Kelun-Biotech Makes Landmark Debut on Hong Kong Stock Exchange, Sets IPO Record

Kelun-Biotech raised a net amount of approximately HKD 1.2589 billion through this initial public offering (assuming the exercise of oversubscription option), making it the largest IPO in the biopharmaceutical sector on the Hong Kong stock market in the past two years. As of 10:50, Kelun-Biotech's stock price was HKD 62.80 per share, with a market capitalization of HKD 13.554 billion.

Founded in 2016, Kelun-Biotech is a holding company of Sichuan Kelun Pharmaceutical Co. As an integrated and innovative biopharmaceutical company, Kelun-Biotech is dedicated to the development, manufacture and commercialization of innovative drugs to meet the medical needs in oncology, immunology and other therapeutic areas in China and globally.

Kelun-Biotech is one of the first and few global biopharmaceutical companies to establish a comprehensive integrated ADC platform, OptiDC. The clinical value and drug development capabilities of Kelun-Biotech's pipeline have been recognized by global strategic partners. Previously, the company established a strategic investment partnership with Merck & Co., one of the world's top ten multinational pharmaceutical companies, and signed license and cooperation agreements for nine ADC assets.

Driven by factors such as the aging population, increased expenditure on healthcare, and increased investment in research and development, the market size of the Chinese biopharmaceutical industry has been growing rapidly in recent years. According to Frost & Sullivan's report, the market size of the Chinese biopharmaceutical industry increased from CNY 183.6 billion in 2016 to CNY 345.7 billion in 2020, with a compound annual growth rate of 17.14%. It is estimated that in 2021, the market size of the Chinese biopharmaceutical industry reached approximately CNY 424.8 billion.

According to relevant data from IQVIA, global pharmaceutical spending (based on invoice prices) is expected to grow at an average annual rate of 3% to 6% from 2021 to 2025, reaching USD 1.6 trillion by 2025. The five largest pharmaceutical companies in terms of market value globally are Johnson & Johnson, Roche, Pfizer, Eli Lilly, and Novartis. Among them, Johnson & Johnson leads with a market value of USD 428.7 billion. In the Asian region, Hengrui（恒瑞制药）and Takeda are among the leaders.

Since its establishment, Kelun-Biotech has received investments from renowned institutions such as IDG Capital（IDG资本）, SDIC Investment（国投招商）, Lilly Asia Ventures（礼来亚洲基金）, Hillhouse Capital（高瓴资本）, BOSC international（上银国际）, Merck Sharp & Dohme, and Sherpa Capital（夏尔巴投资）.