On January 6, 2024, the Hong Kong Stock Exchange revealed that Hengrui Medicine has officially submitted its application for an initial public offeringThe joint sponsors for this venture are Morgan Stanley, Citigroup, and Huatai International, with aspirations of achieving a dual listing in both A-shares and H-sharesThis pivotal step marks a significant moment for Hengrui, a leading company in the medical industry.

The net proceeds from the issuance of H-shares will be strategically directed towards funding the company’s research and development initiativesThis includes constructing new production and research facilities both domestically and internationally, as well as expanding or upgrading Hengrui’s existing manufacturing capabilities in ChinaAdditionally, these funds will bolster working capital and support various other general corporate purposes.

Hengrui’s decision to enter the Hong Kong market, expressed in a statement to GPLP Rhino Finance on January 15, stems from several key advantages

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First and foremost, the listing is expected to significantly enhance the company’s international profileThe Hong Kong capital market boasts a diverse array of international investors, thereby elevating the company’s brand presence across the global pharmaceutical landscapeFurthermore, this move would optimize the capital structure of HengruiThe H-share issuance is anticipated to provide a new financing channel, aiding the company in diversifying its funding sourcesFinally, a listing in Hong Kong will enhance Hengrui’s global footprint, facilitating the expansion of its overseas operations and fostering international research and development collaborations, ultimately paving the way for breakthroughs in foreign markets.

Hengrui’s product matrix is characterized by a prominent lineup of innovative drugs that holds substantial potential for development into blockbuster medications

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As of January 10, a notable achievement includes the approval of the world’s first ultra-long-acting PCSK9 monoclonal antibody, Rucaparib, alongside 18 new molecular entity drugs and four other innovative medications that have already been launchedMoreover, Hengrui’s pipeline includes over 90 candidate new molecular entity innovative drugs, along with eight others that are currently in clinical or later stages of development, including more than 30 candidates undergoing critical clinical studies and various international clinical trials.

The clinical value of Hengrui’s innovative products is evident, especially in the oncology sectorIn a globally recognized Phase III clinical trial, the combination of Carelizumab and Apatinib for advanced hepatocellular carcinoma achieved a median overall survival of 23.8 months, the longest among first-line therapies reported for all unresectable hepatocellular carcinoma

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Additionally, the HER2 ADC technology represented by SHR-A1811 has been designated as a breakthrough therapy by the National Medical Products Administration for seven different indications, leading the pack among investigational drugs in all clinical phases in ChinaIn the competitive field of glucose control and weight reduction, HRS9531, a new dual receptor agonist for GLP-1 and GIP, presents best-in-class potential, while the oral small molecule GLP-1 receptor agonist HRS-7535 has completed recruitment for its Phase III clinical studyFurthermore, a peptide drug, HRS-4729, which acts on GLP-1, GIP, and GCG triple receptors, is currently in clinical trials, marking a significant milestone as there are no approved agents of its kind worldwide.

The impressive array of innovative results can be attributed to Hengrui's formidable research and development capabilitiesOver the years, the company has expanded its research focus from small molecules to a broader spectrum of drug forms, including proteolysis targeting chimeras (PROTACs), peptides, monoclonal antibodies (mAbs), bispecific antibodies (BsAbs), multispecific antibodies, antibody-drug conjugates (ADCs), and radioligand therapy (RLT). Supported by advanced technological platforms, Hengrui has effectively revolutionized its innovation processes, significantly reducing the time required for discovering and validating promising first-in-class or best-in-class compounds.

Hengrui's internationalization strategy has been progressing steadily, and its products have achieved commercialization in over 40 countries

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In terms of globalizing innovative drugs, Hengrui adopts a balanced approach that emphasizes both independent development and open collaborationThus far, the company has secured overseas licensing agreements for 12 innovative drugs, with a total transaction value reaching approximately $12 billion, alongside upfront payments totaling around $400 million, in addition to equity stakes from various collaboration partners.

Furthermore, Hengrui has robust experience in adhering to the manufacturing and quality regulations outlined by overseas regulatory bodies such as the European Medicines Agency (EMA) and the U.SFood and Drug Administration (FDA). Notable milestones include receiving FDA approvals in January, July, and October 2024 for three abbreviated new drug applications (ANDAs) for its first genericsCurrent and prospective global partners continually assess Hengrui for potential partnerships, indicating a positive outlook for many long-term collaborations

These achievements also reflect Hengrui’s strong quality management system, which has garnered international recognition.

In response to the increasing scrutiny of regulatory requirements across the globe, Hengrui has made concerted efforts to enhance its Chemistry, Manufacturing, and Controls (CMC) systems, as well as bolster its quality assurance teamsThe appointment of a Chief Quality Officer with over 30 years of experience in the global pharmaceutical industry, including significant tenure with the FDA, exemplifies Hengrui's commitment to maintaining high standards and driving forward its international ambitions.

As Hengrui Medicine prepares for this new chapter in its journey, it stands at the nexus of innovation, quality, and global collaboration, carving out a future that not only aims at groundbreaking treatments but also seeks to bridge the gap between robust research, regulatory rigor, and market expansion