Insights

Although the number of commercialized brands is increasing, market changes in various subfields differ: In the orthopedics and natural orifice fields, a "even a good tiger can't withstand a pack of wolves" trend is emerging. The combined market share of the top three players (CR3) in these markets as a proportion of the overall market is declining. Orthopedics CR3 decreased from 53% in 2024 to 40% in 2025, while natural orifice CR3 dropped from 89% to 56%.

Kexing Biopharm's origins predate the wave of innovative drugs in China by more than two decades. Over the course of its development, three key strategic decisions have shaped its current industry position and development direction.

Why do the bronchoscopy robots, developed by two industry giants with top engineering teams and years of effort, have a biopsy rate stuck at around 75%? This made Zhang Jian, an engineer, very curious. He spent months "peeling the onion" and finally clarified the essence of the problem: the first-generation bronchoscopy robot emphasizes "navigation" but lacks "real-time positioning."

Against this significant favorable policy backdrop, CuraWay Medical's percutaneous interventional surgical robot, with its clear clinical value (improved puncture accuracy, reduced complications, and lower radiation exposure), forms a synergistic advantage with the company's supporting interventional devices. This financing round will significantly accelerate the company's commercialization process, allowing it to seize the first-mover advantage in the market.

Given that the company already has a stable A-share financing channel and a consistent dividend-paying capability, the decision to proceed with an H-share issuance in Hong Kong typically reflects three considerations: first, to establish an offshore capital vehicle necessary for global business expansion; second, to attract international investors and enhance valuation benchmarks; and third, to meet the capital requirements of potential future major strategic initiatives such as cross-border mergers and acquisitions or overseas factory construction.

If policy reshaped the industry's rules and R&D capabilities drove the industry's transformation, then the capital market has largely determined the pace of development for the innovative drug industry. Over the past decade, with the successive implementation of reforms on the STAR Market and the Hong Kong stock exchange, Chinese innovative drug companies have gradually gained access to financing channels. The capital market, in tandem with industry development, has experienced a full cycle ranging from initial exploration and concentrated capital inflows to deep adjustment.