Chinese Biotech Ascentage Pharma Raises $126M in First US Biotech IPO of 2025
Ascentage Pharma, a Suzhou-based cancer drug developer, has successfully raised $126 million in an initial public offering (IPO) on the Nasdaq Stock Exchange, marking the first US biotech IPO of 2025. The company, which is already publicly traded in Hong Kong, sold 7,325,000 American depositary shares (ADS) at $17.25 each, slightly below its initial projections.
Funding Allocation and Pipeline Development
Ascentage plans to utilize the IPO proceeds to advance its robust pipeline of cancer therapeutics. The company's portfolio includes several small molecule drugs designed to block or degrade protein targets implicated in various cancers.
A significant portion of the funds, approximately $50-60 million, will be directed towards seeking approval and preparing for the commercial launch of lisaftoclax in China. Lisaftoclax, a BCL-2 blocker, is currently undergoing late-stage testing for blood cancers including chronic lymphocytic leukemia (CLL) and acute myeloid leukemia (AML).
Another $30-40 million has been earmarked for the development of olverembatinib, a tyrosine kinase inhibitor, in the United States and other countries. Olverembatinib, already approved in China for certain chronic myeloid leukemia (CML) patients, is currently in multi-country Phase 3 trials for CML and two other forms of cancer.
Strategic Partnerships and Market Position
Ascentage's IPO comes amid increased dealmaking involving drugs from China, a trend industry watchers expect to continue. The company has already benefited from this trend, having licensed olverembatinib to Takeda last year in a deal worth $100 million upfront.
Despite the ongoing tensions between the US and China, many pharmaceutical executives have expressed continued interest in Chinese licensing deals. At the recent J.P. Morgan Healthcare Conference, Gilead's Chief Financial Officer Andrew Dickinson stated that while being cautious about data protection, the company is not hesitating regarding Chinese licensing deals.
References
- Ascentage prices first biotech IPO of 2025, raising $126M
The China-based cancer drug developer’s offering will fund testing of medicines for several blood malignancies — one of which is part of an alliance with Takeda.
- Chinese Biotech Ascentage Aims For $134M IPO
Ascentage is looking to use the IPO proceeds to advance its Phase III candidates for chronic or small lymphocytic leukemia and for certain types of chronic myeloid leukemia.
Explore Further
What are the main competitive advantages of Ascentage Pharma's lisaftoclax and olverembatinib compared to similar drugs on the market?
What are the specific strategic goals Ascentage Pharma aims to achieve with the proceeds from their US IPO?
How has Ascentage Pharma's prior trading performance in Hong Kong influenced its decision to pursue a US IPO?
Who are the primary competitors of Ascentage Pharma in the development of BCL-2 blockers and tyrosine kinase inhibitors?
What are the major challenges faced by Chinese biotech companies when entering the US market, particularly in terms of licensing and data protection?