Lawyers from Skadden Arps Slate Meagher & Flom have advised China’s BeiGene on a US$903 million initial public offering (IPO) on the Hong Kong stock exchange, the second listing under new biotech-specific rules.
The commercial-stage biopharmaceutical company focuses on developing and commercialising innovative molecularly targeted and immuno-oncology drugs for the treatment of cancer. It initially announced the listing in July this year, and completed the deal, with counsel from Skadden partner Christopher Betts in Hong Kong, on 8 August.
BeiGene has also granted the IPO’s joint global coordinators – including Morgan Stanley, Goldman Sachs, Credit Suisse and Asian capital markets and investment group CLSA Limited – a 30-day option to purchase additional shares at the public offering price.
The underwriters and joint global coordinators were advised by a team from Davis Polk & Wardwell led by partners Bruce Dallas in California, and Paul Chow and Bonnie Chan in Hong Kong, alongside counsel Yang Chu and registered foreign lawyer Xuelin (Steve) Wang.
Beigene said it intends to use proceeds from the offering for “clinical trials, preparation for registration filings, and for the launch and commercialization of its core product candidates” as well as to fund expansion of its cancer portfolio and expand its “internal capacities”.
This is the second listing under new rules allowing “pre-revenue” biotech companies from China, which do not meet traditional financial eligibility criteria, to list on the exchange, after Chinese medical technology company Ping An Healthcare and Technology’s US$1.12 billion IPO in May.
According to HKEX chief executive Charles Li, these reforms are targeted to “make the Hong Kong market more relevant and even more competitive” as part of the process of becoming “a welcoming home for innovative companies”.
Earlier this year, the HKEX said it would form a biotech advisory panel of industry experts to review listing applications from companies under the new regime. Such flotations are potentially risky as the companies will not always have generated the revenue or profit usually required to float.
Counsel to Beigene
- Skadden Arps Slate Meagher & Flom
Partner Christopher Betts in Hong Kong
- Davis Polk & Wardwell
Partners Bruce Dallas in California, Paul Chow and Bonnie Chan in Hong Kong, and David Bauer in New York.
Counsel Yang Chu in Hong Kong and Alon Gurfinkel in London.
Registered foreign lawyer Xuelin (Steve) Wang in Hong Kong.
Associates Jeffrey Lau, Josephine Chen and Dongbiao Shen in California, Barbara Wang in Hong Kong, Omer Harel in London, and Tilak Koilvaram in New York.