Jiangsu Hengrui Pharmaceuticals, a leading Chinese developer of novel drugs that recently received approval to go public in Hong Kong, is likely to see an acceleration in growth as its research and development (R&D) pipeline bears fruit, analysts said.
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“Hengrui has achieved an industry-leading, highly differentiated innovative drugs pipeline, of which some have the potential to become commercialised heavyweights,” said Yongxing Securities analyst Peng Bo in a note on April 29.
“We expect its sales growth will continue to be driven by novel drugs, with the licensing of intellectual property rights to overseas partners as the second biggest revenue driver.”
Last week, Hengrui said it received regulatory approval to float up to 815 million new shares on Hong Kong’s stock exchange, which would account for 11.3 per cent of its enlarged share capital. Hengrui is seeking to raise up to US$2 billion, according to media reports.
The company, which is based in eastern China’s Jiangsu province, began operations in 1970 as state-owned Lianyungang Pharmaceutical Factory. It listed in Shanghai in 2000.
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Over the years, it has shifted focus to developing novel drugs from making generic medicines. It has spent 44 billion yuan (US$6.05 billion) on R&D since 2000, according to its website, the highest tally on the mainland.