Cancer drug developer Innovent Biologics files for HK IPO
Innovent Biologics, a Chinese drug developer company with a number of PE backers, has filed for an IPO in Hong Kong under recently introduced rules allowing listings by biotech companies with no revenue or profits.
The size and pricing of the offering have not been announced, though according to media reports the company is seeking up to $500 million. Innovent will use the proceeds from the listing to fund clinical trials, registration filings and commercial launches of its drug candidates.
The company currently has 17 drugs in its pipeline. Of the four most developed, three are biosimilars – drugs with nearly identical effects to medications already on the market – for cancer medications Avastin and Rituxan and arthritis treatment Humira, and are currently in phase-three clinical trials. Sintilimab, a novel cancer treatment, is awaiting final approval by China’s Food & Drug Administration.
Innovent was founded in 2011 and has raised more than $560 million from a range of PE investors. Early rounds drew contributions from backers including Fidelity International investment arms F-Prime Capital Partners and Eight Roads Ventures, along with Lilly Asia Ventures and Frontline Bioventures, which is now called 6 Dimensions Capital following a merger with WuXi Apptec.
The 2015 Series C round saw Legend Capital, Temasek Holdings, Cowin China and Hillhouse Capital join the existing investors; China’s State Development & Investment Corporation led the Series D round in 2016, and Capital Group Private Markets led a $150 million Series E round earlier this year with participation by Ally Bridge, Rock Springs Capital, and Cormorant Asset Management.
Innovent currently has no products approved for commercial sale and has generated no revenue to date, incurring net losses of RMB545 million ($82 million) and RMB716 million in 2016 and 2017, respectively. It expects to continue incurring an operating loss for the next several years, until its drugs are approved and can begin commercialization.
Ascletis was the first company to file for an IPO under the modified listing requirements introduced earlier this year. Candidates must have a minimum market capitalization requirement of HK$1.5 billion ($191 million), enough working capital for at least 12 months, and secure the backing of a sophisticated investor – such as a PE firm specializing in healthcare or a major pharmaceutical player – at least six months before the IPO.
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