Shanghai-based Hua Medicine (Shanghai) Ltd. applied for an IPO in Hong Kong, the South China Morning Post reported.
Hua Medicine is looking to raise about US$200 million, according to two sources close to the deal.
The diabetes drug developer is the second biotech company to file for listing following Hong Kong Exchanges & Clearing Ltd.'s launch of new listing rules for biotechnology companies. The first to file for an IPO was Ascletis Pharma Inc., which has operations in Hangzhou, China. The company, which operates as a subsidiary of privately held Ascletis Bioscience Co. Ltd, applied to list in early May.
Hua Medicine plans to use the capital to fund clinical trials and commercialize its diabetes products. Its main investigational drug, dorzagliatin, is being evaluated in two late-stage clinical trials for type 2 diabetes.
In one trial, the drug is used as a monotherapy in diabetic patients who have not had prior treatment. The other trial is studying the drug in combination with first-line treatment metformin for patients who have developed tolerance to metformin.
Hua Medicine, whose CEO Li Chen previously worked at Roche Holding AG, acquired licensing rights to dorzagliatin from the Swiss company.
Goldman Sachs and CLSA are acting as joint sponsors for Hua Medicine's IPO.
At the end of 2017, the Hong Kong stock exchange decided it was necessary to expand its listing regime to allow companies from emerging sectors, including biotech companies, to list in Hong Kong. The new listing regime came into effect April 30. The bourse expects to see its first biotech listing under the new rules as early as June.
