Good News on Listing | Frost & Sullivan Assists Shenghe Biotechnology Holdings Limited to Successfully List in Hong Kong (2898.HK)

Shenghe Biotech Holdings Limited (hereinafter referred to as 'Shenghe Biotech') successfully listed on May 24, 2024, with a global issue of 3,415 million shares at a price of HK$13.50 per share. The net proceeds from the global offering were approximately HK$391.6 million.

During the process of listing in Hong Kong this time, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, investment banks, and other intermediaries in completing the relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business, and other important chapters), facilitating communication between the issuer and the Exchange and investors, helping investors quickly understand the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on various industry-related issues from the Exchange.

The antibody cytokine pipeline independently developed by the company has a novel mechanism of action;

The company leverages insights into immunology and antibody engineering to develop differentiated products;

The company's proprietary platform aims to address the current bottlenecks in immunotherapy and will continue to drive the development of differentiated biologics;

The company has a comprehensive integrated end-to-end internal drug development capability, encompassing all key biopharmaceutical development functions;

The company has an experienced management team composed of industry veterans with remarkable past achievements.

According to a report by Frost & Sullivan:

The company is at the forefront in exploring antibody cytokines to regulate the immune microenvironment and possesses rich technical experience;

As of May 6, 2024, IAH0968 is the only anti-HER2 antibody with enhanced ADCC activity that has been modified to remove fucose in China and globally, and is currently in Phase II/III clinical trials;

As of May 6, 2024, IAP0971 and IAE0972 are the antibody cytokine candidates with the fastest clinical progress, currently both in Phase I/II clinical trials.

Antibodies, also known as immunoglobulins, are proteins produced by the immune system in response to the presence of pathogens such as bacteria and viruses (called antigens). mAb, bsAb, ADC, and antibody fusion proteins are the four main types of antibodies. mAb dominates the global antibody-based treatment market, accounting for more than 90% of the market share from 2018 to 2022. It is expected that by 2026 and 2030, the mAb market size will reach $281.8 billion and $306.1 billion, respectively. It is estimated that from 2022 to 2026, bsAb will grow significantly at a compound annual growth rate of 51.6%. By 2030, the global bsAb market size is expected to reach $67.4 billion, with a compound annual growth rate of 23.6% from 2026 to 2030.

Source: Frost & Sullivan report

Since the FDA approved Roche's first HER2 antibody, Herceptin (or trastuzumab), in 1998, a total of four HER2 antibodies have been approved for use in tumor treatment in the United States and China. Magsumitab, Magsumitab, Patect, and Herceptin have been approved by the FDA. Innoctuzumab (or Sepatinib), Patect, and Herceptin have been approved by the NMPA. As of May 6, 2024, IAH0968 developed by Shenghe Biotechnology has performed outstandingly, becoming the only and fastest-progressing adjuvant anti-HER2 antibody in China and globally that has been removed from fucose modification and is currently in Phase II/III clinical trials.

Antibody cytokines are a group of fusion proteins composed of tumor-associated antigen recognition domains and cytokine effector payloads. Antibody cytokines can act as bridges between tumor cells and certain white blood cells (such as T cells and NK cells), similar to the function of bispecific antibodies. By activating various components of the immune system, cytokine molecules are highly concentrated at tumor lesions. Antibody cytokines then exhibit potent tumor-killing effects.

From 2018 to 2022, the global market size of antibody cytokine drugs increased from $579 billion to $729 billion, with a compound annual growth rate of 6.0%. It is expected to reach $953 billion by 2026 and $1196 billion by 2030. The compound annual growth rates from 2022 to 2026 and from 2026 to 2030 are 6.9% and 5.8%, respectively.

Source: Frost & Sullivan report

As of May 6, 2024, globally, N-803 is the only IL-15-based immunotherapy approved for the treatment of cancer.

As of May 6, 2024, globally, 14 products are in clinical development. Shenghe Biotech's IAP0971 and another seven products are IL-15-based antibody cytokines. In China, currently nine products are in clinical development, with the fastest progressing product in phase I/II. Only three products, including IAP0971, are IL-15-based antibody cytokines, with IAP0971 being the fastest progressing antibody cytokine in clinical trials in China.

Currently, there are no IL-10-based immunotherapies approved for the treatment of cancer. Globally and in China, there are currently 3 IL-10-based immunotherapies in clinical development, 2 of which are from Shenghe Biotechnology. As of May 6, 2024, Shenghe Biotechnology's IAE0972 and IBB0979 are in Phase I/II clinical trials and are the fastest-progressing IL-10-based antibody cytokines in China.

In the field of tumor immunology, Frost & Sullivan has served companies such as BeiGene, Innovent Biologics, Junshi Biosciences, Rongchang Biotechnology, and Kangfang Biotech.

Frost & Sullivan, integrating 63 years of global consulting experience, has dedicated 26 years to serving the booming Chinese market with a global perspective, helping clients accelerate their corporate growth and achieve industry-leading benchmarks in terms of growth, innovation, and leadership. The healthcare industry is one of the core areas of focus for Frost & Sullivan. Over the past 20+ years, the Frost & Sullivan team has provided financing and financial advisory services, IPO industry advice, strategic consulting, management consulting, and other services to hundreds of outstanding domestic and international biopharmaceutical, medical device, healthcare services, and internet healthcare companies. Successful listings include: Tsuenxin Biotech (2509.HK), Meizhong Jiahé (2453.HK), WuXi AppTec (2268.HK), Amgen (NASDAQ:ANL), Neusoft Xikang (9686.HK), Youzhiyou (2496.HK), Yiming Angke (1541.HK), Corning Biotech (6990.HK), LaiKai Medicine (2105.HK), Kedite Group (2487.HK), Lushan Biotech (2480.HK), Meisheng Health (2415.HK), PHECR, Zhongjin Medical (NASDAQ:ZJYL), Yisheng Biotech (NASDAQ:YS), Meilv Tianyuan (2373.HK), Kangfeng Biotech (6922.HK), Bao'an Biotech (6955.HK), Sida Di (1244.HK), Meihao Medical (1947.HK), Gaoshi Medical (2407.HK), Lepu Xintai (2291.HK), Jianshi Technology (9877.HK), Health Yuan (JCARE.SW), Lepu Medical (LEPU.SW), Dingdang Health (9886.HK), BAIOSAT (2315.HK), Zhiyun Health (9955.HK), MeinGene (6667.HK), Prenetics (PRE.NASDAQ), Yunkang Group (2325.HK), Ruike Biotech (2179.HK), Lepu Biotech (2157.HK), Clear Medical (1406.HK), Baxin An (2185.HK), Yonghe Medical (2279.HK), Kailaiying (6821.HK), Beihai Kangcheng (1228.HK), Gusheng Tang (2273.HK), Yingpeng Technology (2251.HK), Clover Biotech (2197.HK), Minimally Invasive Robotics (2252.HK), Harmony Cayman (2256.HK), Kunbo Medical (2216.HK), Xianruida (6669.HK), Kangsheng Global (9960.HK), Yimai Tong (2192.HK), Tengsheng Bopai (2137.HK), Canopy (2162.HK), Chaoyu Eye Hospital (2219.HK), Guichuang Tongqiao (2190.HK), Hehuang Medicine (0013.HK), Kexi Pharmaceutical (2171.HK), Zhaoke Eye Hospital (6622.HK), Upstate Biotech (UPC.NASDAQ), Saiseng Pharmaceutical (6600.HK), Zhaoyan New Drugs (6127.HK), Novogene Health (6606.HK), ADAG.NASDAQ, Beikang Medical (2170.HK), Jianbimiao Miao (2161.HK), Minimally Invasive Heart Link (2160.HK), Rui Li Medical Beauty (2135.HK), Jiake Pharmaceutical (1167.HK), Heplm Bio (2142.HK), JD Health (6618.HK), Deqi Pharmaceutical (6996.HK), Rongchang Biotech (9995.HK), WuXi AppTec (2126.HK), XianSheng Pharmaceutical (2096.HK), Yunding New Energy (1952.HK), Jiahe Biotech (6998.HK), Zai Ding Medicine (9688.HK), Ocular Biotech (1477.HK), Yongtai Biotech (6978.HK), Hapu Pharmaceutical (9989.HK), Kepeng Pharmaceutical (9939.HK), Peijia Medical (9996.HK), Kangfang Biotech (9926.HK), Nuocheng Jianhua (9969.HK), Tianjing Biotech (IMAB.NASDAQ), Kanglong Chemical (3759.HK), China Antibody (3681.HK), Dongyao Pharmaceutical (1875.HK), Yasheng Pharmaceutical (6855.HK), Fuhong Hanlin (2696.HK), Hansoh Pharmaceutical (3692.HK), Mabtech Pharmaceutical (2181.HK), Fangda Holdings (1521.HK), Via Biotech (1873.HK), CStone Pharmaceuticals (2616.HK), Junshi Biosciences (1877.HK), WuXi AppTec (2359.HK), Xinda Biotech (1801.HK), Hualing Medicine (2552.HK), BeiGene (6160.HK), Galle Biopharmaceuticals (1672.HK), WuXi AppTec (2269.HK), China Resources Medicine (3320.HK), Yakuten Scientific Research Pharmaceutical (2633.HK), Hualing China Medicine (HCM.NASDAQ), Gensentech Biotechnology (1548.HK), BBI Life Sciences (1035.HK), etc. In terms of the number of listed projects, the Frost & Sullivan healthcare team maintains an absolute leading position in Hong Kong's healthcare IPO market, consistently ranking first in market share from 2018 to 2023.

Since the listing of the first batch of companies on the Sci-tech Innovation Board in July 2019, Frost & Sullivan reports have been widely cited in the prospectuses of leading Sci-tech Innovation Board-listed companies in the industry, including: Zhongyan Co., Ltd. (688716.SH), Zhejiang Rongtai (603119.SH), Optoelectronics Technology Group Co., Ltd. (688450.SH), Jinghe Integration (688249.SH), Wuxi Rilian (688531.SH), Maolai Optics (688502.SH), Kangwei Century (688426.SH), Jinchuan Protein (688137.SH), Novogene Biologics (688428.SH), Aopu Medical Biotechnology (688293.SH), Minimally Invasive Electrophysiology (688351.SH), Mengke Pharmaceutical (688373.SH), Yifang Biologics (688382.SH), Jicui Pharmaceutical (688046.SH), Haichuang Pharmaceutical (688302.SH), Rongchang Biologics (688331.SH), Rendu Biologics (688193.SH), Shouyao Holdings (688197.SH), Heyuan Biologics (688238.SH), Yaxin Security (688225.SH), Xidi Micro (688173.SH), Mawei Biologics (688062.SH), Yahong Medicine (688176.SH), BeiGene (688235.SH), Jiahe Meikang (688246.SH), Dizhe Medicine (688192.SH), Novozyme (688105.SH), Chengda Biologics (688739.SH), Geke Micro (688728.SH), Huaxi Biologics (688363.SH), Junshi Biologics (688180.SH), Zhejiang Oncology Pharmacy (688266.SH), BeiGene (688177.SH), Shenzhou Cells (688520.SH), etc., are considered to be one of the most powerful, professional, and influential industry research institutions in the sector. We hope to work with enterprises to understand industry trends, seize development opportunities, jointly promote innovation and upgrading of China's health industry, and build a healthy future.