BioNTech-Backed DualityBio Pursues $200M Hong Kong IPO Amid Market Turbulence

DualityBio, a Chinese antibody-drug conjugate (ADC) specialist, has launched its initial public offering (IPO) on the Hong Kong Stock Exchange, aiming to raise up to HK$1.56 billion ($200 million) to fund its expanding pipeline. The move comes at a time of significant market volatility, with Hong Kong stocks experiencing their largest single-day drop since 1997 due to escalating trade tensions between China and the United States.

Strategic Backing and Cornerstone Investors

DualityBio's IPO ambitions are bolstered by support from prominent pharmaceutical players. BioNTech, along with other cornerstone investors, has committed approximately $65 million, accounting for about one-third of the targeted IPO proceeds. This backing not only provides financial support but also lends credibility to DualityBio's technological platform and pipeline potential.

The company's impressive roster of partners, which includes GSK, BeiGene, and Adcendo, underscores the industry's growing interest in ADC technology. These strategic collaborations position DualityBio as a noteworthy player in the competitive oncology landscape.

Pipeline Focus and Fund Allocation

DualityBio plans to allocate 45% of the IPO proceeds to advance its core products, DB-1303 and DB-1311. DB-1303, a HER2-targeted ADC, is poised to compete with established treatments like AstraZeneca and Daiichi Sankyo's Enhertu. Both ADCs utilize trastuzumab coupled with a topoisomerase I inhibitor, although DualityBio emphasizes its distinct linker technology as a potential differentiator.

DB-1311, targeting B7-H3, is currently in a phase 1/2a trial for solid tumors, with the company exploring further development in prostate and small cell lung cancers. This places DualityBio in competition with pharmaceutical giants GSK and Merck & Co., who are also developing B7-H3-directed ADCs.

An additional 30% of the IPO funds will support the development of DB-1305, a TROP2-directed ADC, and other key pipeline candidates. DualityBio sees an opportunity to improve upon existing TROP2-targeted therapies, such as Gilead Sciences' Trodelvy, by addressing toxicity concerns.

Legal Challenges and Market Conditions

As DualityBio navigates the IPO process, it faces legal hurdles in China, where a third party has claimed ownership rights over certain patent applications related to its technology platforms. The company maintains that these claims are unfounded and unlikely to succeed, but the ongoing proceedings add a layer of complexity to its public offering.

The timing of DualityBio's IPO coincides with significant market turmoil. The Hang Seng Index plummeted 13.2% following China's retaliatory measures against U.S. tariffs, creating a challenging environment for new listings. Despite these headwinds, DualityBio's strong backing and innovative pipeline may provide the resilience needed to successfully complete its public offering.