IPO of pharmaceutical industry is becoming more and more strict, and investment institutions need to take the initiative

[market analysis of chinapharma.com] in recent years, China's IPO audit has accelerated significantly However, as a pharmaceutical industry that has accounted for 10% of the meeting, the meeting rate is so unsatisfactory This makes the investment institutions, which should take IPO as the main exit way, can not help but start to adopt different investment plans to meet the demand of capital appreciation while developing the pharmaceutical industry (the IPO of pharmaceutical industry is becoming more and more strict Investment institutions need to take the initiative Picture source: Baidu picture) the IPO of pharmaceutical industry is becoming more and more strict Throughout the domestic investment field, the medical and health industry with rigid demand and no obvious economic cycle has always been the focus of major investment institutions In terms of policy, according to the outline of "healthy China 2030" issued by the State Council in 2016, the market size of health service industry will exceed 8 trillion by 2020 Judging from the current scale of three or four trillion yuan, this cake is quite attractive Under such a broad market prospect, investment institutions are bound to compete to enter the pharmaceutical industry According to Qingke data, since January 2016, there have been 979 investment cases in the fields of biotechnology and medical health in China, with a total investment of US $12388.74 million and an average investment of US $14.68 million The fierce competition among them is self-evident However, the IPO of the pharmaceutical industry has not accelerated because of the hot investment market, but is more prudent According to wind data, since this year, China's average enterprise meeting rate has reached 84%, of which the main board meeting rate is high, reaching 86% But when it comes to medicine, it's not so optimistic According to preliminary statistics, at present, the average passing rate of the pharmaceutical industry is 75%, and only 50% in May, which is lower than the average of the whole industry Data source: wind regulates the listing of pharmaceutical companies in many aspects Why is the IPO meeting rate of pharmaceutical industry so low? In fact, it is related to the current strict listing management methods In 2015, the CSRC published a new version of the measures for the administration of public offering and listing, which clearly stipulates that enterprises must meet the three requirements of subject qualification, standardized operation, finance and accounting before listing In addition, the measures further standardize the information disclosure content of issuers, and always follow the requirements of regulators Therefore, the pharmaceutical industry, which relies on the conventional operation mode, often faces certain audit problems in the face of a series of requirements in the measures For example, in the aspect of standardized operation, due to the particularity of the pharmaceutical industry, in the IPO review, pharmaceutical enterprises need to submit complete industry approval documents or corresponding qualification documents of relevant manufacturers and distributors in time to prove that the enterprise has good sustainable profitability in the compliant operation However, due to the change of market demand and the transfer of profits, pharmaceutical enterprises will change dealers or choose more manufacturers more frequently, so they often fail to provide compliance documents in time, and it is difficult to complete the meeting In addition, in terms of Finance and management, pharmaceutical enterprises also have certain disadvantages, and the conventional mode is difficult to meet the requirements of IPO audit The advantages of institutional multi-dimensional planning for the exit way of investment IPO in the pharmaceutical industry are indisputable for the choice of investment institutions, and the investment in the invested projects is completed in an excellent pricing way Although the current pharmaceutical IPO faces many difficulties, it does not mean that the investment of institutions in the pharmaceutical industry will be hindered The head of a well-known investment institution said that strictly controlling the IPO of the pharmaceutical industry pointed out the way for the development of the industry In the early stage of the establishment of the enterprise, the investment institution can focus on the effective control of Finance and operation, so as to pave the way for the subsequent IPO, at the same time, create a good environment for its own operation and reduce unnecessary loss of profits Although there may be various difficulties in practice, it is necessary for the long-term good development of pharmaceutical enterprises In addition, it is one of the effective schemes to plan the financing, post investment management and exit ways of pharmaceutical industry investment with new ideas and multi-path Shi Xiaoping, general manager of Tongjiang capital, a subsidiary of Tongjiang investment group, who has more than ten years of experience in the medical investment industry, believes that in the process of pharmaceutical project investment, how to design the investment strategy of the invested project is also an important sign to test the professional ability of the team For example, the formulation of exit strategies for investment projects can not only avoid a series of audit difficulties faced by relying solely on IPO exit channels, but also disperse investment risks, improve the overall investment efficiency and strive for better investment institutions Take Tongjiang investment group as an example, in the actual project operation process, we will take a more flexible investment strategy for different links Tongjiang capital is the main investment force of Tongjiang investment group In the financing stage, we cooperate with state-owned capital platforms and listed companies that have entered into the big health industry, and use the capital advantages of partners to jointly promote project investment In the post investment management stage, in view of the high degree of policy relevance of the medical industry, we and our partners strive for as many policy resources as possible for the invested projects to provide better policy support for the project development In terms of project exit, we can flexibly design various possible exit channels for different types of projects, for example, mature projects are mainly IPO Exit; in the early and mid-term projects, we can choose to cooperate with listed companies for M & A exit; some projects may have multiple rounds of financing in the development process, for which we can consider to achieve exit through transfer The strict control of national policies can fully guide an industry to a long-term, high-tech development path At present, the market potential of China's pharmaceutical industry is constantly being explored, so it is more necessary to strictly regulate the industry to reduce speculation and savage growth Only when the investment institutions are more active in looking for the investment direction and benefit points of pharmaceutical enterprises, can we finally achieve the goal of win-win, let our pharmaceutical industry always walk in the forefront of global development, and finally truly serve the people and help the national economic construction.