Fosun Subsidiary Henlius Plans to List on NEEQ, Files Prospectus

On August 10, Fosun Pharma released the “Announcement on Resolutions of the Seventh Meeting of the Seventh Board of Directors (Extraordinary Meeting),” disclosing that the Board had approved, among other matters, the restructuring of its controlling subsidiary, Shanghai Henlius Biotech, Inc. (“Henlius”), and its application for listing on the National Equities Exchange and Quotations (the “NEEQ”).

According to VCBeat (WeChat official account: vcbeat), Henlius Biologics was established in 2010 as a joint venture between Shanghai Fosun Pharmaceutical (Group) Co., Ltd. and Henlius Biopharmaceuticals Inc. (USA), with a registered capital of USD 52.06 million. Fosun Pharma contributed USD 37.14 million, holding a 71.34% stake, while Henlius USA contributed USD 8.54 million, holding a 16.40% stake.

Shareholding Structure of Henlius

Henlius is developing a product portfolio primarily focused on oncology and autoimmune diseases. The core members of the company’s R&D team have previously engaged in early-stage research and development as well as industrialization of multiple monoclonal antibody drugs at major international pharmaceutical companies. Henlius has established R&D laboratories in Shanghai, China; California, USA; and Taipei. These facilities are equipped with internationally standardized instruments and apparatus required for early-stage monoclonal antibody drug development. The Shanghai laboratory, with a total area of approximately 2,500 square meters, has completed the construction of its monoclonal antibody drug development platform.

To date, the company’s team has efficiently completed the research and development for the Investigational New Drug (IND) applications of six products covering ten indications. Among these, four monoclonal antibody products have received clinical trial approvals from the China Food and Drug Administration (CFDA), covering six indications. Currently, the two indications for Henlius’ first product, “Recombinant Chimeric Anti-CD20 Monoclonal Antibody Injection,” and the breast cancer indication for its second product, “HLX02 Recombinant Humanized Anti-HER2 Monoclonal Antibody,” are all in the clinical study phase. The non-Hodgkin lymphoma (NHL) indication for HLX01 has successfully entered Phase III clinical trials.

Biopharmaceuticals are becoming a critical gateway to the future. For Fosun Pharma, it is absolutely essential to establish a strategic presence in this sector. Collaborating with Henlius Biotech, which has a U.S. technical background, can enable faster access to greater opportunities within this landscape.

According to Henlius’s management reports (unaudited), as of December 31, 2015, Henlius’s total assets amounted to RMB 414.15 million, equity attributable to shareholders of the parent company was RMB 159.31 million, and total liabilities were RMB 233.91 million. In 2015, Henlius generated operating revenue of RMB 240,000 and recorded a net loss attributable to shareholders of the parent company of RMB 63.80 million (all figures are on a consolidated basis).

Upon the completion of its listing on the National Equities Exchange and Quotations (NEEQ), Henlius will establish an independent direct financing platform to provide sustained financial support for its long-term development.