Innovent Biologics Files for Hong Kong IPO, Joining Wave of Biotech Listings

Following Mengke Pharmaceutical’s formal submission of its IPO application to the Hong Kong Stock Exchange, Innovent Biologics, a tumor drug R&D company that had previously been rumored to be abandoning its U.S. listing in favor of going public in Hong Kong, has also officially announced its plan to list in Hong Kong.

Innovent Biologics was founded in 2011. Its founder, Dr. Yu Dechao, has been engaged in innovative research in biopharmaceuticals for nearly two decades and is the only Chinese scientist to have invented two “National Class I New Drugs” and facilitated their development and market launch. For China’s innovative drug industry, Dr. Yu Dechao and his Innovent Biologics serve as a calling card for Chinese innovation.

It is precisely for this reason that the company has been highly favored by capital markets since its inception:

In October 2011, InnoCare secured $5 million in Series A financing from F-Prime Capital Partners and Shoudao Capital.

In June 2012, the company secured $30 million in Series B financing from Lilly Asia Ventures, Sino Capital, and F-Prime Capital Partners;

In January 2015, the company secured $115 million in Series C financing. The investors included Legend Capital, Temasek Holdings of Singapore, and Hillhouse Capital, as well as existing investors such as Fidelity Investments (U.S.), Lilly Asia Ventures, and Tophold Capital.

In November 2016, the company completed a $262 million Series D financing round, led by SDIC Innovation, with participation from China Life Health Industry Fund, Legend Capital, Licheng Asset Management, Ping An Insurance, and Taikang Insurance Group.

On April 27, 2018, Innovent announced the completion of its $150 million Series E financing round, led by Capital Group Private Markets (CGPM) with a $90 million investment.

Innovent Biologics’ core products are monoclonal antibodies. To date, the company has established a product pipeline comprising 17 novel drug candidates, covering four major therapeutic areas: oncology, retinal diseases, autoimmune diseases, and cardiovascular diseases. Among these, two candidates have been selected for the National Science and Technology Major Project on “Major New Drug Development,” seven are in clinical trials, and four have entered Phase III clinical studies.

It is worth mentioning that its PD-1 monoclonal antibody (IBI308) first submitted a marketing application in December 2017 (later voluntarily withdrawn and resubmitted in April 2018), making it the first domestically produced PD-1 antibody to apply for market approval!

Currently, Innovent Biologics is among the top tier in China’s domestic PD-1 sector, standing alongside Hengrui Medicine, Junshi Biosciences, and BeiGene as the “Big Four.” Apart from Bristol Myers Squibb’s Opdivo, no second PD-1 product has yet been launched in China, leaving substantial market space for overseas giants and leading domestic companies to compete for market share.

The joint sponsors for Innovent Biologics are Morgan Stanley, Goldman Sachs, JPMorgan Chase, and China Merchants Securities International. The company currently has 17 antibody drug candidates in its R&D pipeline, including four core products in late-stage clinical development in China. Last year, the company reported a net loss of RMB 716 million, representing a 32% year-on-year increase. According to the filing documents, Innovent Biologics has completed five rounds of financing, raising a total of USD 580 million (approximately HKD 4.5 billion). Investors include Temasek, China Life, Ping An, as well as entities such as the Ministry of Finance and ICBC Credit Suisse Asset Management’s Advanced Manufacturing Fund.