Chinese Biotech Company Transcenta Files for Hong Kong IPO
June 22 2021 - 1:00AM
Dow Jones News
By Ben Otto
Eli Lilly & Co.-backed biopharmaceutical company Transcenta
Holding Ltd. has filed for an initial public offering in Hong Kong,
the latest in a wave of Chinese early-stage biotech businesses
seeking listings in the Asian financial hub.
The Suzhou, China-based company intends to use the offering
proceeds to develop its pipeline of drug candidates focused on
oncology, nephrology and bone diseases, it said in a filing to the
Hong Kong bourse on Tuesday. It didn't specify a timeline nor say
how much it intends to raise.
Transcenta has nine drug candidates in clinical development,
including its core product for treating solid tumors. It also has a
licensing agreement with U.S. drugmaker Eli Lilly in China and
other parts of Asia to commercialize a drug treating low
bone-mineral density.
Transcenta's plans come as a host of other Chinese biotech
companies look to tap into bullish investor sentiment in Hong Kong.
Beijing-based Brii Biosciences and Keymed Biosciences of Chengdu
both filed for offerings this week, while last week Shanghai-based
CARsgen Therapeutics Holdings Ltd. raised about 3 billion Hong Kong
dollars (US$386.3 million) and China-focused Hutchmed (China) Ltd.
announced plans to raise more than US$600 million.
Transcenta said it expects to incur operating losses in the
coming years as it spends on the development and commercialization
of its pipeline products. It posted a loss of 316.6 million yuan
(US$49.0 million) in 2020 on revenue of CNY81.0 million.
Transcenta's early investors include Eli Lilly, Singapore state
investment fund Temasek Holdings, Chinese private-equity firm
Hillhouse Capital and U.S. venture capital firm Sequoia Capital.
The company was valued at about US$650 million in a funding round
late last year, it said in the filing.
Goldman Sachs and China International Capital Corp. are acting
as joint sponsors of the offering.
Write to Ben Otto at ben.otto@wsj.com
(END) Dow Jones Newswires
June 22, 2021 00:49 ET (04:49 GMT)
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