Cancer drug developer Tot Biopharm files for HK IPO
Tot Biopharm, a private equity-backed Chinese cancer drug developer, has filed for a Hong Kong IPO under rules that allow for listings by pre-revenue biotech companies.
Founded in 2009, Tot has seven biological and five chemical drugs in the pipeline, according to a prospectus. One is currently in phase-three clinical trials and three more are in phase one.
The most advanced treatment is a biosimilar - a drug with nearly identical effects to a medication already on the market - used to slow the growth of blood vessels in tumors. Commercial launch is expected to come in late 2020 or 2021. The three phase-one drugs are for pancreatic cancer, loss of vision, and breast cancer.
With no drugs generating revenue, Tot recorded net losses of RMB149 million ($22.1 million) and RMB269 million for 2017 and 2018, respectively. The increase was mainly due to R&D expenses, which went from RMB105.9 million in 2017 to RMB189.1 million last year.
In 2011, the company received around $33 million from a group of investors including Taiwan-based drug developers TTY Biopharm and Centerlab, as well as BioEngine Venture Capital, Chengwei Capital, and Yuanta Venture Capital. TTY was previously a shareholder in Centerlab, while Centerlab controls BioEngine.
Another $33 million was raised between 2012 to 2015, and TTY exited towards the end of this period. Centerlab, Chengwei, Vivo Capital and others paid $24 million for its shares. The following year, Cathay Venture came into a $16 million round alongside existing investors. In 2018, Tot completed a $102 million Series B round, comprising a $45 million convertible bond issue and a $57 million injection of new equity. Advantech Capital joined this round.
Centerlab is currently the largest shareholder with 36.77% stake, followed by Vivo on 19.34%, Chengwei on 11.98%, and Advantech on 10.41%.
Several Chinese biotech players have listed in Hong Kong since 2018, taking advantage of the rule change. The first was Ascletis, a hepatitis drug developer that went public last July. Since then, BeiGene, Hua Medicine, Innovent Biologics, and CStone Pharmaceuticals have listed. The likes of Ascentage Pharma, Junshi Biosciences, and Shanghai Henlius Biotech have also filed for IPOs.
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