Over 20 Pharmaceutical Companies Rush to IPO, Nearly Half Seeking Over RMB 1 Billion Each

　　【Pharmaceutical Network Industry Dynamics] Data shows that, as of March 3, 2023, 24 pharmaceutical companies are in the process of pursuing an IPO, including HONCH, Shanghai Yan'an Pharmaceutical Yangpu Holding Co.,ltd., Hengsheng Medicine, and YIPIN Pharmaceutical. Among them, eight companies plan to list on the Sci-Tech Innovation Board (STAR Market), including Xi'an Xintong Institute of Pharmacy Co., Ltd., Shanghai Hengrun Dasheng Biotechnology Co., Ltd, XZenith Biopharm, BeBetter Med, Shenzhen Shankang Medical and Health Industry Co., Ltd., and Healthgen Biotech, all of which have not yet achieved profitability. Six companies have chosen to apply to the Beijing Stock Exchange, while five companies have applied to the Growth Enterprises Market (GEM). The Shanghai Main Board and Shenzhen Main Board have three and two pharmaceutical IPO companies, respectively, currently in the queue.
 

Nearly half of these pharmaceutical companies plan to raise over 1 billion yuan, including Zhuoyi Biotech, Lianya Pharma, Yingke Xinchuang, Kebao Pharma, Shengzhao Pharmaceuticals, and others.
 

Among them, Healthgen Biotech tops the list in terms of planned fundraising, with a proposed amount of 3.502 billion yuan. The prospectus shows that Healthgen Biotech plans to be listed on the STAR Market. The company is an innovative biopharmaceutical enterprise, and its products mainly include pharmaceuticals, pharmaceutical excipients, and research reagents. This STAR Market IPO will channel the raised funds into three projects: the industrialization base construction project for plant-derived recombinant human serum albumin, the new drug R&D project, and replenishing working capital, with proposed investments of 1.909 billion yuan, 794 million yuan, and 800 million yuan, respectively. Its IPO was accepted on December 29, 2022, and it entered the inquiry stage on January 19, 2023.
 

Following that are Shanghai Hengrun Dasheng Biotechnology Co., Ltd. and XZenith Biopharm, with proposed fundraising amounts of 2.539 billion yuan and 2.47 billion yuan, respectively. Among them, Shanghai Hengrun Dasheng Biotechnology Co., Ltd. plans to allocate the funds raised to three projects: the tumor immunotherapy cell treatment product R&D project, the headquarters and industrialization base (Phase I) project, and replenishment of working capital. The company is an innovative biopharmaceutical enterprise focused on the research and production of breakthrough immunotherapy drugs, primarily concentrating on treatment areas such as malignant hematological diseases and solid tumors.
 

XZenith Biopharm plans to use the 320 million yuan raised from its IPO for the headquarters and innovative drug industrialization project, which involves constructing a research and industrialization base with a construction area of approximately 40,000 square meters in the high-tech zone of Shijiazhuang City, Hebei Province. The facilities will include small-molecule chemical drug production workshops, large-molecule preparation workshops, a comprehensive building, and a storage center, among others. The first phase of the project is scheduled to begin operations in 2024, with the second phase commencing operations in 2026.
 

Notably, XZenith Biopharm's IPO was reviewed in March 2023, with the result being a deferred decision. XZenith Biopharm primarily engages in drug research and development, focusing on diseases such as digestion, oncology, and non-alcoholic steatohepatitis (NASH). As the company has not yet marketed any self-developed products, its revenue during the reporting period was 0 million yuan. The listing committee requested that XZenith Biopharm explain the technological advantages of its major pipeline products compared to already marketed products in China and other competitors’ pipeline products, taking into account national policies, product development progress, and technical reserves. Additionally, the committee asked the company to clarify the main considerations and calculation methods for the estimated peak sales penetration rate of its key products and whether they meet the requirement of having a "large market potential."
 

In addition to the aforementioned pharmaceutical companies, BeBetter Med plans to raise over 2 billion yuan, with a proposed fundraising amount of 2.05 billion yuan. Furthermore, Xi'an Xintong Institute of Pharmacy Co., Ltd., Little Square Pharmaceutical, and Kebao Pharmaceutical are among nine enterprises planning to raise between 1 to 2 billion yuan. MicroStrategy Biotech, Jiren Pharmaceutical, and YIPIN Pharmaceutical are among eleven enterprises planning to raise less than 1 billion yuan. HONCH, which has applied to the Beijing Stock Exchange, has a relatively lower proposed fundraising amount of only 178 million yuan.
 

Disclaimer: Under no circumstances shall the information or opinions expressed in this article constitute investment advice to any person.