The pharmaceutical industry enjoys a USD 1 trillion market in the world, where international pharmaceutical giants like Pfizer, J & J, and AstraZeneca were born. Upon the historical precipitation and strong capital strength, not only do giants produce drugs, they also constantly develop first-in-class drugs, to contribute much to conquering difficult and complicated diseases of humans and also obtain considerable economic returns.
There are also many pharmaceutical enterprises that pay attention to new drug R&D on China’s pharmaceutical market, however, for a long time, most Chinese pharmaceutical enterprises have been based on producing generic drugs, with low consciousness of R&D and weak innovation capacity. Now, all this is undergoing subtle and rapid changes as Chinese pharmaceutical enterprises transform from "generic drug strategy" to "innovative drug strategy", plus the series of preferential policies introduced by China.
There have been policies relating to pharmaceutical R&D intensively issued by many national departments of China including the State Council, National Health and Family Planning Commission (NHFPC), China Food and Drug Administration (CFDA), and National Development and Reform Commission (NDRC), etc. since 2015, mainly reflected in five aspects: clinical trial data checking, Marketing Authorization Holder system, acceleration of review and approval of innovative drugs, encouragement of quality innovative pharmaceutical products to be synonymous with international standards, and supporting policies that improve quality and promote innovation. This series of preferential policies to the innovative drugs has finally enabled China to enter the golden age of pharmaceutical R&D innovation.
Especially this year is even called the year starting the climax of Chinese innovative drug companies entering the capital market. The news that WuXi AppTec Co., Ltd. planned to be listed on Shanghai Stock Exchange to raise fund of about RMB 5.741 billion has drawn attention. Its high PE ratio is much envied by the industry.
Next on March 30, the General Office of the State Council of China forwarded the Several Opinions of China Securities Regulatory Commission on Undertaking Trials for Innovative Enterprises Issuing Shares or Depository Receipts Domestically (hereinafter referred to as the Opinions), meaning that the program of "innovative enterprise listing" program of China Securities Regulatory Commission (CSRC) is approved. In order to encourage innovation, China has started to modify IPO measures and break the profitability threshold, with the first pilot enterprises required to meet China’s national strategy, master core technology, and have high market recognition. Bio-medicine industry is listed therein, and others include high-tech industries and strategic emerging industries like internet, big data, cloud computing, AI, software and IC, and high-end equipment manufacturing.
The above good news has driven the capital to start to lay out the innovative pharmaceutical field, and seize high ground of bio-medicine innovation. China is at the early stage of transforming from generic drugs to innovative drugs, without many biotech enterprises, but they are gradually emerging, and "unicorns" will also successively sprout out.
To size the high ground of bio-medicine innovation of Shanghai
As the former managing director of the Research Department of China International Capital Corporation Limited (CICC), Qiang Jing was called the "brain" of the pharmaceutical team of CICC, and he led the team to visit almost all listed pharmaceutical companies of China in the past eight years, release research reports one after another, and help numerous investment institutions seize the investment trends of the pharmaceuticals industry to earn high returns.
Qiang Jing felt it was time to switch the "track" after sensing the flourishing of the new pharmaceutical enterprises. Qiang Jing left CICC after careful thought, to enter the investment fund—Apricot Capital that concentrates on the innovative bio-medicine field to start the bio-medicine equity investment business. This company is in Shanghai where there are clear geographic advantages.
"Shanghai will usher in a new wave of innovative development after the new administration takes office. In particular, when w...
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