Qiming Venture Partners-Backed Gan & Lee Pharmaceuticals Successfully Lists on Shanghai Stock Exchange Main Board, Surges by 44% on Debut

Gan&Lee Pharmaceuticals, a Chinese insulin manufacturer and portfolio company of Qiming Venture Partners, successfully listed on the main board of the Shanghai Stock Exchange today (June 29). Gan&Lee Pharmaceuticals (603087.SH) set its IPO price at RMB 63.32 per share. The stock opened at RMB 91.18 per share, surging 44%, with a market capitalization of RMB 36.572 billion.

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Gan&Lee Pharmaceuticals is the fifth portfolio company to go public this year for Qiming Venture Partners, following Roborock (688169.SH), Schrödinger (NASDAQ:SDGR), Sanyou Medical (688085.SH), and Sinocelltech (688520.SH).

In 2010, Qiming Venture Partners exclusively invested in Gan&Lee Pharmaceuticals’ Series A financing round; in 2011, it led the company’s Series B financing. Qiming Venture Partners was the largest institutional investor in Gan&Lee Pharmaceuticals prior to its initial public offering.

Gan&Lee Pharmaceuticals is primarily engaged in the research and development, manufacturing, and sales of active pharmaceutical ingredients (APIs) and injections of recombinant insulin analogs (third-generation insulin). Under the leadership of Dr. Gan Zhongru, the founder known as the “Father of Chinese Insulin,” Gan&Lee Pharmaceuticals has made multiple historical breakthroughs in China’s pharmaceutical industry.

In 2001, Gan&Lee Pharmaceuticals successfully developed third-generation insulin products, becoming the first company in China to master the industrialized production technology for recombinant insulin analogs. The company launched "Suxiulin" (insulin lispro), the first rapid-acting human insulin analog in China. In 2002, it introduced "Changxiulin" (insulin glargine), the first long-acting human insulin analog in China, as well as "Suxiulin 25," the first premixed insulin analog in China. These three recombinant insulin analog products covered the niche market segments for long-acting, rapid-acting, and intermediate-acting insulins. In 2020, Gan&Lee Pharmaceuticals' third-generation insulin analog, insulin aspart injection (Ruixiulin), received marketing approval from the National Medical Products Administration.

From 2017 to 2019, Gan&Lee Pharmaceuticals’ operating revenue increased from approximately RMB 2.37 billion in 2017 to approximately RMB 2.90 billion in 2019; during the same period, the company’s net profit rose from approximately RMB 1.08 billion in 2017 to approximately RMB 1.17 billion in 2019.

IMS data shows that third-generation insulin accounts for approximately 80% of the market share in the United States and Europe. In China, the market share of third-generation insulin rose from 40% in 2011 to 50% in 2016 after its introduction. Gan&Lee Pharmaceuticals’ products offer a significant price advantage, substantially reducing the medical burden on patients with diabetes.

As of the end of 2019, Gan&Lee Pharmaceuticals’ products were being sold in nearly 7,700 hospitals at or above the county level across China, including more than 2,400 tertiary hospitals. In addition, Gan&Lee Pharmaceuticals has established a sales network spanning over 20 countries and regions. In December 2018, Gan&Lee Pharmaceuticals licensed three insulin analogs to Sandoz AG, becoming the first Chinese biopharmaceutical company to enter the European and American insulin markets. Gan&Lee Pharmaceuticals has also announced the establishment of its second pharmaceutical production base in Linyi, Shandong Province, with new drugs manufactured at this facility intended for global supply.

Primary Uses of Funds Raised by Gan&Lee Pharmaceuticals in This IPO

The funds raised by Gan&Lee Pharmaceuticals in this IPO are primarily intended to further strengthen its portfolio of insulin-related products. In the next phase of development, in addition to customary expenditures such as R&D investment, marketing, and industrialization, the remaining proceeds will be allocated to advancing the overseas development of its products, particularly regulatory approval and market launch in the United States.

Dr. Gan Zhongru, Founder and Chairman of Gan&Lee Pharmaceuticals, stated clearly in his opening remarks at the online roadshow for the company’s initial public offering of A-shares: “The Company will also actively invest in research and development in the fields of oncology chemical drugs, eukaryotic and prokaryotic protein engineering, and cardiovascular and metabolic diseases, striving to become a world-class pharmaceutical company and continuing to move forward.”

“Gan&Lee Pharmaceuticals was Qiming Venture Partners’ first investment in the biopharmaceutical sector. It has been an honor to collaborate with Dr. Gan over the past decade and witness Gan&Lee’s transformation from a startup into a global leader in diabetes treatment and other therapeutic areas. Under Dr. Gan’s leadership, the company has consistently thrived by leveraging cutting-edge technologies and has evolved into an R&D-driven pharmaceutical enterprise,” said Liang Yingyu, Managing Partner at Qiming Venture Partners. “We look forward to supporting Gan&Lee as it continues to build a robust portfolio of metabolic therapies and other innovative medicines for patients in China and around the world.”

Qiming Venture Partners was established in 2006 and has successively set up offices in Shanghai, Beijing, Suzhou, Shenzhen, Hong Kong, Seattle, Boston, and the San Francisco Bay Area. Currently, Qiming Venture Partners manages nine U.S. dollar funds and five RMB funds, with total assets under management exceeding US$5.3 billion. Since its inception, the firm has focused on investing in outstanding early-stage and growth-stage companies in sectors such as TMT and Healthcare. To date, Qiming Venture Partners has invested in more than 350 high-growth innovative enterprises, among which over 110 have achieved exits through listings on exchanges including the New York Stock Exchange (NYSE), NASDAQ, Hong Kong Stock Exchange (HKEX), Taipei Exchange (TPEx), Shanghai Stock Exchange (SSE), and Shenzhen Stock Exchange (SZSE), as well as through mergers and acquisitions. More than 30 of these portfolio companies have become industry-recognized unicorns and super unicorns.

Many of Qiming Venture Partners’ portfolio companies have grown into the most influential firms in their respective fields, including Xiaomi Corporation (01810.HK), Meituan Dianping (03690.HK), Bilibili (NASDAQ: BILI), Roborock Technology (688169.SH), Gan&Lee Pharmaceuticals (603087.SH), Tigermed (300347.SZ), Zai Lab (NASDAQ: ZLAB), Venus Medtech (02500.HK), CanSino Biologics (06185.HK), Schrödinger (NASDAQ: SDGR), Sanyou Medical (688085.SH), AmoyDx (300685.SZ), Berry Genomics (000710.SZ), Sinocelltech (688520.SH), WeDoctor Group, and UBTECH.