According to the "Hong Kong Life and Health Industry Research" report published by the Hong Kong Productivity Council and the Hong Kong Bio-Medical Innovation Association in 2022, the Hong Kong life and health industry is mainly divided into nine categories: Drugs and Materials (28%), Medical and Diagnostic Equipment (26%), Traditional Chinese Medicine (11%), Health Foods (11%), Medical Services (8%), Genes and Stem Cells (3%), Artificial Intelligence in Healthcare (3%), Regenerative Medicine (2%), and Others (8%—including beauty and skincare, medical consumables, etc.). Other Greater Bay Area enterprises are concentrated in Medical and Diagnostic Equipment (39%), Drugs and Materials (18%), and Genes and Stem Cells (13%).
Investing in Innovative Drugs vs. Biotechnology and Medical Technology
Innovative drugs and biotechnology medical technology are two major fields in medical investment, each with its distinct characteristics:
Innovative Drug Investment: Companies focusing on innovative drug development emphasize drug discovery and research. Investing in such pharmaceutical companies typically requires a longer time to see returns due to the rigorous clinical trials and regulatory approvals needed from research to market launch.
Biotechnology Medical Technology: These tech companies focus on cutting-edge technologies applied to medical and diagnostic equipment, AI in healthcare, medical services, etc. These companies often require the integration of multi-disciplinary technologies. However, once a technological breakthrough targets a market pain point, the market potential is enormous.
In recent years, there has been increasing emphasis on healthcare equity, which refers to providing everyone with the healthcare services they deserve based on the right to life, according to reasonable or universally accepted ethical principles. The principle of healthcare equity can also be referred to as the principle of justice, with the principle of public interest being its extension, emphasizing public interest. Investment in digital healthcare systems within AI healthcare can promote healthcare equity, for example:
Medical Consultations: Remote medical technology allows patients in remote areas to receive expert consultations, enhancing the accessibility of medical services.
Online Medication Purchase: Online platforms for buying medications make it easier for patients to obtain drugs, especially important for those with limited mobility.
Our Fund = A Vote for Hong Kong’s Life and Health Industry
Take our "Keptain Biomedical Limited Partnership Fund" as an example, combining the following four advantages:
1. Focus on Supporting Innovation in Hong Kong’s Biotechnology Medical Technology:
We collaborate with local universities and industries in Hong Kong, leveraging their leading research capabilities to drive medical technology innovation.
2. Emphasis on the Applicability of Medical Technology to the Chinese and International Markets:
The technologies and products we invest in cover certifications for China and/or international standards, ensuring quality and safety.
3. Huge Market Potential:
$320 Billion: According to the Deloitte "2024 Global Healthcare Industry Outlook" report, the current global healthcare market faces productivity losses amounting to $320 billion annually. Optimizing and saving these losses provide enormous space for new technology investments.
Greater Bay Area – Large Market: The Greater Bay Area is one of the most promising markets globally, providing broad application scenarios for our technologies and products.
4. Hong Kong’s Advantages:
CMPR Drug Certification: The establishment of the Hong Kong Drug and Medical Device Supervision and Management Center (CMPR) positions Hong Kong as a crucial hub for drug certification, facilitating drug entry into China and export overseas.
Hong Kong-Macau Drug Device Policy: Allows the use of clinically urgent drugs and advanced medical devices that have not yet been listed in the mainland but are listed in Hong Kong and Macau, in designated medical institutions in the Greater Bay Area.
Hong Kong Stock Exchange: The Hong Kong Stock Exchange is the world's second-largest biotechnology capital market, providing abundant financing opportunities for biotech companies.
Leveraging the above four advantages, we focus on experienced teams, profitable business models, and companies with competitive advantages to achieve:
Developed: Our investment projects aim to be near the completion of concept certification or clinical trial stages, reducing early-stage research and development risks.
Commercialization: We are committed to promoting the commercialization of technologies to ensure that investments bring tangible returns.
We believe these are the future directions for investing in Hong Kong’s biotechnology and medical technology.
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