Gelonghui, March 12, 丨 Quanxin Bio-B (02509.HK) announced that the company plans to sell 1.2 million shares globally, 1.2 million shares in Hong Kong, China, and 10.8416 million shares; from March 12 to March 15, 2024, the expected pricing date will be March 18; the offering price will be HK$19.80-20.20 per share, with 200 shares per lot; CICC is the sole sponsor; it is expected that the shares will be listed on the main board of the Stock Exchange on March 20, 2024.
Founded in 2015, the company is a clinical-stage biotechnology company focused entirely on biotherapies for autoimmune and allergic diseases. The company has two core products, QX002N and QX005N, which are developed in-house. QX002N is an IL-17A inhibitor. The company has conducted phase III clinical trials for the treatment of ankylosing spondylitis (AS) in China. Qx005n is a monoclonal antibody (mAb) that blocks IL-4Rα. The company has initiated phase II clinical trials for atopic dermatitis (AD), prurigo nodosum (PN), and chronic sinusitis with nasal polyps (CRSWnP) in China. As of the last practical date, in addition to the core products, the company has seven other pipeline drug candidates, four of which are in the clinical phase. The company's product line covers the four main areas of autoimmune and allergic diseases, namely skin, rheumatism, respiratory and digestive diseases.
The company has entered into a Cornerstone Investment Agreement. According to this, Cornerstone investors have agreed to subscribe for the number of relevant shares offered at the offer price, subject to certain conditions, and the relevant shares can be purchased for a total of US$25 million (or approximately HK$195.7 million). Assuming an offer price of HK$20.00 (that is the median of the indicative offer price range set out in this prospectus), the total number of shares to be subscribed by Cornerstone investors will be 9.7852 million shares. Cornerstone investors include Jianxin Pharmaceutical (wholly owned by Taizhou Jianxin, the company's current shareholder), Huadong Investment (a wholly-owned subsidiary of Huadong Pharmaceutical (000963.SZ)), and Bee Investment Capital (wholly-owned by Kwong Jianhong).
Assuming an offer price of HK$20.00 per share sold, the company estimates that the net proceeds will be approximately HK$163.5 million. The company plans to allocate about 30.1% of the net proceeds from the global sale to the development and registration of the company's core product QX002N; about 54.6% will be allocated to the development and registration of the company's other core product QX005N; about 8.7% will be allocated to the development and registration of QX004N; about 1.9% will be allocated to QX006N clinical trials (including test site, CRO and participant enrollment costs), QX006N preparation registration documents and CMC costs; and about 4.7% will be distributed to several other assets of the company (including QX007N) N, QX010N and QX013N) R&D and drug discovery.