The Chinese market is booming and everyone wants a piece of the pie. China is not only the world’s second largest economy after the United States by purchasing power parity ($8.77 trillion in 2009) but is also the world’s fastest-growing major economy, with average growth rates of 10% for the past 30 years. The country’s per capita income was at $6,567 (IMF, 98th) in 2009. China is also the second largest trading nation in the world and the largest exporter and second largest importer of goods.
In an effort to give a comprehensive look at numerous industries across China on a global scale, Brean Murray, Carret & Co. hosted their 2010 China Growth Conference on November 17-18 at the Millenium Broadway Hotel in New York City. Especially relevant to industry experts and institutional investors, this was an opportunity to discuss topics related to investing in China.
Prior to the event, William J. McCluskey, President and Chief Executive Officer of Brean Murray, Carret & Co. stated, “Our past conferences have been met with a lot of success. With the addition of quality analysts, completion of numerous transactions for Chinese companies, and our continued commitment to these companies, we expect this year’s conference to be very successful and a must-attend for Chinese companies, as well as investors and professionals who are interested in those companies. With 75 companies presenting and an expected more than 1,000 total attendees, we believe this is one of the largest conferences focused on U.S.-listed Chinese companies.”
The two-day conference format consisted of 25-minute presentation slots followed by 10-minutes of open floor Q&A sessions with institutional clients. In addition, 1×1 meetings were offered throughout the day as well as panel discussions with industry leaders.
The pharmaceutical industry is one of the leading industries in China, covering synthetic chemicals and drugs, prepared Chinese medicines, medical devices, apparatus and instruments, hygiene materials, packing materials, and pharmaceutical machinery. However, the profile of the pharmaceutical industry in China remains very low. China accounts for 20% of the world’s population but only 1.5% of the global drug market. China’s changing health-care environment is designed to extend basic health insurance to a larger portion of the population and give individuals greater access to products and services. Following this period of change, the pharmaceutical industry is expected to continue its expansion.
Of the healthcare and lifescience companies presenting, Tianyin Pharmaceutical Co., Inc., a pharmaceutical company that specializes in patented biopharmaceutical medicine, modernized traditional Chinese medicine, branded generics and other pharmaceuticals presented from their portfolio of 56 products. Tianyin currently has a list of 10 late stage products pending the SFDA approval that target various high incidence healthcare indications.
Based in the city of Yantai, Shandong Province, China, Bohai Pharmaceuticals Group, Inc. is engaged in the production, manufacturing and distribution of herbal pharmaceuticals based on Traditional Chinese Medicine in China. Bohai’s medicines address common health problems such as rheumatoid arthritis, viral infections, gynecological diseases, cardio vascular issues and respiratory diseases.
3SBio is an integrated biopharmaceutical company engaged in research/development, manufacture and marketing/sales of biopharmaceutical products in China. Their genetically engineered, protein-based products and product candidates are designed to address large markets with significant unmet medical needs in nephrology, oncology, supportive cancer care, inflammation and infectious disease.
China BCT Pharmacy Group, Inc. is engaged in pharmaceutical distribution, retail pharmacy stores and the manufacturing of pharmaceuticals and medical-related products.
China Biologic Products, Inc, is a plasma-based biopharmaceutical company seeking strategic acquisition opportunities to expand their plasma collection capabilities throughout China.
China Cord Blood Corporation is a provider of cord blood storage services in China. The Company is engaged in the provision of umbilical cord blood storage and ancillary services in its cord blood banks. In July 2009, the company acquired 93.94% interest in China Cord Blood Services Corporation.
China Pharma Holdings,Inc. is a specialty pharmaceutical company that develops, manufactures and markets generic and brand pharmaceutical products for both western and traditional Chinese medicines in China.
Chindex International is an American healthcare company that provides healthcare services and supplies medical capital equipment, instrumentation and products to the Chinese marketplace.
Winner Medical Group, Inc. is engaged in the business of researching and developing, manufacturing and marketing of medical dressings and medical disposables.
Brean Murray, Carret & Co. is a research-driven boutique investment bank and asset management firm, dedicated to Small and Midcap growth companies and their investors. They have completed 33 equity financings raising approximately $1.2 billion for Chinese companies, in addition to providing advisory services to numerous Chinese companies. BMC focuses on delivering investment ideas and investment banking services to institutional and corporate clients in the following five verticals: private/publicly traded Chinese Companies, Consumer Products and Retailing, Healthcare, Natural Resources and Technology. Their services include equity research, investment banking, institutional sales and trading, and asset management. Headquartered in New York City, the company also maintains offices in Boston, Chicago, Los Angeles, Santa Monica, San Francisco and Beijing and Shanghai, China. OneMedPlace has put in place a China Initiative to proceed the annual OneMedForum to be held January 11th -13th, 2011 in San Francisco. This session is designed help senior executives shape strategy to approach what is one of the most lucrative and perilous markets in the world.