First, the main points
In 2020, the number and amount of financing events and amounts stimulated by the new crown epidemic soared, up 168% month-on-month; in 2021, the overall financing in the global IVD field slowed down, and the global average financing amount decreased; two years since the outbreak of the new crown epidemic, the financing related to it has decreased significantly, and the focus of capital is mainly on projects with high technical barriers or can open up emerging application scenarios, such as large-scale financing mainly concentrated in tumor early screening and genetic testing enterprises;
Molecular diagnostics is still the hottest track in the field of IVD, and companies in the early stage of financing were mainly established around 2015, and most of them focused on genetic testing related products, such as nanoporous gene sequencer developer Puyi Biology, cancer genetic testing product developer Ankai Life, etc.;
Investment institutions actively layout the IVD field, in 2021, more than 100 investment institutions "cast a wide net" to the field many times, the round of financing preference A round;
In 2021, the FDA repeatedly approved the emergency use authorization of over-the-counter new crown home test products, and at the same time, 10 new crown antigen testing products in China landed in early 2022, and issued a number of policies to completely open home new crown testing, and market enthusiasm was ignited instantly;
In more subdivided fields, Hillhouse Ventures, Eli Lilly Asia Fund, Legend Capital and other leading institutions have already laid out molecular POCT tracks; at present, 18 models of molecular POCT equipment have been certified in China and many products are under research.
2. Overview of Global &China IVD Financing in 2015-2021
IVD - Industry Overview
In vitro diagnosis refers to products and services that obtain clinical diagnostic information by detecting tissues and secretions such as blood and secretions of the human body outside the human body. The in vitro diagnostic industry has become one of the fastest growing and largest market segments in the global medical field.
According to Frost & Sullivan data, the global in vitro diagnostics market grew from $48.4 billion in 2015 to $60.2 billion in 2019. By 2024, the global in vitro diagnostics industry market size is expected to reach $84 billion, with an average annual compound growth rate of 6.9% from 2019 to 2024.
This report analyzes molecular diagnostics, biochemical diagnostics, immunodiagnostics, POCT, microbiological diagnostics, and hematological diagnostics. The company classification mainly refers to the main products or technologies promoted by the official website.
Global IVD Corporate Finance Trends 2015-2021
From a global perspective, the overall investment and financing in the IVD field showed an upward trend, due to the super event of B round financing of B.U. $1 billion completed by B-TC in 2020, coupled with the promotion of the new crown epidemic, the number and amount of financing events in that year soared;
In 2021, the overall financing in the IVD field slowed down, although the number of events rose slightly, but the total amount of financing fell by 13% month-on-month, specifically, the number of financing events in 2021 of tens of millions of dollars and below has increased, and the amount of financing over 100 million US dollars has declined significantly, the average financing amount is mainly concentrated in around 136 million US dollars, and the 2021 financing TOP1 has only completed 300 million US dollars of financing in 2015 to 2021 ranked ninth in all financing. It has been two years since the outbreak of the new crown epidemic, and the financing related to it has decreased significantly, while the focus of capital is mainly on projects with high technical barriers or new application scenarios, such as large-scale financing mainly concentrated in early tumor screening and genetic testing enterprises, indicating that the market's attitude towards the IVD field has gradually shifted from fanaticism to rationality.
Statistics of the current transaction rounds of the global IVD field investment and financing subdivision track
Molecular diagnostics remains the hottest track in the IVD space, covering the most talked about technology in the IVD field – gene sequencing and PCR. Companies on the track are primarily in early stage funding (Series A and before) or IPOs.
From the perspective of establishment time, the peak of the establishment of these molecular diagnostic enterprises in early financing is concentrated in 2011-2012 and 2015-2018, it is worth mentioning: Bailige Biologics, the core raw material supplier of in vitro diagnostics and nucleic acid drugs established in 2011, completed a round of financing of 300 million yuan in October 2021 to further deepen the key raw materials field upstream of IVD; Nuohe Xinkang, a genetic testing service provider under Nuohe Zhiyuan, was established in 2016. By the end of 2021, three rounds of financing have been completed, with a total financing of about US$55.27 million.
Generally speaking, most of the enterprises in the early stage of financing are doing genetic testing related products, such as nanoporous gene sequencer developer Puyi Biology, cancer genetic testing product developer Angkai Life and so on.
2021 IVD Capital Trends (1):
More than a thousand institutions are competing for layout, and more than 100 institutions have repeatedly added injections within a year
Although the growth rate of investment and financing in the entire IVD field will slow down in 2021, the heat of investment institutions in this field will not decrease.
According to the statistics of the Artery Orange Industry Think Tank, as of December 31, 2021, a total of 1995 investment institutions have laid out the IVD field, and 548 investment institutions have sold in 2021.
At the same time, in 2021, more than 100 investment institutions have repeatedly sold the field. Unlike in the past, these institutions seem to rarely like a company or a track, all of which are "casting a wide net" investment, which can also be found that they invest in more rounds in the A round.
For example, Qiming Venture Capital has made at least 30 shots in the field of IVD, and the rounds are mostly concentrated in A and B rounds, involving enterprises including nucleic acid on-site real-time detection technology and product developer VivoTek, gene sequencing service providers and Rui Gene, cancer early screening provider Nuohui Health, etc.
IvD Capital Trends 2021 (2):
The IPO boom in the IVD field has not decreased, and 30 companies around the world will complete THEIR IPOs in 2021
According to the statistics of the Artery Orange Industry Think Tank, in 2021, a total of 30 IVD companies around the world will complete IPOs, of which 12 will be listed in the United States, 13 in A-shares and 3 in Hong Kong stocks, and two on the Canadian and London stock exchanges respectively.
In addition, many companies submitted prospectuses in the second half of 2021: Main Gene, a genetic testing service provider under Meinian Health, submitted an IPO application for listing in Hong Kong on August 17, 2021; PCR testing system and reagent developers also submitted listing applications to the main board of the Hong Kong Stock Exchange on June 11, 2021; in addition, Zhonghan Shengtai and Innot, which are expected to land on the Science and Technology Innovation Board.
At the same time, in the case of the repeated emergence of various "China's tumor early screening first shares" and "the first shares of gene sequencing on the Hong Kong Stock Exchange" in the field of IVD in 2021, it is expected that this wave of listing boom will continue in 2022.
3. 2015-2021 IVD hot tracks & major events
Hot Topics in the IVD Field (1):
10 new crown antigen detection products landed, and more product applications are in the early stages
Home testing means that users do not have to go to medical institutions, do not need to travel long distances and queue up for a long time to wait for doctors to take samples and tests, but complete the whole process of sampling, testing, and result acquisition at home, or complete the sampling link at home, and then send the samples to the inspection agency to view the test results remotely.
From the product point of view, the entire new crown home testing track is still in the early stage, in November 2020, the FDA approved Lucira Health's first new crown molecular diagnostic kit that can be carried out at home, until 2021, there are 14 over-the-counter new crown home self-test products (including 3 molecular testing products and 11 antigen detection products); and the domestic new crown antigen detection kit has only been approved in March 2022.
The domestic policy opening hours are late, in 2022 to completely open the home new crown testing, the official website of the National Health commission issued the "Notice on Printing and Distributing the Application Plan for The Detection of New Coronavirus Antigens (Trial)" on March 11, 2022, and the supporting "Basic Operating Procedures for New Coronavirus Antigen Detection in Primary Medical and Health Institutions" and "Basic Requirements and Procedures for Self-testing of New Coronavirus Antigens". It is noted that antigen detection is added to the addition of nucleic acid detection as a supplement. Community residents who have self-testing needs can purchase antigen detection reagents for self-testing through retail pharmacies, online sales platforms and other channels. This means that the rapid test of the new crown antigen, which has swept the world, will be officially allowed to be put into use in China and provide a key basis for home testing.
Hot Topics in the IVD Field (2):
18 domestic equipment to get the certificate, molecular POCT track in full swing
POCT is usually a new type of method for immediate analysis on the sampling site to quickly obtain test results; molecular diagnosis refers to the use of molecular biology methods to detect changes in the structure or expression level of genetic material in patients to make a diagnosis. Molecular POCT is a collection of the characteristics of these two types of technology, through the simple operation of integrated instruments placed in the front line, can effectively solve the problem of disease diagnosis, to achieve miniaturization, convenience, integration, closed, rapid characteristics, the real sense of "sample in, the result out".
According to the "Molecular POCT Equipment Directory (2021 Edition)" compiled by the IVD practitioner network, there are 18 models of equipment in China, including fluorescence PCR, cross primer constant temperature amplification technology, microfluidic chip, etc.; there are also many products under research, such as the handheld THERMAL instrument CarriOn of the Zhongke Sheng Instrument and the InCycle of Shanghai Keeling.
From the perspective of financing, Hillhouse Ventures, Eli Lilly Asia Fund, Legend Capital and other leading star institutions have long laid out the molecular POCT track; in particular, Legend Capital, as early as June 2010, injected the first domestic molecular POCT enterprise with reagents and instruments.
Inventory of major events in the global IVD field in 2021
An overview of the global value companies in the IVD space
The data comes from the Arterial Orange Database. Analyst: Aijie Li
*End of text