China Resource Plans US$1 Billion Hong Kong IPO

February 15, 2016

NewsStandOnline.Net (15-February-2016): China Resources Pharmaceutical Group, China’s second-largest pharma and a subsidiary of state-owned China Resources (Holdings), is planning an IPO in Hong Kong that will raise at least $1 billion, according to media reports.

At least two of CR Pharma’s subsidiaries are already listed on China’s exchanges. The offering is still in the early stages of planning, as the company has asked investment bankers to submit proposals by tomorrow, so details of the transaction are not yet available.

Hutchison China MediTech (Chi-Med) filed a third iteration of a prospectus for its $100 million IPO in the US, which still doesn’t include final pricing. Strictly speaking, the offering is an IPO of new ADS shares.

These will be some multiple – not yet disclosed – of the company’s London-traded ordinary shares that are currently worth about $30.23 each.

China Resource Plans $1 Billion Hong Kong IPO

The new prospectus includes 9-month financial data for 2015, showing that Chi-Med was on track for a very good year. The price of the company’s London shares more than quadrupled in the two years of 2014-2015 and nearly doubled last year. 2016 hasn’t been so generous, with the company’s stock price sliding 25% in just six weeks.

Pharmaron, a Beijing CRO/CMO, acquired Quotient Bioresearch of the UK. Quotient focuses on integrating radiochemistry and metabolism, an expertise derived from its purchase of GE Amersham’s radiosynthesis business in 2009. Pharmaron said the transaction, besides adding the radiochemistry technology, would broaden its footprint, increasing market access in Asia, Europe and the US. The price was not disclosed.

Xizang Haisco Pharma (SHZ: 002653) led a $15 million Series D funding for Regentis Biomaterials, an Israeli medical device company. As part of its investment, Haisco will own China rights to Regentis’ lead product, GelrinC®, a proprietary hydrogel. Implanted as a liquid, GelrinC is cured in-situ via ultraviolet light to form a resorbable implant. Over time, the gel is gradually replaced by newly regenerated cartilage. Regentis plans to use the new capital to conduct US clinical trials of GenrinC.