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Service Agencies Roadshow|Interpretation and Q&A for Innovative Companies’ Listing
News & Events 2019.11.04 1611

On September 22, 2019, hosted by the organizer and co-hosted by the top four global well-known listed service institutions, the Service Agencies Roadshow was successfully hosted on the 2019 China BioMed Innovation and Investment Conference (2019 CBIIC). The roadshow session gathered experts and professionals on IPO listing consultation from domestic and foreign major securities companies, accounting firms, law firms, IPO consulting services firms, sharing the latest information on the capital market, some hot issues involving the listing process of pharmaceutical companies, which offered technological support to broaden the financing channels, to help pharmaceutical enterprises grasp the opportunities to step into the capital markets better and faster .

The Service Agencies Roadshow was chaired by Ms. Yang Jinglu, Audit Partner of Ernst & Young Hua Ming LLP (special ordinary partnership).

Moderator: Ms. Yang Jinglu

The session started with a keynote speech on ‘Empowerment of Hong Kong Capital Market in Biotech’s Growth’ delivered by Winnie Han, HKEX Senior Vice President of Global Issuer Services. According to Han, Chinese Hong Kong, as one of the largest IPO markets in the world, has ranked itself as the second hub to list biotechnology company where diverse international investors gathered. Ms. Han also introduced the guests with general procedures and approval system for companies going to list in Hong Kong, and explained the common problems faced by biotechnology companies in the listing process, as well as its solutions.



Keynote speaker: Winnie Han, HKEX Senior Vice President of Global Issuer Services 

Fisher Zhou, Head of Healthcare of Corporate Finance of CLSA, made a keynote speech on ‘Biotech Companies: Pathway to Capital Markets’. Mr. Zhou noted that, with a large number of medical enterprises, the medical and health sector of the Hong Kong market was bullish. In spite of the relative small scale and TMT of individual project financing, the large number and rapid growth has built itself as a sunrise industry, and will bring more opportunities in the future. In Mr. Zhou’s speech, he also shared the approach to value biomedical enterprises, and analyzes the reasons for the divergence of the valuation between the primary market and secondary market in terms of secular variation, fundamentals, valuation, secondary market and liquidity, as well as the recent new trend of the IPO market promotion of medical and health enterprises.


Keynote speaker: Fisher Zhou, Head of Healthcare of Corporate Finance of CLSA 

The following speech was delivered by Mr. Fred Mao, Partner of Frost & Sullivan, on ‘China Innovative Drug Market-An Overview and A Look Forward’. Now, China's pharmaceutical market is closely keeping up with international steps of innovative drugs and developing local innovative drugs. The core competitiveness of pharmaceutical enterprises is shifting from marketing alone to innovation R&D, high-quality products, and comprehensive marketing system. In terms of China's innovative drug market, Mr. Mao held an optimistic view in three aspects: bispecific monoclonal antibody, antibody-drug conjugate (ADC) and cell immunotherapy.

Keynote speaker: Fred Mao, Partner of Frost & Sullivan

Jane Yang, Segment Leader of Government & Public Service Market of Greater China of Ernst & Young Hua Ming LLP, delivered a keynote speech on ‘IPO Accounting Issues for Biotech and Pharmaceutical Companies’. Ms. Yang first reviewed the global IPO market, and made comparisons between the market of Chinese Hong Kong and Chinese mainland. Ms. Yang pointed out that a standardized financial management is an important condition for company listing, and detailed the financial preparation required for the listing in HKEX. Ms. Yang also reminded the enterprise to pay attention to the key financial issues and common problems in the audit, as well as financial health check prior to listing.

Keynote speaker: Jane Yang, Segment Leader of Government & Public Service Market of Greater China of Ernst & Young Hua Ming LLP 

The last keynote speech came from Ms. Lu Mengyu and Mr. Li Lei, Partners of Sidley Austin LLP, on ‘Major Legal Considerations for Healthcare Companies’ Financing’, to analyze the new trend of financing and key legal issues in listing. Mr. Li referred to the influence of Drug Administration Law on pharmaceutical innovation, especially the drug licensing system, and noted it actually brought more flexible opportunities for the business models of Chinese pharmaceutical companies. Ms. Lu Mengyu introduced common problems and solutions in the structure of red-chip listed companies, and summarized the differences between the science and technology innovation board and Hong Kong stocks in terms of ‘Restricted Stock’ trade period and foreign exchange management.

Keynote speakers:

Li Lei, Partner of Sidley Austin (on the left)

Lu Mengyu, Partner of Sidley Austin LLP (on the right) 

There were two panels especially set up for the Service Agencies Roadshow. The first panel was ‘Experience Sharing of Financing Strategy Planning for Biomedical Enterprises’, chaired by Felix Fei, Deputy Assurance Leader of Ernst & Young Hua Ming LLP. The panelists had a full communication and discussion on that topic, who believed that, in choosing financing and listing channels, enterprises should evaluate carefully which market was more suitable for their current status because the review mechanisms and requirements varied among domestic SSE STAR Market, HKEX and US stocks. Whatever path the enterprises choose, they should take precautions as early as possible. From the perspective of investors, the intrinsic value of enterprises attaches more importance, and the three most concerned points were platform, people and technology, besides, the enterprises themselves should also pay more attention to internal management and enhance their financing ability.

Panel: Experience Sharing of Financing Strategy Planning for Biomedical Enterprises

Moderator:

Felix Fei, Deputy Assurance Leader of Ernst & Young Hua Ming LLP (the first from the left)

Panelists (from the left to the right):

Lu Mengyu, Partner of Sidley Austin

Xie Lan, VP Finance of 3SBio

Howard Liang, CFO&CFO of BeiGene

Qian Xueming, Co-founder & CEO of Transcenta Holding Limited

Chen Fei, Managing Partner of LAV 

The second panel was chaired by Fisher Zhou, Head of Healthcare of Corporate Finance of CLSA. The panelists fully participated in the discussion on ‘The incubation strategy of biomedical enterprises’, who thought that the key factors to secure a brighter future for a company should be high-quality products, long-term financial support and an action-focused team. From the perspective of VC, the all-around ability means a lot to an enterprise team, especially ability to make an immediate response. During the panel, Raymond Zhu, Partner of Tax & Business Advisory Service of Ernst & Young Global Limited, also shared his experience on the key areas worth biomedical enterprises’ concerning in incubation, financing and listing, from the perspective of enterprise income tax and individual income tax. China's pharmaceutical market is tremendous, in terms of enterprise development potential, therefore people generally pay attention to the company's product pipeline, the therapeutic field (or indication) what indication the core products are for, how the market competition is, as well as the future development trend and scale of the market. Taking all above into consideration, an enterprise intending to get ahead in the market should make precise position, learn well for its pros and cons, and enhance its strength, no matter they decide to develop in which core product or therapeutic area, so as to resist future competition in the industry.  


Panel: The Incubation Strategy of Biomedical Enterprises

Moderator:

Fisher Zhou, Head of Healthcare of Corporate Finance of CLSA

Panelists (from the left to the right):

Raymond Zhu, Partner of Tax & Business Advisory Service of Ernst & Young

Fred Mao, Partner of Frost & Sullivan

Benjamin Qiu, Partner of Advantech Capital

Wu Jin, Partner of Highlight Capital

Guo Xinjun, Senior Vice President of Henlius

 Service Agencies Roadshow is a newly-set session on 2019 CBIIC and widely concerned by biomedical enterprises. The inspiring keynote speeches shared by experts and professionals attracted attention of the participants, bringing lively atmosphere on the event.

 

Service Agencies Roadshow

Service Agencies Roadshow

Service Agencies Roadshow