2216.HK officially launched its global offering on September 13, 2021. The company's IPO period is September 13-16 and is expected to begin listing on the Stock Exchange at 9: 00 a.m. on Friday, September 24, 2021. The company sells 89.355 million shares worldwide, each at a price of HK $17.20-HK $18.70. the market capitalization after the offering is HK $9.041 billion-HK $9.829 billion, with a first-hand admission fee of HK $9444.22. Goldman Sachs Group and Haitong International are the co-sponsors of the company.
The IPO attracted ten cornerstone investors, including UBS Fund, Qingchi Capital, Xia Yan Capital, Snow Lake Capital, CDH Investments, Artisan,Valliance,Exome and so on. All cornerstone investors and existing shareholders, including pre-IPO investors, are subject to a lock-up arrangement of at least six months after listing.
Foreign giants have realized that the earlier the lung cancer is discovered, the greater the hope of cure. In the field of interventional respiratory medicine, a new generation of lung disease treatment technology that can achieve early diagnosis and early treatment, they do not hesitate to spend a lot of money to preempt the layout. In February 2019, Johnson & Johnson announced the acquisition of respiratory surgery robot company Auris for $5.75 billion, a sky-high deal that sparked a heated discussion at the time. In fact, Johnson & Johnson through this merger and acquisition to form a complementary business and expand new areas of technology, from the result is more conducive to the development of the company.
As the leading enterprise of interventional respiratory medicine in China, Bo Medical already has a leading three-in-one pneumonology platform and can provide three interventional respiratory navigation systems, which will become the first listed company in the field of interventional respiratory medicine in China. So what are the qualifications of this company?
Advanced integrated platform and leader of interventional respiratory medicine
In the high-growth field of interventional respiratory medicine, a number of lung navigation platforms and treatment products of BMH have entered the commercial stage, forming a strong in terms of integration.Synergistic effect。
The navigation platform of Drumbo Medical consists of three listed products, namely, LungPoint, LungPro and LungPoint Plus. Among themLungPro (also known as LungPoint ATV and Archimedes systems)是The only one in the worldThrough optical navigation, with the help of unique BTPNA technology.Whole lung arrivalA navigation system that uses augmented reality (AR) technology for real-time image navigation.LungPro was approved by FDA in February 2014To have a first-mover advantage.
And in the company's products in the field of intervention in respiratory medicine,Core product InterVapor是The first person in the worldA system of ablation using hot steam energy for the treatment of chronic obstructive pulmonary disease (COPD) and lung cancer. Because of the remarkable curative effect and other advantages, InterVapor in the treatment of COPD alsoIt was named as the Breakthrough Medical device by FDA in 2019.。
Another core product of the companyRF generator + RF ablation catheter (RF-II)是Unique in the world that can be commercialized.Radiofrequency ablation technology, alsoThe only one in the world that focuses on the treatment of lung cancer.Radiofrequency ablation system based on web，And showed in clinical trialsGood security and effectiveness. In order to expand the global market, the company is applying for special approval from the SFDA in mainland China, the European Union, the United States and other countries and regions. In addition, the company also has RF-I, H-marker and 6 kinds of medical consumables products for interventional diagnosis.
Figure 1: the product pipeline of the company's three-in-one pneumonology platform
Source: company prospectus, Gronghui arrangement
Bo Medical integrates an innovative three-in-one pneumonology platform for diagnosis, navigation and treatment.With more accurate diagnosis and interventional respiratory navigation system with whole lung arrival, it has developed into a leading domestic enterprise in this field. In terms of sales volume, the company for the years ended 2018, 2019 and 2020Has a market share of 43.2%。
With the iterative upgrading of the technology of the interventional respiratory navigation platform, its marketThe scale is expanding rapidly.The track also showsStrong growth. According to Frost Sullivan, the market in China will be $6.9 million, or 44.85 million yuan, in 2020. It is expected to reach US $189 million, or 1.227 billion yuan, by 2025, with an annual compound growth rate of 93.81%.
Thus it can be seen that China is now in aTechnological upgrading and market expansionA period of rapid development. As an interventionist in the field of respiratory medicineIndustry leaderThe company is expected to continue to expand the global market, gain more market share and fully enjoy the incremental dividends of the industry.
Figure 2: sales by manufacturer from 2018 to 2020
Source: company prospectus, Gronghui arrangement
Well-known cornerstone investors subscribe, valuation is expected to increase
Bo Medical, which is located in the Chaoyang industry, currently has a number of highly competitive products, which has been closely watched and favored by well-known investors.
From the financing process of the company, there have been QiMing Venture Partners, intuitive surgery, Fangyuan Capital, Qingchi Capital, Baidu, Inc. Capital, Xinyin Investment, Dehong Capital, ACM and other well-known investors. Among them, it includes those who are at the top of the industry with Leonardo da Vinci's surgical robot.Multinational giant intuitive surgery(NASDAQ: ISRG), as well as pool clearing capital, etc.Professional investors in the medical field。
Among the ten cornerstone investors in the IPO, the internationally famousUBS subscribed for $25 million. Focus onThe field of health careLong-term stock-biased public offering fundQingchi Capital subscribed for 20 million US dollars.Qingchi Capital previously invested as a cornerstone investor in high-quality companies such as Zhaoyan New Medicine (6127.HK), Bekon Medical-B (2170.HK), Nofai Health-B (6606.HK) and so on.Snow Lake Capital subscribed for $10 million.It mainly invests in leading companies in TMT, consumption, health care and other industries.。
Thus it can be seen that these companies and institutions with profound and strong strength are optimistic about the future development prospects of the company. The author thinks that their investment vision is worthy of reference.
As interventional respiratory medicine is a brand-new market field in China, there are few domestic enterprises in this field, and most of the reference targets are foreign enterprises, so the author looks at this industry from the M & A cases of overseas giants.
In January 2015, Medtronic PLCThe largest amount of US $42.9 billion in the history of medical device mergers and acquisitionsAcquired Covidien, the global leader in medical devices at that time. SuperDimension, which Covidien bought for $300m, was also acquired by Medtronic PLC with the merger. Medtronic PLC's latest generation of superDimensionTMThe navigation system is advanced in technology and approved earlier, which occupies an absolute advantage in the field of electromagnetic navigation bronchoscope.
In February 2019Johnson & Johnson even exposed sky-high prices for mergers and acquisitions.Announced the acquisition of respiratory surgery robot company Auris for $3.4 billion in cash and up to $2.35 billion in milestone payments, equivalent to about 39 billion yuan. Johnson & Johnson's merger and acquisition, on the one hand, uses technologies such as Auris robot-assisted navigation to collaborate with his own business, and on the other hand, he is interested in getting involved in the respiratory industry.High growth attribute, seeking development in the innovative sunrise industry means that it will depict a new growth curve.。
Last October, Pulmonx, which raised $190 million, rose more than 106% on its first day and had a market capitalization of $1.52 billion as of Sept. 9, 2021. This is extremely rare in the mature US stock market, reflectingInvestors have a high recognition of medical device companies that provide diagnosis and treatment of the lungs.. In addition, Olympus announced in December that it would buy Veran Medical, a provider of medical devices for interventional respiratory medicine, for $340 million.
The high-priced acquisition cases and listing performance of these foreign giants have verified the iterative direction of interventional medical devices as a treatment technology.High growth has been highly recognized by the market。
Figure 3: cases of mergers and acquisitions and financing in the field of respiratory medicine
Source: public information, Gronghui collation
Unlike these cases, Baobo, which has developed into a leader in China, has strong medical technology and now hasIntegrated platform from diagnosis to treatment under whole lung navigationCompared with most international competitors can only offer a commercial navigation product, andThree of the company's interventional respiratory navigation systems have been commercialized.Through the favor of well-known investors, the amount of M & A cases, and the post-investment valuation of the company's D-round financing, we can judge that after the company is listed in the future,There will be more room for improvement in valuation.。
Conclusion
PhD Medical, which officially launched worldwide on September 13, has been able to provide patients with a three-in-one pneumonology platform. As the domestic leader in the industry, the company will expand the market space of its products by increasing its market share. Not only that, with the continuous increase of well-known investors, multinational corporations are high-priced mergers and acquisitions, which once again proves that the industry and business the company is in has a great market prospect.
The author believes that interventional respiration, which aims at minimally invasive treatment of lung diseases such as lung cancer and COPD, is the right direction for innovative medical device companies, while Baobo Healthcare will be listed on the Hong Kong Stock Exchange after its global launch. Well-known cornerstone investors have entered the board first. The company provides a scarce and high-quality target for the market, which deserves the continuous attention of investors.