The Taiwan Monthly
Listed Companies and Initial Public Offerings
The TWSE strengthens the development of the biotechnology industry to sprint to a market value of NT$500 billion and a proportion of 2% in three years
The Taiwan Stock Exchange Corporation has launched three-fold policies this year to enhance the competitiveness of the capital market, diversify the types of listed industries, and create new settlements for listed companies in the next decade. In order to create new economic industries’ settlements, the four major industrial categories of “Green Energy and Environmental Services, Digital and Cloud Services, Sports and Leisure and Household” were first added on July 3; next, the six major regulations of the TIB were relaxed again in August and credit transactions are expected to be allowed to continuously optimize the financing environment for start-ups. The third step is the “Development Strategy for Strengthening the Biotechnology Industry,” and it is expected to achieve a market value of NT$500 billion for the biomedical industry through measures such as improving the disclosure of information on R&D companies of new drugs or medical devices applying for listing, and achieving the goal of doubling the market value proportion to 2% within three years. In addition to leading the diversified development of the industry, the policies are specific actions in response to the government’s “5+2 Industrial Innovation Plan” and “Six Core Strategic Industry Promotion Plans.”
After referring to international capital market trends, the TWSE believes that bio-medicare will be the emerging industry of the next generation and it is imperative that the Taiwan capital market uphold the policy of nurturing and supporting the biotechnology industry. In the future, the policy will integrate the power of the General Board and the TIB to increase the market value proportion of the biotechnology industry to 2% within three years, marking the next decade for the Taiwan capital market, shaping a new blueprint for the industry, and creating a new settlement for listing. The goal is to further expand the market value proportion of the biomedical industry to 5%.
The TWSE evaluates that the biomedical industry has characteristics such as long product development cycles, high R&D investment capital, high R&D risks and high professional knowledge barriers, and the capital market itself bears the responsibility of supporting the development of the biomedical industry and protecting investors. Based on the international capital market’s experience of developing non-revenue and non-profit biotech companies, the TWSE plans to support the development of the biomedical industry by strengthening information disclosure and investor education and guidance, while balancing investor protection and rights.
The strategy for strengthening the development of the biotechnology industry is explained as follows:
1.Information disclosure regulation aspect:
First, the TWSE will release the “References for Key Disclosures in the Prospectuses of New Drug or Medical Device R&D Companies for Initial Securities Listing Applications,” and strengthen the disclosure of information in prospectuses to facilitate investors’ risk measurement in their investment decisions.
Second, strengthen the material information management of new drug R&D information by increasing information transparency to reduce the information asymmetry of investors.
Third, encourage new drug R&D companies to increase the frequency of investor conferences and fully explain the company’s financial and business situation and R&D progress, current industry status and future development plans.
2.Investor education and guidance aspect: Continuously strengthen investor education and guidance by conducting lectures on the biotechnology industry.
In recent years, Taiwan has repeatedly achieved good results in the international authorization of new drug development, showing the value of Taiwan’s biotechnology research and development to the world, and demonstrating the sustained and vigorous development of Taiwan’s capabilities in the bio-medical industry’s research and development. Looking forward to the future, the TWSE hopes to add new momentum to the development of Taiwan’s bio-medical industry through the power of the capital market and with the original intention of supporting the industry, continue achieving new highlights of Taiwan’s biotechnology industry, enhance the value of the industrial chain and lead the bio-medical manufacturing capacity through R&D and innovation, in order to facilitate the construction of the ecosystem of the bio-technology industry.
For further information, please contact Ms. Jiang at 1239@twse.com.tw