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HKND: What is the competition in the biotech industry track as capital accelerates its deployment?

Source:  2021-10-26 17:10

Technology is a necessary coordinate that influences and even changes the course of human development, and in the highly profit-oriented capital markets, it is also changing people's choices and gradually reshaping the entire world's development landscape.

Especially in the last two years, the extremely rapid development of life sciences, the eternal pursuit of human beings regarding health, as well as the warnings and repeated rehearsals in the post-New Crown epidemic era have made the biotechnology industry the focus of global attention. The capital market also holds unprecedentedly high expectations for the upcoming explosive growth of the biotechnology industry.

Global capital accelerates in the biotech industry track.

On August 3rd, the French pharmaceutical giant Sanofi announced that it would acquire the US biotech company Translate Bio, an up-and-coming company in the mRNA field, for US$3.2 billion. While back in June this year, Sanofi already announced that it would invest approximately €400 million per year in the development of vaccines based on new mRNA technology. The acquisition of Translate Bio is a significant step forward in its ambition to accelerate its presence in the mRNA segment of biotechnology.

On August 5th, the leading German pharmaceutical and healthcare company announced that it would acquire US biopharmaceutical company Vividion Therapeutics for up to US$2 billion to strengthen its ability to discover new therapies and increase the value of its drug pipeline.

Recently, there has been heavy market news that global venture capital firm SoftBank has quietly increased its US$5 billion stakes in pharmaceutical giant Roche to become the latter's majority shareholder. At the same time, earlier, it was rumoured that SoftBank had sold about one-third of its stake in the online car service platform Uber, a move that has also been interpreted by the market as SoftBank starting to bet on the biotech and healthcare sectors.

In terms of the domestic investment and financing market, the biotechnology and medical health sectors have historically been "gold-sucking" players, with capital frequently entering across the border to trigger massive waves. For example, Meituan entered the biotechnology sector for the first time this year in July, investing in the synthetic biology platform Enhebiology.

While the global economy performed weakly in 2020 and significant capital markets around the world experienced significant volatility, the biotech sector's market performance was extremely resilient throughout the year. As the most critical major global biotechnology financing centre in Asia, the Hong Kong market has also become the preferred listing destination for an increasing number of biotechnology companies, providing necessary financing support for biotechnology companies and driving the overall rapid development of the biotechnology industry ecosystem.

With the frenzied wave of capital sweeping through the industry, it seems only a matter of time before the biotech industry blossoms in full swing, but standing on the same track means that some will run fast and some will run slow.

What exactly is the biotech industry circuit competing for?

It is worthwhile for all parties concerned with and involved in the development of the biotechnology and healthcare industries to consider this issue. As an integrated M&A holding platform focusing on the global cutting-edge biotechnology sector, HKND has faced up to and explored this issue in depth in practice and gradually found its perception of the answer.

HKU Pharma, headquartered in Singapore and Hong Kong, aims to identify the most valuable biotechnology investment opportunities globally, conduct professional mergers and acquisitions and deepen the integration of high-quality assets. And to empower eco-companies on all fronts through innovative management systems that efficiently leverage synergies, guide eco-companies toward high-quality growth, and assist eco-companies in transitioning to a more accessible capitalization path to maximize the ecological benefit.

HKND has developed the concept and core values of focusing on the frontier development track of biotechnology, insisting on leading innovation with science and technology, pursuing excellent quality of core technology research and development. And empowering to help achieve win-win situations and having a deep understanding of the endowment core required for biotechnology enterprise development.

Based on the competitive development of the whole industry, HKU Pharma believes that the current competition in the field of biotechnology is the competition of the core competitiveness of enterprises. In contrast, HKU Pharma's own core competitiveness is reflected in the three main dimensions of technology, capital and ecology.

Scientific power is the cornerstone of the establishment.

For biotechnology companies, technological strength is not just a mere business tool or business environment but also important productivity, the source and foundation of all corporate development. In the case of HKU Pharma, technological strength is the foundation of a biotechnology company and the source of its power to achieve quality development.

On the one hand, HKU Pharma is committed to leading innovation through technology, pursuing, exploring, and developing core technologies in the field of biopharmaceuticals with the goal of solving the world's most challenging health problems using the world's most advanced technologies; on the other hand, the gene of high technology has always accompanied the Company's development path, and the Company has invested heavily in the field of technology research and development to support its high-tech research. The Company has invested heavily in research and development to support its high-tech business. It has recruited the world's best scientific talent, with 80% of its core team members dedicated to research, resulting in HKND's top-notch research strength and innovation technological expertise barriers.

Based on its superior technological capabilities, HKND has also enhanced its ability to penetrate the industry vertically. Starting with the eco-core enterprise's products, the Company has a deep enough understanding and grasp of the biotechnology field to provide end-to-end solutions from a total business perspective, while maximizing R&D efficiency. The Company is also able to meet the unique technology needs of biotech companies as far as possible.

Capital strength as a guarantee for development

As a holding-type integrated M&A investment and development platform, the capital strength of HKU Pharma is reflected in its muscular capital strength, strong financing ability, the scale of output value of ecological enterprises and active capital market. With its muscular capital strength, HKU SPP is able to provide more significant support to eco-enterprises while promoting the platform's rapid development.

As an industry with huge upfront investment in research and development, biotechnology companies generally have considerable financing needs, and HKND has excellent financing and M&A capabilities. The Company will continue to acquire global, high-tech and large-capital biotechnology assets. With its high-level execution capabilities and rich investment experience, the Company will help companies grow in value in the process of specific project identification, negotiation and deal execution in a timely manner according to their future financing and M&A needs.

In addition, capital operation is also an efficient means to quickly acquire new technologies, broaden product pipelines and accumulate new biotechnology resources. HKND will also integrate capital operation through empowerment, including but not limited to capital investment, talent investment, technology synergy, financial tools and industrial policies, etc., and rely on the strength of capital to help improve the efficiency of technology research and development and the effectiveness of business operation by means of integrated operation.

Ecological power is the ultimate development.

In today's increasingly mature industrial development, hardly any field still applies the single-player formula. For HKND, gathering momentum to form an ecological force is the ultimate development direction it has always practiced.

By linking, aggregating and attracting core technology industry projects in the global life science field, the Company aims to build a global cutting-edge biotechnology industry eco-development platform with cutting-edge technology research and development strength, top innovation and creation ability, and broad market development potential. Our goal is to establish an ecosystem for the whole high-tech biotechnology industry chain and help the ecological industry achieve three-dimensional leapfrog development.

To this end, HKND will continue to expand the size of its ecosystem members through the power of technology and capital, explore opportunities for ecological expansion globally, and link, aggregate and attract more ecological partners to continuously grow its peer group, thereby forming a complete ecosystem, bringing into play the synergy effect between ecological enterprises and enhancing the value of the entire life cycle of ecological enterprises, so as to achieve a positive cycle of input-output-expanded input-more output.

With the accelerated entry of global capital, the biotechnology industry is now in full swing. With its core competitive advantages in technology, capital and ecology, HKND is expected to emerge strongly in the future competition and we look forward to its future performance.