Raised funds amounted to HK $ 1.95-23.4 billion.
Editor’s note: This article comes from the WeChat public account “I knew it early” (ID: ipozaozhidao) , author: Uncle C.
According to the IPO, the biopharmaceutical company Nuocheng Jianhua, co-founded by the world-renowned structural biologist Professor Shi Yigong and Dr. Cui Yisong, will open for public offering on March 11 with a fundraising amount of HK $ 1.95-23.4 billion. .
Company Overview
Source: Prospectus
Release Overview
On March 11th, the Hong Kong stock market was listed on the biomedical sector with 50 million new shares; the offer price range was 16800-17600 yuan per lot; the fundraising amount was HK $ 1.95-23.4 billion; the sponsors were Morgan Stanley and Goldman Sachs.
Company background, financing situation
InnoCare Beijing Nuocheng was co-founded by Shi Yigong and Yan Zhiyu on December 13, 2013. On April 17, 2017, Ruinian Investment acquired the entire equity of InnoCare Beijing Nuocheng for 54.8 million yuan, becoming the sole shareholder of InnoCare Beijing Nuocheng. Nuocheng Jianhua turned Ruinian Investment into its wholly-owned subsidiary on March 6, 2016. Since then, Nuocheng Jianhua indirectly holds the entire equity of InnoCare Beijing Nuocheng.
Since 2016, Nuocheng Jianhua has received more than US $ 270 million in financing, of which the largest single is more than US $ 160 million. Investors include Zhengxingu Innovation Capital (LVC), Singapore sovereign wealth fund Singapore Government Investment Corporation (GIC), Ip Capital, Vivo Capital, Shanghai Jianxin Capital, etc.
History development
Source: Prospectus
Current shareholding structure
Source: Prospectus
The company’s main shareholders are Cui Yisong, Zhao Renbin, Hebert Pang Kee Chan, Lin Lijun, GIC, Vivo Capital.
Zhao Renbin holds 15.34%. Renbin Zhao is the spouse of Shi Yigong. He is the executive director of Nuo Cheng Jianhua’s biology and clinical development strategy. He has a PhD from Johns Hopkins Medical School in the United States. He has over 15 years of experience in new drug development. Former chief researcher of Johnson & Johnson.
Shi Yigong is also a non-executive director of Nuocheng Jianhua. He participates in decision-making on major issues such as strategy and is the chairman of the company’s scientific advisory committee. Nuocheng Jianhua said that the company’s internal research and development capabilities are supported by Dr. Shi Yigong, a world-renowned structural biologist, and Dr. Zhang Zemin (scientific consultant), an expert in cancer genomics. The company has entered into exclusive strategic cooperation agreements with Shi Yigong and Zhang Zemin.
Industry background
The global oncology drug market is a segment of the biomedical market, focusing on the discovery and commercialization of cancer drugs. Molecular targeted therapy is the mainstay of cancer treatment. By targeting specific molecules to inhibit the growth of cancer cells, molecular targeted therapies generally do less harm to normal cells than traditional chemotherapy. As a result, molecularly targeted tumor drugs often have fewer side effects and are better tolerated than chemotherapeutic drugs. With the discovery of new targets, the rise of more available diagnostic tools and combination therapies, the global molecular targeted oncology drug market is expected to continue to grow.
A major growth trend in the field of oncology is the rise of combination therapy, which has the characteristics of low toxicity and strong efficacy of molecular targeted therapy and tumor immunotherapy. Academia and industry widely believe that these combination therapies have the potential to improve efficacy, response rate and durability compared to monotherapy.
Products under development
The company’s team identified and developed nine drug candidates with the potential to be best-in-class and / or pioneering. The company’s current R & D products include one candidate drug in the registered trial phase, two candidates in the I / II phase.Select drugs and six drug candidates in the IND preparation stage.
The fastest-growing core variety is the BTK inhibitor abutinib (ICP-022). There are 10 indications under investigation for this project. In November 2019, a new drug marketing application (NDA) for Obutinib (ICP-022) was accepted for treatment of relapsed / refractory chronic lymphocytic leukemia (CLL) / small lymphocytic lymphoma (SLL).
Source: Prospectus
Advantages and opportunities
Abutinib is expected to become the best-in-class BTK inhibitor for the treatment of B-cell malignancies in China. Obtinib’s sales in China are expected to reach $ 1 billion by 2023 and $ 2.6 billion by 2030. At present, there are two BTK inhibitors jointly developed by Johnson & Johnson / AbbVie, Ibutinib and AstraZeneca’s Acatinib. Among them, Zebutinib developed by BeiGene has received the FDA’s breakthrough therapy in January 2019, and has submitted NDA declarations in both China and the United States and received priority review. It is expected to receive the FDA’s Approved.
In addition, Nuocheng Jianhua is the only Chinese biopharmaceutical company to discover and develop FGFR4 inhibitors in clinical stage.
The team has extensive R & D experience. One of the founders, Shi Yigong, is a member of the Chinese Academy of Sciences and president of West Lake University. The company’s R & D team has more than 150 members. At the same time, eight patent licenses have been obtained in China and globally, and 90 patent applications have been filed.
Financial status
The company’s products have not yet been approved for commercial sale, and the company has not yet generated revenue from product sales. In the years since its establishment, the company has not been profitable and incurred operating losses. For the year ended December 31, 2017 and the year ended December 31, 2018, operating losses were RMB 342 million and RMB 554 million, respectively. And for the six months ended June 30, 2018 and 2019, operating losses were RMB 279 million and RMB 322 million, respectively. Most of the company’s operating losses were due to changes in the fair value of convertible and redeemable preference shares, research and development costs and administrative expenses.
![Nuocheng Jianhua's IPO on Wednesday: Shi Yigong blessed, and the core product Obutinib has been declared for listing. p></p>
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Source: Prospectus
Use of fundraising
The funds raised by Nuocheng Jianhua will be invested in the company’s ongoing and planned clinical trials of abutinib in the treatment of B-cell malignancies, as well as ongoing and planned abutinib in autoimmune diseases The clinical trial, in addition, will also be used to fund the preparation, rollout and commercialization of obutinib for major indications (subject to regulatory approval).
On March 11th, the Hong Kong stock market was listed on the biomedical sector with 50 million new shares; the offer price range was 16800-17600 yuan per lot; the fundraising amount was HK $ 1.95-23.4 billion; the sponsors were Morgan Stanley and Goldman Sachs.
Company background, financing situation
InnoCare Beijing Nuocheng was co-founded by Shi Yigong and Yan Zhiyu on December 13, 2013. On April 17, 2017, Ruinian Investment acquired the entire equity of InnoCare Beijing Nuocheng for 54.8 million yuan, becoming the sole shareholder of InnoCare Beijing Nuocheng. Nuocheng Jianhua turned Ruinian Investment into its wholly-owned subsidiary on March 6, 2016. Since then, Nuocheng Jianhua indirectly holds the entire equity of InnoCare Beijing Nuocheng.
Since 2016, Nuocheng Jianhua has received more than US $ 270 million in financing, of which the largest single is more than US $ 160 million. Investors include Zhengxingu Innovation Capital (LVC), Singapore sovereign wealth fund Singapore Government Investment Corporation (GIC), Ip Capital, Vivo Capital, Shanghai Jianxin Capital, etc.
History development
Source: Prospectus
Current shareholding structure
Source: Prospectus
The company’s main shareholders are Cui Yisong, Zhao Renbin, Hebert Pang Kee Chan, Lin Lijun, GIC, Vivo Capital.
Zhao Renbin holds 15.34%. Renbin Zhao is the spouse of Shi Yigong. He is the executive director of Nuo Cheng Jianhua’s biology and clinical development strategy. He has a PhD from Johns Hopkins Medical School in the United States. He has over 15 years of experience in new drug development. Former chief researcher of Johnson & Johnson.
Shi Yigong is also a non-executive director of Nuocheng Jianhua. He participates in decision-making on major issues such as strategy and is the chairman of the company’s scientific advisory committee. Nuocheng Jianhua said that the company’s internal research and development capabilities are supported by Dr. Shi Yigong, a world-renowned structural biologist, and Dr. Zhang Zemin (scientific consultant), an expert in cancer genomics. The company has entered into exclusive strategic cooperation agreements with Shi Yigong and Zhang Zemin.
Industry background
The global oncology drug market is a segment of the biomedical market, focusing on the discovery and commercialization of cancer drugs. Molecular targeted therapy is the mainstay of cancer treatment. By targeting specific molecules to inhibit the growth of cancer cells, molecular targeted therapies generally do less harm to normal cells than traditional chemotherapy. As a result, molecularly targeted tumor drugs often have fewer side effects and are better tolerated than chemotherapeutic drugs. With the discovery of new targets, the rise of more available diagnostic tools and combination therapies, the global molecular targeted oncology drug market is expected to continue to grow.
A major growth trend in the field of oncology is the rise of combination therapy, which has the characteristics of low toxicity and strong efficacy of molecular targeted therapy and tumor immunotherapy. Academia and industry widely believe that these combination therapies have the potential to improve efficacy, response rate and durability compared to monotherapy.
Products under development
The company’s team identified and developed nine drug candidates with the potential to be best-in-class and / or pioneering. The company’s current R & D products include one candidate drug in the registered trial phase, two candidates in the I / II phase.Select drugs and six drug candidates in the IND preparation stage.
The fastest-growing core variety is the BTK inhibitor abutinib (ICP-022). There are 10 indications under investigation for this project. In November 2019, a new drug marketing application (NDA) for Obutinib (ICP-022) was accepted for treatment of relapsed / refractory chronic lymphocytic leukemia (CLL) / small lymphocytic lymphoma (SLL).
Source: Prospectus
Advantages and opportunities
Abutinib is expected to become the best-in-class BTK inhibitor for the treatment of B-cell malignancies in China. Obtinib’s sales in China are expected to reach $ 1 billion by 2023 and $ 2.6 billion by 2030. At present, there are two BTK inhibitors jointly developed by Johnson & Johnson / AbbVie, Ibutinib and AstraZeneca’s Acatinib. Among them, Zebutinib developed by BeiGene has received the FDA’s breakthrough therapy in January 2019, and has submitted NDA declarations in both China and the United States and received priority review. It is expected to receive the FDA’s Approved.
In addition, Nuocheng Jianhua is the only Chinese biopharmaceutical company to discover and develop FGFR4 inhibitors in clinical stage.
The team has extensive R & D experience. One of the founders, Shi Yigong, is a member of the Chinese Academy of Sciences and president of West Lake University. The company’s R & D team has more than 150 members. At the same time, eight patent licenses have been obtained in China and globally, and 90 patent applications have been filed.
Financial status
The company’s products have not yet been approved for commercial sale, and the company has not yet generated revenue from product sales. In the years since its establishment, the company has not been profitable and incurred operating losses. For the year ended December 31, 2017 and the year ended December 31, 2018, operating losses were RMB 342 million and RMB 554 million, respectively. And for the six months ended June 30, 2018 and 2019, operating losses were RMB 279 million and RMB 322 million, respectively. Most of the company’s operating losses were due to changes in the fair value of convertible and redeemable preference shares, research and development costs and administrative expenses.
![Nuocheng Jianhua's IPO on Wednesday: Shi Yigong blessed, and the core product Obutinib has been declared for listing. p></p>
<p class =]()
Source: Prospectus
Use of fundraising
The funds raised by Nuocheng Jianhua will be invested in the company’s ongoing and planned clinical trials of abutinib in the treatment of B-cell malignancies, as well as ongoing and planned abutinib in autoimmune diseases The clinical trial, in addition, will also be used to fund the preparation, rollout and commercialization of obutinib for major indications (subject to regulatory approval).
The company’s team identified and developed nine drug candidates with the potential to be best-in-class and / or pioneering. The company’s current R & D products include one candidate drug in the registered trial phase, two candidates in the I / II phase.Select drugs and six drug candidates in the IND preparation stage.
The fastest-growing core variety is the BTK inhibitor abutinib (ICP-022). There are 10 indications under investigation for this project. In November 2019, a new drug marketing application (NDA) for Obutinib (ICP-022) was accepted for treatment of relapsed / refractory chronic lymphocytic leukemia (CLL) / small lymphocytic lymphoma (SLL).
Source: Prospectus
Advantages and opportunities
Abutinib is expected to become the best-in-class BTK inhibitor for the treatment of B-cell malignancies in China. Obtinib’s sales in China are expected to reach $ 1 billion by 2023 and $ 2.6 billion by 2030. At present, there are two BTK inhibitors jointly developed by Johnson & Johnson / AbbVie, Ibutinib and AstraZeneca’s Acatinib. Among them, Zebutinib developed by BeiGene has received the FDA’s breakthrough therapy in January 2019, and has submitted NDA declarations in both China and the United States and received priority review. It is expected to receive the FDA’s Approved.
In addition, Nuocheng Jianhua is the only Chinese biopharmaceutical company to discover and develop FGFR4 inhibitors in clinical stage.
The team has extensive R & D experience. One of the founders, Shi Yigong, is a member of the Chinese Academy of Sciences and president of West Lake University. The company’s R & D team has more than 150 members. At the same time, eight patent licenses have been obtained in China and globally, and 90 patent applications have been filed.