Chinese bio/pharma companies’ initial public offerings (IPOs) have increased since the respective national reforms of 2019, with oncology remaining the top therapy area. However, China still lags behind the US in the number of IPOs completed over the same period, says GlobalData, a leading data and analysis company.

Sharon Cartic, MSc, Associate Director for Drugs and Business Fundamentals at GlobalData, comments: “Chinese oncology therapeutic companies showed a 150% increase in the number of IPO deals from 2019 to 2020 compared to other therapy areas, according to GlobalData’s Pharma Intelligence Center Deals Database.”

Since 2019, China stepped up IPO reforms, introducing a pilot registration-based system for its capital markets. Jiangsu Hansoh Pharmaceutical Group remains on top with the largest IPO deal in China of $1bn completed in June 2019, with its drug pipeline spanning across multiple ‘top therapy’ areas.

In September 2021, China announced its plans for a new stock exchange in Beijing to provide financing for innovative small and medium-size companies.

Cartic concludes: “This would be similar to the Shanghai Stock Exchange Science and Technology Innovation Board (STAR) launched in July 2019, as a rival to the US Nasdaq, to encourage innovative companies to list before they have a marketed drug.

“However, the number of biotech companies with innovator drugs listed on the Nasdaq and New York stock exchanges is still higher than that on China’s Shanghai and Shenzhen exchanges. It remains to be seen if the number of Chinese bio/pharma companies going public may change for the next year or not.”