China's I-Mab Biopharma pursues US IPO

CBC – formerly known as C-Bridge Capital – teamed up with traditional Chinese medicine producer Tasly Holding to invest $150 million in the merged entity in 2017. Combining Third Venture Biopharma and Tianshizhen Biotechnology created a pipeline of treatments covering cancer, diabetes and autoimmune diseases. I-Bridge Capital, an early-stage affiliate of CBC, had previously invested in Third Venture, while Tianshizhen was established by Tasly, I-Bridge, and Genexine.

Last year, I-Mab raised $220 million in Series C funding. The round was led by Hony Capital and featured Hillhouse Capital, Hopu Investments, CDH Investments, Ally Bridge Group, and Singapore-based EDBI, as well as CBC and Tasly. The company claims its total private funding, across multiple rounds, exceeds $400 million.

I-Mab has one drug in phase-three clinical trials: a treatment for plasma cell cancer and autoimmune diseases such as lupus, which causes the body’s immune system to mistakenly attack healthy tissue. The initial compound was in-licensed from Germany’s MorphoSys and I-Mab has the Greater China rights. It is developing the drug in collaboration with Everest Medicines, another CBC investee.

Two more treatments are in phase-two trials, one targeting pediatric growth hormone deficiency and the other chronic inflammation in autoimmune disease. In both cases, I-Mab has the Greater China rights. Of the remaining eight pipeline drugs, five are at phase one and the other two are in the pre-clinical stages. The company has exclusive or shared global rights to six of the eight.

I-Mab generated revenue of RMB53.8 million in 2018, up from RMB11.6 million the previous year. Its net loss ballooned from RMB298.2 million to RMB402.8 million due to rising R&D expenses. The company’s pursuit of a US IPO is relatively unusual among Chinese drug developers. Most now seek to go public in Hong Kong, following a regulatory amendment that permits listings by biotech companies that generate negligible revenue and zero profit.

CBC is the largest shareholder with a 38.9% stake, according to a prospectus. Tasly has 14.3% while Hony and Genexine own 8.4% and 9.1%, respectively. Other shareholdings fall below the 5% minimum disclosure threshold.

The size and pricing of the offering have yet to be set. The proceeds will go towards research and development of existing and future drug candidates and potential investments in manufacturing capacity and research facilities in the US.

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• Topics
• Greater China
• IPO
• Healthcare
• China
• Pharmaceuticals
• C-Bridge Capital
• Hony Capital
• CDH Investments Management
• Hillhouse Capital Management
• Ally Bridge