What’s new: Shares of Chinese cancer-drug developer BeiGene plunged 16.4% on their Shanghai debut Wednesday after the company raised 22 billion yuan ($3.48 billion).
BeiGene is the first Chinese biopharmaceutical company to have shares traded on the Chinese mainland, in Hong Kong and in the U.S. Its shares on the Shanghai Stock Exchange’s Nasdaq-like STAR Market closed at 160.98 yuan after dropping nearly 20% at the low point. The Hong Kong-traded shares also declined by 7.64% to HK$162 ($20.76).
The background: BeiGene, founded in 2010, focuses on developing molecularly targeted and immuno-oncology drug candidates for the treatment of cancers. The company raised $182 million in its initial public offering (IPO) on the Nasdaq in 2016 and $902 million in its Hong Kong secondary share sale in 2018.
BeiGene briefly turned a profit in this year’s first quarter, its first time in the black since its listing in Hong Kong, as drug sales doubled. But continuing high research and development costs pushed the company back into a net loss of $828 million for the first three quarters.
The weak debut came amid lackluster performances by many biotech companies recently listed in Shanghai and Hong Kong. Among the 17 money-losing biotech companies traded in Hong Kong, 13 are currently selling below their IPO prices.
Chinese vaccine maker Liaoning Chengda Biotechnology’s shares plunged 27% on their STAR Market debut Oct. 29, setting a record low for a stock’s first day on the board. Three out of four biotech companies going public Friday in Shanghai and Hong Kong fell below their IPO prices.
Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (hello@caixin.com)
Get our weekly free Must-Read newsletter.
