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    Home > Medical News > Latest Medical News > Tianjing biology officially goes public in the United States. What's the ambition behind the $800 million valuation?

    Tianjing biology officially goes public in the United States. What's the ambition behind the $800 million valuation?

    • Last Update: 2020-01-20
    • Source: Internet
    • Author: User
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    On January 17, 2020 EDT, Tianjing biology was officially listed on NASDAQ with the securities code of imab The IPO price is 14 USD / share, with a total of 74074000 ADSS (equivalent to 17037020 ordinary shares) issued, with an opening price of 14.75 USD / share Since 2020, domestic pharmaceutical companies have been listed in the United States for the first time At the same time, they have obtained the overvalued value of $800 million from the U.S stock market Undoubtedly, Tianjing biology has attracted enough heat and attention Among them, there are hot discussions and exclamations, as well as curiosity and doubts It's curious that Tianjing biology first planned to go public in Hong Kong Why did it turn to NASDAQ? Will it return to Hong Kong Stock Exchange later? The question is, behind the acceleration of listing, what kind of company is Tianjing bio, and whether it can play a good hand? Behind the $180 million valuation: the ambitious drug development plan, Tianjing bio, formerly known as Sanjing bio, was first co founded by Dr Zang Jingwu, tag pharma and baijiahui precision medicine, and then reorganized into Tianjing bio in 2016 By 2017, Tianjing bio was merged with tianshizhen, which was jointly founded by Kangqiao capital, Tianshili and genexine, a Korean listed company In the future, Tianjing biology is a clinical stage biopharmaceutical company, focusing on the major treatment needs in the field of tumor immunity and autoimmune diseases that have not yet been met, and focusing on the development of innovative biopharmaceuticals with the potential of "Global Initiative" and "best in class" in the global scope Behind the $800 million valuation, in addition to the scarcity of biotechnology companies listed in the United States, it also shows that the overseas market is optimistic about Tianjing bio On December 2, 2019, according to the total financing amount of enterprises, foreign biotechnology website Gen released the list of top 10 start-ups in the field of immune oncology in 2019 Tianjing biology became the only Chinese immune oncology start-up company on the list This means the favor of capital Data shows that prior to listing in the United States, Tianjing biology has obtained a total of 420 million US dollars in financing, of which the c-round financing of 227 million US dollars has become one of the largest c-round financing in the field of innovative drugs in China In the report, frost Sullivan also spoke highly of Tianjing biology: according to the number and quality of candidate innovative drugs and the scale of financing, Tianjing biology is the top immune tumor company in China's clinical stage Indeed, in addition to the dazzling financing in the past, Tianjing bio's drug development plan is also ambitious It is reported that Tianjing biology adopts the dual driving mode of "license in" and "independent research and development", and wants to quickly open the market through products in a relatively short time At present, the company has more than 10 innovative drug pipelines from preclinical to clinical phase I to phase III for example, five candidate drugs have been approved by China food and Drug Administration for clinical trial application (ind) and three research drugs are undergoing phase I trials in the United States At the same time, based on the strategic positioning of "rapid clinical validation" and "rapid product launch", Tianjing biology has established a "China pipeline" that can face the market quickly, and a "global pipeline" that has breakthrough potential The two pipelines have both innovation and risk balance, and have endogenous synergy The global pipeline consists of three kinds of molecules: monoclonal antibody, antibody cytokine fusion molecule (Immune cytokine) and bispecific antibody These molecules have the potential to become tumor innovative drugs through differential mechanism of action, and enter the clinical development stage in the United States in 2019 Tj202, tj107, enoblituzumab and tj101 are the four main assets of the pipeline in China Currently, there are candidate drugs that have entered or are about to enter the clinical phase II and phase III trials, and it is expected that the biological products license (BLA) will be obtained successively from 2021 In addition to the huge potential product portfolio, the blue ocean market is also a good factor for overseas investors Taking the multiple myeloma field of Tianjing biology as an example, research data from GlobalData shows that the eight major markets of multiple myeloma in the world, with a total scale of 14.5 billion US dollars in 2017, are expected to reach 27.8 billion US dollars in 2027, with a compound annual growth rate of 6.7% from 2018 to 2027 Back to the listing in the US, Tianjing Bio said that the funds raised from the IPO will be mainly used for research and development of existing and future candidate drugs, potential investment to enhance production capacity, and general corporate purposes including working capital The specific purposes are as follows: Tianjing bio's IPO fundraising purpose (data source: public information) It is not hard to see that Tianjing biology has enough ambition in the development and investment of candidate drugs However, if we want to cover such a huge product line for a long time, we need huge capital investment and support It's not hard to understand that Tianjing biology has to speed up its listing in the United States But behind the forced, borrowed the investment bank personage once said: "the first level market really cannot melt down, just chooses the NASDAQ to be listed." 2 is it possible to consider listing in Hong Kong in the future? But why didn't Tianjing biology go to HKEx? According to the previous news, Tianjing biology once sought to IPO in Hong Kong, but on July 29, 2019, it finally chose to secretly deliver the form to the securities and Exchange Commission (SEC), turning its listing place to NASDAQ Judging from the US $800 million valuation given by the US stock market, in addition to the US market's recognition of the long-term value of Tianjing biology, there are also views that compared with the Hong Kong stock exchange, the Nasdaq stock market is more diversified and inclusive, and the capital scale and price earnings ratio listed in the US are far higher than that in Hong Kong At the same time, American investors are also considered to be more popular enterprises with unique technology platforms, and value the core technology of enterprises In addition, in the field of biomedicine, the current mainstream valuation method is the pipeline valuation method Its core idea is the cash discount method to estimate the future peak sales or the expected post market sales revenue according to the factors such as the approval probability of the drug, the size of the disease market, the drug price, the patent period, etc., which is also the reason for the high valuation of Tianjing biology "It makes more sense for the company to be listed on NASDAQ now, because American investors are more able to evaluate their innovation projects." Capital watch, the US media, said so However, Zang Jingwu, founder of Tianjing biology, expressed his concern about the recent US stock market trend in an interview with capital watch before IPO "The U.S presidential campaign could have a negative impact on the market in 2020.. We don't want to get into election uncertainty," the company said Basically, the whole market will be in this kind of tug of war in 2020.. So we just hope to be able to enter the market first by the end of this year (2019), and then after going public, our share price will be driven by our own data flow, product pipeline, and excellent R & D and clinical team rather than anything related to the macro " Unfortunately, in 2019, the performance of Listed Companies in the United States is not satisfactory As of November 30, 2019, the number of listed companies of China capital stock was 31, the third consecutive year of decline Meanwhile, 29 of the 31 companies, including 36kr, had a negative share price growth, accounting for 82.8% Meanwhile, 31 companies listed in the United States in 2019 raised about $2621 million, which was $8.215 billion in 2018 and only 30% in 2019 "The" Daoxing "of overseas listing of domestic enterprises is too shallow," Yu Yu said before when the stock price of dangdang.com plummeted by 40%, which may explain the hardships of domestic enterprises after overseas listing Will environmental biology consider going back to Hong Kong for listing that day? Zang told capital watch that when its leading assets are close to commercialization in China, it may consider listing in Hong Kong Original author: This article is reprinted by yaozhi.com The copyright belongs to the original author The purpose of reprint is to transmit more information, which does not represent the view of this platform If the content of the work, copyright and other issues are involved, please contact our website message, we will delete the content in the first time.
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