① In November 2023, there were 109 financing incidents in the domestic healthcare sector (excluding IPOs, targeted increases, etc.), a year-on-year decrease of 31% and an increase of 76% over the previous year; ② The total amount of financing disclosed in the healthcare sector during the same period was about 5.931 billion yuan, a decrease of 6% over the previous year and an increase of 49% over the previous year.
“Science and Technology Innovation Board Daily”, December 13 (Researchers Zheng Bingxun, Qiu Menglin, He Yujia, Wang Feng) According to data from the Financial Association Venture Capital Communications, 109 financing events (excluding IPOs, targeted increases, etc.) occurred in the domestic healthcare sector in November 2023, a decrease of 31% over the previous year, an increase of 76% over the previous year; the total amount of financing disclosed was about 5.931 billion yuan, a decrease of 6% over the previous year and an increase of 49% over the previous year.
Among them, Pharmacovigilance Coalition completed a pre-IPO financing round of HK$2,347 billion, the highest investment event disclosed in the domestic healthcare sector this month.
Globally, there were 189 financing events in the healthcare sector in November, an increase of 23.5% over the previous month. The total financing amount was 20.533 billion yuan, a decrease of about 0.1% over the previous month.
Investment and financing situation by sector
domestically
Judging from the overall direction of investment and financing in the primary market and the frequency of occurrence, the top 5 directions of capital investment in the national primary health care market in November were: biopharmaceuticals, medical devices, medical equipment, medical informatization, and medical aesthetics.
Judging from the investment preferences of domestic circuit segments, innovative drugs, consumables, medical robots, medical equipment, and medical software have received a high level of attention.
globally
There was a slight difference in the direction of domestic funding before the global segmentation circuit was invested in November. The top 5 points of interest were biopharmaceuticals, medical devices, medical informatization, medical equipment, and third-party medical service agencies; the top five subdivision racetracks were innovative drugs, consumables, medical software, and medical equipment.
Popular investment rounds
domestically
On the domestic side, the distribution of financing rounds is quite different from last month. The number of strategic financing events accounted for the highest proportion, nearly 34%; followed by the A round series, accounting for nearly 27%.
Judging from the amount disclosed, due to the large amount of investment received in the pre-IPO round, the D round and subsequent series received the highest investment amount, nearly 3 billion yuan, accounting for nearly half of this month's total financing; followed by the A series, which received more than 1.7 billion yuan in investment, accounting for over 29%.
globally
Globally, the A-round series continues to rank first in the number of events voted for, accounting for over 30%; followed by the Seed Angel round, accounting for about 26%. Judging from the amount disclosed, the capital was relatively biased towards the mid-to-late period compared to the previous month, but the A series still maintained the highest disclosure amount, with a total amount exceeding 7.4 billion yuan; followed by the B series, which received an investment amount of nearly 5.5 billion yuan.
Active investment and financing regions
Looking at active domestic investment regions, the top five popular regions remained Guangdong, Jiangsu, Shanghai, Zhejiang, and Beijing; compared with last month, activity increased in all regions except Beijing, which remained relatively unchanged.
Active investment institutions
The institutions with the highest number of investments in the healthcare circuit in November include CICC Capital, Songhe Capital, Eli Lilly, Novo Holdings, and Shenzhen Venture Capital. The investment fields involved include IVD, innovative drugs, medical robots, AI+ devices, AI+ pharmaceuticals, biological products, biotechnology, medical aesthetic devices, AI-assisted diagnosis, chemical pharmaceuticals, CXO, and medical software; among them, Songhe Capital and Shenzhen Venture Capital have invested in the medical and aesthetic device sector.
This month's IPO popularity review
In November, the popularity of IPOs in the domestic healthcare sector continued to be low. This month, only one Hong Kong stock company, the Chinese Medicines Federation (02268.HK), was listed.
The pharmaceutical companies that have accepted and submitted prospectuses on the Hong Kong Stock Exchange, Science and Technology Innovation Board and GEM in November are as follows:
This month's notable investment events
Pharmaceuticals Joint Federation receives a cornerstone round of investment of HK$2,347 billion
Pharmacology Joint Alliance is a joint venture company established by Pharmacology Biotech and Hequan Pharmaceutical. It focuses on providing end-to-end CRDMO services for bioconjugated drugs such as antibody-conjugated drugs (ADC). The services cover R&D and production fields of antibody intermediates and other conjugated biopharmaceuticals, connectors/chemical payloads, conjugated stock solutions and formulations.
According to the Enterprise Innovation Evaluation Laboratory, Pharmacovigilance Union's science and innovation capability rating in the biomedical industry is BB. Pharmacology Alliance and its holding subsidiaries currently have more than 40 public patent applications, of which invention applications account for about 60%, mainly focusing on technical fields such as chromatographic purification, air conditioning boxes, reaction kettles, structural domains, and hinge zones.
The cornerstone investors of Pharmacology Joint Alliance are Invesco, General Atlantic, Qatar Investment Authority, UBS Fund, Sequoia China, Novo Nordisk Foundation, and Qingchi Capital. The seven cornerstone investors have subscribed for a total of HK$2,346.6 billion.
Yuanyi Biotech completed Series A financing of nearly 100 million yuan
With synthetic biology technology as the core, Yuanyi Biotech has developed efficient gene editing tools, designed innovative gene metabolism pathways, and built cell factories to provide one-stop solutions including engineering strain development - fermentation process optimization - industrial fermentation production - product separation and purification - terminal product development. The company has completed the layout of diversified product pipelines represented by astaxanthin and superoxide dismutase for various application fields such as biopharmaceutical CRO, functional raw materials for medical aesthetic/skin care products, economic animal and plant nutrition, nutritional health food, health food ingredients, and biotechnology.
On November 24, Yuanyi Biotech completed Series A financing of nearly 100 million yuan led by Tianshili and Xi'an Ruipeng assets. This round of funding will be used for research and development of new products, expansion of existing products, and marketing.
China Airlines Chuangshi completed Series B financing of nearly 100 million yuan
AVIC Chuangshi is a high-tech enterprise focusing on smart rehabilitation medicine and civil-military integration, specially established by China Aviation Industry Group Co., Ltd. in response to the national “double innovation” strategy. The company is mainly positioned to create intelligent robot products in the fields of medical robots, service robots, and military robots. At the same time, it can also provide customers with intelligent rehabilitation management systems and overall intelligent rehabilitation solutions for the whole process and life cycle.
According to the Enterprise Innovation Evaluation Laboratory, AVIC Chuangshi's science and innovation ability rating is BBB. Currently, there are more than 90 public patent applications, of which invention applications account for about 34%, mainly focusing on technical fields such as rehabilitation robots, rehabilitation training, robotics, rehabilitation treatment, and stereoscopic maps.
On November 23, AVIC Chuangshi completed the B round of financing of nearly 100 million yuan. This round of financing was led by Tongchuang Weiye, followed by many leading investment institutions in Shaanxi, including Shaanxi Gold Fund, Fengxi Fund, Qingshi Capital, and Chunde Investment. The capital raised in this round will mainly be used for AVIC Chuangshi's focus and innovation in the field of neurological rehabilitation, the rapid expansion of the product matrix, and the construction of markets and sales networks in major regions across the country.
Relevant policies and important events worth paying attention to this month
All on-site negotiations and bidding for the 2023 national medical insurance drug catalogue adjustment have been completed
On November 20, all on-site negotiations and bidding sessions for the 2023 National Medical Insurance Drug Catalogue were completed. A total of 168 types of drugs were negotiated and bid over a period of four days, including 148 exclusive drug negotiations and 20 non-exclusive drug bids. This is the largest number of negotiations in the medical insurance drug catalogue adjustments over the years since the establishment of the National Health Insurance Administration in 2018.
From 2020 to 2022, the success rates of national health insurance negotiations were 73.46%, 80.34%, and 82.3% respectively, with average price reductions of 50.64%, 61.7%, and 60.1%. According to information, the results of this catalogue adjustment will be officially announced around December and implemented on January 1 next year.
The Joint Procurement Office for High-Value Medical Consumables of the State Organization issued the “Announcement on the Results of the Proposed Selection for Centralized Procurement of Intraocular Crystals and Sports Medicine Medical Consumables by the State”
On November 30, the Joint Procurement Office for High-Value Medical Consumables of the State Organization issued the “Announcement on the results of the proposed selection for centralized procurement of intraocular lenses and sports medicine medical consumables by the State”. Based on pre-collection prices, the market size of the products collected this time is about 15.5 billion yuan, including 6.5 billion yuan for intraocular consumables and 9 billion yuan for sports medicine consumables. In terms of price reduction, the average price reduction for intraocular lens consumables is 60%, and the average price reduction for sports medicine consumables is 74%. Overall, the average price reduction is about 70%. Compared with the average drop of more than 80% in the previous three batches of high-value consumables, this time the price reduction is relatively moderate. A total of 128 companies participated in this collection, and 126 were to be selected, with a selection rate of 98%.
Beijing-Tianjin-Hebei signed an agreement to promote collaborative development of traditional Chinese medicine
On November 7, the administrative departments of traditional Chinese medicine of Beijing-Tianjin-Hebei signed the “Cooperation Agreement on Further Promoting the Collaborative Development of Traditional Chinese Medicine in Beijing-Tianjin-Hebei Province” in Langfang, Hebei. The agreement clearly focuses on strengthening collaboration, integrating resources, breaking through barriers and cohesion, striving to use 3 years to comprehensively promote the collaborative development of traditional Chinese medicine in Beijing-Tianjin-Hebei to a new level, and strive to make Beijing-Tianjin-Hebei a model for the inheritance, innovation and development of traditional Chinese medicine throughout the country. On the same day, the Beijing Municipal Administration of Traditional Chinese Medicine and the Langfang Municipal People's Government signed the “Huanjing Traditional Chinese Medicine Collaborative Development Third Ring Road, Wulongtong Langfang Starting Point Project and Healthy Gyeonggi Traditional Chinese Medicine Collaborative Development 10 Million Project Framework Agreement”. Langfang became the starting point for a model city for the collaborative development of healthy Gyeonggi-Huanjing traditional Chinese medicine. Both sides will use 5 years to implement the “10 million” project in depth and promote the “Ten Major Projects, One Hundred Projects, Thousand Talents” to achieve joint construction, sharing and win-win situation in the Chinese medicine industry.
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