Ascentage Pharma (6855) Registration filing summary

Company overview and business model

• Global biopharmaceutical company focused on discovering, developing, and commercializing therapies for hematological malignancies, with operations in China, the US, and other countries.

• Lead assets olverembatinib (a next-generation TKI) and lisaftoclax (a Bcl-2 inhibitor) target major blood cancers, with multiple ongoing registrational trials.

• Eleven completed or ongoing registrational trials, including two FDA-regulated, for five key clinical-stage assets.

• Integrated capabilities in R&D, manufacturing, and commercialization, with a 200,000 sq ft facility in Suzhou and a global team of ~600 employees.

• Strategic partnerships with Takeda, Innovent, AstraZeneca, Merck, and Pfizer, and collaborations with leading research institutions.

Financial performance and metrics

• Revenue for the nine months ended September 30, 2024, was RMB876.8 million (US$124.9 million), up 400% year-over-year, mainly due to a US$100 million payment from Takeda.

• Net profit of RMB162.8 million (US$22.4 million) for the six months ended June 30, 2024, compared to a net loss of RMB402.3 million for the same period in 2023.

• Net loss of RMB925.7 million (US$127.4 million) for 2023 and RMB882.9 million for 2022; accumulated losses of RMB5,202.1 million (US$715.8 million) as of June 30, 2024.

• Cash and bank balances of RMB1,479.3 million (US$210.8 million) as of September 30, 2024.

• Research and development expenses increased 37.1% year-over-year to RMB707.1 million (US$100.8 million) for the nine months ended September 30, 2024.

Use of proceeds and capital allocation

• Estimated net proceeds of US$133.9 million (or US$154.7 million if underwriters exercise their option in full) from the IPO.

• Proceeds to fund R&D for olverembatinib and lisaftoclax, including registrational and clinical trials, regulatory approvals, and expansion into new indications and geographies.

• Additional funds allocated to other product candidates, technology platform development, and general corporate purposes.

• No current plan to pay dividends; intends to retain earnings for business operations and growth.