Chinese Oncology Drugmaker to Raise over 600 Million in Hong Kong IPO
After finishing the rolling submission of its oncology drug’s New Drug Application (NDA), China’s Hutchmed files for its first Initial Public Offering (IPO) on the Hong Kong Stock Exchange (HKEX), expecting to raise over $600 million.
The firm will announce the final offer price on June 23rd and begin trading on June 30th, according to the HKEX calendar.
5 Cornerstone Investors to Acquire 54% of Shares
Hutchmed will release 104 million shares with a price of around US$ 5.8 (HK$45) each, making the total gain approximately $603 million.
The firm has five cornerstone investors, including the Carlyle Group Inc., Canada Pension Plan Investment Board, General Atlantic, HBM Healthcare Investments, and CICC Grandeur Fund. They agreed to acquire 54% of the shares, $325 million in total.
How will the $603 Million Be Spent?
According to the submitted file, Hutchmed will put 50% of the proceeds in accelerating the clinical trials of five oncology candidates. They are Savolitinib (Phase 2&3), surufatinib (US NDA filed), fruquintinib (Phase 3), HMPL-689 (Phase 1), and HMPL-523 (Phase 1).
Around 20% will be used to increase capacities of commercialization, clinical, regulatory, and manufacturing; 15% will support strategic acquisitions and global business development.
The remaining 10% will go into proof-of-concept studies and expand cancer and immunological portfolio, while 5% is for general corporate purposes.
Leading Cancer Medicine
Hutchmed’s leading pipeline, surufatinib, is a drug designed to treat patients with pancreatic and extra-pancreatic (non-pancreatic) neuroendocrine tumors (NETs). It has gained Fast Track Designations (FTD) from FDA in April 2020, meaning it is under rolling review and able to send parts of the NDA data in the process.
Hutchmed finished the rolling submission at the beginning of May 2021 and is anticipating the FDA’s responses. On top of that, the firm will use the data gathered for the NDA and will file for a Marketing Authorization Application (MAA) to European Medicines Agency (EMA) in 2021.
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