PE-backed Abbisko trades up after $225m Hong Kong IPO

The company sold 140.7 million shares for HK$12.46 apiece, the top end of the indicative range, according to a filing. Cornerstone investors contributed $180 million. The stock opened at HK$11.30 on October 15 and rose steadily over the course of the day to close at HK$12.46.

The largest institutional shareholder is Lilly Asia Ventures (LAV) with a 10.72% stake, followed by Qiming Venture Partners and Temasek Holdings, with 6.92% and 7.52%, respectively. Other investors include Sinopharm Capital, GIC, CICC Capital, The Carlyle Group, Warburg Pincus, BlackRock, OrbiMed, Janchor Partners, Sage Partners, and Greater Bay Area Homeland Development Fund.

The company raised nearly $250 million in private funding. The most recent round – a $123 million Series D led by Carlyle in January – valued Abbisko at $723 million, up from $30 million on closing the first tranche of the Series A in 2016. The company’s market capitalization is now $1.1 billion.

Founded in 2016, Abbisko focuses on small molecule precision oncology and small molecule immuno-oncology treatments. It has 14 drug candidates, of which five are in clinical trials.

There are two core products, both in phase two trials. ABSK011, which was developed in-house blocks signaling by fibroblast growth factor receptors (FGFR), an enzyme known to stimulate cell proliferation that contributes to the growth of tumors. ABSK091, which was licensed from AstraZeneca, targets specific FGFRs.

According to Frost & Sullivan, the global oncology drug market will grow from $150.3 billion in 2020 to $670.4 billion in 2035. Meanwhile, the revenue share going to precision oncology therapies will expand from 60.4% in 2020 to approximately 90% in 2030. Over the same period, the China market will rise from $28.6 billion to $145.5 billion.

Abbisko has yet to enter the commercialization stage. It recorded income of RMB12.7 million ($1.97 million) in 2019 and RMB18.8 million in 2020. Net losses expanded from RMB133.9 million to RMB706.6 million, largely due to rising R&D expenses and fair value losses on convertible redeemable preference shares.

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• Topics
• Greater China
• Healthcare
• IPO
• China
• Pharmaceuticals
• IPO
• Lilly Asia Ventures
• Qiming Venture Partners
• The Carlyle Group
• Warburg Pincus Asia
• BlackRock
• CICC
• OrbiMed