August 2022 China medical and health field investment and financing report: cell therapy, medical robots, disease early screening is the hottest, early investment into a small trend

According to the statistics of the Pharmaceutical Cube InvestGO database, as of August 2022, the investment and financing trend in the primary market has slowed down compared with last year, and the overall trend is more active
than that in the secondary market.

The number of primary market financing events far exceeds IPOs and refinancings, and the total amount of financing in the primary market is the highest
.

The reasons for the "desertion" of investment and financing in 2022 compared with last year include:

After the reform of China's pharmaceutical policy in 2015, the overvaluation of the medical and health field formed a bubble, and the phenomenon of repeated innovation of domestic enterprises was obvious;

In March 2020, the global COVID-19 epidemic began to break out, causing economic turmoil and bringing instability to capital markets;

The macroeconomic downturn and the cost of medical insurance control have raised concerns about the purchasing power of innovative biomedical products in the future;

The chaotic international situation and the tightening of the supervision of Chinese companies by US stocks have delayed or blocked the listing of
enterprises in the United States.

However, this year's decline in investment and financing enthusiasm and the return of corporate valuations have had an impact on investors and entrepreneurs, but they also provide an opportunity
for the capital market to make a big wave and learn from the truth.

Source: InvestGO database, Wind

Affected by the international situation, more investors are biased towards investment targets in the future domestic listing path
.
With the introduction of the 14th Five-Year Plan, national policies will further guide biomedical enterprises to list in China, and the tide of going to Hong Kong and going to the United States has become a thing of the past
.
The Science and Technology Innovation Board has become the first choice for
listing many high-quality biomedical enterprises.
The Shanghai Stock Exchange issued a new policy allowing medical device companies to list on
the Star Market in accordance with the fifth set of standards.

Primary market: innovative drugs, medical devices, corporate services lead

Investment and financing events in the primary market showed a decreasing trend
compared with last year.
As of the end of August 2022, many places across the country have been repeatedly affected by the new crown epidemic, and the number and amount of investment and financing events in the primary market have shown an overall downward trend, but the average single amount has increased
slightly.
From January to August, there were a total of 1117 investment and financing events, a year-on-year decrease of 28%; The amount of investment and financing reached 101.
2 billion yuan, a decrease of 38% year-on-year; The average single amount reached 91 million yuan, a decrease of 13.
3%
year-on-year.

Source: InvestGO database

In 2022, the investment and financing trend of each track fell to the lowest level in May, and then gradually rebounded, and the top three investment and financing events were innovative drugs (277 cases), medical devices (264 cases) and corporate services (158 cases
).
From the perspective of the disclosed investment and financing amount, the top three are innovative drugs (41.
7 billion yuan), medical devices (19.
8 billion yuan) and corporate services (19 billion yuan
).
In terms of average single amount, innovative drugs (150 million yuan), medical devices (0.
75 billion yuan), medical services (0.
67 billion yuan) and artificial intelligence (126 million yuan) all decreased year-on-year, while IVD (0.
81 billion yuan) and enterprise services (120 million yuan) increased by 12% and 39%
year-on-year.
Among them, more than 70% of the enterprise service investment and financing events in 2022 are CROs and CDMOs, and the amount of CRO and CDMO event disclosures exceeds 15 billion yuan
.

Data source: InvestGO database Remarks: Enterprise services refer to enterprises as service subjects to provide services to customers, including: CRO, CDMO, CMO, consulting services, marketing services, etc

The trend of investment institutions "investing early and investing small" is obvious
.
Since 2021, the number of early round events has accounted for more than 50%, and the Pre-A round ~ A+ round in January-August 2022 accounted for 28%, showing an upward trend
compared with last year.
In the context of not being optimistic, high-tech projects with high technical barriers will go up against the current in the capital winter, and early projects with scientific and technological innovation and scientific research transformation will receive priority attention from capital
.

Source: InvestGO database, Note: Early rounds refer to seed rounds/angel rounds, Pre-A rounds ~ A+ rounds
.

From January to August 2022, the number of Pre-A round ~ A+ round events, the top three are innovative drugs (93 cases), medical devices (87 cases) and enterprise services (54 cases), and the three plus account for 67%.

In the Pre-A round ~ A+ round in 2022, innovative drugs increased by 11% year-on-year, medical devices decreased by 8% year-on-year, and enterprise services decreased by 26%
year-on-year.

Jiangsu ranked first in the number of investment and financing events, and Shanghai ranked first
in terms of investment and financing amount.
In terms of the number of investment and financing, Jiangsu (238 cases), Shanghai (198 cases) and Beijing (174 cases) led the way, accounting for 55%
of the total.
In terms of investment and financing amount, Shanghai (25.
1 billion yuan), Jiangsu (21.
8 billion yuan) and Beijing (14.
1 billion yuan) are in the top three, accounting for 60%
of the total amount.
In general, investment and financing events are concentrated in Jiangsu, Zhejiang, Shanghai, and Beijing, Guangzhou, and Shenzhen, and the gap with other regions is obvious
.

Secondary market

From January to August 2022, the number of IPOs and the amount of funds raised in China's healthcare sector showed a downward trend
compared with last year.
The number of IPO events was led by innovative drugs (12 cases) and medical devices (10 cases), of which the number of IPOs of innovative drugs, medical devices and IVD accounted for 58%.

Since June this year, the number and amount of IPOs have begun to rebound
.

Source: InvestGO database, Wind, statistics as of August 31, 2022

In the first eight months of this year, there were 45 IPOs in China's healthcare sector, with 83%
of companies with a market capitalization of less than 10 billion.
There are 8 companies with a market value of more than 10 billion yuan, of which the market value of Lianying Medical reached 141.
8 billion yuan, and due to its listing, the IPO fundraising volume of the science and technology innovation board reached the highest point
this year in August.

Source: InvestGO database, Wind

Inventory of investment institutions in China's medical and health sector

According to the statistics of the Pharmaceutical Cube InvestGO database, the number of active investment institutions in China's medical and health field in the 10 years from 2013 to 2022 reached the highest in 2021 (1793), an increase of 10.
7 times
over 2013.
From January to August 2022, there were 15 institutions in the top 10 in the number of investment and financing in China's healthcare sector, led by Qiming Venture Capital and Sequoia Capital China, accounting for 22%
of the total number of events in China's healthcare sector.

Source: InvestGO database

Attached: Overview of investment in popular tracks from January to August 2022

Cell therapy

From January to August 2022, the number of cell therapy primary market events led the field of innovative drugs, followed by macromolecular innovative drugs and gene therapy
.
In 2017, two CAR-T products from Novartis and Kate were approved for marketing, and cell therapy entered a
new era.
It triggered a rapid increase
in the number and amount of cell therapy investment and financing events in 2017-2018.
From 2020 to 2021, Legend Biologics, Yongtai Biologics, WuXi Junuo, Qixi Biologics, and Keji Pharmaceutical have been listed
successively.
In terms of product development, two CAR-T products from WuXi Juno and Fosun Kate were approved for listing in China in 2021, and Nanjing's legendary CAR-T was approved for listing
in the United States and the European Union in 2022.
Further stimulate the investment enthusiasm
of domestic cell therapy.
In the past decade, CAR-T/UCAR-T has consistently led the cell therapy industry in the number of financing events, followed by stem cell therapy
.

Source: InvestGO database

Medical robots

From January to August 2022, the number of primary market events for surgical instruments and medical robots led the medical device track; The primary market for medical robots has the highest amount of financing, reaching 28%.

The number and amount of investment and financing events in the primary market of medical robots in 2019-2021 have risen
rapidly.
Between 2013 and 2022, both surgical robots and rehabilitation robots will reach the peak
of the number of financing events in the primary market in 2021.

Source: InvestGO database

Early screening of diseases

From January to August 2022, the number and amount of primary market financing events for disease screening (accounting for up to 66%) led the genetic testing track
.
During the period from 2019 to 2020, the amount of financing for early screening of diseases in the primary and secondary markets has increased
significantly.

Source: InvestGO database