As­cle­tis reaps record $400M from Hong Kong in­vestors in the ex­change's first-ever pre-rev­enue biotech list­ing

The first pre-rev­enue biotech to list on Hong Kong’s stock ex­change has land­ed. And its suc­cess will like­ly spur plen­ty of more such of­fer­ings in search of a big pay­off.

As­cle­tis has raised $400 mil­lion by sell­ing 224 mil­lion new shares at around $1.78 (HK$14) — right in the mid­dle of its an­tic­i­pat­ed HK$12 to HK$16 range, Reuters re­port­ed. It’s sched­uled to be­gin trad­ing on Au­gust 1, less than three months af­ter it first filed for the IPO.

GIC, Sin­ga­pore’s sov­er­eign wealth fund, signed on to be the cor­ner­stone in­vestor and com­mit­ted $75 mil­lion for around 19% of the IPO shares. The rest — which in turn ac­counts for about 20% of As­cle­tis’ en­larged share cap­i­tal — was all snapped up in an over­sub­scribed fren­zy.

Jinzi Wu

Found­ed by ex-GSK ex­ec Jinzi Wu in 2011, As­cle­tis has a rep­u­ta­tion in Chi­na for be­ing the first do­mes­tic com­pa­ny to de­vel­op a hep C cure. The drug, Gano­vo, is ex­pect­ed to be ap­proved in Q3 of 2018. The team plans to fol­low that up with an­oth­er HCV treat­ment, ravi­dasvir (in-li­censed from Roche), along with HIV drug ASC09, and liv­er can­cer ther­a­py HASC06.

Be­ing the first biotech to test the new list­ing rules wasn’t easy. Wu pre­vi­ous­ly said that As­cle­tis faced “some chal­lenges” in nail­ing down the com­pa­ny’s val­u­a­tion.

The smooth tra­jec­to­ry of As­cle­tis’ IPO like­ly paves the way for the six oth­er biotechs and one CRO — from Hua Med­i­cine to Stealth Bio­Ther­a­peu­tics — that’s of­fered their own IPO pitch.

It’s al­so a mile­stone for HKEX, which has been an­gling to be­come an IPO des­ti­na­tion for biotech up­starts, es­pe­cial­ly the kind that’s been pop­ping up in main­land Chi­na the past decade.

Just a few days ago, word came out that the list­ing com­mit­tee is dis­cussing a sec­ondary list­ing with BeiGene $BGNE — the Bei­jing-based, Cel­gene-part­nered biotech whose Nas­daq list­ing (and im­mense suc­cess) had been seen as an im­pe­tus for Hong Kong to change its rules.

In its fil­ing, BeiGene wrote that it be­lieves it’s “well po­si­tioned to cap­ture the sig­nif­i­cant mar­ket op­por­tu­ni­ties in Chi­na” with its core as­sets zanubru­ti­nib, tislelizum­ab and pami­parib, all of which would ben­e­fit from the raise, from clin­i­cal tri­als to reg­is­tra­tion and com­mer­cial­iza­tion in both Chi­na and the US.

But the star to­day is As­cle­tis. The past year has brought a rush of biotech de­buts in the US, with Ru­bius claim­ing the largest biotech IPO so far on Nas­daq — rais­ing $241 mil­lion — while De­nali scored $250 mil­lion in late 2017. Now As­cle­tis, a com­pa­ny not well known out­side of Chi­na, has left those top per­form­ers in the dust, in­clud­ing Ax­o­vant, which held the record for the biggest biotech IPO.

With the fresh in­fu­sion of cash, Wu and his team can now car­ry on with the planned R&D and com­mer­cial­iza­tion of core prod­ucts, as well as in-li­cens­ing more drugs.

Two pre­vi­ous rounds of fi­nanc­ing had brought a col­lec­tive $155 mil­lion in­to As­cle­tis’ ac­counts. Among their back­ers: C-Bridge Cap­i­tal, Qian­Hai Eq­ui­ty In­vest­ment FOF, Gold­man Sachs, and Tasly Phar­ma­ceu­ti­cal. Wu and his wife Ju­ly He are still the largest share­hold­ers of the com­pa­ny at the mo­ment, own­ing over 60% of the shares.

Vlad Coric (Biohaven)

In an­oth­er dis­ap­point­ment for in­vestors, FDA slaps down Bio­haven’s re­vised ver­sion of an old ALS drug

Biohaven is at risk of making a habit of disappointing its investors. 

Late Friday the biotech $BHVN reported that the FDA had rejected its application for riluzole, an old drug that they had made over into a sublingual formulation that dissolves under the tongue. According to Biohaven, the FDA had a problem with the active ingredient used in a bioequivalence study back in 2017, which they got from the Canadian drugmaker Apotex.

Francesco De Rubertis

Medicxi is rolling out its biggest fund ever to back Eu­rope's top 'sci­en­tists with strange ideas'

Francesco De Rubertis built Medicxi to be the kind of biotech venture player he would have liked to have known back when he was a full time scientist.

“When I was a scientist 20 years ago I would have loved Medicxi,’ the co-founder tells me. It’s the kind of place run by and for investigators, what the Medicxi partner calls “scientists with strange ideas — a platform for the drug hunter and scientific entrepreneur. That’s what I wanted when I was a scientist.”

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Af­ter a decade, Vi­iV CSO John Pot­tage says it's time to step down — and he's hand­ing the job to long­time col­league Kim Smith

ViiV Healthcare has always been something unique in the global drug industry.

Owned by GlaxoSmithKline and Pfizer — with GSK in the lead as majority owner — it was created 10 years ago in a time of deep turmoil for the field as something independent of the pharma giants, but with access to lots of infrastructural support on demand. While R&D at the mother ship inside GSK was souring, a razor-focused ViiV provided a rare bright spot, challenging Gilead on a lucrative front in delivering new combinations that require fewer therapies with a more easily tolerated regimen.

They kept a massive number of people alive who would otherwise have been facing a death sentence. And they made money.

And throughout, John Pottage has been the chief scientific and chief medical officer.

Until now.

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Chas­ing Roche's ag­ing block­buster fran­chise, Am­gen/Al­ler­gan roll out Avastin, Her­ceptin knock­offs at dis­count

Let the long battle for biosimilars in the cancer space begin.

Amgen has launched its Avastin and Herceptin copycats — licensed from the predecessors of Allergan — almost two years after the FDA had stamped its approval on Mvasi (bevacizumab-awwb) and three months after the Kanjinti OK (trastuzumab-anns). While the biotech had been fielding biosimilars in Europe, this marks their first foray in the US — and the first oncology biosimilars in the country.

Seer adds ex-FDA chief Mark Mc­Clel­lan to the board; Her­cules Cap­i­tal makes it of­fi­cial for new CEO Scott Bluestein

→ On the same day it announced a $17.5 million Series C, life sciences and health data company Seer unveiled that it had lured former FDA commissioner and ex-CMS administrator Mark McClellan on to its board. “Mark’s deep understanding of the health care ecosystem and visionary insights on policy reform will be crucial in informing our thinking as we work to bring our liquid biopsy and life sciences products to market,” said Seer chief and founder Omid Farokhzad in a statement.

Daniel O'Day

No­var­tis hands off 3 pre­clin­i­cal pro­grams to the an­tivi­ral R&D mas­ters at Gilead

Gilead CEO Daniel O’Day’s new task hunting up a CSO for the company isn’t stopping the industry’s dominant antiviral player from doing pipeline deals.

The big biotech today snapped up 3 preclinical antiviral programs from pharma giant Novartis, with drugs promising to treat human rhinovirus, influenza and herpes viruses. We don’t know what the upfront is, but the back end has $291 million in milestones baked in.

Vas Narasimhan, AP Images

On a hot streak, No­var­tis ex­ecs run the odds on their two most im­por­tant PhI­II read­outs. Which is 0.01% more like­ly to suc­ceed?

Novartis CEO Vas Narasimhan is living in the sweet spot right now.

The numbers are running a bit better than expected, the pipeline — which he assembled as development chief — is performing and the stock popped more than 4% on Thursday as the executive team ran through their assessment of Q2 performance.

Year-to-date the stock is up 28%, so the investors will be beaming. Anyone looking for chinks in their armor — and there are plenty giving it a shot — right now focus on payer acceptance of their $2.1 million gene therapy Zolgensma, where it’s early days. And CAR-T continues to underperform, but Novartis doesn’t appear to be suffering from it.

So what could go wrong?

Actually, not much. But Tim Anderson at Wolfe pressed Narasimhan and his development chief John Tsai to pick which of two looming Phase III readouts with blockbuster implication had the better odds of success.

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H1 analy­sis: The high-stakes ta­ble in the biotech deals casi­no is pay­ing out some record-set­ting win­nings

For years the big trend among dealmakers at the major players has been centered on ratcheting down upfront payments in favor of bigger milestones. Better known as biobucks for some. But with the top 15 companies competing for the kind of “transformative” pacts that can whip up some excitement on Wall Street, with some big biotechs like Regeneron now weighing in as well, cash is king at the high stakes table.

We asked Chris Dokomajilar, the head of DealForma, to crunch the numbers for us, looking over the top 20 deals for the past decade and breaking it all down into the top alliances already created in 2019. Gilead has clearly tipped the scales in terms of the coin of the bio-realm, with its record-setting $5 billion upfront to tie up to Galapagos’ entire pipeline.

Dokomajilar notes:

We’re going to need a ‘three comma club’ for the deals with over $1 billion in total upfront cash and equity. The $100 million-plus club is getting crowded at 164 deals in the last decade with new deals being added towards the top of the chart. 2019 already has 14 deals with at least $100 million in upfront cash and equity for a total year-to-date of over $9 billion. That beats last year’s $8 billion and sets a record.

Add upfronts and equity payments and you get $11.5 billion for the year, just shy of last year’s record-setting $11.8 billion.

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Part club, part guide, part land­lord: Arie Bellde­grun is blue­print­ing a string of be­spoke biotech com­plex­es in glob­al boom­towns — start­ing with Boston

The biotech industry is getting a landlord, unlike anything it’s ever known before.

Inspired by his recent experiences scrounging for space in Boston and the Bay Area, master biotech builder, investor, and global dealmaker Arie Belldegrun has organized a new venture to build a new, 250,000 square foot biopharma building in Boston’s Seaport district — home to Vertex and a number of up-and-coming biotech players.

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