Will Innovation And Capital Win In The Near Future?

On September 28, 21st century economic reporter learned from the Fifth China Pharmaceutical Innovation and investment conference 2020 that one of the five core points of the current gem reform is to relax the financial indicators. At the same time, red chip enterprises, special equity structure enterprises and loss making enterprises are allowed to go public. However, loss making enterprises will not be implemented for the time being and will be released in 2021.

According to Zeng Xin, chief risk officer and kernel director of Guoxin Securities Co., Ltd., the capital market is becoming more and more inclusive for the listing of non-profit biomedical products. Zeng Xin mentioned in the keynote speech of the above conference that under the registration system, there are many opportunities to innovate enterprises, the evaluation standards of the whole listed companies have undergone significant and irreversible changes, the whole medical and health industry is affected by favorable policies, and the listing standards are widening. Hong Kong stocks and the science and technology innovation board have ushered in a wave of non-profit biomedical listing.

At the meeting, Sha Yan, deputy secretary of the Party committee and general manager of the Shenzhen Stock Exchange, pointed out that the capital market and the biomedical industry complement each other. "Biomedical industry is a strategic emerging industry, as well as a typical technology intensive and innovation driven industry. It has the outstanding characteristics of high threshold, high risk and long cycle. It has the common characteristics of long time of R & D investment, large amount of money, great uncertainty, and small initial income. The capital market will certainly become the key booster of scientific and technological innovation in the field of biomedicine. It will promote the optimal allocation of various production factors with an efficient capital formation mechanism, and accelerate the progress of innovation technology and the transformation of scientific and technological achievements. "

Up to now, biomedicine has become the largest market value industry on GEM. Sha Yan said that GEM has formed the agglomeration effect of biomedical industry. In the next step, Shenzhen Stock Exchange will continue to play the equity financing function, cultivate characteristic industrial clusters, and give full support to biomedical enterprises. Through IPO, M & A and other means, Shenzhen Stock Exchange will land on the Shenzhen stock exchange market, especially the growth enterprise market, support enterprises' independent innovation, promote the formation of modern industrial cluster with listed companies as the leader, help to build the biomedical industry chain and promote the synergy between upstream and downstream; and We should further strengthen market cultivation services and promote the formation of a specialized biomedical venture capital market.

Capital and medical innovation complement each other

From the perspective of the global market, the biomedical industry has ushered in a golden period of development driven by technological progress and demand growth. In the past two years of 2018 and 2019, 76 and 54 biomedical companies were listed on exchanges around the world.

Since 2014, biopharmaceutical related enterprises account for the largest proportion of IPOs in the U.S. market, and the number of listed companies has stabilized at about 40% of the listed companies. In Sha Yan's view, the combination of capital market and biomedical industry is naturally complementary and complementary.

Song Ruilin, executive director of China pharmaceutical innovation promotion association, said in an interview with 21st century economic reporter that since 2007, China has developed into the world's second largest pharmaceutical innovation platform parallel to Europe and Japan. At the same time, after the innovation and Innovation Board of Hong Kong Stock Exchange and Shanghai Stock Exchange, the gem registration system was implemented, and the financing environment of the pharmaceutical industry continued to improve. I believe that with the continuous development of capital and innovation, China's pharmaceutical industry has become the second largest pharmaceutical innovation platform in the world With integration and positive interaction, China's pharmaceutical industry will continue to maintain a strong trend of innovation and development.

According to Sha Yan, in recent years, the Shenzhen Stock Exchange, especially the gem, has achieved remarkable results in cultivating and incubating biomedical enterprises and promoting the bio pharmaceutical industry to be better and stronger. A large number of high-quality enterprises have achieved rapid development through IPO, M & A, absorption and merger, etc.

The gem has formed the agglomeration effect of the biomedical industry. Up to now, there are 69 pharmaceutical production and R & D listed companies on the gem, with a total market value of 1.2 trillion yuan, accounting for nearly 15% of the total market value of the gem. It is the largest market value industry of the gem. Among them, the market value of 2 companies has exceeded 100 billion yuan, and the market value of 10 companies has exceeded 30 billion yuan, and Zhifei biology has emerged , Kangtai biology, KANGLONG Huacheng and Beida Pharmaceutical Co., Ltd.

"The new valuation system greatly supports these listed companies to accelerate the promotion and development of innovative technologies by means of merger and reorganization of capital instruments. With the implementation of the bio registration system, more and more high-quality enterprises will be launched on the gem. " Said Sha Yan.

In the view of the market, songrui exchange is also one of the main players in the market. No matter the Shenzhen Stock Exchange, Shanghai Stock Exchange or Hong Kong stock exchange, the three major financing platforms are all in China, which is a strong support for China to move from a pharmaceutical industry power to a pharmaceutical innovation power.

"Pharmaceutical innovation is characterized by a long period and high investment. Without investment, this cycle can not be completed, and capital is constantly looking for good investment projects to make the capital bigger and bigger. Capital and pharmaceutical innovation are actually complementary. Innovation gives capital opportunities and capital gives innovation and development. Now, China's listing on the science and technology innovation board, the gem and the Hong Kong stock exchange can form a win-win situation between innovation and capital. " Song Ruilin pointed out.

It is pointed out that the health care standards of the whole industry have been greatly influenced by the health insurance policy. "In April 2018, the Hong Kong Stock Exchange (HKEx) issued new rules to allow biopharmaceutical companies that have not yet made profits to list. After the promulgation of the new regulation, nearly 20 unprofitable biomedical enterprises have been listed in Hong Kong. Last year, the scientific and technological innovation board also launched a corresponding system, so that the biomedical enterprises with phased achievements can be listed on the science and technology innovation board. Hong Kong stock science and technology innovation board has ushered in a wave of non-profit biomedical listing. At present, the gem still has no clear direction for non-profit enterprises, but it can be implemented after one year. "

However, there is a detail worth noting that in the theme report of "policy publicity on the registration system reform of gem", Qiu Linglong, regional director of Shanghai center of Shenzhen Stock Exchange, pointed out that the support of Shenzhen stock exchange for high-tech enterprises such as bio pharmaceutical industry will never be relaxed. At present, one of the five core points of gem reform is the relaxation of financial indicators At the same time, red chip enterprises, special equity structure enterprises and loss making enterprises are allowed to go public. However, loss making enterprises will not implement it for the time being and will be released in 2021.

Key period of transformation and upgrading

At the above conference, Shang Fulin, director of the Economic Committee of the CPPCC National Committee and former chairman of the CBRC, also pointed out that from the perspective of the essence of financial services for the real economy and the practice of the development of the international pharmaceutical industry, medicine needs financial support for a long time, and the financial industry also needs high-quality investment themes such as medicine.

"With the deepening of the basic institutional reform of China's capital market, the establishment of a multi-level capital market will be strengthened and accelerated. The total amount of innovative capital and the activity of venture capital will be further released. At the same time, we should also pay attention to the unique advantages of banks and insurance in supporting the high-quality development of the pharmaceutical manufacturing industry. " Shang Fulin pointed out.

Although the global economy has been affected by the epidemic, with the help of capital, medical investment in the first half of this year has witnessed a vigorous development.

Elizabeth, global chairman of JPMorgan investment bank Myers pointed out that in the past five years, the biotechnology industry has entered an outbreak period of innovation and development, and the valuations of listed biotechnology companies around the world have also risen accordingly. Since the outbreak of new crown pneumonia in the world at the beginning of this year, this wave of innovation has driven the main Biotechnology indexes to continue to outperform other industries. Investors have responded warmly to the companies that have implemented IPO, and the subsequent stock issuance has been active Be active as well.

Fang min, partner of Warburg Pincus investment and head of China's medical and health investment, said, "this is mainly due to two reasons. First, the overall market attaches great importance to the pharmaceutical sector, especially the innovative medicine and pharmaceutical sector; second, in terms of the global capital market and financial system, in order to cope with potential challenges, various central banks have released liquidity Sex has also reached an unprecedented level. "

Regarding the development direction of the capital market of the pharmaceutical industry in the future, Ren Jinsheng, President of China pharmaceutical innovation promotion association and chairman of Xiansheng pharmaceutical, pointed out that under the influence of the epidemic situation, China's biomedical industry is also facing uncertainties and unprecedented series of challenges, but the next five years will be a key opportunity period for China's biomedical transformation and upgrading.

"Because patients are not racial, Chinese medical innovation and investment should not be closed up for self entertainment. We should not only pay attention to the internal circulation of market and resource elements, but also make good use of Chinese elements and Chinese advantages, be bold and promising, make greater efforts to promote foreign exchange and cooperation, and promote innovation and investment with openness and cooperation." Ren Jinsheng pointed out.

Chen Deming, President of the Ministry of Commerce of China, said that under the background of China's anti epidemic medicine industry, the former president of China's Ministry of Commerce, for the first time, Mr. Chen Deming, President of China's Ministry of Commerce, has integrated the development of China's pharmaceutical industry as a pillar of global anti epidemic industry for the first time.