Hillhouse Capital Reaps Record Harvest with 11 Healthcare IPOs in First Half of 2021
On June 23, Suzhou Nanomicro Technology Co., Ltd. (stock abbreviation: “Nanomicro,” stock code: “688690”), led by Hillhouse Capital in its investment round, was successfully listed on the STAR Market of the Shanghai Stock Exchange. This marks Hillhouse’s sixth IPO within a week and its eleventh healthcare IPO this year, reinforcing its leadership in healthcare and life sciences investments and signaling another harvest period for Hillhouse’s value investing strategy.
As 2021 approaches its midpoint, Hillhouse Healthcare Investments has reaped a bountiful harvest, continuously maintaining its position as the industry leader. Below, we review the 11 healthcare companies backed by Hillhouse that went public in the first half of this year.
Note: As of June 23, 2021, List of IPOs by Hillhouse Capital’s Healthcare Portfolio Companies in the First Half of the Year
At the beginning of 2021, Hillhouse Capital secured two IPOs within five days in its stronghold—the healthcare sector. On February 4 this year, HeartTone Medical, a medical device company under MicroPort Scientific Corporation specializing in heart valve disease, listed on the Hong Kong Stock Exchange. Four days later, Berry Genomics, dubbed the “first NGS genetic testing stock on the Hong Kong Stock Exchange,” was officially listed on the Main Board of the Stock Exchange of Hong Kong Limited.
In April, Zocush Ophthalmology, one of the few innovative companies in China dedicated to the research and development, manufacturing, and sales of ophthalmic product series, listed on the Hong Kong Stock Exchange. The Group’s core business focuses on the independent R&D, production, and commercialization of biopharmaceutical products, covering eight therapeutic areas: cardiovascular and cerebrovascular diseases, ophthalmology, oncology, women’s health and pediatrics, psychiatry, dermatology, rare diseases/critical care, and pain management.
As June began, Hillhouse Capital entered a peak period for initial public offerings (IPOs), securing five healthcare IPOs within a single week. On June 16, Angelalign Technology listed on the Hong Kong Stock Exchange (HKEX); on June 18, CARsgen Therapeutics also listed on the HKEX; and on June 23, Nanomicro Tech debuted on the STAR Market, setting a record with a 14-fold surge in its share price on the first day of trading.
In addition, Hillhouse Capital’s portfolio companies specializing in cutting-edge therapies—Instil Bio, Design Therapeutics, Talaris Therapeutics, Lyell Immunopharma, and Century Therapeutics—have successively listed on the Nasdaq, with most being early-stage investments.
Across the 11 IPO projects, all are companies driven by technological innovation. For instance, Nanomicro Tech is one of the few companies worldwide capable of large-scale production of both inorganic and organic high-performance nanosphere materials. Instil Bio, Talaris Therapeutics, Lyell Immunopharma, Carsgen Therapeutics, and Century Therapeutics all focus on cell therapies.
As of now, Hillhouse’s 2021 IPO pipeline is primarily focused on innovative drugs in next-generation gene therapy and cell therapy. In terms of the types of companies it invests in, those with strong R&D capabilities and at early stages are more favored. Hillhouse has made multiple rounds of investments in most of these projects, serving as a long-term supporter of these companies.
It is reported that in 2020, Hillhouse Healthcare Investments achieved a total of 42 IPOs (including 27 from VC/PE investments and 15 from cornerstone investments). Since the establishment of Hillhouse Ventures last year, Hillhouse has continued to increase its investments in earlier-stage companies, investing in more than 200 projects over the past year, with over 100 of them being healthcare enterprises.
In the second half of the year, Hillhouse will also welcome a host of star IPO projects, including MicroPort Surgical Robot, Keymed Biosciences, and TSB Therapeutics. Will the number of IPOs surpass last year’s total?