PE-backed BeiGene gains 18% on debut after $158m IPO

The company sold 6.6 million American Depository Shares (ADS) at $24.00 apiece in its offering, having originally planned to sell 5.5 million shares at $22.00-24.00. The stock opened at $28.97 and peaked at $29.49, before settling back to $28.32. Underwriters can purchase up to 825,000 additional shares if they exercise the overallotment option.

Hillhouse and US-based life sciences investor Baker Brothers purchased $63 million worth of shares in the IPO, according to a regulatory filing. They now hold 7.5% and 19.5% of BeiGene, respectively. CITIC has 4.8% while strategic player Merck Sharp & Dohme Research holds 7.7%

BeiGene has built a proprietary cancer biology platform that addresses the importance of tumor-immune system interactions and the value of primary biopsies in drug discovery. It is hoped that the better classification of cancers due to breakthroughs in gene sequencing will facilitate the development of drugs that target specific forms of cancer and deliver higher response rates.

The company has four clinical-stage drug candidates and has the worldwide rights to three of them; Merck has the license to commercialize the fourth outside of China.

BeiGene has a global team of more than 175 employees and consultants, including a 110-strong team at its research and development center and headquarters in Beijing. Its presence in China delivers frontline access to patients and primary biopsy samples, government support, and affordable drug development and research.

China accounts for 20-25% of the world's cancer patients and the market for cancer therapeutics is growing rapidly. Many global standard therapies are not approved or available in China, resulting in a significant need for innovative drugs.

BeiGene completed a Series A round of funding worth $74.5 million in October 2014, with Baker Brothers putting in $33.4 million and Hillhouse, CITIC PE and Merck contributing $10 million apiece. The remainder came from BeiGene's founder, CEO and chairman, John Oyler.

This was followed by a $97.3 million Series B round in April of this year. Baker Brothers invested $32.9 million while Hillhouse contributed $18.5 million, and CITIC PE and Merck each committed $5.6 million.

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• Topics
• Greater China
• IPO
• Expansion
• Healthcare
• Hillhouse Capital Management
• Citic Private Equity
• China
• IPO
• Exit
• Growth capital
• healthcare