21 Industry Investment And Financing Research: Medicine, Health, Medicine, Investment And Financing Occupy Half Of The Industry, The Six Major Trends In The Industry Deserve Attention.

As an evergreen tree in the venture capital industry, the medical and health field is one of the main tracks for venture capital firms to invest heavily in layout.

In recent years, due to the aging of the population, the improvement of residents' health consumption consciousness and the release of industry policy dividend, medical and health fields are attracting more and more venture capital organizations' attention. Especially in the background of the outbreak of the new crown pneumonia this year, the enterprises in the one or two tier market, such as innovative drugs, diagnosis, vaccine research and development, have received a lot of capital investment and support.

Recently, our reporter interviewed the front-line investors in the field of health care through the statistical analysis of the data from the third party organizations, and decode the status quo and the future trend of the investment and financing in the field of medicine and health in the past year.

Decoding of investment and financing data

Reporters combed CVSource data, found that in June 2019 of May -2020 in the past year, there were 1333 investment and financing events in the field of medicine and health. Among them, the pharmaceutical industry has 600, accounting for 45%. Secondly, 301 investment and financing events occurred in the field of medical devices, accounting for 22.58%. 203 investment and financing events occurred in the field of medical services, accounting for 15.23%. In addition, there are also some financing events in the fields of medical technology, medical informatization and so on.

In the medical field, nearly half of the medical and health industry is occupied. In this case, in January 2nd this year, Changfeng pharmaceutical announced the completion of the E round of 630 million yuan financing, led by the joint venture capital, Huarun Life CR-CP, Jun Xin capital, Yuan Chuang investment, cornerstone capital, Xiangcheng gold control and Lang Ma Feng investment.

In the field of medical devices, the most striking thing is that in May 28th of this year, China Dazhi created a $1 billion B round of financing from IDG capital, setting a record of the largest financing amount in the field of Chinese gene sequencing. In the field of medical services, stomatological hospitals, eye hospitals, maternal and child hospitals and other special fields continue to be favored by capital. Such as sead sunshine oral completed in January this year, the A rounds of hundreds of millions of RMB financing, from Qiming venture capital, sunshine joint venture capital investment.

From the point of view of investment institutions, the reporter sort out the data of Qing Ke research center, found that Sequoia Capital, IDG capital, Jun Lian capital, Shenzhen Venture Capital and other comprehensive institutions continue to exert their strength in the field of medical health, and the number of investment projects has reached about 10. In particular, Jun Lian capital has reached 14 projects. Honghui capital, high tech investment and other long-term focus on medical and health professional institutions, also maintain a certain investment pace.

Trend analysis of pharmaceutical health industry

Based on the above statistics and interviews with front-line investors, the reporters concluded that there are six trends in the pharmaceutical health industry.

Trend 1: epidemic catalyzed normalization of palmtop care

After the outbreak of the new crown pneumonia, internet medical products and services such as online enquiry, drug seeking and health education have entered the lives of ordinary people. All along, internet medical treatment has been slow down by policy regulation and health care system. The new crown pneumonia epidemic has undoubtedly stimulated the development opportunities of the Internet healthcare industry.

QuestMobile data show that during the Spring Festival of 2020, JINGDING fast drug, health online pharmacies, Ding Xiang Yuan, and drug aides ushered in a substantial growth. In view of this, the new crown pneumonia epidemic has disrupted people's lives and boosted market education and user habits of internet medical companies.

In the longer term, user acceptance of Internet healthcare, smart health care, community health care, door-to-door testing and other medical services is accelerating. From the perspective of representative investment and financing transactions, in March of this year, the first batch of mobile internet medical enterprises in China started to hire new Sogou companies as shareholders, and the latter held a 6.39% stake in spring rain doctors.

Trend two: "healthcare + technology" brings about a new model.

Investment in the medical sector will also be increased by the government and the private sector. In addition to widely discussed racetracks such as vaccines, innovative drugs, medical devices and medical services, the combination of medical technology and technology is bringing more innovations, corresponding to the possible attention of PE/VC capital to new models and products.

The combination of medical technology and technology is not new. The process of medical informatization in China can be traced back to the 80s of last century. PE/VC's intensive attention to "healthcare + technology" started in 2010, and showed different business models along with the application of different new technologies: for example, since 2010, entrepreneurs have combined Internet technology with the medical field, bringing about innovative medical service forms such as light inquiring and Internet hospitals. After 2016, AI technology application brings medical imaging and disease to medical field. Forecast and other subdivision tracks.

Currently attracting capital attention in addition to the above "medical + technology" products and services, and the application of Internet of things technology in the medical field brings new possibilities. For investors, the industrial foundation of China's consumer electronics industry will enable start-ups to have global competitiveness in the design and manufacture of healthy electronic products.

Trend three: research and development of antiviral drugs in the field of Medicine

In the past, the domestic clinical application of innovative drugs was mainly concentrated in the field of anti-cancer, and the innovation of antiviral drugs was relatively small. The outbreak of the new crown pneumonia has made the industry re-examine the important hazards of pathogenic microorganisms and the important role of infectious disease prevention and control. Many pharmaceutical companies began to invest more in the development of antiviral drugs, and investment institutions also pay more attention in this field.

Trend four: domestic replacement in the field of medical devices has become the main line of continuous investment.

In the field of medical devices, China has only 1:0.35 compared to the global 1:0.7, and there will be huge room for growth in the future. The substitution of domestic products for imported products has been the mainstream direction in the field of medical devices. We also see that the rate of localization of medical devices has reached 70%-80% in subdivision products such as heart support. However, there are still a lot of subdivision areas with low localization rate. Under 50% or even less than 10%, imported products still occupy most of the market share. Therefore, domestic substitution is still the main line of investment for a period of time.

Trend five: IPO accelerates start-ups

The Hongkong biotech sector and the science and technology board provide excellent financing channels for non profit biotechnology companies. A medical and medical start-up can succeed in IPO in just 3 years after its establishment, which was unthinkable two years ago. But now it has become the norm. The acceleration of the listing of start-ups will also drive more scientists to start businesses and form a virtuous circle in the industry.

Trend six: PE/VC investment "out of the loop" to participate in the IPO subscription of new shares

From the perspective of capital market, we have seen a number of PE/VC agencies participating in IPO subscription and private placement since 2019. Unlike in the past, investors in such transactions are not only the institutions that span one or two tier market businesses, but also the investment institutions who have long focused on the early stage and growth stage of the primary market.

From the analysis of the driving force of applying for IPO listing, medical and health enterprises open to the open capital market in addition to the completion of new capital financing, as well as the consideration of product brand and industry status. Some investors say that Chinese companies have always been faced with the choice of first developing or going public.

Judging from past cases, many companies choose to go public first and then develop. There is also a move for PE/VC institutions to continue their holdings in the process of listing. For investment institutions, participation in IPO new subscriptions can not only achieve diversified investments, but also share the growth dividends of listed companies through more configurations.