Week In Review: Three More China Biopharmas Planning Hong Kong IPOs

Mabpharm Limited, a Taizhou biotech, will IPO in Hong Kong, the eleventh pre-revenue China biopharma to be approved to list there (see story). Mabpharm is developing a portfolio of nine biosimilars, which it hopes will prove to be biobetters. Three of the candidates are in Phase III trials. They were initially discovered by Sinomab, which spun out Mabpharm to develop the drugs, while Sinomab continues to focus on its CRO/CMO operations. Mabpharm intends to make manufacturing of biologic drugs part of its business as well. CDH Investments has backed the company and currently holds 22% of its shares.  

Ascentage Pharma of Suzhou has been approved to stage a Hong Kong IPO (see story). The company, which has built a portfolio of seven clinical stage small-molecule candidates, bases its drug discovery on an expertise in protein-protein interactions. Its seven candidates are currently being tested in 20 Phase I and II trials in China, the US and Australia. One month ago, Ascentage raised $150 million in a Series C funding, bringing its total venture backing up to $240 million. 

Zai Lab (Nasdaq: ZLAB) is planning to list its shares on the Hong Kong exchange, according to unnamed sources, in a transaction that could raise up to $300 million (see story). One year ago, the company completed a $172 million Nasdaq debut offering. Zai is following the lead of BeiGene (Nasdaq: BGNE), which raised $900 million in Hong Kong after initially listing on Nasdaq. The Zai transaction is expected to be 10% to 20% of its expanded share base; it currently has a market capitalization of $1.2 billion.  

Deals and Financings  

China Biologic Products (Nasdaq: CBPO), a Beijing blood products company, rejected a $3.9 billion management-led privatization offer, and will instead accept a $590 million private equity investment, led by a investment firm associated with management (see story). The management-led privatization was a response to CITIC’s offer to buy CBP for $3.6 billion. Following the higher bid from management, CITIC withdrew its offer and CBP’s board rejected the management privatization. CBP dropped $15.62 (15.5%) to $85.28 on news the takeover won’t happen.