Hutchison Pharmaceuticals by Li Ka-shing's Hutchison Whampoa funded the establishment of China's earliest batch of innovative drug development of pharmaceutical companies, but also one of the few in Hong Kong, the United States, the United Kingdom, three places listed pharmaceutical companies. June 30, and the Yellow Pharmaceuticals officially landed on the Hong Kong stock market. On the first day of listing, the company's stock price rose by more than 110%, the highest price of 85.8 Hong Kong dollars / shares, the total market value once reached 70 billion Hong Kong dollars. To close, and yellow medicine reported 60.3 Hong Kong dollars / shares, narrowed to 50.37%, now the total market value of 51.2 billion Hong Kong dollars.
Hutchison Pharmaceuticals is Li Ka-shing's industry2000 by Li Ka-shing's Hutchison Whampoa funded the establishment of China's earliest batch of innovative drug development of pharmaceutical companies, but also one of the few in Hong Kong, the United States and the United Kingdom listed on the three places of the pharmaceutical company. According to the announcement, Hutchison Whampoa's current fundraising will be used to advance the late-stage clinical program as well as the clinical stage and preclinical pipeline of drug candidates, to further enhance the commercialization, clinical, regulatory and manufacturing strengths, to fund potential global business development and strategic acquisition opportunities, as well as for general corporate purposes.
"An innovative drug company that continues to lose money can continue to enjoy a higher premium, you can say it's a bubble, but you can also say it's a kind of surplus that the mall gives to innovation." Xu Yilong (a pseudonym), head of a medical equity fund in Beijing, told Era Finance. Era financial reporter contacted and yellow medicine on related issues, to the press did not get a reply.
Hehuang Pharmaceuticals, founded in 2000, is an innovative biopharmaceutical companyAccording to Frost & Sullivan, it is one of the first companies in China to establish its own drug discovery engine, focusing on the discovery, development, and commercialization of targeted therapies and immunotherapies for the treatment of cancer and immune diseases. Among them, furaquintinib, sofentinib and sevotinib are three heavyweight products independently developed by HWM, which are also the company's killer apps from China to the world.
Data showed that after Hehuang Pharmaceutical's furaquintinib was approved for listing in September 2018, terminal sales in China's public healthcare institutions exceeded $17.6 million in the following year. And after entering the national health insurance catalog on Jan. 1, 2020, annual sales exceeded $33.7 million. Now, furaquintinib is carrying out phase III clinical studies in about 165 research centers in 14 countries, including the United States, Europe and Japan, making every effort to promote China's innovation to the world stage.
Sofantinib is also an innovative drug independently developed by Hehuang PharmaceuticalsIn December 2020, Sofantinib was endorsed by China's Drug Administration for use in the treatment of patients with advanced non-pancreatic NETs and was commercially available in January 2021 within three weeks of the endorsement. By the end of January 2021, relevant prescriptions had been issued in 30 provinces in China. on May 3, 2021, Hutchison announced that it had completed the rollover submission of a new drug marketing request for sofentinib to the US FDA for the treatment of pancreatic and non-pancreatic neuroendocrine tumors - the first new drug marketing request Hutchison had submitted in the United States.
In addition, much attention is also paid to selvotinib. 2020, and Huang pharmaceutical submitted selvotinib for the treatment of lung cancer new drug listing request. 2021, June 22, and Huang Pharmaceuticals announced that selvotinib has been conditionally endorsed in our country, which is the first time selvotinib has gone through the registration of approval on a global scale. In addition to the three drugs mentioned above, Hutchison Pharma has seven other drug candidates in early clinical development and a variety of late-stage preclinical candidates.
According to the announcement, about 50% of the funds raised will be used for registration trials and potential NDA submissions to advance the late-stage clinical programs of its new drugs; about 10% will be used to support further proof-of-concept studies; about 20% will be used to enhance the general strength of commercialization, clinical, regulatory and manufacturing; about 15% will be used to fund potential global expansion and strategic acquisition opportunities; about 5% will be used for working capital; and about 5% will be used for working capital. About 15% will be used to fund potential global business development and strategic acquisition opportunities; and about 5% will be used for working capital.
Multi-location listing of innovative drug companies has been the trendInnovative drug companies need a lot of financial support in the early stage of growth, and multi-location listing is to assist companies can accomplish long-term capital value in various capital markets." Incremental Seminar Dean Zhang Auping indicated to Era Finance. As early as 2006, Li Ka-shing spun off Hutchison Pharmaceuticals, which is traded on the AIM mall of the London Stock Exchange; and in 2016, it was listed on the Nasdaq main board under the ticker symbol HCM, with a market capitalization of $4.877 billion now.
June 18, 2021, Hutchison Pharmaceuticals to the Hong Kong Stock Exchange IPO request has now passed the hearing, and is intended to be listed at the end of June. Back on April 15, 2019, Hutchison Pharmaceuticals had submitted a request to list on the main board of the Hong Kong Stock Exchange, raising about $500 million, with Bank of America Merrill Lynch and Goldman Sachs as joint sponsors. But eventually the company withdrew its scheduled listing press conference on June 19, 2019 in Hong Kong.
"There are not many arbitrage opportunities for Chinese stocks to come to Hong Kong to list. Hong Kong's valuation on innovative drug companies is slightly higher, but it is not recommended for funders to focus on and participate. Different capital market value judgment about different industries is different. For funders, it is still necessary to return to the real value of the enterprise." Zhang Ao Ping indicated. Xu Yilong believes that multi-location listing will be a large enterprise financing trend, especially after the capital to the leading enterprises will be more common.
He said, "This way can accelerate the listing of high-quality companies to raise funds, as long as the financing, they are more capable of development. But no matter what mode, whether the company is listed, when to list, where to list there is a big premise, is that the company must be a future leader with the ability to develop and increase the potential in order to continue to obtain the capital of the market for sure, because the era of arbitrage through the listing is now over."
From the point of view of the shareholding structure, Li Ka-shing's CK Hutchison is the top shareholder of Hutchison Pharmaceuticals, and CK Hutchison owns an interest of about 44.66% of the shares through CKHGI, Hutchison Whampoa China and HHHL. After listing in Hong Kong, Li Ka-shing is the largest shareholder of HWL, CKH will hold 39.2% of the shares of HWL, the company's directors will hold 2.1% and public shareholders will hold 58.7%. CK Hutchison, CKHGI, Hutchison Whampoa China and HHHL will remain controlling shareholders.
According to the 2021 Hurun Global Rich List, by January 15, 2021, Li Ka-shing is worth $220 billion, ranking 43rd in the world and the richest man in Hong Kong. Accounting for the closing price on the first day of the listing of Hutchison Pharmaceuticals, Li Ka-shing clan value of a day soared 20 billion Hong Kong dollars.