What’s new: Shares of Chinese Covid-19 vaccine developer Clover Biopharmaceuticals Ltd. fell more than 10% on its Hong Kong debut Friday before rebounding after the initial public offering (IPO) raised $240 million.
Clover shares closed at HK$12.98 ($1.67), down nearly 3% from the IPO price, after dropping as low as HK$12 earlier.
The loss-making company has no product on sale yet, but it does have several drugs and vaccines in the pipeline, including a Covid-19 vaccine candidate that completed a late-stage human trial. The company plans to use most of its IPO proceeds for research and commercialization of the Covid-19 vaccine.
In the first four months of 2021, the Chengdu-based company spent 371 million yuan on research and development, a 1,185% increase from a year ago, including 260 million yuan on Covid-19 vaccine clinical trials. The huge R&D expense contributed to 909 million yuan of net loss in the period, according to the prospectus.
The background: Several other local Covid-19 vaccine developers are seeking financing through public flotations, including Beijing Advaccine Biotechnology, AIM Vaccine Co. Ltd. and Suzhou Abogen Biosciences.
Unlike the early days of the pandemic when vaccine makers could apply for emergency-use authorization in China, now new Covid-19 inoculations need go through a normal review and approval process, which could be time-consuming, Caixin learned.
Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (bobsimison@caixin.com)
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