CanSino Biologics Debuts on HKEX as First Vaccine Stock, Known for Self-Developed Ebola Vaccine
Source:PharmaCube
For biopharmaceutical companies that are not yet profitable, the Hong Kong Stock Exchange (HKEX) remains a favorable listing venue. On March 28, CanSino Biologics officially listed on the Main Board of The Stock Exchange of Hong Kong Limited, with its H shares priced between HK$21 and HK$22 per share. The total funds raised from the offering could reach up to HK$1.259 billion. CLSA and Morgan Stanley served as joint bookrunners for this issuance.
CanSino Biologics, founded in 2009, is renowned for developing China’s first Ebola virus disease vaccine. This IPO marks CanSino Biologics’ official entry into the capital market as the “first vaccine stock listed in Hong Kong.” The company’s core business focuses on establishing a premium vaccine product pipeline capable of preventing a range of diseases—including pneumonia, tuberculosis, Ebola virus disease, meningitis, diphtheria-tetanus-pertussis (DTP), and cervical cancer—by leveraging its five core technology platforms, such as polysaccharide-protein conjugate technology and synthetic biology vaccine technology.
Well-structured pipeline: 1 approved, 2 NDAs, 6 in clinical development, and 6 in preclinical development
A review of CanSino Biologics’ product pipeline reveals that it is a relatively new player in the vaccine sector. Its 15 vaccines under development cover 12 disease areas, including an Ebola vaccine (Ad5-EBOV) that received approval from the National Medical Products Administration (NMPA) for its new drug application in October 2017, allowing for emergency use and inclusion in national stockpiles. Compared with competing products from multinational corporations, this vaccine demonstrates superior stability and does not require ultra-cold storage conditions.
CanSino Biologics' Product Pipeline
The company’s investigational product, MCV4 (a quadrivalent meningococcal conjugate vaccine targeting serogroups A, C, Y, and W135 for the prevention of Neisseria meningitidis infection), is being prepared for submission of a New Drug Application and is poised to become China’s first innovative vaccine for meningitis prevention. Its other investigational product, MCV2 (a bivalent meningococcal conjugate vaccine targeting serogroups A and C for the prevention of Neisseria meningitidis infection), has already submitted a New Drug Application.
The company also has six vaccine candidates in clinical trials or nearing clinical trials, such as DTcP for young children, a DTcP booster vaccine under development, a tuberculosis booster vaccine, PBPV, and PCV13i (an improved pneumococcal conjugate vaccine). In addition, the company has six other projects in the preclinical research stage.
Broad Market Prospects: China’s Vaccine Market to Surpass RMB 100 Billion by 2030
As disclosed in the prospectus, China is the world’s largest potential market for human vaccines. In 2017, per capita vaccine expenditure in China was only USD 2.9, less than 6% of that in the United States. The human vaccine market in China has significant room for growth in both scale and product quality. The size of China’s human vaccine market is projected to reach RMB 100.9 billion by 2030, representing a compound annual growth rate (CAGR) of 11.2% from 2017 to 2030. Within this, the private vaccine market is expected to grow at a CAGR of 12.3% from 2017 to 2030, accounting for more than 90% of the total market.
Among these, China’s diphtheria-tetanus-pertussis (DTP) vaccine market is expected to expand rapidly over the next decade, with sales revenue increasing from RMB 1.9 billion in 2017 to RMB 8.2 billion in 2030, at a compound annual growth rate (CAGR) of 12.2%. Meanwhile, China’s pneumococcal vaccine market operates as a private-sector vaccine market and is projected to grow at a CAGR of 18.8% from 2017 to 2030, reaching RMB 14.2 billion by 2030.
The company’s founder and management team are all veterans of the vaccine industry. Dr. Yu Xuefeng, one of the co-founders, previously served as Global Director of Bacterial Vaccine Development at Sanofi Pasteur. Last May, Dr. Chao Shoubai, former Senior Vice President of Global Biopharmaceuticals at AstraZeneca, officially joined CanSino Biologics Inc. as Chief Operating Officer (COO).
Dr. Yu Xuefeng recently stated in an external interview that CanSino Biologics plans to advance the development and commercialization of vaccine products nearing commercial launch, drive the development of other vaccine candidates in its pipeline, establish and strengthen commercial infrastructure, and solidify its competitive advantages through global collaborations and acquisition opportunities. The funds raised will be primarily used to support the commercialization of two novel meningococcal vaccine products, as well as the research, development, and commercialization of other vaccine candidates in the pipeline.