CStone Pharmaceuticals, a China-based biopharmaceutical company backed by insurance provider Taikang and pharmaceutical research firm WuXi PharmaTech, yesterday priced its initial public offering and raised HK$2.2bn ($285m).
CStone has achieved a valuation of $1.5bn after selling 18.6 million shares to Hong Kong-based investors and more than 167 million shares to international backers at $1.50, at the middle of its range of $1.40 to $1.60.
The company will begin trading on the Hong Kong Stock Exchange today.
Founded in 2016, CStone is developing treatments for diseases including cancer, cardiovascular diseases, rheumatoid arthritis, haematology and autoimmune conditions, with a particular focus on immuno-oncology combination therapies.
The company has allocated 30% of proceeds to planned clinical trials, registration filings and commercialisation of its lead immuno-oncology asset CS1001. Another 40% will drive the development of the company’s investigational new drug pipeline.
CStone will also put 20% of proceeds towards the research and development of additional drug candidates and four in-licensed programs. The remaining 10% will be used for general corporate purposes.
Taikang has purchased an additional 575,000 shares in the offering and a further 70,000 shares through a local subsidiary, Taikang Asset Management, though it was unclear what stake the company owned following the IPO.
CStone Pharmaceuticals previously closed a $260m series B round in May 2018 backed by Taikang and WuXi Healthcare Ventures, the strategic investment arm of WuXi PharmaTech.
Singaporean sovereign wealth fund GIC led the series B round, which also attracted 6 Dimensions Capital, an investment firm formed by WuXi Healthcare Ventures and VC firm Frontline BioVentures, as well as Sequoia Capital China and Yunfeng Capital.
Citic PE, Arch Venture Partners, Hillhouse Capital, King Star Capital, 3W Partners, Avict, Terra Magnum Capital Partners, Oriza Seed Venture Capital and Boyu Capital filled out the round.
WuXi Healthcare Ventures had already taken part in a $150m series A round in 2016 together with Oriza Seed Venture Capital and Boyu Capital.
