FAST NEWS: Lepu Biopharma to raise $32 million in share sale
The Latest: Innovative drug maker Lepu Biopharma Co. Ltd. (2157.HK) announced on Friday it will place up to 51.17 million shares, or about 2.99% of its overall issued share capital, for a sale price of HK$4.58 per share.
Looking Up: The company expects to receive approximately 230 million yuan ($32 million) in net proceeds from the placement, which it will use for R&D, clinical trials and other workstreams for its antibody-drug conjugates (ADC) and oncolytic virus (OV) products, and to replenish its working capital.
Take Note: The placement share price represents a 13.09% discount to the company’s closing price of HK$5.28 on Thursday.
Digging Deeper: Lepu touts itself as the only biotech company in China working on three very promising fronts, with PD-1 products in the new drug application (NDA) stage, multiple “smart missile” antibody-drug conjugate (ADC) products in clinical trials, and OV products under development. The company made a Hong Kong IPO in 2022 just as medical stocks were falling out of favor, making it settle for a valuation that was 14% below what it got in its post-series-C funding, raising about HK$800 million ($103 million). It recorded 225 million yuan in revenue last year but failed to earn a profit after recording its first sales at the end of 2022.
Market Reaction: Lepu’s shares fell on Friday and were down 6.3% to HK$4.94 by the midday break. The stock now trades in the middle of its 52-week range.
Translation by A. Au
To subscribe to Bamboo Works weekly free newsletter, click here
