On the afternoon of March 30, 2023, the SSE STAR Market Forum was launched at the 7th CBIIC. As the “experimental field” of China’s capital market reform, the SSE STAR Market has attached great importance to supporting strategic emerging and high-tech sectors including the pharmaceutical industry since it was inaugurated in 2019. In June 2022, in line with sci-tech innovation and development of medical devices and administration requirements, the Shanghai Stock Exchange issued the NO. 7 guideline on the application of IPO screening of the SSE STAR Market - the fifth set of listing standards for medical device companies (hereinafter referred to as the Guideline), which makes detailed regulation for such aspects as the scope of key technological products of listed companies, important progress, market space, and information discourse. The Guideline further improves the mechanism that the SSE STAR Market accelerates the listing of ‘hard-tech’ companies of medical devices, and better plays its role in serving the sci-tech innovation and development strategies. This year, the SSE STAR Market Forum continued to invite parties from the Shanghai Stock Exchange, primary and secondary markets to analyze and discuss the profound influence of the SSE STAR Market on the industry of the innovative medical services and development opportunities it provides.
Li Pengju, Assistant to the President and General Manager of Healthcare Investment Department of Eagle Holdings , Hosting the SSE STAR Market Forum
At the beginning, Fu Nuo, Regional Director of Market Development Department of the Shanghai Stock Exchange introduced related policies of registration-based IPO mechanism in all respects, IPO qualifications, listing requirements, and the development of biopharmaceutical field. She pointed out that, since the SSE STAR Market was inaugurated, related policies have been put in place in a short time, attracting a group of high-quality sci-tech companies, providing strong support of capital market for the building of China’s sci-tech innovation. By March 2023, 108 pharmaceutical companies have gone listed on the SSE STAR Market, accounting for 21% of the total. Initial offering reached 172.9 billion yuan, or 22% of the total. The market value of those companies totaled 1.27 trillion yuan, accounting for 20% of the total; among them, the market value of 41 companies exceeded 10 billion yuan. On average, the time span of IPO screening was 288 days. Looking ahead, the Shanghai Stock Exchange will continue to facilitate the listing and financing of biopharmaceutical and medical device companies, so as to build itself into a listing center for global biopharmaceutical companies.
Fu Nuo, Regional Director of Market Development Department of the Shanghai Stock Exchange
Then, Zhu Yu, Vice President and Board Secretary of EverPace, presented a report, centering around “Capital Innovation Pathways of Medical Device Companies”. She introduced the EverPace’s businesses, reviewed the process of listing on the SSE STAR Market, and highlighted and analyzed the key factors in the process. She pointed out that capital market reform keeps abreast of times, helping entities of medical device achieve advanced deployment of resources, capital, talented people and external institutions. The amendment of the fifth listing rules of the SSE STAR Market and the issuance of the Guideline show that the SSE STAR Market formally accept non-profit entities of medical device industry, which will help nurture biopharmaceutical and medical device companies with international competitiveness.
Zhu Yu, Vice President and Board Secretary of EverPace
Xiao Zhi, Co-Leader of Life Science Team and General Manager of Board of SDICFUND, presented a report under the theme of “Thinking on the Investment of Pharmaceuticals and Medical Devices in the New Circles”. He said investment in the pharmaceutical field tends to be smooth in 2022, due to multiple factors including the global economic meltdown and international landscape. Negotiation of medical insurance between China and the US will have a profound impact on the pharmaceutical industry, and accelerate integration among industries. Overseas authorization in the biopharmaceutical industry will become the new drivers of growth of the whole industry. Changing of technologies, original innovation and new service modes will become keys factors of the focus of investors.
Xiao Zhi, Co-Leader of Life Science Team and General Manager of Board of SDICFUND
Liao Yixing, Co-Head of Healthcare Department of HuaTai United Securities, presented a report themed by “New Changes Brought By the Reform of Registration-Based IPO Mechanism”. He said centralized procurement will change the traditional pharmaceutical valuation model, posing great challenges to companies’ operation and development. The implementation of registration-based IPO mechanism improves the inclusiveness for issuers’ listing and predictability, and makes screening criteria more transparent. Against the background of registration-based IPO mechanism, China’s capital market will align with international capital market in all respects, posing new challenges to issuers. Therefore, choosing listing approaches suitable to companies will have a profound impact on their future development.
Liao Yixing, Co-Head of Healthcare Department of HuaTai United Securities
Finally, Li Chenliang, Co-Partner of Capital Market in Shanghai Office of JunHe revolved around “Biopharma’s STAR Board Listing: Key Points and Latest Trends” and introduced four aspects including license in (out), patents and core technologies, independence of actual controller and personnel with core technologies, and the removal of red chips.
Li Chenliang, Co-Partner of Capital Market in Shanghai Office of JunHe
Panel discussion was hosted by Xiao Sijun, Vice President of Healthcare Department of HuaTai United Securities. Xiao Zhi, Wu Nan, CFO of Infervision, Zhao Lei, Board Member and CCO of SHURUI Robotics, and Huang Xiaoli, Partner of JunHe had a discussion about the facilitation of the SSE STAR Market for the innovation and development of the medical device industry. They reached a consensus that against the background of registration-based IPO mechanism, related supporting systems of China’s capital market have been improved. Different boards will fully leverage their respective advantages. The SSE STAR Market is still the first choice for biopharmaceutical and medical device issuers. Parties of capital market have confidence in the development of the SSE STAR Market. Going ahead, the SSE STAR Market will gradually make itself a global reputed capital market which is more market-based, law-based, and internationalized.
Panel: SSE STAR Market Supports the Innovation and Development of Medicine and Medical Devices
From Left to Right: Xiao Sijun, Xiao Zhi, Wu Nan, Huang Xiaoli, Zhao Lei
SSE STAR Market Forum