Ascentage Pharma Files for Hong Kong IPO, Becomes Fifth Biotech to Seek Listing Under New Rules

On August 21, 2018, VCBeat learned that Ascentage Pharma, a leading domestic innovative drug company, had submitted its application for listing on the Hong Kong Stock Exchange on August 20. In the prospectus, Ascentage Pharma has not yet disclosed the specific amount of funds to be raised.

Ascentage Pharma is an innovative enterprise dedicated to the research and development of original drugs. Based in China and oriented toward the global market, the company is guided by unmet clinical needs for conditions with no available treatments, designing and developing high-end, first-in-class or best-in-class novel original drugs.

The company possesses multiple core rapid-development capabilities in the field of innovative oncology drug development based on novel mechanisms of action, and is currently a global leader in drug design targeting protein-protein interactions. It is reported that the company holds more than 100 invention patents both domestically and internationally.

Building on its proprietary core technologies, the company has rapidly established a product portfolio in the fields of oncology, hepatitis B, and age-related diseases within just a few years. Among these, seven original innovative drugs have successively entered Phase I–II clinical development in China, the United States, and Australia, while multiple other original drug candidates are currently in preclinical or earlier stages of research.

Image from Ascentage Pharma's official website

The company’s achievements in the research and development of high-end, internationally pioneered innovative drugs have also earned it the trust of professional venture capital firms and industrial investors within the industry. In 2015, the company secured RMB 96 million in Series A financing from several venture capital institutions, including Yuanhe Yuandian, Yuanming Capital, and Yuansheng Venture Capital. Subsequently, in late 2016, it raised up to RMB 500 million in Series B financing from investors such as SDIC Innovation. In 2018, the company completed a RMB 1 billion Series C financing round led by Yuanming Fangyuan Fund, with its post-money valuation estimated at RMB 4 billion.

Capital investment has accelerated the development pace of Ascentage Pharma. In 2017, the company initiated the site selection and construction of its global industrial base, marking its formal transition from a pure R&D model to an integrated business model encompassing research and development, manufacturing, and sales.

In 2016, VCBeat had the privilege of interviewing Yang Dajun, founder of Ascentage Pharma. At that time, Ascentage Pharma had just received an invitation to the J.P. Morgan Healthcare Conference and was preparing for its roadshow. Meanwhile, during the interview, Mr. Yang also disclosed the company’s intention to pursue a listing in the United States.

This year, the Hong Kong Stock Exchange (HKEX) extended an olive branch to pre-revenue biotechnology companies, prompting media reports that Ascentage Pharma is planning a listing in Hong Kong. Listing in the U.S. or in Hong Kong? This is currently a dilemma facing many biotechnology firms. However, judging from the list of companies that have already announced their plans to list in Hong Kong, despite the lackluster stock performance of existing biotech listings on the HKEX, going public “on home turf” appears to be the prevailing trend.