Core Insights - The investment philosophy in the innovative drug sector is shifting from "investing in people" to "investing in assets," emphasizing the importance of molecules, technologies, and pipelines with significant commercial potential [1][4][7] - Traditional VC models in the biopharmaceutical industry are becoming ineffective, necessitating new organizational approaches to reduce trial and error costs [4][5][6] - Vivo Capital's new strategy, the "Vivo Accelerator," aims to identify high-quality drug assets globally and introduce them to China, leveraging the country's integrated advantages in clinical trials and resource allocation [1][8][10] Investment Strategy - Vivo Capital has raised $740 million for its public market strategy and currently manages over $7.5 billion in assets [1] - The "Vivo Accelerator" focuses on a broader range of assets, including mid-stage concept validation and clinical development, rather than just early-stage drug discovery [7][8] - The company employs a five-tier evaluation process for pipeline assets, considering scientific data and market competition to make informed decisions on resource allocation [9] Market Dynamics - The Chinese innovative drug market is experiencing a significant shift, with license-out transaction upfront payments in the first half of 2025 reaching approximately $2.64 billion, surpassing primary market financing [4][17] - The past decade saw around $200 billion invested in China's innovative drug sector, yet the annual sales of domestic innovative drugs are projected to be around 60 billion RMB (approximately $8.5 billion) in 2024, highlighting a substantial gap between investment and returns [5][6] Future Outlook - Vivo Capital anticipates that by the end of 2026, the Vivo Accelerator will yield industry-recognized results and potentially produce star projects [3] - The long-term outlook for the Hong Kong stock market is positive, with expectations of a sustained upward trend over the next three to four years, driven by improved asset quality and regulatory alignment [15][16] - The global pharmaceutical companies currently have approximately $1.2 trillion in available funds, creating opportunities for domestic innovative drug companies to engage in business development transactions [18][19] Operational Challenges - The complexity of drug development necessitates collaboration among various talent types, including those who identify market needs, researchers, and business development professionals [12] - The challenge lies in finding the right individuals who can effectively lead and integrate diverse expertise within the drug development process [12][13] - Vivo Capital emphasizes the importance of strategic mergers and acquisitions as a means of market integration and efficiency enhancement, rather than opportunistic transactions [19][20]
维梧资本付山：长期看好港股新药资产，中国系统集成优势正爆发 | 36氪专访