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HONG KONG, Dec 19, 2022 - (ACN Newswire) - Shandong Boan Biotechnology Co., Ltd. ("Boan Biotech" or the "Company"), a spin-off of Luye Pharma Group Ltd. (stock code: 2186), announces details of its Global Offering and the listing on the Main Board of the Stock Exchange of Hong Kong ("SEHK").
The Company plans to offer an aggregate of 10,694,800 H Shares under the Global Offering (subject to the Over-allotment Option), of which 9,625,200 H shares will be offered for the International Offering (including 534,800 Reserved Shares under the Preferential Offering, subject to reallocation and the Over-allotment Option), and the remaining 1,069,600 H shares will be offered for the Hong Kong Public Offering (subject to reallocation). The Offer Price is HK$19.8 per H Share, and the amount payable on application for each board lot (200 H Shares) is HK$3,999.92. Approximately 59.5% of the net proceeds received from the Global Offering will be used for the research and development ("R&D") of core products; approximately 31.4% will be used for the research and development of other products in the pipeline; approximately 6.1% will be used for commercialization purposes; and approximately 3.0% will be used for working capital and other general corporate purposes.
The Hong Kong Public Offering and Preferential Offering commences today (19 December), and the H Shares of the Company are expected to list on the Main Board of SEHK on 30 December. UBS Securities Hong Kong Limited and Essence Corporate Finance (Hong Kong) Limited are the Joint Sponsors. UBS AG Hong Kong Branch and Essence International Securities (Hong Kong) Limited are the Overall Coordinators.
Established in 2013, Boan Biotech is an integrated biopharmaceutical company committed to developing, manufacturing and commercializing high-quality biologics in China and overseas. It focuses on the key therapeutic areas, including oncology, metabolism, autoimmunity, and ophthalmology. With years of experience, Boan Biotech has established its unique competitive advantages with a robust and risk-balanced product portfolio, an integrated biopharmaceutical platform covering "R&D-production-commercialization," and commercialization capabilities that continue to mature.
Robust and Risk-balanced Product Portfolio
Leveraging its efficient internal innovation capabilities, Boan Biotech developed all its products in-house independently. Currently, its product pipeline includes a portfolio of innovative antibody drug candidates and biosimilar drug candidates with multiple granted patents globally, which bring the Company clear short-term commercialization visibility and lay a sound foundation for its long-term sustainable development. As of 9 December 2022, Boan Biotech had six biosimilar drug candidates or drug product and eight innovative antibody drug candidates in the portfolio.
Since 2021, Boan Biotech has successively commercialized two new products in two years, namely Boyounuo (bevacizumab injection, BA1101) and Boyoubei (denosumab injection, BA6101). The first product, Boyounuo, aims at the huge demand for cancer treatment. Soon after its launch in May 2021, it reached sales of approximately RMB158.7 million within eight months in 2021. In the first half of 2022, its sales amounted to approximately RMB220.7 million. According to Frost & Sullivan's report, the sales of bevacizumab in China in 2025 is expected to reach approximately RMB15.7 billion.
In November 2022, Boyoubei (denosumab injection, BA6101), the Company's second commercialized product targeting postmenopausal women with osteoporosis at high risk of fracture, was approved to commence commercialization in China. As of 9 December 2022, Boyoubei (BA6101) was the only Prolia (denosumab) biosimilar approved in China and has the advantage in commercialization. Boyoubei is the first marketed denosumab biosimilar in China, and the Company has also started its clinical trial in the EU. According to Frost & Sullivan's report, the market size of denosumab for osteoporosis in China is expected to reach approximately RMB7.8 billion in 2030.
In addition, the Company has a number of drug candidates that are close to the commercialization stage, including BA1102 (denosumab injection, Xgeva biosimilar) for tumors, BA9101 (aflibercept intraocular injection, Eylea biosimilar) for ophthalmology, and BA5101 (dulaglutide injection, Trulicity biosimilar) for metabolism. These product candidates are currently in Phase 3 clinical trials in China, and BA1102 is also in Phase 1 clinical trial in the EU. The Company expects to submit biologics license applications for multiple drug candidates successively in the next two years.
With respect to developing innovative antibody drugs, Boan Biotech strategically develops innovative antibody candidates to focus on novel formulations with significant market potential. For example, BA1105, an ADCC-enhanced, fully human monoclonal antibody targeting Claudin 18.2 independently developed by the Company, has the potential to become the best targeted drug for the similar treatment of metastatic pancreatic cancer, advanced gastric cancer and adenocarcinoma of the esophagogastric junction; BA1106, a CD25 fully human monoclonal antibody, is the first investigational anti-CD25 antibody to start clinical trials in China for treating solid tumors; and BA2101, an anti-IL-4Ra long-acting molecular antibody for autoimmune therapy, used to treat atopic dermatitis, asthma, sinusitis, pruritus and urticaria.
Proprietary R&D Technology and Covering "R&D- Production-Commercialization"
The efficient progression of Boan Biotech's product pipeline benefits from the advantages and advancement of its technology platform. The Company has an integrated biopharmaceutical platform empowered by advanced R&D technologies as well as strong production and commercialization capabilities focusing on oncology, metabolism, autoimmunity and ophthalmology.
The R&D teams of Boan Biotech in Yantai, Nanjing and Boston have built three major technology platforms. Utilizing BA-huMab (a technology platform on which Boan Biotech has developed fully human antibody transgenic mice) and the Phage Display Technology Platform helps increase the efficiency of developing fully human monoclonal antibody products. Boan Biotech is also one of the few companies in China that own proprietary transgenic mice platform. Based on its monoclonal antibody products, the Company has progressively developed specialized drugs such as bispecific antibody and ADC through Bispecific T-cell Engager Technology Platform and ADC Technology Platform, forming a rich product portfolio.
Furthermore, Boan Biotech capitalizes on its strong CMC capabilities to ensure high quality and cost efficiency throughout the entire process of drug development and commercial production. These competencies can shorten the drug development time and enables speed-to-market.
Two Products Launched in Two Years: Commercialization Capabilities Continue to Mature
Leveraging the successful launch of its first product, Boyounuo (BA1101), Boan Biotech has established an extensive commercialization network and mature commercialization capabilities. Soon after the launch in May 2021, Boyounuo (BA1101) was included in local medical insurance coverage in 30 provinces, autonomous regions and municipalities in China. As of 9 December 2022, the Company's distribution network covered 1,299 target hospitals and institutions in China. Moreover, through the commercialization of Boyounuo (BA1101), Boan Biotech has connected the "R&D-production-commercialization" process, laying the foundation for the subsequent launch and sales network of its drug candidates.
Boyoubei (BA6101), Boan Biotech's second product, was approved to commence commercialization in November 2022 and began sales in China by the end of the same month. The Company is well prepared in different aspects, including production, market access approval and sales, and will continue to improve the accessibility of Boyoubei (BA6101).
In addition, Boan Biotech actively cooperated with excellent partners in the industry and leveraged their rich resources to maximize its products' clinical value and market potential. For example, the Company granted AstraZeneca (Wuxi) Trading Co., Ltd. the exclusive promotion rights of Boyounuo in certain counties of various provinces, cities and autonomous regions in China. Boan Biotech also cooperated with OcuMension on the product development, promotion and commercialization of BA9101 in China.
Boan Biotech Attracted Investor Interest: Broad Prospects of the Biopharmaceutical Industry
The biologics market in China has grown rapidly over the past few years, driven by the growing but underserved demand of the cancer patient population, increasing affordability and healthcare awareness, favorable government policies, and increased capital investment in R&D. According to Frost & Sullivan's report, China's biologics products market is expected to grow at a compound annual growth rate of 12.7% from 2021 to 2030 in terms of sales revenue, reaching approximately RMB1,199.1 billion in 2030.
Furthermore, the global biologics products market also presents a broad market prospect. According to Frost & Sullivan's report, the global biologics product market is expected to grow at a compound annual growth rate of 10.3% from 2021 to 2030 in terms of sales revenue, reaching approximately US$814.8 billion in 2030.
While the industry is experiencing a rapid growth, the biopharmaceutical market has certain entry barriers, including know-how in R&D, manufacturing and commercialization, heavy capital investment, stringent regulation, long-term and complex development process, and the high requirement in manufacturing and supply chain management.
Benefitting from the integrated advantages in R&D, production and commercialization, Boan Biotech has completed Series A and Series B financing since 2020. The investors include multiple well-known domestic and international institutional investors.
In addition, the Company has successfully procured three Cornerstone Investors, including Mr. Fu Heliang, the founder of Jiangsu Aidea Pharmaceutical Co., Ltd. (stock code: 688488) listed on the Shanghai Stock Exchange; Harvest Great Bay Investment SP, a reputable investment fund; and Sino Biopharmaceutical Limited (stock code: 1177), a pharmaceutical company which is listed on the Main Board of SEHK. The total number of Offer Shares to be subscribed by the Cornerstone Investors is 7,594,000 Offer Shares, representing approximately 71.01% of the Offer Shares pursuant to the Global Offering (assuming the Over-allotment Option is not exercised). The cornerstone investments would help raise the profile of the listing and attract investors' interest, stimulating the demand for the Offer Shares.
Ms. Jiang Hua, Chairlady, Executive Director and Chief Executive Officer of Boan Biotech said, "Boan Biotech is one of the few biopharmaceutical companies in China capable of executing R&D throughout the whole product development process, from early candidate generation to eventual BLA filing and commercialization. We will exploit the current momentum of the Company's vigorous development and further accelerate the clinical development of pipeline products in China and overseas. We aim to enrich our innovative antibody portfolio, enhance commercialization capabilities and internal manufacturing capabilities, and explore more external collaboration. Boan Biotech aspires to propel the advancement of the Company from Biotech to Biopharma, serving the urgent needs of patients. We endeavor to realize the vision of becoming a leading biopharmaceutical company with unremitting efforts."
Shandong Boan Biotechnology Co., Ltd.
Summary of the Global Offering
Number of Offer Shares under the Global Offering: 10,694,800 H Shares (subject to the Over-allotment Option)
Number of Hong Kong Offer Shares: 1,069,600 H Shares (subject to re-allocation)
Number of International Offer Shares: 9,625,200 H Shares (including 534,800 Reserved Shares under the Preferential Offering, subject to reallocation and the Over-allotment Option)
Offer Price: HK$19.8 per H Share
Board Lot: 200 H Shares
Start of the Hong Kong Public Offering and Preferential Offering: 9:00 a.m., 19 December 2022 (Monday)
End of the Hong Kong Public Offering and Preferential Offering: 12:00 noon, 22 December 2022 (Thursday)
(at 11:30 a.m. for completing electronic applications under the White Form eIPO service)
Announcement of Allotment Results: 29 December 2022 (Thursday)
Expected Listing Date: 30 December 2022 (Friday)
Stock Code: 6955
Use of proceeds:
Based on the Offer Price of HK$19.8 per Share and without taking into account the Over-allotment Option, the Company estimates that it will receive net proceeds of approximately HK$152.8 million from the Global Offering, after deducting underwriting commissions, fees and estimated expenses payable by the Company in connection with the Global Offering, and
Approximately 59.5%, or HK$91.0 million, will be used for the research and development of the core products:
I. Approximately 29.4%, or HK$45.0 million, will be used for BA1102
II. Approximately 20.3%, or HK$31.0 million, will be used for BA6101 for the overseas clinical development and registrations
III. Approximately 9.8%, or HK$15.0 million, will be used for LY-CovMab for its Phase 2 clinical trial costs
Approximately 31.4%, or HK$48.0 million, will be used for the research and development of other products in the Company's pipeline:
I. Approximately 8.5%, or HK$13.0 million, will be used for biosimilar candidates of BA9101, BA1104 and BA5101
II. Approximately 22.9%, or HK$35.0 million, will be used for the Company's innovative antibody candidates of BA1105, BA1201, BA-CovMab, BA1106, BA1202, BA1301 and BA2101
Approximately 6.1%, or HK$9.3 million, will be used for commercialization purposes
Approximately 3.0%, or HK$4.6 million, will be used for working capital and other general corporate purposes
Issued by Porda Havas International Finance Communications Group for and on behalf of Shandong Boan Biotechnology Co., Ltd. For further information, please contact:
Kelly Fung +852 3150 6763 kelly.fung@h-advisors.global
Steven Yao +8621 3397 8688 steven.yao@h-advisors.global
Xiang Jinjin +852 3150 6733 jinjin.xiang@h-advisors.global
Topic: Press release summary
Source: Shandong Boan Biotechnology Co., Ltd.
Sectors: BioTech, Healthcare & Pharm
https://www.acnnewswire.com
From the Asia Corporate News Network
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