2020 is a year when investment enthusiasm in the medical market is completely ignited. While setting off a capital boom, the medical industry is also facing the challenge of increasingly fierce competition in the global market. For medical enterprises in each segment, it is urgent to master the underlying core technology and innovate and upgrade in time. Based on the present and looking to the future, how should the medical industry interpret innovation and upgrading in the new era? What new trends and inflection points will the industry usher in?
Recently, Huaxing medical team deeply engaged in the industry reviewed the development direction of the global medical field in 2020 from the four fields of medicine and biotechnology, IVD, medical devices and smart medicine, and looked forward to a broader future of innovation and upgrading in the medical field.
Induced pluripotent stem cells can transform NK cell therapy in the future
In 2017, FDA successively approved the listing of kymriah and yescarta, opening the first year of cell therapy represented by car-t. In 2020, a number of cell therapy companies, including legendary biology, Yongtai biology and Yaoming junuo, ushered in a new chapter of domestic cell therapy close capital.
Then, at the end of 2020, the field of cell therapy sounded the charge of NK cell therapy, and the landmark event appeared in the 62nd American annual conference on Hematology (ash2020): the American biotechnology company fattherapeutics focusing on induced pluripotent stem cell modified NK cell therapy (ipsc-nk) released the early clinical data of two ipsc-nk cell products, The industry was greatly encouraged by its excellent effectiveness and safety, and the share price of fatetheratics soared by nearly 40%.
Not only that, based on a global cooperation agreement reached with Janssen in April 2020, fatetheratics received an advance payment of US $50 million and an equity investment of US $50 million. In addition, it is also eligible for potential milestone payments of up to US $3 billion. The transaction was selected as the top 10 global biomedical transactions in 2020.
As the saying goes, “if you want to do a good job, you must first use its tools”. IPSC is used as the interface tool for industrialization, NK cells are used as the interface tool for clinical application, and car is used to give play to the biological theoretical imagination of genetic engineering. IPSC – (car) – NK came into being. Individual elements are history, but together, it is the future.
Globalinforesearch released the latest market information of NK cell therapy at the end of September 2020. It is predicted that the scale of the market will be US $630 million in 2025 and the compound growth rate will be 16.4% from 2018 to 2025. However, this information can not be obtained by referring to other data including ash2020 in the future. There is room for further growth in the market in the future. The field of cell therapy may experience a profound change in the future.
AI pharmaceutical is still far from commercialization
Traditional pharmaceutical is facing a bottleneck. In terms of early R & D, the R & D cycle has gradually increased, and the overall success rate of innovative drug R & D has repeatedly reached a record low. The average investment of a single NME has risen from US $300 million in 1995 to US $1.3 billion in 2020. In clinical development, clinical recruitment is inefficient, difficult and costly. Based on the above industry pain points, AI’s intervention seems to be logical.
From 2016 to 2020, AI pharmaceutical has attracted more and more attention from the industry all over the world, and global pharmaceutical enterprises have increasingly participated in the application and investment of AI. A global data survey of the CEOs of 156 sample enterprises around the world shows that more than half of entrepreneurs believe that AI should be the focus of the next two years.
At present, the global mainstream pharmaceutical enterprises are actively making layout in the field of AI drug R & D through the mode of foreign cooperation / investment and M & A, supplemented by internal self built teams. In 2020 alone, 28 new cooperative transactions emerged, including the three-year cooperation between exscientia and Bayer with a total value of nearly US $300 million, as well as the key strategic deployment of AstraZeneca’s establishment of AI new drug R & D center in China.
In addition, many technology enterprises have also broken the circle to layout the AI pharmaceutical field. They have mature expertise in building and integrating super platforms, and gradually expand their know-how to the field of drug research: in China, bytedanceai lab is established, Huawei is established as a pharmaceutical agent, Tencent is established as Yunshen intelligent medicine, Alibaba’s Alibaba cloud cooperates with the global health drug R & D Center (ghddi) to develop AI drug R & D and big data platform Baidu has also established Baitu Shengke.
With the accumulation of data and the progress of technology, more and more pharmaceutical enterprises begin to layout pipeline development and enter the stage of clinical development. As of December 2020, among the top 10 AI + new drug enterprises with total financing at home and abroad, 7 leading enterprises have either participated in self-developed pipelines, or involved in pipeline development through joint venture and external authorization.
Although AI pharmaceutical is in full swing, there have been views in the industry that doubt its real value. For example, it is considered that exscientia’s dsp-1181 is only an analog of haloperidol, and insilico’s DDR1 inhibitor is not a new mother core. In addition, although there are many cooperation between pharmaceutical enterprises at present, there are not many large transactions that really announce the amount. Therefore, the layout of the AI field can be understood as an early taste of new technologies by pharmaceutical enterprises on the premise of low cost. The concept of domestic AI pharmaceutical is hot, but AI pharmaceutical companies, in addition to leading enterprises such as Jingtai technology, Sikang medicine and insilico, are still incubated in scientific research institutions, which is still far from true commercialization.
In short, although AI pharmaceutical is still far from truly shaking the traditional R & D path, combined with its incomparable powerful computing power and breakthroughs in other fields, we are still optimistic that AI technology will become an indispensable and important element in new drug development in the future.
Under the great stimulation of COVID-19 outbreak and the global pandemic, the medical and life technology industry is the focus of market concern in 2020, and the IVD track has been vigorously pursued by the capital market. From the transaction situation of the primary and secondary markets, IVD will be crazy in the capital market in 2020, and private financing and IPO will go hand in hand, both reaching a record high.
According to statistics, the transaction amount and number of IVD track in the private financing market reached a historical peak in 2020. There were 114 private financing transactions in the whole year, nearly doubling year-on-year; The total transaction amount exceeded US $4 billion, a year-on-year increase of 219%; The single financing amount was about US $35 million, a year-on-year increase of 66.7%.
According to the breakdown of industries, the financing events and amount of gene testing are far ahead, especially the concomitant diagnosis of tumor and early screening and diagnosis of tumor are most favored by capital. From the perspective of financing enterprises, the head effect is intensified and prominent. There were seven transactions with a single financing amount of more than US $100 million, accounting for 53% of the total financing amount of the whole year. Among them, Huada Zhizao won the title of single transaction amount, and the financing amount exceeded US $1 billion.
In addition, with the introduction of new listing regulations on the Hong Kong stock exchange, the science and innovation board and the gem, the rise of enterprise performance driven by the epidemic and the attention of the capital market to the medical sector, IVD transactions in the secondary market are also hot. In 2020, a total of 8 enterprises in IVD industry were listed, and the total amount of IPO raised exceeded US $1.3 billion, an increase of 282% over 2019. Among them, tumor ngs testing company burning stone medicine and pan Shengzi successively landed on Nasdaq, becoming an important milestone in China’s accurate diagnosis and treatment of tumors; In addition, there are the successful IPOs of new crown concept stocks Shengxiang biology, Oriental biology, new industry and Wantai biology, which let us see the huge potential and development opportunities of the industry.