“A commercialization licensing arrangement has been signed with Yuanda Pharmaceutical.”

This article is about IPOs that I have known originals for a long time

Author | Stone Jin

According to news from the IPO, CLOUDBREAK PHARMA INC. (hereinafter referred to as “Diakang Shiyun”) officially submitted a prospectus to the Hong Kong Stock Exchange on November 30, 2023, to be listed on the Main Board. UBS Group, CCB International, and Huatai International act as co-sponsors.

Established in 2015, Baokang Shiyun is a clinical-stage ophthalmology biotechnology company committed to in-house discovery, development and commercialization of first-of-its-kind and best-in-class ophthalmology treatments to meet unmet global medical needs.

At present, Diokang Shiyun has established a pipeline of seven drug candidates covering the main diseases of the front and back of the eye. Among them, there are four clinical drug candidates (i.e. CBT-001, CBT-009, CBT-006, and CBT-004) and three drug candidates in the preclinical stage (i.e. CBT-007, CBT-145, and CBT-011).

Among them, once approved, CBT-001 and CBT-004 are expected to be the world's first-of-its-kind drugs for pterygium and vascularized eyelid fissures, respectively. According to Frost & Sullivan's report, Baokang Shiyun is one of the few ophthalmology companies in the world to cooperate with the US Drug Administration and the National Drug Administration to set new global standards for the treatment, regulatory review, and clinical trials of pterygium and vascularized blepharyngeal fissures. According to Frost & Sullivan's report, CBT-001 and CBT-004 are expected to be drugs for patients with pterygium and vascularized eyelid fissures around the world.

At the same time, once approved, CBT-006 is expected to be the world's first drug of its kind to treat dry eye associated with abnormal Meibomian gland function; once approved, CBT-009 is expected to be the world's best drug of its kind to treat myopia in young people.

In addition to 4 clinical-stage drug candidates, Diokang Shiyun's pipeline also includes 3 pre-clinical drug candidates, namely CBT-007 (used to improve the success rate of glaucoma filtration surgery), CBT-145 (a new chemical entity suitable for the treatment of presbyopia), and CBT-011 (an antibody drug synergistic conjugate suitable for treating diabetic macular edema, which is retinal thickening caused by accumulation of fluid in the retina).

In terms of product commercialization, CBT-001 will be the product most likely to generate revenue first. At present, Diakang Shiyun has signed a commercial licensing arrangement with Yuanda Pharmaceutical to optimize the market potential of CBT-001 by relying on Yuanda Pharmaceutical's distribution channel network. At the same time, Diakang Vision is able to generate predictable cash flow according to commercialization licensing arrangements without making significant upfront investments to establish a complete sales team in the early stages of commercialization.

Baokang Shiyun stated in the prospectus that as it continues to promote clinical trials of other drug candidates in the pipeline, it hopes to use its cooperation experience with Yuanda Pharmaceutical to ensure strategic cooperation with other major market participants to achieve a cost-effective commercialization strategy and establish global sales channels.

Since its establishment, Diakang Shiyun has received investment from well-known institutions such as Dinghui Investment, CCB International, Gaotejia Investment, Yuanda Pharmaceutical, Deyi Capital, Huayi Capital, Yicun Capital, Bank of China International, Yingke Capital, Yifeng Capital, Guanzi Capital, Chuangdong Investment, and Xingzheng Capital.

When the final round of financing before the IPO was completed, the valuation of Diakang Shiyun was about US$469 million.

Source of this article: I already knew about IPOs