Ophthalmic drugs, cancer cell therapies attract $340M+ on two HKEX biotech debuts
Nasdaq may be running the main biotech IPO show, but the Hong Kong stock exchange has some stellar performance on display even as the city confronts a third wave of Covid-19.
Ocumension Therapeutics and Immunotech Biopharm both traded up after making their public debuts on the HKEX’s busiest IPO day of the year so far, with seven stocks getting listed. The former raised close to $200 million while the latter took home $141 million.
“A lot of hot money is flowing into these new IPOs,” Stanley Chan, director of research at Emperor Securities, told the South China Morning Post.
Eye disease-focused Ocumension booked the biggest gain, surging as much as 193% from the IPO price of $14.66 per share before closing at $37.
While relatively low-profile before this year, the biotech enjoys the backing of a marquee syndicate. Incubated at 6 Dimensions, its vision of bridging the gap in ophthalmic treatments between the US and China has drawn in $200 million from the likes of Temasek, Boyu, General Atlantic, Eight Roads, 3W Partners and Cormorant Asset Management.
Retail investors scrambled to follow their money, oversubscribing the IPO 1,895.76 times.
“We will use these funds to continue expanding our portfolio with innovative new drug assets, whilst developing our manufacturing capabilities and strengthening our commercialization through sales and marketing,” CEO Ye Liu said in a statement.
Immunotech, on the other hand, is chasing one of the hottest trends in global oncology R&D: T cell immunotherapy. Its lead product candidate is in Phase II for liver cancer, although applications can extend to blood cancer, stomach cancer, lung cancer and colon cancer.
The float makes them the only public cell therapy company on the HKEX, after GenScript spun out the CAR-T subsidiary Nanjing Legend for its own IPO on the Nasdaq. Its stock shot up 40%.