Hansoh Pharmaceutical Group to List on HKEX, Focusing on CNS and Other Therapeutic Areas

　　【Hansoh Pharma Industry News] It is reported that Hansoh Pharma, a pharmaceutical company specializing in psychiatric medications, is expected to set its offering price on June 6 and list on the Hong Kong Stock Exchange on June 14. The listing aims to expand the research and development of innovative drugs and generics, optimize marketing models, and facilitate potential acquisitions and strategic investments.
 

Hansoh Pharma is conducting its initial public offering from May 31 to June 5. The company is issuing 551 million shares, with 93% allocated to international placement and 7% to public offering, along with a 15% over-allotment option.
 

The prospectus indicates that Hansoh Pharma, formerly known as Jiangsu Hansoh, has achieved market-leading positions for its current eight core drugs. Its 13 major products cover six therapeutic areas: central nervous system disorders, oncology, anti-infectives, diabetes, cardiovascular diseases, and gastrointestinal disorders. Key products include the anticancer drug Pulile, the anti-infective drug Zetan, and the antidiabetic drug Fulaidi.
 

In terms of sales revenue, these six therapeutic areas of Hansoh Pharma accounted for 62.5% of the total sales in China's pharmaceutical market in 2018, with growth outpacing that of the overall Chinese pharmaceutical industry, achieving an average annual growth rate of 8.1% from 2014 to 2018.
 

Data shows that the company's revenue in 2016, 2017, and 2018 was RMB 5.433 billion, RMB 6.1855 billion, and RMB 7.7223 billion, respectively, with year-on-year growth rates of 13.9% and 24.8% from 2016 to 2018. According to industry data, Hansoh Pharma was the leading psychiatric pharmaceutical company in mainland China in 2018, with a market share of 9.2%; during the same period, it was the fifth-largest anti-tumor pharmaceutical company in mainland China, with a market share of 2.5%.
 

In terms of independent innovation, the prospectus of Hansoh Pharma shows that the company began developing Class 1.1 innovative drugs in 2002. Currently, the company's Class 1.1 innovative drug, Aumolertinib (Meilingda), has become one of its main products. Meanwhile, six Class 1.1 innovative drug candidates under development have entered Phase II clinical trials or later stages of research and development, among which four are expected to be launched across multiple therapeutic areas from 2019 to 2020.
 

In addition, regarding future drug development, Hansoh Pharma stated that it would launch nearly 30 drugs in the pipeline from 2019 to 2020, including 15 investigational drugs with high growth potential (among which are four Class 1.1 innovative new molecular entities and eight potential first-to-market generics). This demonstrates the company’s significant emphasis on innovation investment.
 

In terms of controlling shareholders, Hansoh Pharma has also drawn significant attention. The prospectus reveals that Zhong Huijuan, one of the controlling shareholders and Chairwoman of Hansoh Pharma, is the wife of Sun Piaoyang, the actual controller and Chairman of Hengrui Medicine. Consequently, the identity of Hansoh Pharma’s shareholders has garnered considerable market attention.
 

Regarding its upcoming listing in Hong Kong, Hansoh Pharma stated that, with the exception of three products including the antibiotic Hengte, none of its currently marketed products or those in late-stage development overlap with Jiangsu Hengrui Medicine’s products in terms of disease categories or disease severity.
 

Judging by the swift actions of Hansoh Pharma, the company had already submitted its listing application to the Hong Kong Stock Exchange as early as September 2018; on May 19, 2019, Hansoh Pharma passed the listing hearing of the Hong Kong Stock Exchange.
 

Overall, Hansoh Pharma boasts strong R&D capabilities backed by robust underlying strength. Its product portfolio covers six therapeutic areas that represent some of the fastest-growing segments in the pharmaceutical market, granting the company a significant competitive advantage. The high R&D value embedded in its products positions Hansoh to capture industry leadership and sustain its competitiveness in the future. Additionally, the “4+7” volume-based procurement policy has already impacted the sales of two of the company’s core drugs. Industry observers believe that if other major products are included in new procurement rounds, it will have a certain impact on the company’s financial performance.