1 November, 2018

Ally Bridge Portfolio News – Innovent Biologics hikes on HK debut amid cloudy market sentiments

October 31, 2018 ENDPOINTS NEWS

Innovent Biologics has surged on its closely watched Hong Kong IPO, hitting a 21% rise at one point and ending the day at 18.6% above its IPO price after raising a record setting $421 million. The Suzhou-based unicorn, which earned a valuation of $2 billion with its pipeline of 17 monoclonal antibodies, is the fourth pre-revenue biotech to list on the HKEX and the only one whose stock didn’t go down on the first day of trading: Ascletis, Hua Medicine and Nasdaq-listed BeiGene are all still trading below their debut price.

Brad Loncar, an independent investor who’s been watching China closely, credits Innovent’s initial success to its being a “best of breed company.”

“They have been around since 2011 and have put in the time and work required to develop a first rate biologics platform and pipeline. Honestly, I wish this had been the first company to go public under the new HK biotech rule because it really puts a best foot forward for the region,” he told me. “This is an easy one for investors to get behind because their pipeline is rich and the targets they are initially pursuing are mostly well understood unmet needs. So the commercial potential is without doubt.”