China’s Ascentage Snatches First Biotech IPO Price of 2025, Raking in $126M

Ascentage Pharma (6855.HK), a cancer drug developer based in Suzhou, China, raised over $126 million in its U.S. initial public offering (IPO) on Thursday, marking the first biotech IPO of the year. The company, already publicly traded in Hong Kong, sold 7,325,000 American depositary shares at $17.25 each, a price lower than its initial projections. The shares will begin trading on the Nasdaq under the ticker symbol “AAPG” on Friday. Ascentage plans to use the proceeds to advance its cancer treatments, including olverembatinib, a leukemia drug approved in China. The IPO comes at a time when licensing deals for Chinese-developed drugs are on the rise, and Ascentage has already benefited from this trend, having licensed olverembatinib to Takeda (4502.T) last year.

First Major Chinese IPO in U.S. Since 2022 Signals Gradual Rebound

In its quest to raise $126 million, Ascentage Pharma targets the U.S. market with its IPO. The company has been listed on the Hong Kong Stock Exchange since 2019 and focuses on therapies for cancer. Ascentage will trade on the Nasdaq under the symbol “AAPG.” J.P. Morgan and Citigroup are underwriting the offering.

Ascentage, backed by Japan’s largest drugmaker Takeda Pharmaceutical, was looking to raise $149 million by offering 7.3 million American depositary shares at $20.34 each.

Ascentage had aimed for a $1.75 billion valuation in its U.S. IPO. This move marks the first significant Chinese firm to list in the U.S. this year. Chinese IPOs in the U.S. have slowly regained momentum after Didi Global’s 2022 delisting. Ascentage’s target is to raise $149 million by offering 7.3 million shares at $20.34 each.

The IPO comes amid a potential trade war. President Trump has threatened more tariffs on Chinese goods. “Compared to the U.S., the Hong Kong market is currently undervalued,” said IPOX analyst Lukas Muehlbauer. “There was a clear potential upside if investors recognize this valuation gap.”

Many foreign companies, like Ascentage, seek dual listings to boost their investor base and share liquidity. Last year, foreign firms made up over half of all U.S. public listings, according to EY.

Ascentage Pharma Prices U.S. IPO at $17.25 Per ADS, Trading Begins January 24, 2025

From a fiscal stance, Ascentage Pharma announced the pricing of its U.S. IPO, offering 7,325,000 ADSs at $17.25 each. Each ADS represents four ordinary shares of the company, with the gross proceeds expected to total $126.4 million before deducting expenses. Additionally, Ascentage granted underwriters a 30-day option to purchase up to 1,098,750 more ADSs at the same price. Trading will begin on January 24, 2025, under the temporary ticker “AAPGV” on a “when-issued” basis. By January 27, 2025, the ADSs will trade under the permanent ticker “AAPG” for regular-way trading. The offering is set to close on January 28, 2025, pending standard closing conditions.

Key Assets Driving Innovation in Cancer and Immune Therapies

Ascentage Pharma has a pipeline with a clear focus on cancer and immune system diseases. The company prioritizes neoplasms, with 16 drugs targeting various cancers, while also addressing immune system diseases (9 drugs) and hemic and lymphatic diseases (8 drugs). It further explores endocrinology, metabolic, nervous system, and infectious diseases, although these areas receive less emphasis. Their approved drugs include Olverembatinib, targeting aggressive-phase chronic myelocytic leukemia, and Toripalimab, a PD-1 inhibitor for metastatic esophageal squamous cell carcinoma. Additionally, Acalabrutinib, originally developed by AstraZeneca, features in trials for small lymphocytic lymphoma.

The company relies heavily on small molecule drugs, which make up 14 of their pipeline assets, while also leveraging cutting-edge technologies like proteolysis-targeting chimeras (PROTACs) and monoclonal antibodies. Ascentage targets apoptosis regulators such as MDM2, Bcl-xl, and Bcl-2, reinforcing its focus on cancer therapeutics. It also pursues immune-modulating targets like PD-1, highlighting efforts in immuno-oncology. 

Ascentage Pharma showcases its global ambitions through regulatory and clinical successes. Olverembatinib and Toripalimab achieved first approvals in China, reflecting its strong domestic market presence. With 97 associated clinical trials, the company actively expands its pipeline and investigates new indications. Backed by partnerships, including support from Takeda Pharmaceutical, Ascentage aims to enhance its international footprint. Its dual listings and focus on novel modalities align with trends in precision medicine, solidifying its position as an emerging leader in oncology and immune disease treatments.

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Author

Bernice Lottering