Under the policy change, where is the next wind of pharmaceutical investment?

According to Qingke's 2017 China Equity Investment Market Annual Report, in the first 11 months of 2017, there were 9120 investment cases in the entire market, including 1008 involving biotechnology and medical health, involving a total amount of 77.166 billion yuan. A large amount of money into the integration, good national policy, market player renewal, in the past year, the pharmaceutical investment market surface waves but actually has been undercurrent surge. And in the future, pharmaceutical investment will continue to fire oil, or gradually return to calm and cautious? Where will the next pharmaceutical investment come from? What other pits have to be avoided? See how the big men who invest in medicine answer.
is the current Red Sea or the Blue Sea in the field of medical and health investment? Why are there so many cross-border investment forces in the immediate future? In the context of the new era, how can we grasp the innovative investment opportunities in medicine? Under cross-border subversion, what pits do pharmaceutical investments have to avoid?
At the 17th Annual Forum on Equity Investment in China, organized by Qingke Group and the investment community on December 7, partners from a number of investment institutions, including Gaotejia Investment, Haida Investment, Shanghai Jinglin, Sequoia Capital China Fund, Yuanyi Capital, Xianyi Capital, China New Ventures and Anlong Fund, discussed the above issues.
health investment market has been more active in the past year than in previous years. According to Qingke's 2017 China Equity Investment Market Annual Report, in the first 11 months of 2017, there were 9120 investment cases in the entire market, including 1008 involving biotechnology and medical health, involving a total amount of 77.166 billion yuan.
in terms of both the number of investment cases and the size of the investment, biotechnology and healthcare have improved their position in industry-wide investment. At the same time, a large amount of money integration, national policy is good, market players update, in the past year, the pharmaceutical investment market surface waves, but in fact, has long been undercurrent. 1 Red Sea and Blue Sea under the policy change
In the past year, "policy" is definitely a key word, but also an important factor affecting the overall health investment trend of medicine.
The most representative, but also by the vast majority of investors concerned, is issued by the General Office of the CPC Central Committee and the General Office of the State Council on October 8 this year, "on deepening the review and approval system reform to encourage drug medical device innovation", six major parts, a total of 36 rules, is considered to be a major positive for the industry, "including accepting overseas clinical data trials, speed up the listing review and approval, accelerate the quality and efficacy of generic drugs consistent evaluation." Hu Xuefeng, managing partner of Gottja Investment Group, said, "But in the sub-sector, there may also be a short-term." "
Is it therefore the focus of all investors in the pharmaceutical and health industry at the time of the changes in the policy environment, how the pharmaceutical and health sector should operate, how to combine industry and investment." In the view of Yang Ruirong, a partner at Yuanyi Capital, "let the policy fly for a while" may be a better solution. "There's always a mess when something new comes out, run for a while, run out, and then make important decisions, as is the financial industry, and so is the pharmaceutical industry." Yang Ruirong said that although the policy is very important for the guidance of the industry, but from the perspective of medical investment, also can not look at the policy completely, more crucially, do a good job of policy-oriented and market-oriented perfect combination, only in this way, can we see great opportunities.
the past year, areas considered to be a combination of policy-oriented and market-oriented have not been uncommon. Immunotherapy, for example, the previously hot PD-1/PD-L1, while still hot, has generally weakened the heat, while another treatment, CAR-T, has begun to gain cynlic attention. Two big things happened in the CAR-T sector in 2017: Gilead's announcement on August 29th that it would buy Kite Pharma for $11.9bn in cash, and the FDA's approval of Novarma's CAR-T therapy listing on August 30th. The two events, which took place within 48 hours, marked the start of a big pharmaceutical company's bid for CAR-T, and the other marked regulatory confirmation of CAR-T therapies from the approval mechanism. And the impact is already there. A senior industry investor told E drug managers, the current domestic market CAR-T-related projects have been described as high water, prices skyrocketed.
"From a broad policy-making perspective, national policy must be on a higher level to promote innovation in the field of biomedicine." Lu Weibo, a partner at Sequoia Capital China, is more determined that biomedicine remains a major area of development in the future. "Including what we've seen in Baiji Shenzhou, and Huang, and then Ding, these no-revenue, no-profit innovators are starting to make successful IPOs on NASDAQ, including in Hong Kong, where the industry is changing, and you need to be able to sense what's possible in the future and then act and lay it out ahead of time."
Xiaoming, a partner at Xianxian Capital, cautions that in addition to the pharmaceutical industry's own policies, "we should actually focus on overall financial policy, including IPO policy." "In Yang Xiaoming's view, the impact of these policies on the pharmaceutical and medical industry is actually relatively large, from an investment point of view, there are pros and cons.
but no matter what the policy changes, the market is here. Over the past year, Beda Pharmaceuticals' A-share listing and Reding Pharmaceuticals' NASDAQ listing have become the most impressive cases in the eyes of many industry veterans interviewed by E-Drug managers. On the one hand, this proves the feasibility of doing innovative pharmaceutical enterprises in China, giving investors great confidence; More important, on the other hand, is to give investors the possibility of a successful exit in this area in the future. Therefore, the market in the past year, holding funds, full of confidence; Hold the item and wait for the price. Overall, the heat remains undifinished.
, but whether it is the Red Sea or the Blue Sea, is the benevolent see the wise see the wise thing. "I think it's a Red Sea market for investors; For entrepreneurs, this is a blue sea market. More money, good policy, but not enough entrepreneurs. "This is the true state of the past year, according to Zhang Changyong, managing director of China Xinrong.
2 pharmaceutical investment, where's the next
?After summing up the past, always have to predict the future, where are the investment opportunities? How to avoid investment risk?
In Lu's view, not to talk about specific investment areas, there is a certain direction, that is, no matter what kind of enterprises win in the future, its core advantages, must be technology and innovation.
"We often take the secondary market Hengrui 200 billion refers to things, but we also have to look at a larger picture." Chinese companies such as Ali and Tencent are already close to the market capitalisation of U.S. Internet companies, but the largest companies in China in biopharmaceuticals are still worth only $30 billion, while Johnson and Johnson are worth more than $300 billion. "As a result, Lu believes that the greater the gap, the greater the imagination of the future, but no matter what kind of company eventually wins, it must be a truly global innovative company, only in this way, can have the possibility of competing together."
And in the eyes of Haida investment partner Chen Qiao, there is room for development in more sub-sectors, especially in the context of the policy release of the Opinions on Deepening the Reform of the Review and Approval System to Encourage Drug Medical Device Innovation. "From the present point of view, these policies should be a combination of punches, from research and development to the entire registration approval, I think some innovative equipment, innovative drugs, including preparations export areas will be very good, but overall, these measures will give some of our country's solid scientific research of high-quality enterprises a corner over the opportunity."
Hu Xuefeng holds the same view. "From all the current policy changes, encouraging innovation to phase out the traditional pharmaceutical industry and low-end imitation is a trend that encourages research and development personnel to do their own research in a solid way, which is one of the most central points of all policies at the moment." But at the same time, the requirements for investors are further strict, "investors are not professional, how deep you study the industrial chain, can you polish your eyes to look for unicorns, looking for excellent projects, support and incubate excellent projects." "
" and another key word, "cross-border", is destined to continue. In the past, as a relatively traditional industry, culture, health, consumption, health, technology, health and other different elements of cross-border emergence, and some new participating forces are increasingly powerful, such as the "national team." In the past year, there have been 1,408 new government-led funds across the market, with a target size of a staggering $8.58 trillion, a significant proportion of which have already targeted the health sector.
" medical sector welcomes cross-border people, cross-border thinking, cross-border operators to impact our tradition, it is true that this industry is traditional. But we also want to have cross-border, but also hope to integrate, the use of other industries excellent business methods to promote the development of the health care industry, this is the first. "In the forum, Hu Xuefeng summed it up this way.
" but more importantly, we still have to grasp the essence and main line of medicine and medicine, regardless of concept, form, whether to solve the pain points of doctors and patients, whether patients can get more efficient, timely and effective treatment, which is the fundamental of medicine and medicine. Drugs have three major characteristics, safety, effectiveness and accessability, safety and effectiveness is a professional problem to solve, access is a cross-border personnel to solve the matter, so that cross-border and traditional professionals can achieve organic integration, the industry can be pushed to faster, better and more efficient development. (E drug manager)