Prospects of biopharmaceutical industry Venture capital institutions are optimistic about the biopharmaceutical industry in China. The global financial crisis is getting worse, which makes venture capital institutions especially cautious in China. However, at the "2008ChinaVenture China Investment Annual Conference" held in Beijing, the medical field represented by biopharmaceuticals was unanimously favored by the venture capitalists attending the conference. Pay attention to the biomedical field. Although the government has been encouraging innovative research, there are very few new drugs in China, most of which are imported. "It is mainly the issue of corporate capital investment, which is the most important point of convergence between us." Yi Lee, partner of BIOVIDA China Fund, said this at the meeting. It is understood that after Morningstar Venture Capital and Lilly Asia invested US$ 20 million in a pharmaceutical R&D outsourcing (CRO) enterprise in Shanghai, Wuxi PharmaTech, a CRO enterprise in China, was listed on the NYSE IPO and recognized by the US capital market. "Based on cost considerations, enterprises in developed countries will continue to outsource their non-core pharmaceutical R&D business to developing countries, which will actually bring great opportunities for the development of China's pharmaceutical industry." Yi Lee said that Lilly, GSA, GlaxoSmithKline and other multinational companies have recently announced that they will invest and build professional R&D centers in Shanghai. Statistics show that in the third quarter of 2008, the pharmaceutical industry became the key investment field of the medical and health sub-industry. The number of investment cases is 4, accounting for 50.0% of the total investment cases in the medical and health industry, with an investment of 49.63 million US dollars, accounting for 78.8% of the total investment in the medical and health industry. Venture capital institutions will also face high risks, which is different from the previous investment that only focused on growth enterprises. In the field of biopharmaceuticals, venture capital has turned its attention to some early enterprises with very technical platforms. "In addition to having a quality team, we will only consider investing in such a high-tech company when the market prospect is very clear." Shi Yi, managing director of Lilly Asia, said. "This year, we estimate that we have invested in four biopharmaceutical projects. The overall feeling is ok, but the risks are also great." Yang, a partner of Science and Technology Venture Capital Fund, said: "In fact, the proportion of successful investment in the medical and health field is lower than that in other industries. From my experience, about one or two of the ten investments were very successful, about two or three were flat, and then they all died. " "From the international experience, the success of investing in biopharmaceuticals can gain hundreds or even thousands of times of profits, but at the same time it also faces huge risks, including capital, developer stability and management," Yang said. "The reason for the failure of the domestic market is the market, and management accounts for 2/3." Feda, a Deloitte partner who prefers overseas listing, said in an interview, "Considering the price-earnings ratio, time and refinancing issues, we prefer to list in Hong Kong, the United States or Singapore." He said that companies generally choose different listing locations according to different industries. For biopharmaceuticals, a relatively high-tech enterprise, listing in the United States will attract more attention, while for enterprises that manufacture proprietary Chinese medicines, they will choose to list in Chinese mainland, Hongkong or Singapore. Zhao Zhigang, the chief financial officer of the voice group, which has been successfully listed overseas, also said that we should choose a region with large market share and popularity to sell products. "However, for companies with a domestic market, listing in the Asia-Pacific region will be better." He said. Wang Yimin, managing director of Walden International, said that generally speaking, drugs listed in the United States need to maintain steady growth for several years before they can be recognized and subscribed. Therefore, if the drug can maintain a relatively good valuation in China, it can also choose to go public in China.

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