Hua Medicine targets IPO amidst wider market access for biotech firms

The deal for the Shanghai-based diabetes drug developer could raise as much $300m.

Bloomberg reports that Hua Medicine Ltd., a Shanghai-based diabetes drug developer, has reportedly opted for Hong Kong over the US for its initial public offering amidst recent reforms that opened up the bourse to biotech firms.

Hua Medicine is working with Goldman Sachs, CLSA and UBS Group AG on a planned offering this year which could raise as much as $300m.

Amazon-backed cancer detection firm Grail and Shanghai Henlius Tech are also reportedly aiming for a Hong Kong IPO. This comes as the exchange has made it easier for biotech firms to list even before they turn a profit.

The biotech sector was chosen as the initial focus of bourse reform as they make up a majority of companies in the pre-revenue stage seeking a Main Board listing and clinical trials tend to be highly regulated under the current regime that sets external milestones on development progress.

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