Ascentage sold 7,325,000 American Depositary shares at $17.25 each. Credit: Andrey Zhuravlev via Getty Images.
China-based biotech Ascentage Pharma has raised $126m in a US initial public offering (IPO), marking the first biotech IPO of 2025.
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What’s missing from your IPO industry assessment?
IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in.
Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year.
With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
Macroeconomic and demographic environment
Consumer context
Industry environment
Competitive environment
Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
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The company sold 7,325,000 American Depositary shares at $17.25 each. Shares for the company began trading today (24 January) on the
Nasdaq
under the ticker symbol “AAPG”, and are up by as much as 4% since markets opened, as per
Bloomberg
.
The funds will primarily support the development of Ascentage’s cancer drug pipeline, including its lead candidate olverembatinib for the treatment of chronic myeloid leukaemia (CML). Olverembatinib, a tyrosine kinase inhibitor (TKI), is approved and marketed as Nelic in China for the treatment of adult patients with TKI-resistant chronic-phase CML (CP-CML) or accelerated-phase CML (AP-CML) with the T315I mutation, and for those with CP-CML resistant disease or intolerant to first and second generation TKIs.
The IPO comes after the company signed a significant
licencing agreement with Takeda
in 2024. Takeda paid $100m upfront for the option to licence olverembatinib outside China, Hong Kong, Macau, Taiwan, and Russia, and committed to potential milestone payments totalling $1.2bn.
The broader IPO market has seen fluctuations in recent years. Following a surge in 2020 and 2021, activity slowed, only to pick up slightly in late 2024. In September 2024, three biotech firms –
Bicara Therapeutics,
Zenas BioPharma, and MBX Biosciences – raised over $700m collectively in a single day on Nasdaq, reflecting renewed investor interest.
Industry sentiment
remains optimistic for 2025
, with many expecting IPO activity to increase. A Jefferies survey reported that 64% of respondents anticipate a stronger IPO market this year, with equity raising expected to play a significant role. Ascentage’s listing aligns with this outlook and suggests a favourable environment for biotech funding as the year begins.
Ascentage’s olverembatinib is being investigated in the Phase III POLARIS-2 registrational study (NCT06423911) which plans to enrol 285 patients with CML. Beyond olverembatinib, Ascentage has other candidates in its pipeline including lisaftoclax, a treatment for blood cancers. The candidate is in late-stage trials and under regulatory review in China.
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What’s missing from your IPO industry assessment?
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Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year.
With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
Macroeconomic and demographic environment
Consumer context
Industry environment
Competitive environment
Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
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