Estenova aims to become a big name in medical aesthetics

The Chinese developer of anti-wrinkle fillers is seeking a cash injection from a Hong Kong share listing to bring its plumping products to the market

Key Takeaways:

• The biotech made less than 15 million yuan last year and was sitting on only 33 million yuan in cash and cash equivalents at the end of the year
• Its key anti-ageing skin treatment is due to go on sale from the end of this year

Lee Shih Ta

The quest for eternal youth is an age-old preoccupation. China’s first emperor, Qin Shi Huang, was famously eager to find the elixir of life, and in modern times medical science has been applied to the task of keeping the signs of ageing at bay.

Today’s beauty-conscious consumers can choose from an array of lotions and anti-ageing injectables, which have turned the medical aesthetics sector into a big global business.

A Chinese company hoping to make its mark as a supplier of anti-wrinkle treatments and other regenerative products, Eastenova (Chengdu) Biotechnology Co. Ltd., applied this week for a share listing to raise the necessary funds to keep its ambitions alive.

The companyis seeking to trade on the main board of the Hong Kong Stock Exchange under a clause allowing IPOs by loss-making biotechs, with CCB International as the exclusive sponsor.

Its core product under development is an injectable filler to smooth out smile lines around the nose and mouth.

Established in 2016 in Chengdu, Sichuan province, Eastenova is keen to compete in the global filler market with leading international brands such as Ellansé and Juvederm, taking advantage of China’s growing demand for cosmetic beauty treatments and medical enhancements.

It is concentrating on 13 injectable and plumping products, targeting facial and neck wrinkles, dull or dry skin, soft tissues in the cheeks, and stretch marks, according to the IPO application. These all fall under Class Three rules in China that strictly regulate medical devices and procedures.

The candidate products use biopolymers as a base and are combined with hyaluronic acid and collagen for greater effectiveness, to compete at the high end of the filler market, Eastenova said.

Restorative properties

The key treatments, XH301 , to smooth out smile lines have completed clinical testing and are going through the registration and review stage, the company said. Another product to treat stress urinary incontinence in women, associated with weakened pelvic muscles, is at the pre-clinical stage.

A clinical trial on 252 subjects indicated that the flagship product, XH301, was more effective than imported hyaluronic acid products with no significant difference in safety, according to the filing. Standard products using hyaluronic acid as a hydrating agent offer temporary benefits for the skin. But Eastenova said its product would also promote collagen renewal, with longer lasting effects, making it a potentially serious challenger for existing treatments.

The company expects to launch its two anti-wrinkle treatments in China this year and begin the certification process in Europe to take the products global. It has also struck a deal with the aesthetic medicine platform So-Young International (SY.US) to promote and sell its key products in mainland China, Hong Kong, Macao and Taiwan.

The company is also working on building its own platforms, pursuing a multi-pronged strategy of developing aesthetic medicines, protective dressings and restorative nutritional aids. Seven of its medical dressings and patches have been certified under China’s Class Two regulations, while a candidate product for use during post-surgery breast reconstruction is at the pre-clinical stage.

Eastenova is also exploring the business of special-purpose nutritional food aimed at individuals with medical conditions. In this area it has two approved products and seven candidate products under development.

Small revenue stream

With no premium products on the market yet, the company continues to make losses. It brought in revenues of 12.88 million yuan ($1.79 million) in 2023 and 14.52 million yuan last year, mostly from sales of medical dressings and dietary products, as well as proceeds from providing medical research, consulting and testing services.

The company reported losses of 63.50 million yuan and 69.38 million yuan over the two years, pushed into the red by R&D, sales and administrative expenses. Its R&D spending came in at 45.73 million yuan and 44.95 million for the two years.

As losses have mounted, so have liabilities. Eastenova’s liability-to-asset ratio jumped from 78% in 2023 to 123% in 2024, with net liabilities reaching 37.08 million yuan. The company had 33.20 million yuan in cash and cash equivalents at its disposal at the end of 2024, which might explain why it has set its sights on a Hong Kong listing.

Three financing rounds have been held since the company was founded, producing a post-investment valuation of 1.5 billion yuan. Notably, one of its backers is Shanghai-listed Sun-Novo (688621.SH), whose majority shareholder, Li Qian, serves as a non-executive director of the company.

From a financial perspective, Eastenova’s profits are very modest, and its main products have yet to come under commercial scrutiny. But it is operating in a fast-expanding Chinese market where existing hyaluronic products, imported from overseas, command high prices.

It aims to tap into growing demand for domestic fillers that can serve as safe and more affordable substitutes for those expensive foreign products. If Eastenova can succeed in launching its core wrinkle treatment and prove its credentials as a medical aesthetics brand, it has the potential to deliver benefits for investors.

In the meantime, it will need a plentiful supply of cash to turn its ambitions into reality.

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