More Chinese medical companies choosing New York over Shanghai, Hong Kong for IPOs; but not always.

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Three companies priced in New York last week–two biotechs and Chinese online real estate marketplace Shenzhen Fangdd Network Technology Co Ltd. (Nasdaq:DUO). The China-USA, free-floating trade anxieties aren’t dissuading the Chinese from tapping the US market. Bill Smith from Renaissance Capital notes that seven companies filed last week (all Chinese). He can’t remember the last time he saw that.

This coming week we are expecting nine deals to price. We haven’t seen that type of pricing activity in almost four months. What ever happened to the perennial fall slump in IPO action? Unless of course people are expecting everything to fall off the cliff, like last year.

Here’s the IPO action from last week, starting with the China-based, rain-dance aspirants:

Anpac Bio-Medical Science Company Ltd. registered up to $21.7 million worth of common stock in an IPO. WestPark Capital is acting as the offering’s sole bookrunner. Anpac currently offers a test in China for detecting the risk of 26 cancer types using the firm’s so-called cancer differentiation analysis (CDA) technology, which analyzes protein, cellular, and molecular signals using multiple parameters. The method is focused on biophysical properties in human blood, including acoustical, electrical, magnetic, nanomechanical, and optical properties.

Studies, the company said, have demonstrated an association between these biophysical properties and cancer. Anpac posted revenues of $1.4 million for 2018, and generated $1.1 million in revenues for the first nine months of this year. As of the end of September, the company had cash and cash equivalents of $3.4 million. The Lishui, China-based company was founded in 2008 and plans to list on the Nasdaq under the symbol “ANPC.” No pricing terms were disclosed.

Elsewhere, I-Mab Biopharma Co., a Phase 3 biotech developing antibodies for cancer and autoimmune diseases, registered up to $100 million in an IPO. The company would be the first Chinese biotech firm to list in the US since Zai Lab Ltd.’s $173 million offering in 2017, according to data compiled by Bloomberg. I-Mab initially considered a Hong Kong listing before switching to the US, people familiar with the matter had said.

It would join Stealth Biotherapeutics Inc. which raised $85 million selling shares in New York in February after earlier applying to list in Hong Kong, while cancer-testing startup Grail Inc. also backed away from the Hong Kong market in favor of the US. Shanghai, China-based I-Mab was founded in 2014 and booked $7 million in licensing and collaboration revenue for the 12 months ended June 30, 2019. It plans to list on the Nasdaq under the symbol “IMAB.” Jefferies LLC and China International Capital Corp. Hong Kong Securities Ltd. are the book-running managers, representatives, and underwriters for the IPO.

In Hong Kong, while protests in Hong Kong are stretching the limits of the region’s economy, biotechnology companies don’t appear to be deterred from listing on the region’s bourse, Endpoints reports. Hong Kong-based SinoMab BioScience Ltd. is looking to raise HK$1.75 billion ($223 million) in a public offering–while Souzou-based Alphamab Oncology Co. Ltd. is aiming to raise up to $350 million in an IPO later this month, according to a Reuters report.

In April 2018, the Hong Kong Stock Exchange (HKEX) relaxed its listing rules to allow pre-revenue biotechs with a market cap of at least HK$1.5 billion ($190 million) to go public. On the first anniversary of the new regime, nine biotechs (including 7 pre-revenue companies) including Ascletis, Hua Medicine and Innovent Biologics had raised about $4.1 billion on the exchange, accounting for roughly 11% of all IPO funds over the period.

SinoMab BioScience is focused on immunological diseases. Its lead experimental drug, SM03, is a monoclonal antibody that inhibits CD22 and is being developed for use in rheumatoid arthritis and other immunological diseases such as systemic lupus erythematosus and Sjögren’s syndrome. The company is offering about 182 million shares globally, of which 10% will be floated in Hong Kong at a price range between HK$7.60 and HK$9.60 per share. The public offering kicks off on Thursday, and the shares are scheduled to list on November 12 under the symbol “SEHK.”

Meanwhile, Reuters reported that Alphamab is looking to raise between $250 million-$350 million by selling down about a quarter of the company during the book-building process, citing two sources. This would give Alphamab a market capitalization of at least $1 billion, the new agency reported. The company in July filed to make the leap on the HKEX, less than two months after raising $60 million — its second venture round in a decade. It is developing a slate of cancer drugs, of which four are clinical stage. The leaders in its arsenal are KN035, a subcutaneous PD-L1 antibody; KN046, which targets both PD-L1 and CTLA-4; and KN026, an anti-HER2 bispecific antibody.

Back in New York, included among recent SEC filings for initial public offerings, CHP Merger Corp., a blank check company led by a team from Concord Health Partners targeting the healthcare industry, registered up to $250 million worth of common stock.

The Summit, NJ-based company plans to raise $250 million by offering 25 million units at $10 to command a market value of $313 million. Each unit consists of one share of common stock and one-half of one warrant exercisable at $11.50. The company says its strategy will be to identify, acquire and, after an initial business combination, build a healthcare or healthcare-related business. It intends to focus their investment effort broadly across the entire healthcare industry with an emphasis on healthcare services, healthcare information technology, supply chain management, medical technology, medical devices and diagnostics. The Summit, NJ-based company was founded in 2019 and plans to list on the Nasdaq under the symbol “CHPMU.” CHP Merger Corp. filed confidentially on August 19, 2019. J.P. Morgan, Credit Suisse, and Morgan Stanley are the joint bookrunners on the deal.

Oyster Point Pharma Inc., a Phase 3 biotech developing a nasal spray formulation for dry eye disease, raised $80 million by offering 5 million shares at $16, the low end of the range of $16 to $18.

The Princeton, NJ-based biopharmaceutical firm develops therapies for ocular surface disorders. Lead candidate is OC-01, a nasal spray-formulated nicotinic acetylcholine receptor agonist designed to re-establish tear film homeostasis in patients with dry eye disease. A Phase 3 study is in process with topline data expected in mid-2020. If all goes well, a US marketing application will be filed in H2 2020. Oyster Point Pharma lists on the Nasdaq under the symbol “OYST.” J.P. Morgan, Cowen and Piper Jaffray acted as lead managers on the deal. Shares closed the week up 12% at $17.90.

RAPT Therapeutics Inc., a Phase 1 biotech developing therapies for cancer and inflammatory diseases, raised $36 million by offering 3.0 million shares at $12, the low end of the range of $12 to $14. Insiders had indicated on purchasing $30 million of the deal. After the IPO, the company commands a fully diluted market value of $262 million.

The IPO appears to be the company’s first major funding stream since a $60 million Series C in 2017 and will supply revenue to propel their top cancer and inflammation drugs, respectively, further into the clinic. Lead inflammation drug candidate RPT193 entered the clinic in August 2019. The South San Francisco, CA-based company was founded in 2015 and lists on the Nasdaq under the symbol “RAPT.” BMO Capital Markets, Wells Fargo Securities and UBS Investment Bank acted as lead managers on the deal. Shares closed the week up 6% at $12.70.

And micro-cap medical device firm TELA Bio Inc., which sells soft tissue implants used in hernia repair and reconstructive surgery, announced terms for its IPO. The company plans to raise $60 million by offering 4 million shares at a price range of $14 to $16. At the midpoint of the proposed range, TELA Bio would command a fully diluted market value of $165 million and an enterprise value of $123 million.

The Malvern, PA-based med tech firm develops tissue reinforcement materials, branded as OviTex, used in soft tissue reconstruction, including hernia repair, abdominal wall reconstruction and plastic/reconstruction surgery. The company was founded in 2012 and booked $11 million in revenue for the 12 months ended June 30, 2019.  The company recorded $7 million in sales for the 1H19, up 83% y/y. TELA Bio was founded in 2012 and booked $11 million in sales for the 12 months ended June 30, 2019. It plans to list on the Nasdaq under the symbol “TELA.” Jefferies and Piper Jaffray are the joint bookrunners on the deal. It is expected to price this Thursday, November 7, 2019.

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