SinoMab BioScience Lists on HKEX with Yunnan Baiyao and HighTone as Cornerstone Investors; Lead Product SM03 in Phase III Trials

VCBeat (WeChat ID: vcbeat) has learned that on November 12, 2019, SINOMAB BIOSCIENCE LIMITED was listed on the Hong Kong Stock Exchange. The IPO price was HK$7.60 per share, with a total of 182 million shares issued, raising a total of HK$1.383 billion. The proceeds will be primarily used to advance its pipeline in development and construct the production base in Suzhou.

During the roadshow, SINOMAB BIOSCIENCE LIMITED secured cornerstone investments from Yunnan Baiyao and Shenzhen GTJA Investment Group. The two entities participated in SINOMAB’s subscription with USD 50 million and USD 10 million, respectively, subject to a six-month lock-up period. Notably, this marks Yunnan Baiyao’s first investment as a cornerstone investor in an innovative drug company. GTJA Group had previously participated in Henlius’ Series B financing; Henlius listed on the Hong Kong Stock Exchange on September 25.

SINOMAB BIOSCIENCE LIMITED Posts Weak Debut, Opening at HK$7.30 with a Near 4% DropOn its first day of listing, SINOMAB BIOSCIENCE LIMITED performed poorly, opening at HK$7.30 per share, down nearly 4%. By the close of trading, the stock price had fallen to HK$6.00 per share, representing a decline of 21.05%, while its total market capitalization dropped to HK$6.037 billion.

Data sourced from Eastmoney.com

SINOMAB BIOSCIENCE LIMITED is a Hong Kong-incorporated antibody-based novel drug development company targeting the global market. It was founded in Hong Kong in 2001 by Dr. Leung Shui-wah, Visiting Professor at The Chinese University of Hong Kong and The Hong Kong University of Science and Technology, former Director of the Hong Kong Institute of Biotechnology, and advisor to the Hong Kong Stock Exchange’s Biotech Advisory Panel. In the field of antibodies, Dr. Leung is the first scientist globally to propose the concept of “functional humanization” and the first to successfully develop a humanized monoclonal antibody targeting CD22. In 2018, he was specially appointed as an advisor to the inaugural Biotech Advisory Panel of the Hong Kong Stock Exchange.

Leveraging Dr. Liang Ruian’s over two decades of experience in the development and industrialization of monoclonal antibodies, SINOMAB BIOSCIENCE LIMITED has established an innovative drug platform centered on its globally leading CD22 target after more than ten years of development. The company has developed multiple first-in-class monoclonal antibody drugs for autoimmune diseases (such as rheumatoid arthritis and systemic lupus erythematosus) and anti-tumor indications (such as non-Hodgkin lymphoma), and has conducted numerous clinical trials. As the fastest-growing innovative pharmaceutical enterprise in this field, its core candidates have entered Phase III clinical trials at renowned hospitals in China, garnering recognition and support from the National 863 Program and major special funds. Currently, SINOMAB BIOSCIENCE LIMITED has established research centers and production bases in Shenzhen, Haikou, and Suzhou, respectively.

SINOMAB BIOSCIENCE LIMITED's Key Product Pipeline

Since its inception, SINOMAB BIOSCIENCE LIMITED has been dedicated to research and development, establishing a robust and complementary pipeline of investigational drugs. This pipeline includes biologic agents based on monoclonal antibodies and new chemical entities (“NCEs”), targeting various immune-mediated disease indications. The company’s flagship product, SM03, is the first potential monoclonal antibody therapy globally targeting this specific mechanism for the treatment of rheumatoid arthritis (“RA”), with potential efficacy in other immune-mediated diseases.

According to Frost & Sullivan, the global market size for autoimmune diseases (including rheumatoid arthritis, systemic lupus erythematosus, Sjögren's syndrome, and pemphigus) reached USD 113.7 billion in 2018 and is expected to reach USD 191.3 billion by 2030. In addition to SM03, SINOMAB BIOSCIENCE LIMITED’s other pipeline candidates are also focused on immune-mediated diseases and immunotherapy, consistently targeting this high-growth-potential market.

SM03 is a specific monoclonal antibody targeting the B-cell-restricted antigen CD22, developed specifically for the treatment of rheumatoid arthritis (RA) as well as other immune disorders such as systemic lupus erythematosus (SLE) and Sjögren's syndrome (SS). SINOMAB BIOSCIENCE LIMITED is one of the few biopharmaceutical companies worldwide that have successfully developed therapeutic naked monoclonal antibodies targeting CD22, and it is the only domestic company to achieve this. To date, SM03 is the first and only clinical-stage anti-CD22 monoclonal antibody drug for the treatment of rheumatoid arthritis globally.

SINOMAB BIOSCIENCE LIMITED has established a production base in Haikou, Hainan Province, and commercial-scale manufacturing facilities in Suzhou, Jiangsu Province. One of the primary uses of the proceeds from this listing is to expand the Suzhou production facilities to facilitate the large-scale manufacturing of SM03.

Key Milestones of Sinomab Bioscience

SINOMAB BIOSCIENCE LIMITED Key Financial Data

SINOMAB BIOSCIENCE LIMITED reported net losses of RMB 51.9 million and RMB 83.61 million in 2017 and 2018, respectively, with R&D costs constituting the primary expense. In the first four months of 2019, the company’s overall loss did not continue to rise sharply, although its R&D expenditures increased by 50% compared to the same period in 2018. However, given that its core product, SM03, has entered Phase III clinical trials, SINOMAB BIOSCIENCE is expected to begin generating revenue in the coming years.