New drug R & D is sought after by investors

The pursuit of human instinct for the quality and length of life makes the field of health care continue to receive capital attention According to cvsource statistics of China investment group, in 2015, there were 134 cases of VC / PE financing in the field of health care, down from the same period last year, but the financing scale increased 1.51 times, reaching US $3.472 billion Among them, new drug research and development is becoming the next investment outlet favored by investors, but this investment outlet is not as easy to enter and control as the Internet industry "There are many risks and challenges in health care that investors need to overcome." Liang yingyu, partner in charge of Qiming venture capital, said in an interview with first financial daily at the 2016 mid life investment meeting The potential application market makes the research and development of new drugs become a hot investment According to cvsource data, in the field of medical and health care, the pharmaceutical industry ranked first with 38 financing cases, with a financing amount of $1.731 billion, while 32 biotechnology financing cases ranked second, with a financing amount of $854 million In Liang's view, the acceleration of the approval system for new drug regulatory incentives in the mainland will bring a window of opportunity for investment in the field of biomedicine For the listed companies in the industry, it is not difficult to achieve an annual revenue of more than 100 million yuan According to the annual report, in 2015, Fosun Pharmaceutical's operating revenue reached 12.609 billion yuan, while Haiwang biology and Changchun Gaoxin New Year's revenue were 11.117 billion yuan and 2.402 billion yuan, respectively However, the high risks contained in the opportunities are also reflected incisively and vividly in the pharmaceutical industry New drug R & D needs huge capital investment Some enterprises only rely on a single product support due to limited investment Once the drug fails to get policy support and market recognition, it will be a huge blow to the enterprise At the beginning of this year, due to the vaccine incident, Watson bio was revoked and withdrawn the certificate of quality management standard for drug trade by the local drug regulatory department, and further administrative penalty of revoking the drug trade license was proposed In the first quarter of 2016, the performance loss was 42.0541 million yuan Therefore, unlike other fields of science and technology, new drug R & D needs more patience and risk control ability of venture capital For investors, in addition to the risk of policy change, there is also the risk of withdrawal For industry leaders, once venture capital missed the entry time, it may be lost forever "I think we should let innovative companies go public through multiple channels, because it's too long for them to line up in A-share market now High multiple P / E ratio listing is a great challenge for both enterprises and investors." Liang said This challenge determines that it is difficult for investors to choose fast in and fast out Internet investment mode, and they can only wait patiently for the invested enterprises to mature gradually In terms of the investment cycle of medical services, medical devices and new drug R & D, new drug R & D takes the longest time "Few pharmaceutical companies are able to IPO from the beginning of R & D to product listing, with an explosion of growth of two or three years Basically, many companies need a long cycle of R & D for five to seven years." Liang said For the industry leader that has been missed, Liang yingyu admits that he can only give up If he is a promising industry, he can choose the second and third place in the industry to invest and wait for the opportunity of overtaking After giving up the investment opportunity of BGI, Liang yingyu turned to Beirui and Kang, who also did prenatal non-invasive examination "When we invested in Beirui and Kangkang, we also looked at Huada gene at the same time But at that time, Huada gene mainly did research, and Beirui and Kangkang did clinical NIPT At that time, the valuation of Beirui and Kangkang was much cheaper than Huada Considering that the market space of clinical NIPT might be larger, it has the potential to surpass Huada." Liang said The same investment logic is applied to the investment of medical devices A few years ago, Qiming venture capital invested in Qiming medical, a company that produces heart valve instruments "When we entered, the company was still doing preliminary clinical work and is still waiting for approval Although there are many good cardiovascular technology companies, minimally invasive heart valve is still a big field Is it possible for a heart valve company to become the largest cardiovascular medical device company in China in the future? We don't know, but we hope it can " Liang yingyu said to reporters with a smile.