• With over thirty years of experience in China’s pharmaceutical market, China Medical System has cultivated a depth of clinical demand-oriented product identification and project management capabilities, proven clinical development and commercialisation abilities, and broad resources and networks spanning R&D for drug innovation, as well as hospitals and healthcare institutions for drug academic promotion.
• The Group has seen a steady business recovery from the impact of China Volume-based
Procurement (“VBP”) policy, supported by notable progress in the development and commercialisation of First-in-class and Best-in-class innovative drugs. This growth momentum is expected to accelerate on the back of the replenishment of its pipeline of innovative drugs to about 40 products as of 31 December 2024.
• Building on its track record in China, the Group is looking to replicate its success in Southeast Asia and has begun deepening its presence mainly through its Singapore-headquartered business, Rxilient Health, focused on pharmaceutical products introduction, registration and commercialisation, as well as the commissioning of a CDMO facility, PharmaGend, in the region.
• In this vein, the Group’s secondary listing on SGX serves as a strategic move to increase its visibility and presence in Southeast Asia, reinforcing its brand reputation and credibility to support regional expansion.
China Medical System Holdings Limited (“CMS”, or together with its subsidiaries, the “Group”), a platform company linking pharmaceutical innovation and commercialisation, is seeking a secondary listing on the Mainboard of Singapore Exchange Limited (“SGX”) in July 2025. CMS has been listed on the Main Board of The Stock Exchange of Hong Kong Limited (“HKSE”) since 2010, and included into the Hang Seng Large-Mid Cap (Investable) Index and Hang Seng Innovative Drug Index since 2020 and 2023 respectively.
With about thirty years of experience in China’s pharmaceutical market, CMS has cultivated a depth of experience in clinical demand-oriented product identification and project management, as well as clinical development and commercialisation.
The Group has continuously improved its in house-R&D operation system and professional teams covering the innovative product lifecycle management of target selection, pre-clinical candidate compounds selection, pre-clinical research and clinical development.
In 2023 and 2024, CMS’ financial performance was negatively affected by China’s VBP policy, which aims to lower the prices of drugs with generic competition, by guaranteeing certain procurement volumes from public hospitals at significantly reduced prices through a bidding process.
To mitigate this impact, CMS is progressing steadily towards an innovative product-driven business model. Innovative drugs typically enjoy a pricing advantage due to their exclusiveness, novelty and quality, and are supported by favorable government policies.
As a result, this strategic transition would allow the Group to achieve a healthier product portfolio and mitigate the past impact of the inclusion of three of CMS’ products under the VBP list.
Since launching its Innovative Collaborative R&D strategy in 2017 and its Innovative In-house R&D strategy in 2021, the Group has expanded its innovative product pipeline to about 40 projects as of 31 December 2024. Among them, five innovative drugs covering six indications have been successfully approved for marketing in China and are entering large-scale clinical application.
Leveraging the Group’s extensive promotion network covering over 50,000 hospitals and medical institutions, and approximately 300,000 retail pharmacies in China, these five innovative products are expected to scale up rapidly and contribute good top-line growth to the Group. Moreover, the Group’s robust pipeline includes a continuous stream of products at early, middle, and late clinical stages, which are expected to obtain marketing approvals successively and provide sustained incremental revenue for the Group.
In addition to innovative products, the Group’s exclusive and/or brand-name products have shown steady growth over the years, serving as key contributors to overall business expansion.
Building on the proven track record attained in China’s pharmaceutical industry, CMS is looking to replicate its success in Southeast Asia. This region, with a population of nearly 700 million, is experiencing surging
pharmaceutical demand due to rapid economic growth, the rise of the middle class, aging population, and the increasing burden of non-infectious diseases.
To capitalise on this promising trend, the Group has established Rxilient Health (“Rxilient”) in Singapore as its regional hub, supported by subsidiaries or offices in Malaysia, Vietnam, Philippines, Indonesia, and Thailand.
Rxilient focuses on licensing medicines globally and offers end-to-end commercialisation capabilities in local markets, from development and registration to sales. As of 31 December 2024, Rxilient Health had a differentiated product portfolio of over ten products, covering therapeutic areas such as oncology, dermatology, central nervous system, gastroenterology, autoimmune, and ophthalmology.
To deepen its root in Southeast Asia, CMS has also acquired a Contract Development and Manufacturing Organisation (“CDMO”) in Singapore through its associated company, PharmaGend Global (“PharmaGend”). The 60,290 sqm manufacturing site in Singapore has an annual production capacity of 1 billion oral solid dosage (“OSD”) tablets and capsules and started commercial supply production in end-2024.
Notably, the facility has received the Good Manufacturing Practice certification issued by the U.S. Food and Drug Administration (“FDA”) and successfully passed an on-site inspection by the Health Sciences Authority ("HSA") of Singapore. This, combined with the establishment of Rxilient, has allowed the Group to achieve full coverage of the “R&D, manufacturing, and commercialisation” value chain.
Leveraging Singapore as a regional hub, CMS is making steady progress in its goal to build a bridge for global innovative and quality drugs entering the Southeast Asian market and providing local patients with high-quality and affordable treatment options.
The secondary listing on SGX would help deepen CMS’ presence in Southeast Asia and tap into a new and sophisticated investor base in Singapore. This would allow the Group to gain wider visibility among regional healthcare investors and build long-term market access to support expansion plans in Southeast Asia.
Case Study – CMS’s Innovative Drugs
CMS’ innovative products have received significant recognition in the Chinese medical community. For instance, one of its innovative products, Tildrakizumab Injection (ILUMETRI), serves as a new treatment option for psoriasis patients, with lower dosing frequency.
ILUMETRI was approved for marketing in China in May 2023 and by December 2023, it was included in the Category B1 of China’s National Reimbursement Drug List and subsequently issued in hospitals across China.
As of 31 December 2024, ILUMETRI was unanimously recommended by authoritative psoriasis diagnosis and treatment guidelines in China, the United States, Europe, the United Kingdom, Germany and other countries and regions around the world. It was also recommended by the “Guideline for the treatment of psoriasis with biologics and small-molecule drugs in China (2024)”, issued by the Chinese Journal of Dermatology.
ILUMETRI is one of CMS’ five innovative products that have been approved for marketing in China. All five products have entered clinical application. (*)
Editor : Zainuddin Qodir