Market Prospects

By focusing on the treatment, management and rehabilitation of chronic respiratory diseases through INOpulse nitric oxide pulse inhaler and chronic disease management platform, as well as accelerating the rehabilitation process of central nervous diseases through digital therapy, Baylor Biosciences has a huge and fastest growing market.

(1) PH-PF Chinese epidemiology and market

China's idiopathic pulmonary fibrosis patients are between 500,000~1 million/year, of which 40%~60% of idiopathic pulmonary fibrosis patients will have pulmonary hypertension, about 200,000~600,000 people. The market penetration rate of INOpulse is relatively high, with a peak of 35% to 50%, or about 100,000 to 300,000 patients. If we assume the annual treatment price for PH-PF in China is $1000 which is 10% of the US, the market could exceed10 billion RMB.

(2) PH-COPD China epidemiology and market

Chronic obstructive pulmonary disease (COPD) in China has reached 100 million patients and become a major public health problem. About 5%-10% of these patients will reach COPD IV level, i.e. 5-10 million people, and 90% of them will have pulmonary hypertension, i.e. 4.5-9 million people. The market penetration rate of INO pulse can reach 30%, which is about 1.5~3 million patients. If we assume the annual treatment price for PH-COPD in China is $1000 which is 10% of the US, the market could exceed 100 billion RMB.

(3) INOpulse for persistent pulmonary hypertension of the newborn (PPHN)

Persistent pulmonary hypertension in newborns (PPHN) is a persistent increase in pulmonary vascular resistance after birth, which impairs the transition from the fetal to the normal circulation and results in severe clinical hypoxia. .

NO is a selective pulmonary vasodilator that does not significantly affect the blood pressure of the circulation after application, and improves the V/Q ratio because NO is distributed to ventilated alveoli; NO improves oxygenation in PPHN, reduces the use of ECMO, and is the standard treatment for PPHN in full-term or near-full-term infants. Significant treatment cost, with a lot of room for substitution.

The incidence of PPHN in infants in China is about 0.2%, i.e. about 40,000 infants per year, assuming a medical cost of 20-30,000 RMB per infant, which is a large market of over 1 billion, and NO is the standard therapy with a very high market penetration.

(4) Digital therapies

Digital therapies (DTx) are software program-driven, evidence-based medicine intervention programs to treat, manage, or prevent disease. Digital therapies can be used alone or in conjunction with medications, medical devices, or other therapies to influence patients through information, physical factors, and medications to optimize patient care and health outcomes. Focused on the prevention, management or treatment of health conditions, the digital therapies market has been gaining attention in recent years as the population has become more aware of health protection and the digitalization of healthcare has accelerated. The scope of digital therapy applications has also gradually expanded to cover a wide range of areas such as psychiatric, insomnia, asthma, childhood ADHD, endocrine disorders, respiratory diseases, and more. There are many ways to classify digital therapy products. According to the different functions, digital therapy products can be divided into three categories: prevention, management and treatment; according to the different ways of use, digital therapy products can be divided into software alone, software with drugs or devices, software with drugs and devices, etc. Digital therapy is a supplement and optimization of traditional treatment methods. In recent years, as the digitalization of healthcare accelerates, the development of the digital therapy market has accelerated and products have sprung up. Compared with the U.S. market, the development of China's digital therapy industry is still at early stage with greater potential.. It is expected that in the next five years, with the increasing number of companies entering the market, the size of China's digital therapy market will grow exponentially, reaching 100 billion RMB in 2026.

(5) Internet chronic disease management market is promising

In 2019, the market size of China's Internet chronic disease management industry reached 69.4 billion RMB, with a potential size of RMB 300 billion. The market size is expected to reach 217.7 billion RMB in 2024, with a compound annual growth rate of 25.7% during the forecast period. The demand for rational use of medical resources, the demand for medical insurance cost control, the improvement of the Internet ecosystem, the habit of using Internet services and the enhanced health management awareness of users will drive the rapid development of Internet chronic disease management platforms. The access to online medical insurance, the growth of out-of-hospital prescriptions, the graded treatment of chronic diseases and the shift of user habits from offline to online will be the main development trends of the Internet chronic disease management industry.