Chinese cancer drug developer Akeso banks on pharma tie-up in race with rivals amid record-setting Hong Kong IPO

Cancer drug developer to seek approval in June for blood cancer drug to catch up with industry rivals in mainland China

Akeso IPO said to have locked up a record HK$166.5 billion of funds from retail investors in Hong Kong

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Akeso is banking on strengthening its relationship with Sino Biopharmaceuticals to gain a foothold in China’s cancer drug market despite being a latecomer. Photo: Dreamstime/TNS

Published: 12:30pm, 23 Apr 2020Updated: 9:47pm, 23 Apr 2020

Chinese cancer drugs developer Akeso is banking on a marketing tie-up with pharmaceutical major Sino Biopharmaceutical to catch up with competitors after a record-setting initial stock offering in Hong Kong.

The firm aims to apply by June for approval to sell its drug candidate for classical Hodgkin’s lymphoma patients, who either did not respond to treatments or relapsed after at least two treatments. Rivals Innovent Biologics and Beigene started selling their blood cancer drugs in late 2018 and late 2019, respectively.

“It is a bit late relative to our rivals, but we aim to catch up with them on commercialisation,” co-founder and chief executive officer Michelle Xia Yu said in an interview with the South China Morning Post. “Our collaboration with Sino Biopharmaceutical becomes very crucial.”

Michelle Xia Yu, co-founder and CEO of Zhongshan, Guangdong-based cancer drugs developer Akeso. Photo: Handout

The move could enhance the company’s appeal among investors who have rushed to participate in its HK$2.6 billion (US$335 million) initial stock offering last week. The IPO has locked up HK$166.5 billion of funds from retail investors, according to a stock exchange filing, a record amount under Hong Kong’s listing regime for biotechnology firms.

The stock, offered at HK$16.18 each, will start trading on Friday.