"SPAC mode" cited the CSRC's high attention!

On October 11, Clover Biopharmaceuticals passed the Hong Kong Stock Exchange listing hearing and started the pre-marketing roadshow
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As of now, 23 medical and health companies have been listed in Hong Kong this year, including 12 unprofitable biotech companies; another 6 have passed hearings on the Hong Kong Stock Exchange, including 5 unprofitable biotech companies
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This shows that biopharmaceutical companies are gaining momentum in listing in Hong Kong
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The attitude of the senior officials of the China Securities Regulatory Commission towards the SPAC model has attracted the attention of biomedical companies
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Reinforced R&D urgently needs financing to "fill blood"

From an industrial perspective, this demand exists objectively
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And SPAC is actually a "cash shell company"
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According to reports, at least dozens of biomedical unicorns or quasi-unicorn companies are interested in the listing of SPACs
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In the short term, in order to solve the pressure of survival, innovative enterprises also need funds to introduce new products
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In addition to corporate demands, the policy level is also changing
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Currently, the Hong Kong Stock Exchange is also issuing rules related to SPACs and soliciting opinions from the market
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This means that the Hong Kong Stock Exchange has officially joined the battle for the SPAC Asia Center
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How to solve the financing problems of biomedical companies still needs to weigh the pros and cons
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Many companies have been rejected for IPO, high-quality innovation is the "sweet bun"

In addition to regulatory considerations, the potential risks of the market competition landscape are also worthy of attention: First, the cost of innovative drugs is getting higher and higher
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In fact, the homogeneity competition of domestic innovative drugs is getting more and more serious
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For example, the hot CAR-T therapy in recent years mainly involves popular targets such as CD19, CD20, and CD22
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Among them, China's CAR-T clinical trials targeting CD19 accounted for more than 40%
.
In addition, PD-1 is also a hot area that gets together seriously
.

On September 22, the first release of Jikai Gene Science and Technology Innovation Board will be rejected.
This is the second biomedical company to be rejected within one month after Haihe Pharmaceuticals
.
On the same day, the Shanghai Stock Exchange disclosed an announcement to terminate the review of Haihe's first application for drug release
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In the disclosed termination review and rejection announcement, the regulators doubted the "scientific innovation content" of Jikai Gene and Haihe Drugs.
Product R&D capabilities and whether they have high technical barriers are repeatedly inquired by the Science and Technology Innovation Board Listing Committee Topic
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As regulatory requirements become more and more stringent, innovations in the unreal sense will gradually go unnoticed
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This is a common topic worthy of consideration by the industry.
Due to the benefits of allowing unprofitable companies to go public, the science and technology innovation board has attracted the attention of more and more pharmaceutical companies
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So far, neither Jikai Gene nor Haihe Pharmaceutical has achieved profitability
.
From 2018 to 2020, Jikai Gene lost 40.
805 million yuan, 42.
91 million yuan and 72.
457 million yuan, respectively.
The company continued to lose money and the loss range has expanded
.
Like Jikai Gene, Haihe Pharmaceuticals lost 430 million yuan, 290 million yuan and 709 million yuan respectively from 2018 to 2020
.
At a deeper level, companies’ R&D capabilities are more concerned than profitability
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According to the report, Haihe Pharmaceutical's listing on the Science and Technology Innovation Board was terminated largely because of product R&D capabilities, registration paths, and whether there is a significant dependence on third-party technology is a question repeatedly raised by the Science and Technology Innovation Board Listing Committee
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Haihe Pharmaceutical's projects are mostly license-in or cooperative research and development.
Many companies have similar development ideas.
This has led to questions about capital organization and rapid listing and realization in the market
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Both the CSRC’s high-level statements on the SPAC model and the exchange’s inquiries on the innovation capabilities of enterprises have reflected that the capital market will pay more attention to the attributes of technological innovation, the true original innovation and the new global attention, and guide the industry’s high-quality innovation.

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Is there a path to follow to establish an innovative "moat"?

Back to the basic point of the development of biomedicine, the capital market itself is optimistic
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It is reported that in 2020, the number of investment and financing incidents in China's biomedical industry will reach 563, with a total amount of 116.
4 billion yuan
.

This demand also comes from the constant change of the environment
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Domestically, national procurement is comprehensively advancing, medical insurance payment reforms are diversified, and the "dual channel" of drug negotiation policies are encouraging innovation and encouraging quality innovation; foreign countries, 2004-2016, such as statistics on the total sales of biopharmaceutical products in the United States , It is obvious that product sales are polarized.
Although the average total sales of products launched during this period exceeded 800 million US dollars in the United States, only one-fifth of the total sales of products can reach more than 1 billion US dollars
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According to the proportion of sales of products in the first three years of the market to total sales, players in most disease fields have gradually increased, and competition has continued to intensify.
Biotechnology companies and large pharmaceutical companies have adopted complementary positioning to build an ecosystem
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Then, for small and medium-sized biotechnology companies, companies must be more cautious when setting profit targets and managing expectations from the market
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Especially when the market is flooded with funds, investors will pay more attention to the quality of scientific research
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For example, Biocytometer has accumulated a loss of nearly 900 million yuan in more than two years.
It is expected that the loss will continue to expand in 2021.
In addition to fierce competition in the industry, the industry is very concerned about Biocytometer’s listing in Hong Kong.

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Some people regard Biocytogen as a rebirth of the Chinese version in business
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In fact, Regeneron’s development model may inspire many domestic companies, although it has also experienced years of dormancy and precipitation until the Trap technology platform and VelocImmune technology came out
.
From this perspective, industrial policy nourishes true innovators
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It can be judged that the future blockbuster scarce technology, and the technology with the right direction, and the innovation with high barriers will be really popular
.
Observing the history and commonalities of the rise of giants in the past can provide clues to the certainty of the current development of this type of biological company.
Breakthrough innovation is the real moat
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