Category: Investments

China Medical System Holdings Limited (CMS or the Group), a platform company linking pharmaceutical innovation and commercialisation, made its debut on the Mainboard of the Singapore Exchange Limited (SGX-ST) under the ticker symbol “8A8”. CGS International Securities Singapore Pte. Ltd. is the sole issue manager for this secondary listing.

This marks CMS’s secondary listing in the capital markets, following its debut on the Stock Exchange of Hong Kong Limited (HKEX) in 2010. While no new shares were issued or placed, the move reflects CMS’s commitment to expand its footprint to the broader Asia-Pacific region by capitalising on its proven track record in the pharmaceutical industry of over 30 years in China.

Having evolved from being China’s largest contract sales organisation (CSO) into an innovation-driven multinational pharmaceutical company, the Group is now operating an integrated product lifecycle management platform that covers target selection and confirmation, to preclinical research, clinical development, and commercialisation. Building on this foundation, CMS has developed strong capabilities in identifying, developing, and commercialising First-in-Class and Best-in-Class innovative products. As of 15 July 2025, the Group’s market capitalisation stood at HK$31.91 billion1.

The listing comes at a time where CMS is transitioning toward an innovative product-driven business model to mitigate the impact of China’s volume-based procurement (VBP) policies to ensure sustainable growth. Since 2018, the Group has developed a robust pipeline of approximately 40 innovative products, five of which were already approved for marketing as of 2024. Notably, two other products have been submitted for marketing approval in China as well.

CMS currently sells seven major exclusive or brand-name products in the market, which have shown a progressively upward trend in their revenue contribution over time. Together with five commercialised innovative drugs, these collectively contributed RMB 4.56 billion in revenue in FY2024, accounting for 52.8% of the Group’s total turnover. Given the gradually easing impact from China’s VBP policy and the Group’s optimised product portfolio focusing on exclusive and innovative drugs which are typically exempt from VBP, CMS is well-positioned to resume its top-line growth trajectory from FY2025.

With a forward-looking mindset and acute market insight, the Group has implemented an industrial internationalisation strategy for its business expansion in Southeast Asia and the Middle East, which has already begun to deliver tangible outcomes. To date, the Group has established a full-scale pharmaceutical value chain based in Singapore, which covers R&D, production, and commercialisation. This not only enables the Group to bring high quality, regulatory-compliant, and affordable drugs to emerging markets with increasing pharmaceutical demand, but also serves as a bridge for introducing global innovative therapies into the broader Asia-Pacific region.

Emerging markets such as Southeast Asia and the Middle East are becoming new growth opportunities for the global pharmaceutical industry.  The key drivers behind the rapid expansion of these markets include large population bases, the early onset of aging demographics, increased healthcare coverage, and a rising burden of chronic diseases that reshape the disease landscape. At the same time, the growing middle class and rising health awareness are also driving the increase in both purchasing power and accessibility of medicines.

With regard to the regional market outlook and CMS’s overseas expansion, the Group added that Southeast Asia remains a largely untapped market in its view. The region comprises many small to mid-sized developing economies, each with distinct healthcare systems and regulatory requirements for drug launch. While complex, this landscape aligns well with CMS’s strengths and resources, particularly its proven track record in commercialising innovative therapies.

Looking ahead, CMS remarked, “The successful listing of CMS on SGX marks a solid step forward in advancing our industrial internationalisation strategy, further enhancing our brand visibility and credibility in the broader Asia-Pacific region. Meanwhile, to meet the growing pharmaceutical demand, our CDMO facility is planning to expand its manufacturing capability to include nasal spray platform, cream and injectable lines beyond its current focus on oral solid dosage forms. Further expansion to double or triple the current capacity by the end of 2028 is also under evaluation. As such, we firmly believe that our notable progress in innovative drug development, steady growth in the speciality-focused business, and continued advancement in overseas expansion will collectively facilitate the Group’s return to a multi-year growth trajectory.”