China’s Emerging

E-cigarette Market

Published on December 28, 2018

The market is maturing for NIPT and is promising for oncology

Starting in 2014 the Chinese government has begun to regulate the NGS (Next Generation Sequencing) market for clinical applications as NGS technology is increasingly adopted, especially for NIPT (Non-Invasive Prenatal Test) and cancer diagnosis and treatment. This market and there are many facets that can be discussed; SmithStreet would like to share the following 3 points:

1. ICLs (Independent Commercial Labs) are leading NGS technology and keep growing

SmithStreet created an updated list of China’s ICLs at the end of 2017. The number of new ICLs has grown substantially from 2016 to 2017 with more individual labs focusing on gene sequencing technologies, yet an integration is already seen in the ICL market and large ICL chains will expand their dominance.

Exhibit 1: There are more than 1,000 ICLs in China and ~50% of them are located in Beijing, Shanghai and eastern coastal provinces – Guangdong, Jiangsu, Zhejiang, Shandong

Exhibit 2: ICL market has been booming since 2015 and more newly established ICLs are focused on “Precision Medicine”

2. NIPT segment is maturing and experiencing a volume shift from ICLs to prenatal diagnosis centers

After “Two-child Policy” went into effect in January 2016, NIPT needs have increased due to increasing number of pregnant women above 35 years old with relatively high risks. In October 2016, NIPT standards were released to emphasize the key role of Prenatal Diagnosis Center Hospitals. It is seen a testing volume shift from commercial labs to the hospitals, which drives more cooperation between hospitals and ICLs in NGS instrument/reagents and techniques improvement.

Source: National Health and Family Planning Commission’s No.45 Document to announce NIPT Standards

http://www.nhfpc.gov.cn/fys/s3581/201611/0e6fe5bac1664ebda8bc28ad0ed68389.shtml

3. Cancer segment is promising and attracting capital investment, but this segment is still under uncertain factors such as technology development and regulatory issues

Currently, main use for NGS in cancer is companion diagnostics for targeted therapy. A wider and more mature use still needs clinical data accumulation, technology breakthrough, CFDA approval and relevant standards release. Capital market in NGS for cancer research and clinical application is highly active in China due to the huge market potential.

Five years ago, we would hear stories about the young, entry-level office receptionist working at a multinational in Shanghai who would save up three months of her salary in order to purchase a Louis Vuitton bag. Those days are long gone, and we now have to understand a new normal for the marketplace for luxury goods in China.

Go-to Market Approach to Enter Greater China

The market is maturing for NIPT and promising for Oncology. ICLs (Independent Commercial Labs) are leading NGS technology and keep growing

China’s Emerging E-cigarette Market

The Chinese e-cigarette market is growing quickly but is still fairly undeveloped

A Middle-Class Force Awakens

Five years ago, we would hear stories about the young, entry-level office receptionist working at a multinational in Shanghai who would save up three months of her salary in order to purchase a Louis Vuitton bag. Those days are long gone, and we now have to understand a new normal for the marketplace for luxury goods in China.