China’s GenFleet debuts on HKEX, pioneering a new model for local innovation and global collaboration in biopharma

On September 19, GenFleet Therapeutics (2595.HK) was listed on the main board of the Hong Kong Stock Exchange. The gross proceeds prior to the exercise of the over-allotment option reached USD 233 million, and will increase to USD 268 million after the exercise of the over-allotment option, making it the largest IPO fundraising under Chapter 18 rule on the Hong Kong Stock Exchange (HKEX) since 2022. 

Beyond strong market optimism toward GenFleet, there are several distinctive aspects of the company that merit our attention.

First, GenFleet's IPO funding was sourced globally, with notable participation from New York-based funds such as RTW Funds and OrbiMed, as well as top-tier Singapore-based institutions like UBS Asset Management (Singapore) Ltd. The investor base also included numerous Chinese and U.S. domestic and hybrid funds. This robust international backing underscores that the development and growth of China's innovative drug sector result from deep collaboration with global capital, where risks and rewards are shared collectively.

Second, GenFleet was the first biotech to enter the HKEX under Chapter 18A with a commercially launched product (fulzerasib) as well as established licensing revenue at the stage of IPO. Behind the booming BD landscape, however, China's innovative drug developers remain anxious: Is BD the only pathway for China's innovative drug sector? How can a limited number of BD transactions support the overall development of China's innovation ecosystem? Is there room for China's homegrown innovative drugs to achieve commercial success on their own? These questions further highlight the significance of GenFleet's IPO.

Third, GenFleet's innovations targeting RAS (rat sarcoma viral oncogene homolog) have progressed from developing China's first-in-class KRAS inhibitor to pursuing global first-in-class breakthroughs. The company has independently developed FAScon, the world's first functional antibody-targeted drug payload synergistic conjugate platform, which leverages the synergistic effects of large and small molecules to create highly imaginative novel molecular structures. It is precisely GenFleet's commitment to global first-in-class innovation that has made this biotech company a highly sought-after partner for BD collaborations.

Let's take a look at GenFleet's pharmaceutical BD collaborations:

2021

Following the domestic clinical approval of GFH925, GenFleet entered into an in-licensing agreement with Innovent Biologics, establishing what was then the largest transaction for a local asset at the IND stage in China.

2022

GenFleet secured an out-licensing partnership with U.S.-listed SELLAS for GFH009 (a CDK9 inhibitor). The asset has advanced into multiple Phase II studies in both China and the U.S., and has received regulatory designations from the FDA and EMA including Fast Track, Orphan Drug, and Rare Pediatric Disease Therapy.

2023

GenFleet executed an overseas licensing and collaboration agreement with U.S.-listed Verastem Oncology, with a total potential value exceeding $600 million. GFH375 served as the lead asset among the three partnered therapies.

Finally, I would like to supplement this analysis with background information on GenFleet's two founders:

Dr. Qiang Lu

Dr. Lu holds a doctorate from Brandeis University and completed postdoctoral training at Tufts University. He joined Wyeth and Novartis in America and commanded numerous R&D programs to develop preclinical candidates. Following his overseas career, he served as vice president of WuXi AppTec in China, Chief Scientific Officer of Yangtze River Pharmaceutical Group and Gloria Pharmaceuticals, and senior vice president of CStone Pharmaceuticals. Besides spearheading many compounds into late-stage clinical trials, he also played a major role in operating and promoting multinational R&D platforms. 

Dr. Jiong Lan

Dr. Lan earned his Ph.D. from Lanzhou University in China and completed post-doctoral research at the University of Rochester. Following his graduation in the United States, he embarked on his overseas career as a senior researcher and project leader at Traid Therapeutic, Neurogen Corp., and Novartis. He later joined Hengrui Therapeutics in China, serving as the program director for small-molecule drug development. Prior to joining GenFleet, he held the position of general manager at Shanghai Haiyan Pharmaceutical Technology, where he was responsible for shaping the R&D system for innovative therapies and overseeing the company's overall operations.

Both founders embody the quintessential background of China’s innovative pharmaceutical entrepreneurs: they pursued education in both China and the U.S., accumulated years of experience at multinational corporations, later returned to China to deepen their industry expertise, and ultimately launched their entrepreneurial journey. More notably, from the inception of their venture, they have retained a global perspective—positioning the company with a strategic mindset centered on global competition and collaboration.