Analysis of the characteristics and trends of China's biomedical investment and financing market in 2022

Recently, the 9th International Biopharmacology Conference was held

He Wei, Vice President of Flint Creation, made an in-depth sharing

Financing overview and characteristic analysis from January to August

From January to August 2022, a total of 1,026 financing events occurred in the national biomedical industry, with a cumulative amount of 89.

Figure 1: Financing in China's biomedical field from January to August 2022 Source: Flint Creation Industry Data Center

Shanghai, Guangdong, Beijing, Jiangsu and Zhejiang provinces and cities accounted for 83% of the annual financing events and 87.

Figure 2: Financing events and amounts in the biomedical sector from January to August 2022 Source: Flint Creation Industry Data Center

From the perspective of financing stage, most of the financing events from January to August were concentrated in the B round and subsequent rounds, and a total of 529 projects were invested

Flint Creation believes that the financing of China's biomedical industry presents the following characteristics:

1.

2.

3.

4.

Table 1: Biomedical IPO Breakdown from January to August 2022 (Partial)

Source: Flint Creates Industrial Data Center

Investment market performance and trend analysis

From the investment side, from January to August 2022, 319 investment institutions participated in at least 10 investments

From the perspective of the number of cities covered by institutional investment projects, the number of biomedical enterprises invested, the amount of investment in biomedical enterprises, and the number of unicorns captured, Sequoia Capital, Qiming Venture Capital, Hillhouse Capital, Yuansheng Venture Capital and Legend Capital ranked among the top 5 investment institutions in terms of investment capacity; Fosun Pharma, Tigermed, Sinopharm Group and other pharmaceutical companies began to participate in venture capital, mainly investing in the middle reaches of the medical industry chain, accelerating the development of start-ups by exporting the supporting elements of

Table 2: Top 20 investment capacity of biomedical investment institutions from January to August 2022

Source: Flint Creates Industrial Data Center

From the perspective of investment coverage cities, Sequoia Capital, CICC Capital, Yuansheng Venture Capital, Legend Capital, Shenzhen Venture Capital Investment in biomedical projects cover the number of cities in the forefront, of which Shanghai, Beijing, Shenzhen, Hangzhou and Suzhou are the popular layout cities

Combined with the performance of the investment market from January to August, the investment in the biomedical industry also shows four major characteristics and trends:

1.
The "North, Shanghai, Guangzhou, and Shenzhen" investment institutions are the most active

The number of investment institutions in Beijing, Shanghai, Guangdong, Zhejiang and Jiangsu ranked among the top five, of which the number of investment institutions in Guangdong, Shanghai and Beijing exceeded 350, and most of the venture capital enterprises in Guangdong were concentrated in Shenzhen
.

2.
Diversified entities continue to enter the game, and government funds have ushered in a big outbreak

Under the background of the state encouraging early, small, and scientific and technological investment, governments at all levels have accelerated the pace
of construction of investment guidance funds.
The government guidance fund is mainly based on the prefectural and district level funds, and the distribution shows the characteristics of
"sinking".

3.
Pharmaceutical companies and capital have joined hands to become a new highlight to build a biomedical ecosystem

Pharmaceutical giants such as WuXi AppTec, Tigermed, and Prudential Medical have increased their biomedical investment, and have opened in-depth cooperation with various types of capital, gradually becoming the "mainstay" of the investment market; Suzhou, Hangzhou, Shenzhen and other major domestic biomedical industry clusters of pharmaceutical leading enterprises have a high
degree of activity.

4.
IPO has become the main theme, and the exit path has entered a diversified development stage

At present, the exit method of the biomedical industry is still dominated by IPO listing and mergers and acquisitions
.
In 2021, the reform of the registration system continued to advance and the opening of the Beijing Stock Exchange, and the number of IPOs and listings in that year ushered in an outbreak
.
Compared with 2021, the number of IPO listed companies this year fell by 35.
8%.

With the frequent outbreak of IPOs of pharmaceutical companies, the pharmaceutical industry ushered in valuation adjustments, and future mergers and acquisitions and exits may usher in improvements, Beijing and Shanghai have successively approved regional equity markets to carry out private equity and venture capital share transfer pilots, and S Fund (Secondary Fund) will also become a new exit path
for domestic equity investment.

Trend analysis

In 2022, affected by the uncertainty of the capital market for the expected value of biomedical enterprises, the growth rate of investment and financing of biopharmaceutical enterprises has slowed down and become more cautious than in the past few years, the popularity of biopharmaceutical IPOs has cooled down, and the market has become more rational, but the market size has maintained steady growth
.
At present, the investment and financing market of the biomedical industry will show the following trends:

1.
Policy guidance continues to increase, and the in-depth practice of early, small, and hard science and technology is practiced

2.
Biotechnology such as innovative pharmaceutical equipment and synthetic biology will become the main battlefield for capital to compete for deer

3.
The Matthew effect of the venture capital market is prominent, and innovative high-quality projects have attracted much attention

4.
The dual advantages of industrial scenarios and industrial resources are superimposed, and industrial capital is sprung up

As a form of financial elements, investment and financing is undoubtedly an accelerator
to promote the high-quality innovation and development of the biomedical industry.
It is believed that with the blessing of the capital market, a number of internationally competitive Chinese biomedical innovation enterprises will emerge and contribute to the innovation and development of China's biomedical industry
.
The creation of flint will focus on the high-quality development of the industry, carry the flint industry brain, and realize the efficient collaboration
between all elements of the policy, space, finance, energy, science and technology, talent, supply chain, sales and other industries and enterprises based on data intelligence.