Qiming-backed biopharma firm Gan & Lan seeks to raise $359m in Shanghai IPO

Gan & Lee Pharmaceuticals has kicked off its IPO subscription exercise as it seeks to bag a total of 2.5 billion yuan ($359 million) on the Main Board of the Shanghai Stock Exchange (SSE).

Backed by Chinese venture capitalist Qiming Venture Partners, the company intends to offer up to 40.2 million common shares at a price of 63.32 yuan ($8.9) apiece, according to the bourse. It has sold 2,881,400 shares amounting to 182 million yuan ($26 million).

Gan & Lee plans to use the proceeds to develop a slew of projects in areas of sales and marketing, and spruce up new drug application in the US, and its R&D centre. Besides, a part of it will be used to replenish working capital.

CITIC Securities serves as its principle underwriter for the deal, while Orient Securities and Orient Securities Investment Banking are its joint sponsors. The company will float the shares under the symbol “602087”.

Gan & Lee, established in 1998, is engaged in the business of insulin and its analogues for diabetes therapy. The company derives its revenues from insulin injections. Last month, its third-generation insulin analog Aspart Injection received approval from National Medical Products Administration.

Its prospectus shows that it generated annual revenues of 2.9 billion yuan ($409 million) in 2019 and 2.4 billion yuan ($337 million) in 2018. Its net profit in 2019 stood at 1.2 billion yuan ($165 million), up 934 million yuan ($33 million) compared to that of 2018.

Headquartered in Beijing, Gan & Lee has manufacturing bases in Jiangsu and Shandong too. In addition, it owns an overseas subsidiary in the US.

Qiming had first invested in the company in 2010 – it had pumped in 100 million yuan ($14 million) in it. Subsequently, in 2011, Qiming along with Goldman Sachs and GL Capital had collectively infused 336 million yuan ($47 million). Later in 2015, Hillhouse had made an undisclosed strategic investment in Gan & Lee.

 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.