participating in start-up companies, mergers and acquisitions are another major way for listed companies to get involved in precision medicine.
"In the field of medicine and the combination of precision medicine, for listed companies, in view of the fact that precision medicine is still in the embryonic stage of technology and M & A is more convenient and the foot is inserted first, it will still be hard to judge whether it will come out." Huimin Rich Fund, "a medical brother," Zhou Rui recently held in the Bio4P, 2016 Precision Medical Innovation Forum, said in an interview with CBN.
"In the next two to three years, there will be many mergers and acquisitions in the field of precision medicine," said Zhou Rui. Today, Genentech will sort out the mergers and acquisitions cases and characteristics of precision medicine.
R & D small companies + mergers and acquisitions of large companies into a mainstream model
In 2016, M & A cases in the field of precision medical care surpassed Berry's and KANG's listing of A-shares in the Shell Tianxing instrument and are currently awaiting approval. On the evening of August 29, Tianxing Instrument, which suspended its trading for two and a half months, announced the progress of major assets reorganization and planned to sell its existing business assets of assets, liabilities, businesses and personnel to Chengdu Tianxing Instrument (Group) Co., Ltd. Or its designated third party. In the meantime, the Company will issue shares to Berry and Kang shareholders to buy 100% equity interests in Berry and Kang.
The establishment of six years of Berry and health, from the beginning of its creation by non-invasive prenatal genetic testing of the market-orientated, in 2011, access to Jun capital A round of financing 17,800,000 US dollars, in mid-2013, has received 25 million USD B round of financing, led by Qiming Venture Partners. Subsequently, Berry took the opportunity of commercialization of non-invasive prenatal genetic testing from 2014 to 2015 and became another leading manufacturer after non-invasive prenatal genetic testing. In 2016, Berry exposed the new progress is the backdoor landing A shares.
In the future, from a global perspective, "small company R & D + M & A" will become the mainstream medical precision business model.
On May 31, 2016, The Wall Street Journal reported that Irish biopharmaceutical company JAZZ will buy Celator Pharmaceuticals (CPXX) for $ 1.5 billion at a price that is about twice the market value of Celator Pharmaceuticals.
Celator Pharmaceuticals is a well-deserved star of the US stock market in 2016. The company announced after its suspension on March 14 that the company's new drug VYXEOS has significantly increased the overall survival rate of patients with high-risk acute myeloid leukemia (AML) (stage II) after phase III clinical trial . The resumption of trading the next day, the stock price soared 400% in a single day, then continue to rise. As of May 31 closing price of 17.53 US dollars. Three months or nearly 10 times the gains, leading the entire Nasdaq market.
Medical mergers and acquisitions have gradually become the main means of capital withdrawal worldwide. Take the example of Israel with a thriving start-up in the medical field. After the start-up company has grown to a certain extent, there are many cases of choosing to withdraw from M & A. Wu Han, an investment manager who shares his investment, said to CFN reporter that from 2005 to 2014, a total of 62 Israeli companies in the medical and healthcare industry were merged and the average operating time taken by the healthcare companies was 12.3 years. From the first financing to mergers and acquisitions to withdraw from the average time-consuming 6.88 years. However, this is mainly due to the longer payback periods for biomedicine and biotech segments, while the average investment cycle for healthcare companies is relatively short.
In China's capital market, mergers and acquisitions of listed companies into the case of precision medical treatment already exists, mergers and acquisitions for listed companies to increase the space for story-telling. In October 2015, Xinnian Hengli Bulletin said that with 1.566 billion yuan acquisition of 80% of Behças Stem Cells shares, Burson-Marsteller become a subsidiary of Nippon Constanti, November 23, 2015, the General Assembly adopted this resolution, the new Japan and Japan to enter the biomedical field.
May 11, 2015, the new open source bulletin said the company intends to non-public offering of shares through the acquisition of a specific object of the three companies, biological and biological medicine, 100% stake, and 13.20 yuan / share to the three specific target Increased by 13.71 million shares to raise funds 154.6 million yuan for the subject of asset integration, operating capital arrangements. New open source also entered the field of in vitro diagnostic services such as early tumor diagnosis, molecular diagnosis and gene sequencing through the acquisition.
At the same time, listed companies will also choose to set up mergers and acquisitions fund into the way of precision medical treatment, choose the investment target in the world. In February 2016, Lepp Medical announced that it intends to invest USD 95 million in self-financing with Yantai Minhealth Equity Investment Management Center (Limited Partnership) to establish a global precision medical innovation investment fund with a total investment of less than USD 100 million. At present, the fund has invested in Quanterix, Inc. in the field of liquid biopsy, investing 11 million U.S. dollars to participate in its Series D round of financing by way of capital increase and acquire 5.35% of its shares.
There may be mergers and acquisitions among startups
Wang Yang, chief investment officer of Song Wo Capital, which has been investing in the primary market of precision medical services, told CBNF that in 2017-2018, there is the possibility of industry reshuffling in the precision medical industry. Mergers and acquisitions will not occur in listed companies alone, will also occur between these startups. This coincides with Zhou Rui's prediction.
Wang Yang believes that the current number of domestic genetic testing companies over 600 companies. Most enterprises got the angel or A round of financing during the capital boom of the past two years, but the follow-up investment and financing process was obviously tighter because on the one hand the performance growth and profit were lower than expected, which is more ideal than the actual; on the other hand, the company's valuation is generally High, poor access plate, financing can not form an effective convergence. Therefore, in the future, some companies may continue to grow into large companies through financing and others may complete asset restructuring through mergers and acquisitions.
After experiencing a market burst of noninvasive prenatal genetic testing, the development of precision medicine in the country focuses more on the field of oncology. However, at present, several leading domestic companies in the field of oncology (gene sequencing) have barely counted the number of patients tested in the past few years and added 4.3 million cancer patients in one year. The combined market share of all companies low. The industry is still in the education market, and policymakers, investors, corporate practitioners, doctors and patients all need education.
The favorable conditions in the previous stage of the capital market do not match the development speed of the industry itself, and there will be some squeezing of the "bubble". And some companies with good prospects are also rapidly gaining strength by buying and selling on a global scale.
Carbon cloud intelligence, founded by the former CEO of Gene Big Wang Jun, led the team to create cloud carbon intelligence. In April 2016, A-round financing amounted to nearly 1 billion RMB, led by Tencent. Subsequently, Carbon Cloud also started to use M & A in the " ". On September 15, 2016, Carbon Cloud announced the establishment of an Israeli research and development center and the acquisition of Imagu Vision Technologies, a privately held Israeli company for image understanding and artificial intelligence.
Another company that deserves the attention of the industry is WuXi PharmaTech, which delisted from the US stock market. In recent years, it has gradually formed the entire industrial chain of genetic testing, cellular immunotherapy and drug CRO through mergers and acquisitions and investment. According to insiders, Bright future layout or will produce greater value.
In short, whether it is setting up a wholly-owned subsidiary or equity participation, mergers and acquisitions will be listed companies in the field of precision medical care to open up the main way, and these new areas can contribute much to the public company earnings, the harvest may also depend on the sequencing costs further reduced , The further development of technical sensitivity and then judge.
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