Three biological enterprises go to Hong Kong to be listed on the Hong Kong Stock Exchange and strive to build the main capital market of Biotechnology

On the night of June 29, tag pharmaceutical released the announcement on the progress of overseas (Hong Kong) listing of the company's affiliated enterprises, announcing that its affiliated Fangda pharmaceutical went to Hong Kong for listing, and the listing application documents were submitted to the Hong Kong Stock Exchange on June 29, 2018 This is the third biological enterprise listed in Hong Kong in a few days On June 28, Cinda biology, a cancer drug R & D enterprise that abandoned the US and went to Hong Kong for listing, officially announced its listing in Hong Kong, following the formal listing application submitted by mengke pharmaceutical to the Hong Kong stock exchange All three companies belong to Biopharmaceutical Enterprises, and UNITAR pharmaceutical and Cinda bio, which are committed to new drug research and development, do not commercialize any products, so there is no revenue Fangda pharmaceutical, which focuses on drug R & D outsourcing services (CRO), achieved a net profit of 90 million yuan in 2017, an increase of about 90% year on year "In the future, with the development of bioequivalence test (be) filing system and consistency evaluation, Shanghai Fangda, which has high-quality biological analysis business, will get more orders, which will drive Fangda's performance to maintain rapid growth," said Taige pharmaceutical, the parent company of Fangda pharmaceutical In April this year, Cinda biology, which was originally preparing to go public on the New York Stock Exchange, abandoned its original plan because of the new policy of the Hong Kong Stock Exchange and instead strived to go public on the Hong Kong stock exchange As a profitable and growing biological company such as Fonda pharmaceutical also chose to go public in Hong Kong, it can be seen that the Hong Kong Stock Exchange's vision of building a major global biotechnology capital market is quite effective The Hong Kong Stock Exchange aims to create a major capital market for biotechnology, which allows biotechnology companies that have not yet made profits or have no income to come to Hong Kong for listing Behind this is the Hong Kong Stock Exchange's ambition to provide a unique fund-raising platform for the biotechnology industry and build a major financial market for biotechnology Biopharmaceutical industry is characterized by high input, high output, high risk and high technology intensive Equity financing (rather than debt financing) is an important financing method for Biopharmaceutical Enterprises in the growth period The regulation of this industry by internationally recognized agencies (such as the U.S Food and Drug Administration), as well as the different stages of approval of products by these agencies, can help investors understand the nature of biotechnology companies, so as to judge the development stages of regulated products that these companies will produce At present, the main international securities markets have gradually established the securities market rules applicable to the listing of biotechnology enterprises The Hong Kong Stock Exchange's move is in line with the times Li Xiaojia, chief executive of the Hong Kong stock exchange, said: "breakthroughs and innovations in the field of global biotechnology, major trends such as the aging population of many countries in the world, especially China, and the reform of the biotechnology industry in mainland China, are driving the huge development and huge capital demand of the whole biotechnology industry The capital market should seize the opportunity of the day, the land and the people to respond to the tide of the development of biotechnology industry " He stressed that he was convinced that in time, Hong Kong would become a major financial market for the biotechnology industry The Hong Kong Stock Exchange's move has added heat to the already hot biomedical industry Zhang Jiang, general manager of Ping An venture capital, said that he clearly felt that the valuation of the head company of biotechnology had risen sharply "This year, there are a number of companies with a valuation of more than 3 billion US dollars No matter a or B rounds, they say they are pre IPO rounds." As the stock exchange of Hong Kong liberalizes the listing of non income biotechnology companies, it needs to adjust its investment stage and strategy in time for equity investment "Before, we all invested in B wheels, C wheels and Pre-IPO wheels At this stage, we will definitely move forward It's good that round a and pre-A can enter " This year, 5 or 6 companies in the field of innovative drugs in Ping An venture capital plan have entered the clinical phase II and are ready to apply for listing, Zhang said Li Xiaojia recently attended the LME Asia annual meeting in Hong Kong, saying that it is not convenient to disclose how many companies have applied for listing in Hong Kong under the same share structure with different rights for the time being Considering that the new rules were only put into use at the end of April, it is expected that there will be a peak of listing after August "Every year, the peak of listing is in the second half of the year There are audit factors and holiday factors The new regulations come into effect at the end of April It is expected that more companies will be listed after August September to November are the peak of listing." Li Xiaojia said that more and more biotech companies with different rights and unprofitable shares apply for listing in Hong Kong, because many companies have been in close communication with the listing section of the Hong Kong stock exchange According to the statistics of the health sector, the biological enterprises that have been listed in Hong Kong at present include Geli pharmaceutical, Chengda biological, Hualing pharmaceutical, etc The biotech companies that may be listed in Hong Kong this year include Fuhong Hanlin, Shanghai Tianshili pharmaceutical, Yongtai biology, micro medical group, jiannenglong, cutting-edge biology, Kaifa pharmaceutical, nuoerkang, etc.