Stealth Biotherapeutics Hong Kong Ipo

Stealth biotherapeutics hong kong ipo

Two US-based biotechs, Stealth Bio­Ther­a­peu­tics and AO­Bio­me, have joined the queue to ap­ply for an IPO in Hong Kong — a first since the city’s ex­change changed its rules late April to at­tract pre-rev­enue drug­mak­ers.

While nei­ther com­pa­nies cur­rent­ly have op­er­a­tions in Chi­na, both ex­pressed a keen in­ter­est in cap­i­tal­iz­ing on the mar­ket there, with Stealth ready to set up R&D shop in Shang­hai.

Stealth biotherapeutics hong kong ipo

The much-watched de­vel­op­ment — an­a­lysts have long pre­dict­ed a string of US biotech uni­corns go­ing for a gold-rush to main­tain their high val­u­a­tions — came on the heels of two IPO ap­pli­ca­tions by Chi­na-based com­pa­nies, In­novent and Mi­cuRx.

Of the two, Stealth has a more ob­vi­ous con­nec­tion to Chi­na.

Just days ago, the Boston start­up wel­comed Vin­cent Che­ung to the board as his Nan Fung Group led a $100 mil­lion megaround to fund its pro­grams in rare mi­to­chon­dr­i­al and oth­er age-re­lat­ed dis­eases.

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BVCF and Morn­ing­side, two high pro­file Chi­na-fo­cused funds, are al­so among its back­ers.

CEO Ree­nie Mc­Carthy re­marked then that they “par­tic­u­lar­ly wel­come the new in­vestors’ deep ex­pe­ri­ence with­in the Chi­na health­care mar­ket, which we view as an im­por­tant fron­tier both for rare mi­to­chon­dr­i­al dis­eases un­der Chi­na’s re­cent rare dis­ease ini­tia­tive, as well as for dis­eases of ag­ing.”

Stealth ex­pects the IPO raise — the ex­act amount of which they would not dis­close at this stage — to last through 2020.

By then, the vi­sion goes, the com­pa­ny would have be­gun to com­mer­cial­ize its lead prod­uct, elamipre­tide, in Barth syn­drome and mi­to­chon­dr­i­al my­opa­thy; moved in­to Phase III with the same drug in age-re­lat­ed mac­u­lar de­gen­er­a­tion; and brought a new com­pound in­to the clin­ic.

A sec­ond drug can­di­date, SBT-20, is be­ing de­vel­oped pre­clin­i­cal­ly for neu­rode­gen­er­a­tion.

AO­Bio­me’s point-per­son in Chi­na is Jun Wang, the young founder and for­mer CEO of Bei­jing Ge­nomics In­sti­tute.

Stealth biotherapeutics hong kong ipo

Through iCar­bonX, his new ven­ture har­ness­ing da­ta for per­son­al health mon­i­tor­ing, he in­fused $30 mil­lion in­to the mi­cro­bio­me-fo­cused start­up. He was re­cent­ly named chair­man of the board.

The star and name­sake of AO­Bio­me’s pipeline is the am­mo­nia ox­i­diz­ing bac­te­ria, which is be­ing ap­plied to six in­di­ca­tions all in mid or late stage Un­like most biotechs work­ing on the mi­cro­bio­me, which tend to fo­cus on the gut, AO­Bio­me is start­ing out with der­ma­to­log­i­cal ail­ments, with plans to be­gin a Phase III tri­al in ac­ne in 2019 and Phase II eczema and rosacea stud­ies to fol­low.

That fo­cus was in­formed by the com­pa­ny’s ear­ly ex­pe­ri­ence, as it be­gan com­mer­cial­iz­ing sev­er­al AOB-based cos­met­ic prod­ucts in 2014, which it has sub­se­quent­ly sold.

By own­ing AI En­ter­prise II (36.32%) and Bio­me Hold­ing (11.64%), Wang is the con­trol­ling share­hold­er of the com­pa­ny, which is led by pres­i­dent and CEO Todd Krueger.

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