This pharmaceutical company is the king of oversubscription of 2019 Hong Kong stock new share company. What's the reason?

[industry trends of pharmaceutical network] on October 28, AXA pharmaceuticals was officially listed on the Hong Kong stock exchange, with a total of 12.18809 million shares issued, 50% of which were issued in Hong Kong and 50% in international market; the issue price of each share was 34.20 Hong Kong dollars, and the net financing for global sale was about 311.7 million Hong Kong dollars On the opening day, AXA pharmaceuticals surged 54.97% to HK $53, with a market value of HK $11 billion According to the preliminary data submitted by the Hong Kong public offering, the total number of shares effectively applied for subscription by AXA Pharma is 916 million, achieving an over subscription of about 751.99 times As a result, AXA Pharmaceutical Co., Ltd ranks first in the list of over purchase of new shares of Hong Kong stock in 2019, far surpassing the innovative pharmaceutical companies listed in Hong Kong stock market, and is known as the "king of over purchase of Hong Kong stock in 2019" According to the public information, Yasheng pharmaceutical is an original new drug R & D enterprise based in China and facing the world It is committed to the development of innovative drugs in the fields of cancer, hepatitis B and aging related diseases As of June 30, 2019, AXA Pharma has built 8 product pipelines with class 1 new drugs around the world At present, 28 phase I / II clinical trials have been carried out in China, the United States and Australia to study the potential of new drugs in single or combination therapy Among them, the main products of AXA include apg-1252, apg-2575, apg-115 and hqp1351 Specifically, its core product hqp1351 is the next generation kinase inhibitor hqp1351 based on bcr-abl mutant, which is used to treat drug-resistant chronic myeloid leukemia (CML) According to the clinical data disclosed in the prospectus, as of May 27, 2019, 92 of the 101 patients are still receiving treatment for a long period of 31 months It is reported that the key phase II CML clinical trial of the project is to evaluate the efficacy and safety of hqp1351 in various situations for CP-CML or ap-cml patients with T315I mutation or resistance / intolerance to all available and second-generation TKI At the same time, the new generation of kinase inhibitor hqp1351 is expected to submit a new drug listing application in 2020 It is reported that the company's biological R & D product pipeline mainly focuses on inhibitors of key proteins of apoptosis pathway, and restarts the apoptosis process of tumor cells by inhibiting Bcl-2, IAP or MDM2-p53, etc.; the second and third generations of inhibitors for kinase mutants in cancer treatment, etc   According to the prospectus, AXA pharmaceutical plans to allocate about 42% of the proceeds to R & D, the core product hqp1351 commercial; about 13% to apg-1252 sustained and planned clinical trials; about 19% to apg-2575 sustained and planned clinical trials; about 19% to apg-115 sustained and planned clinical trials; about 6% to apg-1387 and other apg-2449 sustained and planned clinical trials; about 1 %Allocated to working capital and general corporate purposes So far, AXA pharmaceutical has not made profits According to the financial data submitted by AXA, from 2016 to 2018, the revenue of AXA Pharma was 7.667 million yuan, 6.328 million yuan and 6.807 million yuan respectively; the annual losses were 108 million yuan, 118 million yuan, 345 million yuan and 633 million yuan respectively As all of AXA's products are commercialized, it does not benefit from the sale of products, and its revenue mainly comes from the provision of non recurring R & D services and intellectual property licensing fees to customers In terms of R & D investment, from 2016 to 2018, AXA pharmaceutical recorded R & D expenditures of 103 million yuan, 119 million yuan and 250 million yuan in candidate drugs respectively; as of June 30, 2019, the R & D expenses of AXA pharmaceutical totaled 200 million yuan, an increase of 160.13% compared with the same period last year.