Allist Pharmaceuticals Files for STAR Market IPO Under Rule 5 with Former Merck Executive Yanping Mou as CEO

Shanghai Allist Pharmaceuticals Co., Ltd. submitted its application for listing on the STAR Market on April 17, with a planned fundraising of RMB 1.503 billion through its initial public offering (IPO).

Allist Pharmaceuticals is an innovative pharmaceutical company focused on oncology therapeutics, having established a robust R&D pipeline in the field of small-molecule targeted therapies for non-small cell lung cancer (NSCLC). Since 2019, Allist has completed two rounds of private equity financing, achieving post-money valuations of RMB 4 billion and RMB 4.8 billion, respectively.

In May 2019, Allist Pharmaceuticals completed a financing round of RMB 1.18 billion. The round was led by Shiyu Capital, with participation from Zhengxingu Innovation Capital, Sifanghe, Gongqingcheng Hanren, Yuansheng Venture Capital, Gaoke Xinjun, Gaoke Xinchuang, SDIC Chuanghe, Deyi Capital, Huaxin Century Investment, and Qianlong Capital.

In 2019, the company completed its Pre-IPO financing round, raising RMB 1.38 billion. The round was led by Yufeng Capital, with participation from prominent investors including Lilly Asia Ventures and Zenovo Capital.

Allist Pharmaceuticals has not yet achieved profitability and is applying for listing under the fifth set of criteria, which requires an estimated market capitalization of no less than RMB 4 billion. Its core business or products must be approved by relevant national authorities, address a substantial market opportunity, and have already achieved phased results. For pharmaceutical companies, at least one core product must have been approved to initiate Phase II clinical trials; other enterprises aligned with the positioning of the STAR Market must demonstrate technological advantages and meet corresponding conditions. During the reporting period, Allist Pharmaceuticals invested significant funds in preclinical research, clinical trials, and preparations for the new drug application (NDA) for its product pipeline. In 2017, 2018, and 2019, the company’s R&D expenses amounted to RMB 37.9126 million, RMB 92.4870 million, and RMB 161.9989 million, respectively.

Allist Pharmaceuticals’ core products remain in the research and development stage and have not yet entered commercial production or sales. The Company has not achieved profitability and has accumulated unrealized losses. For the years 2017, 2018, and 2019, the net losses attributable to ordinary shareholders of the parent company were RMB 38.9338 million, RMB 97.3938 million, and RMB 397.5025 million, respectively.

As of the date of signing this prospectus, Allist Pharmaceuticals’ core product pipeline comprises 10 R&D projects involving five major drug candidates. These projects are at various stages, including submission of New Drug Application (NDA), clinical trials, Investigational New Drug (IND) application, or preclinical research. Specifically, one project has submitted an NDA, one is in Phase III clinical trials, one is at the IND application stage, and the remaining projects are in preclinical research.

In November 2019, the National Medical Products Administration (NMPA) accepted the new drug application for alflutinib mesylate tablets, a Class 1 innovative drug independently developed by the Company. The application is for the second-line treatment of adult patients with locally advanced or metastatic non-small cell lung cancer (NSCLC) who have experienced disease progression during or after prior EGFR-TKI therapy and whose tumors test positive for the EGFR T790M mutation. The application is currently under review by the Center for Drug Evaluation (CDE) and has been included in the list of drugs subject to priority review; marketing approval is expected in 2020. Meanwhile, the study evaluating its use as first-line treatment for adult patients with locally advanced or metastatic NSCLC harboring EGFR exon 19 deletions or exon 21 (L858R) substitution mutations is in Phase III clinical trials.

The Phase III clinical trial of furmonertinib as first-line treatment for locally advanced or metastatic non-small cell lung cancer (NSCLC) with EGFR-sensitive mutations was initiated in June 2019, with the new drug application expected to be submitted in 2022. The development of furmonertinib for second-line indications in the United States is at the Investigational New Drug (IND) application stage. IND applications for studies on furmonertinib in the treatment of brain metastases in NSCLC, unresectable Stage IIIB NSCLC, and postoperative adjuvant therapy for NSCLC are expected to be submitted in 2020. In addition, the company’s novel drug candidates targeting RET, KRAS G12C, EGFR exon 20 insertion mutations, and c-MET are in preclinical research, with IND applications anticipated between 2021 and 2023. Lung cancer is the most prevalent cancer in China, creating an urgent clinical need for related therapeutics. As a third-generation EGFR-TKI small-molecule targeted therapy for patients with NSCLC, furmonertinib holds broad market prospects.

In March 2019, Mou Yanping, former head of Merck China’s Oncology Business Unit, joined Shanghai Allist Pharmaceuticals as Chief Executive Officer. With two decades of deep expertise in the Chinese pharmaceutical market, Ms. Mou has served at numerous renowned multinational pharmaceutical companies, including GlaxoSmithKline, AstraZeneca, Johnson & Johnson, and Merck, accumulating extensive experience in leading sales, marketing, and comprehensive management. Prior to joining Allist, Ms. Mou served as Managing Director of the Oncology Business Unit at Merck, where she established Merck China’s Oncology Business Unit. Under her leadership, within less than three years of its establishment, the unit rose to become one of the top three foreign pharmaceutical companies in China’s oncology sector. As CEO, Ms. Mou assumes full responsibility for the company’s business operations and reports to Mr. Du Jinhao, the company’s founder and Chairman.