Recently, Sunho Biologics, Inc - B) passed the listing hearing of the Hong Kong Stock Exchange and disclosed its financial data and other information as of December 31, 2023. According to related news, Shenghe Biotech is launching a pre-IPO roadshow, raising about 50 million US dollars (about 390 million Hong Kong dollars, about 360 million yuan).
According to Beduo Finance, Shenghe Biotech submitted the statement in August 2023 and February 2024 respectively, with CICC as its sole sponsor. According to the prospectus, Shenghe Biopharma is a clinical-stage biopharmaceutical company focused on discovering, developing and commercializing innovative biologics for the treatment of cancer and autoimmune diseases.
Tianyancha App shows that Shenghe Bio was established in April 2018, with the full name of Shenghe (China) Biopharmaceutical Co., Ltd., located in Nanjing, Jiangsu Province. At present, the registered capital of the company is about 188 million yuan, the legal representative is Yin Liusong, and the wholly-owned shareholder is Shenghe Pharmaceutical Technology (Zhejiang Anji) Co., Ltd.
It is worth mentioning that Shenghe Bio has undergone many industrial and commercial changes in August and September 2023, of which the registered capital has increased by about 7.68 million yuan. At the same time, the investors added Guangzhou Yuexiu Kangjian Phase II Venture Capital Fund Partnership (Limited Partnership) and Guangzhou Vision Mingkang Industrial Investment Partnership (Limited Partnership), but they soon withdrew.
At present, Shenghe Biotech has three core products, namely IAH0968, IAP0971 and IAE0972, all of which are in-house research and development. Among them, IAH0968 is an antibody-dependent cell-mediated cytotoxicity (ADCC)-enhanced monoclonal antibody (mAb), and the company has initiated phase II clinical trials for biliary tract cancer (BTC) and colorectal cancer (CRC).
The IAP0971 and IAE0972 are antibody cytokines, and Shenghe Biotech has completed phase I clinical trials for advanced solid tumors, including non-small cell lung cancer (NSCLC) and CRC). As of the Latest Practicable Date, the Company has nine pipeline products, three of which are in the clinical stage in addition to its core products, which are also focused on cancer treatment.
Up to now, no products have been approved for commercial sale, nor has it generated any revenue from product sales. In the prospectus, Shenghe Biotech emphasized that the company cannot guarantee that it will eventually be able to successfully develop and sell its core products or any pipeline products.
In 2022 and 2023, Shenghe Biotech will receive other income of 13.795 million yuan and 21.005 million yuan respectively, R&D expenses of 53.171 million yuan and 43.041 million yuan respectively, and net loss (total loss and comprehensive expenditure during the year) will be about 51.988 million yuan and 133 million yuan respectively, an increase of 155.25% year-on-year.
According to Bedo Finance, Shenghe Bio said in its previous prospectus that the company's loss is expected to increase in 2023, mainly due to the fact that the company is expected to generate more R&D expenses as it continues to carry out and expand clinical development projects and advances the research and development of pipeline product candidates in the preclinical stage.
Since its establishment, Shenghe Biotech has received multiple rounds of financing. According to the prospectus, the company completed a Series A financing of RMB 210 million and a Series A+ financing of RMB 602 million in August and September 2023 respectively, with a cost per share of RMB 12, corresponding to a post-investment valuation of about RMB 1.41 billion and RMB 1.47 billion respectively.
Prior to this listing, Sunho Wisdom held 71.83% of Shenghe Biotech, No5XJR and Sunho Stellar each held 4.90% of the shares, Yifeng Capital held 9.52% and 4.76% of the shares through Yifeng AXA and Yifeng Anhe respectively, and Yuexiu Industrial Investment Fund held 4.09% of the shares through Beijing Yuehe.
Among them, Sunho Wisdom is controlled by Zhang Feng, executive director and chairman of the board of directors (i.e., chairman) of Shenghe Biopharma. According to the prospectus, Zhang Feng can exercise the voting rights of Sunho Wisdom, No5XJR and Sunho Stellar, and together he owns about 81.62% of the voting rights of Shenghe Biotech.
In addition, Yin Liusong is the executive director, chief executive officer (CEO) and chief scientific officer of Shenghe Biotech, and Jiang Xiaoling is the executive director and vice president. At the same time, the company's management also includes Vice President Jiang Dongcheng, Chief Financial Officer and Joint Company Secretary Xu Chunqin, etc.