The company sold 551 million shares in the latest IPO on the Hong Kong Exchange and plans to invest half of its earnings in R&D. Hong Kong is now the second largest biotech funding hub in the world.
Hansoh Pharmaceutical, one of China’s fastest-growing pharma companies, raised a billion dollars in its recent IPO on the HKEX (Hong Kong Exchange & Clearing Limited). Hansoh sold 551 million shares at $1.82 each, of which half will go to research and development, with the other half set aside for manufacturing, sales and marketing.
Hansoh, founded in 1995 by Huijuan Zhong and headquartered in Lianyuangang, is one of China’s leading R&D pharmaceutical companies and is dedicated to innovation in CNS, oncology, anti-infective, diabetes, gastrointestinal and cardiovascular therapies. The company reported $1.15 billion in revenue in 2018, mainly from its two top-selling generic drugs Olanning and Pulaile.
Hansoh is the latest in a series of biotech companies to list on the Hong Kong Exchange. In recent months the HKEX has conducted eight pre-revenue listings of biotech companies so far, with a total fund raised of USD three billion. The average amount of funds raised by these firms is four to five times higher than the US average. Hong Kong was recently named the second largest biotech funding hub in the world by Chief Executive Carrie Lam.
With the goal of removing barriers and encouraging research breakthroughs, HKEX has revised the listing rules which enable pre-revenue and pre-profit biotech companies to list on it; furthermore, the HKEX has established a biotech advisory panel to provide advice on listing applications from biotech companies. These updates comprise the most significant revamp of listing rules in two decades.