Slow heat biomedical industry money

On the one hand, bio-pharmaceutical companies complain about “shortage of money”; on the other hand, social capital is “interested in the biopharmaceutical industry and does not dare to vote”.

Government-supported project funds have been compared by industry insiders as “sapping peppers” due to their small number and wide coverage. Most biopharmaceutical companies in the small-to-medium-scale or start-up phase have difficulty obtaining bank loans because of high risks and long periods.

Where should the sustainable capital investment in the slow-heat biomedical industry come from?

The government's "black pepper" how Caesar <br> <br> whether the person in charge of bio-pharmaceutical companies, bio-pharmaceutical industry is concerned about investors, government support for both the general consensus is funding: government money at any time in any country It is impossible to support the long-term development of a company. More often it is to help potential companies to "start up." The key issue is how these government funds are spent more effectively.

Wang Jian, a senior managing director at OrbiMedAsia, which specializes in biomedical industries, said: “Even if the government is a large country in terms of biomedical investment, the entire industry is still dominated by private capital. I’ve compared Korea, In many countries such as India and Singapore, to be honest, the Chinese government’s investment in biomedicine in recent years is still relatively large.”

Lin Yihai, vice president of business of Sino-American Guanke Biotechnology (Beijing) Co., Ltd., a biopharmaceutical company entrepreneur, also holds similar views, and stressed that one of the important roles of government funds should be “incubation”.

“A lot of doctors return from overseas. There is only one idea in mind, and they can’t take anything. However, there must be something that has to be shaped for financing. At this time, the government’s investment is very important. It can transform technology into physical products and make the company move forward. Steps, people see a prototype, so it is convenient to refinance.” Lin Yihai said in an interview with reporters.

Lin Yihai believes that the role of different local governments should be considered in an integrated manner. “People and technology-focused regions such as Beijing and Shanghai should focus on “seeding” and “incubation,” and then can place industrialization on the ground.”

Senior Deputy General Managers Qiu Dongxu and Lin Yihai from Tianjin Konsino Biotech Co., Ltd. both enjoyed the practice of the biomedical parks in Jiangsu and Zhejiang. After strict screening, they provided relatively full start-up capital for potential companies and did not make up shares, making the project “make After quitting, "then exit, and then the company goes to attract venture capital."

Zhang Fabao, founder of BIOONGROUP and a member of the Expert Committee of the Chinese Pharmaceutical Industry Technology Alliance, told reporters that at present, China is exploring new investment portfolios, such as government outsourcing, private capital outsourcing, and hiring professionals to manage funds to achieve risk. The purpose of sharing.

Social capital "interested and afraid to vote"

After the government has “pulled the horse and sent it for a ride,” biopharmaceutical companies need the entry of social capital.

In recent years, at some biomedical forums, investors such as venture capital and private equity funds have often been seen, and even some specialized biomedical investment forums have risen.

However, the attitude of most investors is “interested and afraid to vote”. The reasons for this are from subjective and objective.

One person in the industry stated that currently the examination and approval of new drugs in the biopharmaceutical industry has become more stringent, and the difficulty in research and development has increased significantly. With the tightening of the policy environment, both domestic and foreign investors are increasingly cautious about biopharmaceuticals and are reluctant to move forward.

Lin Yihai said: "If other industries are more likely to make money, why should investors choose biopharmaceuticals?"

The biopharmaceutical industry does have its own particularities: “In the West, the development cycle of new drugs is generally between 10 and 15 years. The investment is even more expensive than 100 million U.S. dollars, and the risk is very high. Data show that only about ten new drugs are entering the clinical stage. One of them can be finally listed, said Wang Jian.

The so-called "art high bold people," but for bio-pharmaceutical investors, "bare enough" another reason is "art is not high enough."

Shi Yi, Managing Director of Lilly Asia Fund, analyzed the reporter: “Biopharmaceuticals and venture capital require high professional standards. To make accurate investment judgments for biopharmaceutical projects, you need to have both professional qualities. The talent is very rare."

This problem has also spawned new ways of cooperation. Zhang Fabao said that some investment institutions have started to cooperate with professional consulting companies and the consulting company has given independent evaluation of the project as a third-party evaluation agency. In addition, different projects can also choose different investment portfolios based on fund characteristics.

A number of industry insiders also stated that the current investment institutions that are interested in biomedicine are gradually maturing. Sequoia Capital and other companies have successively established their own professional biomedical investment teams.

Investors shop around, "They have a lot of capital, but few good projects." Wang Jian told reporters, "Our investment company manages more than US$6 billion in investment funds in the biomedical field. We value the quality of the team we invest in."

Wang Jian believes that although there are more and more high-level biomedical talents coming back from abroad, there are few people who have rich experience in R&D and management and who are familiar with and adapt to China's special local environment.

As a biopharmaceutical enterprise entrepreneur, Lin Yihai also bluntly pointed out the problems existing in the industry: “Some entrepreneurs lack objective evaluation of their own technologies and projects, and think that they are leading internationally. However, in fact, investors are more global in scope, and they have discovered after comparing the three companies. Your technology is not so unique."

For the current stage, how domestic biopharmaceutical companies can effectively attract investment, Qiu Dongxu and Lin Yihai have given suggestions based on their own examples: to make appropriate choices based on their own stage.

Qiu Dongxu said: "Most of what we do is not new, mainly foreign and domestic, or domestic technology is much worse than foreign products, so that investors are more assured."

For Lin Yihai's company, it caught the early stage of the new drug R&D outsourcing industry's wave of shifting from Europe and America to China. “At that time, China’s cost advantage was obvious, and competition was not as intense as it is today. Investors think that our growth is relatively OK, now it's very difficult to do R&D outsourcing to attract investment,” Lin Yihai said.