There was a view that 2008-2018 was a golden decade for the development of domestic industrial capital.
The reasons for this are roughly the following three points:
First, policies to encourage industrial capital to serve the development of the real economy are frequent;
Second, the rapid development of the domestic economy coupled with the burst of innovation and entrepreneurship ideas has led to a large number of capital needs, making it possible to inject capital;
Third, the leading enterprises in the medical and health industry are also integrating the industrial chain with capital as the link.
In the context of that time, Arterial Network took the 159 medical and health industry funds established by listed companies from 2015 to 2017 as the research object, analyzed the participation subjects, investment fields and investment scale of medical and health industry funds at that time, and summarized and put forward the views that "the foundations participated in by general listed companies focus on the fields related to the main business of listed companies" and "one of the reasons for the peak of health care industry funds is the need to carry out 'industry-finance combination'".
In May 2018, Arterial Network once again sorted out the main situation, policy environment, and development trend of industrial capital in social medical treatment, and proposed that "medical asset operation capacity and value medical care will become the focus of the next stage of the development of industrial social capital medical treatment." ”
After four years, has the participation in the industrial capital involved in the investment in medical and health enterprises, its participation in the main body, investment logic, and preference track changed? In order to answer this question, Arterial Network once again turned its attention to the industrial capital in medical and health investment and financing, and explored the changes and changes of industrial capital investment in the medical and health field from the 288 domestic industrial capital investment and financing events in the medical and health field in 2021.
Industrial chain capital: The main body of participation has remained basically unchanged, and the investment logic tends to integrate industrial resources
Generally speaking, the industrial capital invested in the medical and health field can be roughly divided into medical and health industry chain capital (hereinafter referred to as industrial chain capital) and cross-border capital. Industrial chain capital mainly refers to enterprises that are in the first link of the medical and health industry chain or funds established with the participation of such enterprises. Cross-border capital refers to non-health enterprises or funds established with the participation of such enterprises.
According to previous relevant reports from arterial network, the main body of industrial chain capital is mainly pharmaceutical companies and medical device companies. Judging from the medical and health investment and financing data in 2021, this has basically not changed.
After combing the 2021 industrial chain capital medical and health investment and financing events, arterial network found that there are many well-known pharmaceutical companies such as Huadong Pharmaceutical, China Biomedicine, Qilu Pharmaceutical, Yangzijiang Pharmaceutical, Hengrui Pharmaceutical and Junshi Biological, as well as medical device companies including Yangpu Medical, a leading enterprise in the domestic vacuum blood collection system, and Lanfan Medical, a leading enterprise in the complete layout of the industrial chain of low and high-value consumables.
It is worth noting that among the participants in the capital of the medical and health industry chain, there are also some CRO enterprises and a small number of medical service enterprises.
Among them, CRO enterprises are represented by Tigermed and WuXi AppTec; medical service enterprises are represented by Ali Health, Medical Federation and Aier Ophthalmology. However, compared with the number of medical and health investment and financing involved in medical equipment companies, the number of investment and financing events involved by such enterprises is small.
There is no obvious change in the main body of participation, so has the investment logic of industrial chain capital changed?
After combing the medical and health investment and financing data participated in by the industrial chain capital in 2021, the arterial network found that the investment logic of the industrial chain capital to integrate the resources of the industrial chain and expand its own business has not changed.
Taking Tigermed as an example, in 2021, it has participated in a total of 9 investment and financing, of which 6 are in the pharmaceutical field, involving innovative drug research and development, small molecule anti-cancer new drug research and development, cell therapy research and development, vaccine product research and development, etc. The remaining three companies are invested in R&D and manufacturing outsourcing, which is closely related to Tigermed's core business.
In 2021, Tigermed participated in 9 investments in the field of medical and health care, arterial network mapping
Note: The amounts in the charts in this article are all measured in RMB, and the foreign currency is uniformly converted into RMB (according to the average exchange rate of the year in which the event occurred, of which the US dollar to RMB exchange rate in 2021 is about 6.45)
It can be seen that Tigermed's investment targets can be divided into two aspects, one is biopharmaceuticals, and the other is R&D and manufacturing outsourcing.
What are the reasons for the formation of this basic logic of investment? Access to customers and resources is perhaps a core element.
According to Tigermed's 2021 semi-annual report, it "further expands its customer base by continuing to invest in and incubate potential early-stage biotechnology and medical device companies to drive their growth, thereby acquiring potential customers and business opportunities; by continuing to invest in business development and marketing, improving the expertise and customer coverage of the business development team, and providing more technical and service resources to attract new customers with innovative and differentiated product pipelines and ongoing business needs for multiple R&D projects and diversified services." ”
As can be seen from the above statement, whether it is an investment in early pharmaceutical technology and medical device companies, or an investment in companies similar to its own business, Tigermed is to obtain new customers or business opportunities.
In China's biopharmaceutical investment in the medical federation, the meaning of integrating industrial chain resources is more obvious.
According to China Biopharma's 2020 annual report, China Biopharma invested US$514 million in the Medical Federation, acquiring a 13.09% interest in the latter. The financing event was claimed to be a breakthrough in the deployment of Internet medical strategy. (Note: Although the investment and financing event was completed in 2020, it was not made public until the end of 2021.) ）
Behind the active deployment of Internet medical treatment, or related to the reform of the pharmaceutical marketing model.
According to the aforementioned report of China Biopharmaceuticals, with the continuous expansion of the scope of drug collection, the profit margins of the domestic generic drug industry have been significantly affected, and the cost of medical representatives has been continuously increased after filing management, making it difficult to continue to support the traditional prescription drug hospital marketing promotion model. The marketing and service model based on the network platform will occupy a more important position in the future pharmaceutical marketing. Therefore, China Biopharmaceuticals has captured this trend and laid out accordingly.
In addition, in 2021, there is also an investment and financing of medical and health industry capital that is worth noting - the strategic investment of Aier Ophthalmology's micro-image.
Founded in Silicon Valley in 2014 by three dr.s. in the United States, Micro Imaging is a world-class R&D team with more than 10 years of Silicon Valley engineering experience, semiconductor optics and high-end medical equipment development experience, and its first self-developed OCT product has excellent performance in imaging quality, breadth, depth, and blood flow algorithm.
Moreover, while completing the financing, the "True Blood Flow" scanning OCT of visual micro-image will be settled in Aier Ophthalmology of Boao Lecheng, Hainan.
"Shiwei OCT is superior to all imported and domestic similar products in terms of product performance, imaging quality, imaging range, imaging algorithm and quantitative accuracy, and far exceeds the current mainstream imported brand products." Professor Liu Hansheng, head of the Aier Ophthalmic Imaging Group, once commented on the OCT product of micro-imaging.
As a domestic ophthalmology chain leader, Aier Ophthalmology has rich medical resources and medical experience. After this investment, MicroVision not only received financial support from Aier Ophthalmology, but also expanded its brand influence and improved its market competitiveness by virtue of Aier Ophthalmology's market position and broad resources.
Located in the middle of the ophthalmology industry chain, Aier Ophthalmology, through this layout, has also broken through the previous horizontal merger and acquisition model for ophthalmic hospitals, which can be regarded as the beginning of vertical integration of industry resources.
It can be seen that whether tigermed invests in enterprises similar to its main business, or China Biopharmaceuticals invests in the medical federation in line with the reform of the pharmaceutical marketing model, or Aier Ophthalmology's investment in micro-imagery, it can be regarded as a horizontal and vertical integration of industrial resources.
Cross-border capital:
Diversified subjects, investment preferences "hard technology"
In the 2021 industrial capital medical and health investment and financing events, there were 100 investment and financing involving cross-border capital. Among them, the participants of cross-border capital can be mainly divided into three categories: Internet manufacturers represented by Xiaomi, Baidu, Tencent, ByteDance, etc., insurance capital represented by Sunshine Ronghui, and other industrial capital represented by Country Garden Venture Capital, Langzi Shares, and New Hope Group.
After combing through the investment and financing data, Arterial Network found that the Internet manufacturers represented by Xiaomi, Baidu, Tencent, and ByteDance participated in a total of 35 investment and financing in the field of medical and health care in 2021. Among them, Xiaomi participated in 7 cases, Baidu participated in 5 cases, Tencent participated in 15 cases, ByteDance participated in 5 cases, and Alibaba participated in 3 cases.
In 2021, the investment of Internet manufacturers in the field of medical and health, arterial network mapping
Note: The "number" in the chart means that the amount of financing may be millions and tens of millions, which is expressed in terms of the amount (number) of financing after conversion into RMB in this article
Most of the investment logic followed by Internet manufacturers in the field of medical and health care is also based on their own core advantages to build their own medical and health ecosystem.
For example, Arterial Network found that in the past year, among the medical and health investments of Internet manufacturers, medical devices are the most favored. After further refining the investment and financing data, it was found that in these 11 medical device investment events, the name of one capital appeared 7 times, that is, Xiaomi Capital (Xiaomi Group, Xiaomi Technology and Shunwei Capital).
Moreover, the 7 companies that received investment from Xiaomi Capital in 2021 mostly belong to hardware devices, such as wearable devices, home medical devices, personal care and beauty instruments, etc. The investment logic reflected behind it is closely related to Xiaomi's layout in the medical and health field, focusing on consumption attributes and continuing its own hardware genes.
If the investment logic of Internet manufacturers in the field of medical and health care is relatively clear and clear, what is the logic of medical and health investment and financing of other cross-border capital?
First, let's look at insurance funds.
In the process of combing through the investment and financing data, arterial network found an active insurance capital - Sunshine Ronghui.
It is reported that Sunshine Ronghui Capital, founded in January 2015, is one of the first private equity fund management companies in China's insurance industry to be initiated by insurance funds, with a fund management scale of nearly 30 billion yuan, mainly in the fields of medical health, emerging industries and emerging consumption.
According to incomplete statistics, in 2021, Sunshine Ronghui participated in a total of 6 medical and health companies, focusing on the track spanning medical consumables, biopharmaceuticals, medical informatization and medical imaging, and the intervention rounds were mostly pre-A rounds or early rounds such as A rounds and B rounds.
In 2021, Sunshine Ronghui participated in the investment event in the medical and health field, arterial network mapping
Therefore, from the perspective of track selection and intervention time, Sunshine Fusion seems to prefer to intervene in some "hard technology" projects in the early stage.
This was confirmed in the interview related to Sunshine Fusion.
At the beginning of 2022, Sunshine Ronghui announced that it had completed the first stage of the innovation growth phase II fund. After the completion of the new fund, Sunshine Ronghui has said that it will continue to focus on the structural opportunities of clinical value priority, health economics priority, industrial innovation and upgrading in the medical industry, and will pay attention to the bottleneck technology breakthrough in the technology industry and the trend opportunity of domestic technological innovation.
However, three years ago, Sunshine Ronghui's investment strategy in the field of health care was not like this.
According to Huang Shengxuan, managing director of Sunshine Ronghui Capital, in an interview in 2018, "Sunshine Ronghui's gene is an insurance investment platform, and its mission is to make life better." The way to make life better is to upgrade around consumption and services, from basic consumer demand to a more beautiful, healthier and happier life. This also determines that the investment direction of Sunshine Convergence is medical treatment and consumption, rather than involving in traditional and manufacturing industries. ”
Specific to the field of medical and health, at that time, Sunshine Ronghui focused its investment eyes on service-oriented and consumer-oriented medical care such as dental, ophthalmology and medical aesthetics, "Our investment strategy is to invest in 'young medical service projects' - from traditional treatment to healthier and more beautiful consumer demand." ”
According to Huang Shengxuan, the gene of Sunshine Ronghui is an investment platform in the later stage of insurance capital, so at that time, the invested companies selected by Sunshine Ronghui were all enterprises that determined the leading edge in the track.
"We'd rather miss than blindly invest in some project that bets on probability." We will select projects where the industry trend is already very certain. Huang Shengxuan said at the time that Sunshine Ronghui attaches great importance to risk control, "Downside risks must be controlled, as long as the probability of failure is reduced, we have half the chance of success." ”
Nowadays, Sunshine Ronghui's investment strategy in the field of medical and health care has changed - from preferring medical services to focusing on the core bottleneck technology breakthroughs in the medical field.
In addition, it is worth noting that among the cross-border capital, there is also a more surprising capital - Country Garden Venture Capital.
As a parent company as the capital of a real estate enterprise, Country Garden Venture Capital did not take the traditional path of acquiring real estate such as hospitals and medical mall development to enter medical health, but invested in "hard technology".
Country Garden Ventures was established on January 4, 2019. Founded only three years ago, it has invested in more than 60 enterprises and more than 90 projects, with an average investment of 2.5 projects per month.
Moreover, according to a report by Zhitong Finance in January 2022, among the invested enterprises of Country Garden Ventures, 26 have reached a valuation of 1 billion US dollars, 8 have reached a valuation of 10 billion US dollars, and 10 companies have IPO.
Behind the rapid start and unique vision, in addition to the rich financial resources and industry resources support of the parent company Country Garden, the cultivation of capital itself is also indispensable.
According to Niu Ruolei, managing partner of Country Garden Ventures, since its inception, Country Garden Ventures has learned the investment strategies of sequoia, Gaoling, Tencent Investment and other head investments, and determined four major investment themes and specific ways to play.
The four major investment themes refer to the promotion of science and technology, health, consumption and industrial chain, and extend a number of tracks including semiconductors, carbon neutrality, great health, and new consumption; the specific rule is to pay more attention to early and late enterprises. Such a layout can not only accompany the innovative enterprise in the early development, but also avoid missing the mature projects in the middle and late stages, so as to ensure the completeness of the track coverage, the speed and the final comprehensive success rate.
Specific to the field of medical health, according to incomplete statistics, Country Garden Venture Capital has participated in the investment of 5 medical companies in 2021, involving wearable devices, medical robots, cardiovascular consumables, IVD, skin care products and other fields, with the overall characteristics of hard technology.
Country Garden Venture Capital's participation in the medical and health industry investment in 2021, arterial network mapping
Take, for example, the B2 round of financing of Sapphire Microbials, which Country Garden Venture Capital led in August 2021.
Blue Crystal Microbiome is a molecular and materials innovation company based on synthetic biotechnology, which is committed to designing, developing, manufacturing and selling new bio-based molecules and materials to help B-end customers in many industries such as consumer goods, food, medical, agriculture and industry compete differently in the industry.
The investment in sapphire microbiology officially opened the curtain of Country Garden Venture Capital's investment in synthetic biology. And, in January 2022, Blue Crystal Microbial once again announced the completion of financing. In the list of investors, the name of Country Garden Venture Capital is prominently listed, which once again shows Country Garden Venture Capital's continuous attention and expectations for domestic synthetic biology.
In addition to synthetic biology, the investment in Yuanye Technology also reflects the characteristics of Country Garden Ventures' investment preference for hard technology in the field of medical and health care.
Yuanye Technology is the first muscle armor research and development enterprise in China, and its development of the world's first more flexible, lighter and more intelligent muscle armor system can predict the action intention through motion capture, so that the muscle armor is highly compatible with the body movement, and the corresponding joint movement assistance is given in real time on demand, enhancing the wearer's action performance, helping the wearer to complete the human intention action more stable, easier and more accurately.
In general, compared with industrial chain capital, cross-border capital not only participates in more complex and diverse types of subjects, (both Internet factories, insurance funds, real estate capital, clothing brands and other cross-border capital) Investment logic is also very different: Internet manufacturers pay attention to the continuation of their own genes, with their own advantages to build their own medical and health ecology; insurance funds and real estate capital and other cross-border capital prefer the development trend is better, the development prospects are broad "hard" track.
Top 3 on the hot tracks: pharmaceuticals, devices, CXO
According to the incomplete statistics of the arterial network, in 2021, industrial capital participated in a total of 288 investment and financing events in the medical and health field, including 91 in the pharmaceutical field (70 biopharmaceuticals, 19 chemical pharmaceuticals and 2 traditional Chinese medicines), 72 in the field of medical devices, 24 in the field of R&D and manufacturing outsourcing, 21 in the field of medical informatization, 18 in the field of medical imaging, 17 in the field of Internet + medical health, 17 in the field of medical robots, and 11 in the field of health care products and other fields 9 in the field of third-party medical service providers, 6 in the field of digital therapy, 1 in the field of commercial insurance, and 1 in the field of specialized hospitals and clinics.
2021 Industrial Capital Medical and Health Investment Subdivision Track Distribution Map, Arterial Network Mapping
It can be seen from the above data that in the investment and financing of the medical and health field of industrial capital in 2021, the pharmaceutical field, the medical device field and R&D and manufacturing outsourcing are the top three tracks favored by industrial capital.
After further refinement, what are the characteristics of industrial capital in investment and financing in the above three fields in 2021?
Let's start with the pharmaceutical sector.
According to the "2021 Global Biomedical Investment and Financing Report" released by Arterial New Pharmaceutical, the field of small molecule drugs and large molecule drugs has gradually entered a bottleneck period in 2021. The main driving force to ensure the growth of investment and financing in the biomedical field in 2021 comes from cutting-edge biotechnology tracks such as cell therapy, gene therapy, and nucleic acid drugs.
The report also pointed out that nucleic acid drugs represented by mRNA, cell therapy represented by TIL, TCR-T, iPSC, gene therapy represented by gene therapy, oncolytic virus, and macromolecular drugs represented by ADC are the hot tracks in the domestic biomedical field in 2021.
In 2021, will the investment and financing of industrial capital in the pharmaceutical field also show the same trend?
According to incomplete statistics, in 2021, industrial capital will have a total of 13 investment events in cell therapy, 7 investment events in small molecule drugs and gene therapy, 3 investment events in nucleic acid drugs, and 1 investment event in oncolytic viruses and ADCs.
The above data shows that compared with the overall number of investment and financing events in the pharmaceutical field, although the number of investment events of industrial capital in cutting-edge biotechnology tracks such as cell therapy, gene therapy, and nucleic acid drugs is small, it is clear that the trends in these pharmaceutical fields have been captured and have begun to invest in layout.
Moreover, the amount of investment of industrial capital in the aforementioned popular tracks in the pharmaceutical field should not be underestimated.
The reason is that in the highest financing in the pharmaceutical field, cell therapy, gene drugs, and nucleic acid drugs have appeared.
For example, Zhongshan Beson Medical Industry Invest participated in the Series C investment in Elp Regenerative Medicine, a research and development manufacturer of cell therapy products; Junshi Bio participated in the A round of investment in gene drug research and development enterprise Zhishan Weixin; and Sunshine Ronghui participated in the pre-A round of investment in mRNA innovative biomedical developer Qichensheng Biotech.
In addition to keenly capturing industry trends, what are the characteristics of industrial capital's investment activities in the pharmaceutical field?
According to the investment and financing data of industrial capital in the pharmaceutical field in 2021, the distribution of industrial capital's intervention rounds is as follows (a total of 61 financing events in the public financing round): 5 angel rounds, 1 seed round; 7 pre-A rounds; 19 A rounds (including A+ rounds); 13 B rounds (including B+ rounds), 9 C rounds, and 7 D rounds (including D+ rounds).
It can be seen from the above data that in the pharmaceutical field, industrial capital prefers to intervene when the project is in the early stages, and mainly focuses on A-round investment. This is also basically consistent with the distribution of investment and financing events in the entire biomedical industry.
Let's look at medical devices.
According to the 2021 industrial capital investment and financing data, IVD and consumer medical devices are the tracks of industrial capital preference.
Among them, there are 28 industrial capital investment events that occurred in the IVD track and 15 industrial capital investment events in the consumer medical device track, and the sum of the two has exceeded half of the total number of capital investment events (72) in the medical device industry in 2021. The number of investments in the remaining tracks is 8 pieces of cardiovascular consumables, and other consumables and equipment (including otolaryngology, orthopedics, neurointervention, surgery minimally invasive and other tracks) 21 pieces.
Moreover, it is worth noting that the main force of industrial capital investing in IVD is industrial chain capital, and the main force of industrial capital investing in consumer medical devices is cross-border capital.
The reason why the IVD track has attracted the attention of industrial capital is, on the one hand, the special attributes of the industry, disease diagnosis, health management can generate a large number of IVD product demand. Especially after the outbreak of the new crown epidemic, domestic IVD companies have not only gone out of the circle, but also out of the sea.
For example, according to previous relevant reports by Arterial Network, in the face of the epidemic, BGI Responded Quickly, not only developing a variety of kits and obtaining market access from multiple countries for the first time, but also rapidly improving its detection capabilities through the overall solution of "FireEye Laboratory", achieving good results of 2 times revenue and 7 times net profit in the first half of 2020, and achieving a successful reversal of profit fatigue.
Today, when the prevention and control of the new crown epidemic is normalized, IVD companies are also thinking about where the future lies. Mergers and acquisitions, cooperation, and moving toward overseas markets have become the breakthrough directions of most IVD companies.
Overseas investment to lay out the entire industrial chain is also one of the exploration directions of IVD head enterprises.
For example, in November 2021, Mingde Bio invested tens of millions of yuan in Nanjing Noyn Biologics, a molecular diagnostic company that had only been established for one year at the time.
What are the reasons for the investment? Arterial Network found the answer in an overseas investment announcement of Mingde Biologics.
Founded in 2020, Noin Biotech has independently developed a total solution for rapid detection of common pathogens and comprehensive detection of critical and severe infections around the two cutting-edge technology platforms of multiplex PCR and metagenomic sequencing (mNGS), and has a series of breakthrough technologies such as unique wall-breaking nucleic acid extraction technology, multiplex PCR primer design algorithm, and pg-level nucleic acid amplification technology, with excellent pathogen detection capabilities.
Through this investment, Mingde Bio can not only improve its in vitro diagnostic instrument and reagent product line, but also promote the rapid growth of Sinon biological product research and development, registration and pathogen detection business by using its own channels and resource advantages, and obtain multiple PCR and high-throughput sequencing molecular diagnostic technologies, thereby rapidly improving the market share of Mingde Bio in pathogenic microbial molecular diagnosis, accelerating its layout of pathogenic microbial detection products in the field of molecular diagnosis, and consolidating its position in the in vitro diagnostic market.
On the other hand, when the gathering comes, some people cry bitterness, and some people see it as an opportunity.
For example, the relevant media are optimistic about this, believing that the collection is to exchange the price for volume, the procurement cycle in Anhui Province is 2 years, and the winning enterprise will also get 80% of the previous year's consumption, which can drive the sales of the winning enterprise's products. Moreover, the article also pointed out that with the trend of IVD collection, more and more new technologies and new projects will be seen. In the future, more innovative IVD companies will be supported by industrial capital and venture capital.
Therefore, in addition to the reasons for the attributes of the industry, the opportunities contained in the IVD collection may also be one of the reasons why it is favored by industrial capital.
According to the incomplete statistics of the arterial network, in 2021, the popularity of medical beauty will remain unabated in the entire consumer medical investment circle. Moreover, this heat has been maintained to the industrial capital consumption medical circle.
In addition, it is worth noting that except for the investor of the pre-C round of invisible appliance developer Zhengli Technology, Aibo Qingshi (co-founded by Aibo Medical) and Aibo Medical, which are subordinate to the industrial chain capital, the rest of the investors in consumer devices are cross-border capital.
For example, one of the investors of the wearable device R&D manufacturer Shennapusi is Xiaomi Group; the investor of the oral health care brand Qingzhi Scientific Research is Yingke on the mobile live broadcast platform; the strategic investor of Zongshang Technology, a beauty instrument and equipment manufacturer, is Tencent; and the B+ round of CosBeauty, a home beauty instrument developer, is led by Xiaomi Group.
Finally, we set our sights on CXO.
Through combing, the arterial network found that in 2021, among the 24 CXO investment and financing of industrial capital, it was mainly concentrated in the CRO track, a total of 18 cases, CDMO followed, a total of 4 cases, and cSO a total of 2 cases.
In addition, in the investment activities of the CXO field of industrial capital in 2021, the intervention time is mainly in the early stage of the project.
Among the 17 investment activities that clearly announced the investment round, there were 3 angel rounds, 3 pre-A rounds, 6 A rounds, 2 A+ rounds, and 1 pre-B round, B round and D round.
In addition, it is worth noting that from the perspective of participating capital, industrial chain capital still accounts for the majority, with a total of 16 cases, and only 8 investment and financing cases involving cross-border capital, and most of them are well-funded Internet manufacturers such as ByteDance and Tencent, as well as insurance funds such as PICC Capital.
Why does CRO still maintain its enthusiasm in industrial capital investment and financing activities?
The reasons behind this are inseparable from the investment and financing environment and research and development environment of domestic biomedicine.
From the perspective of investment and financing environment, in April 2018, the Hong Kong Stock Exchange launched a listing system for unprofitable biotechnology companies (18A); in July 2019, the Sci-Tech Innovation Board opened, which also has a fifth set of standards applicable to products that have not yet been listed. As a result, Biotech has formed a complete capital closed loop for VC-PE-IPO.
Not only that, according to the relevant report of Changjiang Securities CRO, the investment and financing in the domestic primary market has been picking up for only three years. In 2018, the domestic biomedical field ushered in a peak of financing, although it fell back in 2019, but in 2020 and 2021, the domestic biomedical field financing is gradually picking up.
From the perspective of the R & D environment, according to the aforementioned report, with the reform of pharmaceutical companies gradually entering the deep water area, domestic pharmaceutical companies are constantly increasing innovation and research and development, and the number of domestic IND declarations and the number of newly opened clinics have increased significantly. From 2020 to 2021, the number of indd declarations for new drugs of class 1 in China has achieved a year-on-year increase of 65% and 61%, respectively, with a significant growth rate.
Therefore, in the primary market favor biomedical, domestic pharmaceutical companies focus on research and development trend is becoming more and more obvious, cro industry natural prosperity is still the same, containing unlimited opportunities, thereby attracting many industrial capital to invest.
Write at the end
Looking back at the investment activities of industrial capital in the field of medical and health care in 2021, it can be found that the participants of industrial capital have basically not changed, both the industrial chain capital that is itself a part of the industrial chain, and the cross-border capital from other industrial chains such as real estate and insurance.
As far as the investment logic is concerned, the investment logic of industrial chain capital is more direct - giving full play to its own advantages, integrating industrial resources, and improving the industrial layout; while the investment logic of cross-border capital is more diversified, mainly focusing on the "hard technology" track, but also showing a slight tendency of the "consumer medical" track.
From the perspective of popular tracks, pharmaceuticals, medical devices and CXO are the top three most favored by industrial capital in 2021. As with the overall investment and financing of medical health, the intervention time of industrial capital in the pharmaceutical field is mainly based on the A round; some industrial capital has also keenly captured the hot trends in the pharmaceutical fields such as cell therapy, gene therapy, and nucleic acid drugs, and has begun to make corresponding layouts; in the field of medical devices, IVD is the most favored by industrial capital, followed by consumer devices. Moreover, from the perspective of industrial capital medical device investment in 2021, IVD is the main battlefield of industrial chain capital, and consumer devices are the main battlefield of cross-border capital, especially millet; and in the CXO field, the most favored is CRO, and the main participant is mainly industrial chain capital. Even if there is cross-border capital participation, it is mostly a well-funded Internet manufacturer or insurance fund.
Looking back at the past, knowing how the present and the future will develop, please wait and see.
*Cover image source: 123rf