Wen 丨 Joy
Source 丨Tou China Network
The most well-known lung disease is lung cancer.
According to statistics, the incidence and mortality rate of lung cancer rank first in the world for malignant tumors. More than 1 million new cases of lung cancer are added to China each year, of which 75% of patients are already advanced at the time of confirmation.
How to detect lung diseases as early as possible, the sooner you can diagnose and treat them. Lung involvement, therefore, is called by many as the new blue ocean in the medical track – a cake that neither large companies nor investors can ignore.
Just now, the first lung intervention concept stock in Hong Kong stocks, Kunbo Medical, successfully IPO.
It was learned that the IPO price of Kunbo Medical is HK$18.70, and it is expected to sell 89.355 million shares, and the net proceeds from the global offering are estimated to be about HK$1.552 billion; the funds raised will be mainly used for the research and development and commercialization of the company's core products.
As of this writing, Kunbo Medical's share price is HK$15.82 per share, and its market capitalization is HK$8.315 billion.
<h1 class="pgc-h-arrow-right" data-track="17" > the world's first, with a market share of 43.2%.</h1>
According to the prospectus, Kunbo was established in 2012, is a high-tech enterprise focusing on the research and development and production of lung disease diagnosis and treatment technology, the company mainly develops, produces and sells lung cancer, COPD and other lung diseases based on the augmented reality full lung navigation technology platform for accurate and minimally invasive interventional diagnosis and treatment products for lung cancer, COPD and other lung diseases.
It is worth mentioning that Kunbo Medical has the world's only real-time image fusion full lung navigation technology, and its core transpulmonary parenchymal puncture navigation technology has a 25-year patent protection period, which means that in the next 20 years, Kunbo has a technical advantage in navigation and lung intervention.
It is understood that its first-generation navigation device LungPoint and second-generation navigation device LungPro have both obtained marketing authorization from the US FDA, The European CE and the Chinese CFDA.
In 2018-2020, Kunbo ranked first in the Chinese interventional respiratory navigation equipment market by sales volume, with a market share of 43.2%; if calculated by sales revenue, it ranked second, with a market share of 37.5%.
2016 was a milestone for the company, the year the company acquired Uptake Medical Inc. in the United States. Uptake's InterVapor Hot Steam Energy Generation System is used to treat chronic obstructive pulmonary disease (COPD), the second deadliest disease of the respiratory system, and is the world's first and only hot steam energy ablation system for the treatment of lung diseases such as chronic obstructive pulmonary disease and lung cancer.
This has therefore become one of Kunbo's core products.
But like many medtech companies, Kunbo has yet to make a profit and is still in the red.
According to the prospectus, the revenue of Kunbo Medical in 2019 and 2020 was US$8.07 million and US$3.26 million, respectively, the loss was US$32.55 million and US$48.79 million, respectively, and the adjusted net loss for the year was US$17.51 million and US$19.06 million, respectively.
As for the loss, Kunbo revealed the reason in the prospectus: after the company completed the Series A financing in 2018, it obtained sufficient funds to commercialize.
At present, Kunbo Medical has both R&D centers in China and the United States, with R&D personnel of 50+ and more than 200 patents applied and authorized worldwide.
<h1 class="pgc-h-arrow-right" data-track="77" > 4 rounds of financing in 9 years, and Qiming Venture Capital is the largest shareholder</h1>
Kunbo Medical can be said to be a veritable star company.
According to the prospectus, Kunbo has completed 4 rounds of financing, including many large institutional investors focusing on the healthcare industry, such as Qiming Venture Capital, Dino Capital, Qingchi Capital, Baidu Capital and Fangyuan Capital FountainVest, as well as strategic investors such as Intuitive Surgical.
According to the prospectus, before the IPO, Qiming Venture Capital held 21.2%, the largest institutional shareholder; Broncus Biomedical held 11.39%, Denuo Medical held 8.62%, Fangyuan Capital held 5.53%, Qingchi Capital held 4.88%, and Baidu held 2.44% through BC Mars.
The controlling shareholder of Kunbo Medical is Zi Zhenjun, who holds 29.86% of the shares through BBL and Denuo Medical. In addition to serving as a director of the company, Zi Zhenjun is also a member of Qiming Medical (02500. HK) founder, general manager, and LifeTech (01302. HK) co-founder and director.
Investment Network learned that Kunbo Medical was the first fund invested by Qiming Venture Capital in 2014.
Liang Zhenyu, the managing partner of Qiming Venture Capital, told The Investment Network that lung diseases affect a huge patient population, but the diagnosis and treatment of lung diseases, especially the diagnosis and treatment of interventional ones, is seriously delayed. With the increasing global attention to lung health, terms such as small lung nodules, lung cancer, and emphysema are increasingly appearing in the public eye.
In addition, Kunbo Medical attaches great importance to the combination of medical and industrial work - using its own engineering strength to assist doctors to transform good ideas and good ideas into medical device products, which has also become one of the important reasons for attracting investment from Qiming Venture Capital.
In addition to KaiMing Ventures, Qiming's secondary market investment institution, Springhill Fund, participated as a cornerstone investor in the cornerstone investment of Kunbo Medical.
Among them, in the latest round of financing of Kunbo Medical in January 2021, Fangyuan Capital served as the lead investment institution and became one of the major investors.
Li Zhen, a partner at Fangyuan Capital, said that Kunbo Medical is a representative Chinese medical device company with international cutting-edge original technology and is a forward-looking industry leader.
Li Zhen believes that for China, where lung cancer is high, Kunbo Medical's lung interventional technology can not only reduce the difficulty of treatment and prolong the survival of patients, but also reduce the expenditure of medical insurance. More importantly, Kunbo Medical's technology also has the world's first patent, which has the potential of "Chinese innovation" to drive "global innovation".
Kunbo Medical's IPO is only a microcosm of interventional respiratory, and it is still a blue ocean in China and even the world.
But lung cancer has the world's largest cancer patient population, with the number of lung cancer patients worldwide growing from 2 million in 2016 to 2.2 million in 2020, with a compound annual growth rate of 2.7%.
Due to unhealthy lifestyles, smog, air pollution and smoking habits, data show that the number of lung cancer cases in China is expected to reach 1.2439 million by 2030. According to statistics, the size of the lung intervention market is about 200 billion yuan.
These figures mean that there is a very high demand for pulmonary interventions, and even the market for respiratory interventions. At present, the commercialization of Kunbo Medical is still in its early stages, and it is worth waiting and seeing how the future development will be.