HOB Biotech's Sci-Tech Innovation Board IPO Application Accepted, Advancing Domestic Substitution in Allergy and Autoimmune Disease Diagnostic Reagents

VCBeat has learned that the application of Jiangsu HOB Biotech Group Corp., Ltd. (hereinafter referred to as “HOB Biotech”) for listing on the STAR Market was accepted on May 11, 2020. The company plans to raise approximately RMB 610 million to expand production capacity, establish a new R&D center for in vitro diagnostic reagents, and expand its marketing and service network platform. From 2017 to 2019, HOB Biotech’s net profits were RMB 21.35 million, RMB 40.15 million, and RMB 63.84 million, respectively, with a compound annual growth rate of 72.9%.

Use of Proceeds from HOB Biotech's IPO

In March 2020, HOB Biotech Group Corp., Ltd. introduced new shareholders: HighLight Capital and Xiamen C&D Emerging Investment. HighLight Capital is a well-known health industry investment institution in China, having invested in industry leaders such as Mindray Medical, WuXi AppTec, Pharmaron, Borui Medicine, Sansure Biotech, and Yuwell Medical. Xiamen C&D Emerging Investment is a corporate venture capital arm backed by the “Fortune Global 500” company Xiamen C&D Group, focusing primarily on emerging economic sectors including healthcare, advanced manufacturing, and TMT/consumer industries.

HOB Biotech is a modern high-tech enterprise specializing in the research and development, production, and sales of in vitro diagnostic reagents. The company offers a diverse portfolio of reagent products, covering tests for various diseases in the fields of allergy and autoimmunity. Founder John Li holds a Bachelor of Engineering degree from Beihang University, a Master’s degree in Systems Engineering from the University of Shanghai for Science and Technology, and a Master’s degree in Economics from The Ohio State University. He previously served as a Project Manager at Alcon and as General Manager for Greater China at Brady Corporation.

In the fields of allergy and autoimmune diagnostics where HOB Biotech operates, imported brands from Europe and the United States entered the market early and captured the majority of market share through first-mover advantages and continuous academic promotion and education. Through years of development, HOB Biotech has developed a comprehensive product portfolio and accumulated multiple core technologies in allergen and autoantibody testing, reagent development, and quality control material preparation, thereby breaking the monopoly of European and American imported products and effectively meeting domestic market demand. The company’s products enjoy a high reputation and significant market share in China’s allergy testing sector, while revenue in the autoimmune testing segment has also achieved rapid growth. Since its establishment in 2009, the company has adhered to independent research and development and technological innovation. Over the past decade, it has obtained 118 product registration certificates and 41 patents, with 52 products having received EU CE certification. During the reporting period, the company’s R&D expenses were RMB 19.6867 million, RMB 24.1528 million, and RMB 25.4389 million, accounting for 13.45%, 11.99%, and 9.82% of the operating revenue for the respective periods. The sustained increase in R&D investment has provided a continuous impetus for the company’s technological innovation and product upgrades.

HOB Biotech’s Key Financial Data for the Past Three Years

HOB Biotech boasts a rich and well-structured product portfolio, encompassing both mainstream qualitative products currently dominant in the market and quantitative products that represent the future development trends of the industry, thereby meeting the needs of medical institutions at all levels. At present, terminal hospitals in China primarily use enzyme-linked immunosorbent assay (ELISA)-based qualitative and semi-quantitative products for allergen-specific IgE testing. In recent years, with the dissemination in China of clinical application guidelines and consensus statements on quantitative allergen testing issued by internationally renowned professional societies and organizations such as the Clinical and Laboratory Standards Institute (CLSI) and the American Academy of Allergy, Asthma & Immunology (AAAAI), an increasing number of clinicians have begun to recognize the significant clinical implications and value of quantitative allergen testing. In 2019, the revenue growth rate of HOB Biotech’s ELISA-based qualitative allergy products was 6.13%, while that of its immunocapture-based quantitative products reached 68.33%, reflecting the trend toward quantification in allergy testing. Similarly, in 2019, the revenue growth rate of its ELISA-based qualitative autoimmune products was 17.02%, whereas that of its chemiluminescence-based quantitative products surged by 108.91%, underscoring the trends toward quantification and automation in autoimmune disease testing.

Development History of HOB Biotech's Main Products

Major Products Already Launched by HOB Biotech

Note: All data in this article are sourced from the prospectus of HOB Biotech.