Ocumension Therapeutics Soars 152% In HK Market Debut

Shanghai-headquartered ophthalmology-focused pharma firm Ocumension Therapeutics on Tuesday made a stellar trading debut on the Hong Kong stock exchange with its shares soaring 152 per cent to reach a peak of HK$42.50 ($5.5) before closing at HK$38.20 ($4.9).

The company reached a market capitalisation of HK$2.128 billion ($275 million) after raising HK$1.5 billion ($200 million) in its initial public offering (IPO) on the Stock Exchange of Hong Kong (HKEX). 

The company sold 105.93 million common shares at a price of HK$14.66 ($1.89) apiece.

Ocumension roped in 14 cornerstone investors, including Singapore state-owned Temasek Holdings, BlackRock, Fidelity International, Lake Bleu Capital, OrbiMed Healthcare Fund Management, and Boyu Capital. 

“Ocumension’s IPO marks a significant milestone in our journey to become China’s leading ophthalmology platform,” said Ocumension CEO Ye Liu in a statement. “We will use these funds to continue expanding our portfolio with innovative new drug assets, whilst developing our manufacturing capabilities and strengthening our commercialization through sales and marketing.”

Ocumension will use the proceeds to revamp its flagship products and drug candidates and to acquire a Suzhou-based manufacturing facility.

Morgan Stanley, Goldman Sachs and UBS served as joint global coordinators, bookrunners, and lead managers for the deal. 

Incepted in 2017, the company has developed 16 drug pipelines, three of which are close to commercialization and five are under preclinical trials in China. 

Per its prospectus, Ocumension counts 6 Dimensions, General Atlantic, Eight Roads, 3W Partners and Cormorant Asset Management among its investors. 6 Dimensions Capital, a healthcare investment firm, backed Ocumension in 2018.

According to Frost & Sullivan, the Chinese ophthalmic pharmaceutical market is expected to reach 40.8 billion yuan ($582 million) by 2024, at a compound annual growth rate (CAGR) of 16 per cent.