversubscribed, by the investors warmly sought after: March 23, Nocheng Jianhua, oversubscribed 298.75 times April 24, Kangfang Bio, oversubscribed 639.20 times May 15, Peijia Medical, Oversubscribed 1183.4 times may 22, pioneering pharmaceutical industry, oversubscribed 551.32 times June 29, Haigia Medical, oversubscribed 608 times June 29, Kangji Medical, oversubscribed 988.22 times the time to the second half, Hong Kong stock listing tide continues. on July 10,
, the domestic ophthalmology pharmaceutical company Oconvision was listed on the Hong Kong Stock Exchange, having recorded a gain of nearly 194 per cent at one point in the session, and by the close, it had set a price of Rmb37 per share, up 152.39 per cent.
U.S. stocks: Favored in the high-tech U.S. stock market, as of June 30, 2020, the first half of this year, the new listing of the Chinese general stock companies, there are eight companies with a market value of more than 1 billion U.S. dollars, of which the medical health sector accounted for half of the mountain, namely, legendary biology, stone-burning medicine, heavenly biology and panbios.
three of them were listed in June: on June 6th, legendary creatures focused on CAR-T landed on Nasdaq, and their shares rose 60.8 per cent on their first day of trading, soaring to nearly $4.8bn. On June 12,
, burning stone medicine landed on NASDAQ, giving birth to the first share of China's oncology NGS, with an issue price of $16.5, and jumped more than 40% in the opening session, with a market capitalisation of more than $2.5 billion on the day. On June 19,
, oncology genetic testing company Panborn landed on Nasdaq, offering $16 and a market capitalization of $1.414 billion.
three domestic tumor-related head innovation companies in the return of the general stock tide, bravely rushed to the NASDAQ, its strength can not be underestimated.
A shares: the old stock rise, new shares surprise in the first half of the A-share IPO wave, medical stocks actually have two main themes, one is the old A-share biopharmaceutical companies continue to rise to a record high, to achieve a market value upgrade;
Hengrui has recently established a market capitalization of 500 billion yuan, as of the time of writing has exceeded 550 billion market value, is expected to move towards 600 billion yuan; 6.7 billion yuan, yoy - 20%-30%, the stock price should rise, officially into 400 billion, as of the release of market value of more than 420 billion yuan;
, the dark horse stocks of the concept of protest should not be ignored.
so far this year, the main medical gloves of the British medical treatment can be the best performance of the bull stocks, the results of 2581.8% to 2864.1% year-on-year, in more than 7 months, the range rose as high as 910.31 percent.
of the newly listed companies, the most significant rise in the company, is from Beijing's Wantai Bio.
the company's main products are enzyme-linked immunodiagnostic reagents, colloidal gold rapid diagnostic reagents, etc., on April 29 this year on the Shanghai Stock Exchange, a listing has won 27 upand board, has become after MeiRui and that year's Huada after another market value of more than 100 billion IVD company.
in the Shenzhen Stock Exchange listed IVD head enterprises, the new industrial biology has also reaped a 424% increase, the company's main products for a series of fully automatic chemical luminescence immunoassay instruments and supporting reagents.
also has a POCT instant diagnostic reagent manufacturer Oriental Biological swells more than five times.
July 15, the domestic PD-1 "four small dragons" one of the Junshi bio-products board listed, becoming the first "new three-board , H-co-invasive board" biopharmaceutical company, the opening price reached 216 yuan, 289.19 percent higher than the issue price, the closing market value of the day reached 131.6 billion yuan.
these may just be a prelude, in the second half of 2020, the GEM pilot registration system is about to start, the new three-board selection layer has opened the curtain, the number of A-share IPOs, fund-raising or will be a new step.
spin-off listing: IPO is not the end, split sub-business can also be "secondary listing" in order to catch up with this IPO boom, some already listed companies are also in Moquan, eager to try to split their sub-business sector experience "secondary listing."
the first half of 2020, seven pharmaceutical companies announced that they would spin off their subsidiaries to GEM or the company to list.
, including Changchun High-tech, Hualan Bio, Liaoning Chengda will be its vaccine business split, Tianshili will be committed to drug research and development of The Skyxli Biological Spin off, Koren Pharmaceuticals will be committed to large infusion, antibiotics and drug research and development of the Sichuan-Ning biological spin-off.
medical devices, on March 25th It was proposed to spin off its subsidiary, Minimalventure, for $200 million to $300 million, with a valuation of $1 billion, and has hired Citigroup and JPMorgan Chase to arrange a listing. On June 11,
, Viaro AG announced that it would spin off Viao Orthopaedics and its common stock to be listed independently on Cotron Board, and the next day, the SSE accepted the application. On June 30,
, Neusoft Medical, a subsidiary of Neusoft Group, submitted a prospectus to the Shanghai Stock Exchange for the IPO of Co-Sprite, which was accepted. if the
is successful, Neusoft Medical will become the first large-scale domestic high-end medical equipment stocks listed in the company.
in addition, this month the industry came out about the original Beijing Lepu Medical Technology Co., Ltd. changed to Beijing Lepu Diagnostic Technology Co., Ltd., it is inferred that Lepu Medical or intend to be in the main business of the in vitro diagnostic part of the independent, seeking to go public.
signals that the 2020 medical industry gold rush era officially opened! How long will the last? Under the carnival always to live in peace and security, some people can not help but ask, when will this IPO wave into the platform period? The best way to judge the present is to look back on history.
, referring to the experience of the 30-year expansion period of the U.S. stock market from the establishment of NASDAQ in 1971 to 2000, can be roughly inferred that the IPO "Great Leap Forward" will begin to turn around the corner about three years after the implementation of the A-share registration system.
, the company may then be out of the market due to financial, liquidity deterioration, rising listing costs or mergers and acquisitions, which generally lag slower than the IPO peak of 2-5 years.
then, a mature market will enter a "in and out" stable state.
of course, these experiences are not applicable to the medical industry, because the current market is also superimposed on a lot of practical factors.
an industry investor said that the current round of medical market is mainly China's major reform measures in the medical industry in recent years to break the shackles of the old system, for the healthy development of the industry has laid a long-term trend towards good.
in other words, over the past decade, a large number of innovative and entrepreneurial local healthcare companies have grown, many of them backed by primary market funds, and now it is time to bear fruit.
, in addition to the core factors of policy and cycle, this sudden outbreak has become another driving force in the outbreak of medical IPOs.
but even so, health care professionals should be on the bubble risk of this round of market alarm bells. The core of the
bubble can blow up is liquidity, especially this round, in the context of the Fed's bottom-line easing, in the future once liquidity inflection point, not only on U.S. stocks, global capital markets may have a huge impact.
domestic liquidity, in June at the 12th Lujiazui Forum, also from the side of the release of risk signals: Liu He proposed: risk response to the market curve to go ahead;
, will the Black Swan incident happen? There is a good chance that the bubble will be punctured by unexpected events, possibly due to the repetition of Sino-US relations, changes in regulatory policy, the impact of a sudden event, or the unexpected.
, so in the short term, how the medical sector will move, it is difficult to accurately predict.
but historically, the risk is rising, and now it seems to have reached the stage where risk outweighs the benefits, and while enjoying the benefits of the bubble, we should be in awe of the market.
capital is not a "magic bullet" in fact, for a long time, the healthcare industry is not the capital "darling".
new drug development requires a lot of time and money.
according to industry insiders, in foreign countries, an innovative drug research and development cycle is generally 14-15 years, the global average research and development investment needs 2.6 billion U.S. dollars, but the success rate is only 10%.
nine dead! It can be said that innovative drugs are a very risky industry, even if the investment time and cost, but still can not guarantee success.
Even with this round of market support, China's healthcare industry still has a long way to go.
but at least, this wave of market can draw attention to this, so that the real sinking of the researchers, investors understand that this is a long cycle of the industry, should not be with the mentality of making quick money to enter.
good, the industry has more and more investors began to change their mentality, a fund company general manager on the public statement that "although the development of medical projects will be a little slower, but we put in the money will become a real research and development results."
even if the drug clinical phase three is not good, the first phase of the second phase also has results available, will not be zero.
that's the way we look, we're winners.
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