On March 27, 2024, InSilico Medicine Cayman TopCo (hereinafter referred to as “Insilico Intelligence”) from Hong Kong submitted a prospectus to the Hong Kong Stock Exchange to go public on the Hong Kong Main Board. This is another application after its submission expired on June 27, 2023.
On November 10, 2023, Insilicon Smart obtained the Overseas Issuance Listing Filing Notice from the China Securities Regulatory Commission (China Cooperation Letter [2023] No. 1680), and plans to issue no more than 708.905 million overseas listed common shares.
Link to Insilicon Smart's prospectus:
Main business
Insili Intelligence was founded in the US in 2014 and established its Hong Kong headquarters in 2019. As the world's leading AI biotechnology company, its business model includes pipeline drug development, drug discovery services and software solution services.
Pipeline drug development
This includes research and development, commercialization of pipeline drug candidates developed within the company after receiving marketing authorization, and external licensing of certain pipeline drug candidates for which the company retains exclusive ownership of relevant intellectual property rights. Regarding internally developed drug candidates, the company plans to generate revenue from the commercialization of such drug candidates after marketing. As of March 19, 2024, Insilicon Smart has no commercialized products, so it has not generated any revenue since then. For drug candidates authorized externally to third parties, the company collects license fees in the form of advance payments, milestone payments, royalties, etc.
As of March 19, 2024, Insilicon Smart has a pipeline of 15 drug candidates covering fibrosis, oncology, immunology, and other treatment fields, 6 of which have obtained IND approval for clinical trials. ISM001-055, the core product of InsiSilicon Intelligence, is a small molecule drug candidate that mainly treats fibrosis-related indications by inhibiting TRAF2 and NCK interacting protein kinase (TNIK, a newly discovered anti-fibrosis target).
Drug Discovery Services
Insilicon Intelligence uses Pharma.ai to discover disease-related targets, identify and further develop promising drug candidates that the company cooperates with third parties and therefore does not have exclusive ownership of the relevant intellectual property rights. The Company charges service fees, including drug discovery services, in the form of advance payments, milestone payments, royalties, and optional payments. In 2022 and 2023, Insilicon Smart will provide drug discovery services to 42 and 51 customers respectively, including collaborations with Fosun and Sanofi.
Software Solution Service and Pharma.ai Platform
Insili Intelligence authorized customers to use the three components of the Pharma.ai platform (i.e. Biology42, Chemistry42, and Medicine42). The company enters into a subscription agreement with the customer and charges a prepaid subscription fee for access to Pharma.ai. Starting in 2021, in order to tailor according to customer needs, the company also began granting the right to use Chemistry42 software installed at customer sites and charging subscription fees. The Pharma.ai platform aims to integrate drug discovery and development processes to identify new drug targets, design replacement molecules for new varieties and known targets, and optimize clinical development.
Shareholder structure
According to the prospectus, in the pre-listing shareholder structure of Insili Intelligence,
Dr. Alex Zhavoronkov holds 10.32% of the shares;
Mesolite Gem Investments Ltd, holding 9.71% of the shares;
Employees and consultants, holding 4.48% of the shares; (Dr. Ren Feng, Dr. Aleksandr Aliper, Mr. Nirav Jhaveri, Dr. Michelle Chen, Ms. Wang Jun)
Pharmaceutical Kangde (02359.HK) holds 6.45% of shares through WuXi PharmaTech Healthcare Fund;
Temasek holds 6.07% of the shares through Palace Investments Pte, Ltd.;
Qiming Venture Capital holds 5.61%, 2.00%, 0.15%, and 0.02% of shares through QVPVI, QVPVII, QMDVI, and SIF VII respectively;
LAV holds 2.25%, 1.02%, and 1.02% of shares through LAV Biosciences Fund V, LAV Fund VI, and LAV Fund VI Opportunities', respectively;
Dmitrii Caminschi, through DKV and DKAIT, holds 1.87% and 0.01% of the shares respectively;
Deep Knowledge Ventures, holding 0.69% of the shares;
BOLD Capital holds 3.18% and 0.67% of shares through Bold Capital II and Bold Capital Select, respectively;
Sinovation holds 2.35% and 0.51% of shares through Sinovation Fund IV and SV China, respectively;
Eight Roads holds 1.89%, 1.89%, and 0.68% of shares through ERVC Healthcare IV, ERVC Technology IV, and Eight Roads Japan II, respectively;
B Capital Group holds 2.48% and 1.69% of shares through B Capital (China) I and B Capital China III respectively;
Deerfield holds 0.96% and 0.96% of the shares through Deerfield Partners and Deerfield Private Design Fund V, respectively;
Future Assets holds 1.19%, 0.34%, 0.25%, and 0.17% of shares through Mirae Asset New Economy, Mirae Innovation Fund I, Mirae Asset Sage Fund I, and Mirae Asset Growth 6, respectively;
Gao Yu, through MSPR III and GSUM VI, held 1.52% and 1.02% shares respectively;
Aramco Ventures, holding 3.10%
SMALLCAP, holding 2.94%
CPE Global holds 2.54% of shares through CYX Technology
OrbiMed, holding 2.54%
Fosun Pharmaceutical (02196.HK, 600196.SH), holding 2.54% of shares
Tubus, holding 1.74%
Longevity Fund I, holding 1.45%
MS Sublime, holding 1.02%
Sequoia Capital, through Sequoia Capital China Growth, holds 0.85%
Unified Enterprise (1216.TW), President with 69.37% interest, holding 0.85% of shares
Clearpool Capital LBC Sunshine holds 0.85% of the shares
Qilu Pharmaceutical holds 0.85% of shares through Anchor
Dream Team Ventures, holding 0.85%
Synaro, holding 0.62%
BHR Investment Fund X, holding 0.62%
China Biopharmaceutical (01177.HK), holding 0.62% of shares
F-Prime Capital Fund VI, holding 0.58%
Ruizhi Capital, holding 0.42% of the shares
Formic Ventures, holding 0.34%
Michael Antonov Charitable Foundation, holding 0.29%
Baidu (09888.HK) holds 0.29% of shares through Baidu Venture Capital
Ted M Routt, holding 0.13%
Palingenetic, LLC, holding 0.11%
Bruce Chou, RP, holding 0.10%
Wilson Sanzini Gucci Rosaldi Law Firm holds 0.08% and 0.02% of the shares through WS Investment (21A) and WS Investment (22A), respectively;
BMH Capital, holding 0.06%
Bridget Jane Holmewood, holding 0.06%
Richard Redmond and Aileen Redmond hold 0.06% of the shares
RyanChow Super Fund, holding 0.04%
STBS Consultants, holding 0.03%
Biomedical Research and Longevity Society, holding 0.02% of the shares.
directorates
The board of Insilis Intelligence consists of 7 directors, including 2 executive directors (Aleksandrs Zavoronkovs)
Dr. Ren Feng), 2 non-executive directors (Mr. Fang Min, Dr. Chen Kan), 3 independent non-executive directors (Dr. Wang Jinsong, Dr. Denitsa Milanova, and Mr. Roman Kyrychynskyi).
In addition to the Executive Director, executives include President Dr. Aleksandr Aliper, Chief Business Officer Dr. Michelle Chen, Chief Medical Officer Dr. Sujata Rao, Chief Medical Officer, Mr. Dai Peng, Treasurer and Vice President, and Ms. Wang Jun.
Company performance
According to the prospectus, in the past two fiscal years of 2022 and 2023, Insilicon Smart's revenue was US$30.147 million and US$51.180 million, with corresponding R&D expenses of US$78.175 million and US$97.341 million. The corresponding net losses were US$222 million and US$212 million respectively, and the corresponding adjusted net losses were US$708.04 million and US$67.361 million respectively.
