The total amount of funds raised exceeds 100 billion Hong Kong dollars. What potential tracks are there for "18A" domestic biotechnology companies?

The innovation and development of biomedicine is inseparable from the all-round support of policies and capital

1.

According to data provided by Frost & Sullivan, the total market value of "18A" biopharmaceutical sub-track companies is HK$737.

Cellular immunotherapy is a type of immunotherapy in which immune cells, mainly T cells, are injected into a patient to treat cancer

The data provided by Frost & Sullivan also shows that the market size of cellular immunotherapy in China is expected to increase to 16.

The main driving factors for the expansion of the cellular immunotherapy market are the increase in patient demand, improved affordability, and improvement in the medical environment

The increase in patient demand and hospitals with relevant qualifications has created demand for the cell therapy industry

Benefiting from the rapid economic growth, the per capita disposable income of Chinese residents has increased significantly in the past five years, and it is expected to increase further in the future.

Since 2017, policies such as encouraging drug innovation, simplifying the approval process for clinical trials and new drug applications, and expanding the scope of medical reimbursement have been promulgated and implemented

In addition, the number of hospitals qualified for the use of CAR-T therapy is also increasing

2.

In the medical device track, the largest number of companies are in the vascular intervention industry, with a total of 12 companies, of which 6 are listed companies

Vascular intervention technology refers to the technology of using puncture needles, guide wires, catheters and other medical devices to enter the heart cavity or blood vessels through vascular puncture under the guidance of medical imaging equipment to perform diagnosis or local treatment

According to data provided by Frost & Sullivan, the market size of China's major vascular interventional medical devices (coronary, peripheral vascular and neurointervention) has increased from 6.

The main driving factors for the market expansion in the field of vascular intervention are the increasing prevalence and treatment rates, more domestic medical devices replacing imported medical devices, increasing per capita disposable income of residents, the price advantage of domestic products promoting the improvement of patient affordability, and technology innovation,
etc.

With the accelerated aging of the population and increased public health awareness, the prevalence and treatment rates of vascular diseases continue to increase
.
Most vascular diseases are age-related and have a higher prevalence in the elderly population
.
The aging of the population in China is accelerating, and the prevalence of vascular diseases is expected to increase further in the future
.
At the same time, through the promotion of healthy life>
.

At present, the share of domestic vascular interventional medical devices in China's medical device market is relatively lower than that of imported products
.
However, domestic vascular interventional medical devices are expected to gradually replace imported devices.
The following two factors will accelerate the replacement process: First, government policy support.
The number of innovative medical devices applied for priority approval and listing through the special review process; second, more and more research and development talents have returned from abroad, and the introduction of the latest foreign innovative technologies has been accelerated, which continuously promotes China's medical device research and development enterprises to focus on technological innovation
.

The increase in the per capita disposable income of residents and the price advantage of domestic products promote the improvement of patients' affordability
.
In China, the per capita financial subsidy standard for residents' medical insurance and basic public health services has been continuously improved, residents' disposable income has continued to grow, and the demand for interventional surgery has increased, which has accelerated the market penetration of interventional surgery in third- and fourth-tier cities
.
In addition, as more domestic medical device products with lower prices than imported medical devices are approved for listing in China, it is expected that the price of vascular interventional medical device products will gradually decline, and the market size is expected to further expand
.

In addition, vascular interventional medical devices are usually high-end products and require continuous technological improvement.
Continuous technological innovation in the vascular interventional industry is also one of the main driving factors for the continuous expansion of the market size
.

3.
Frontier Medical Technology Track

AI diagnosis and treatment equipment industry ushered in the dawn

At present, the frontier medical technology track is mainly based on the AI ​​diagnosis and treatment equipment industry
.
In November 2021, Airdoc, the first share of medical AI, landed in Hong Kong stocks, and the development of AI + medical industry accelerated
.

AI medical devices refer to computer-aided diagnosis or analysis software used to automatically identify lesions and provide basic information for diagnosis or treatment (such as the nature of lesions) or recommendations, as well as preoperative planning software designed to publish surgical plans based on image processing results (using except software for dentistry or ENT)
.
AI medical devices have the potential to be widely used in various medical fields including cancer, infectious diseases, cardiovascular and cerebrovascular diseases, and trauma
.
AI medical devices have also been developed and applied to various stages of the patient diagnosis and treatment process, including screening, diagnosis, treatment, clinical decision-making, health management, and rehabilitation management
.

According to data provided by Frost & Sullivan, the global market size of AI diagnostic equipment has increased from US$86.
5 million in 2016 to US$355.
5 million in 2020, with a compound annual growth rate of 42.
4% from 2016 to 2020
.
It is expected to further increase to US$17.
7019 billion in 2025, with a compound annual growth rate of 126.
8% from 2021 to 2025
.
China's AI diagnosis and treatment equipment market is also developing rapidly, and the market size has increased significantly from 124.
7 million yuan in 2019 to 291.
8 million yuan in 2020
.
It is expected to further increase to 75.
5688 billion yuan by 2030, with a compound annual growth rate of 152.
0% from 2021 to 2025, and a compound annual growth rate of 26.
0% from 2026 to 2030 (see Figure 3 for details)
.

The main driving forces for the development of the AI ​​diagnosis and treatment equipment industry are as follows:

AI diagnosis and treatment equipment has a large potential landing space, which is expected to narrow the gap between urban and rural medical conditions
.
According to the "2020 Statistical Bulletin on the Development of China's Health and Wellness", the number of medical institutions in China will increase to 1.
023 million in 2020, but the number of hospitals will only be 35,000, of which 2,996 are tertiary hospitals, accounting for 8.
5%; 52.
7% of the total number of tertiary hospitals
.
At present, AI diagnosis and treatment equipment mainly covers tertiary hospitals, and the penetration rate of other hospitals is not high, and the potential landing space is large
.
If the hospital introduces AI medical equipment, it can greatly improve the efficiency of clinical work
.
For example, through deep learning of large amounts of image data, AI-enabled solutions (such as medical image analysis and decision support software) can assist doctors in making rapid treatment decisions during the diagnosis process and significantly improve work efficiency
.

Traditional medical image analysis work is complicated and medical resources are limited
.
The data provided by Frost & Sullivan shows that the current annual growth rate of medical imaging clinical data in the United States is about 63.
1%, and the growth rate in China has also reached 40%, while the annual growth rate of the number of radiologists in the United States and China is only 2.
2% and 4.
1%, far lower than the growth of image data
.
More than 75% of patients need the help of radiologists in the process of diagnosis and treatment, and the number of radiologists is growing slowly.
There is a big scissors gap between the increasing demand for AI medical imaging jobs and the group of professional AI medical imaging doctors
.
Taking the detection of pulmonary nodules as an example, a tertiary hospital needs to receive about 200 screeners every day, and each patient generates about 200-300 CT images.
The radiologist needs to read 40,000-60,000 images, which is a heavy task.
consume a lot of energy
.
If the AI ​​medical imaging system is used to process about 100,000 images, it only takes a few seconds
.

The policy supports the development of the AI ​​diagnosis and treatment equipment industry
.
China has promulgated a series of policies to encourage the application of AI technology in the medical device industry
.
In 2017, the State Council promulgated the "New Generation Artificial Intelligence Development Plan", pointing out the direction for the next generation of AI technology and industry development; Class III medical devices; In July 2019, the Medical Device Technology Review Center of the State Food and Drug Administration issued the "Key Points for the Review of Deep Learning-Assisted Decision-Making Medical Device Software" to clarify the clinical trial requirements and approval procedures for medical devices based on deep learning; 2021 In July 2009, the State Food and Drug Administration issued the "Guidelines for the Classification and Definition of Artificial Intelligence Medical Software Products" to provide further guidance for the classification of AI medical devices
.
Looking at the world, in February 2019, the United States released the "National Artificial Intelligence R&D Strategic Plan", in which healthcare is regarded as a key area of ​​the AI ​​R&D strategic plan; in February 2020, the European Commission released the "Artificial Intelligence White Paper"
.
The implementation of a series of policies has promoted the development of the AI ​​medical device industry
.