Recently, Shenghe Biological Holdings Limited (hereinafter referred to as "Shenghe Biological", Sunho Biologics, Inc.) once again submitted a prospectus to prepare for listing on the main board of the Hong Kong Stock Exchange, with CICC as its sole sponsor. According to Bedo Finance, the company had submitted the form on August 3, 2023.

According to the prospectus, Shenghe Bio is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of innovative biologics for the treatment of cancer and autoimmune diseases. At present, the company has three core products, namely IAP0971, IAE0972 and IAH0968, all of which are in-house research and development.

according to eye information, shenghe biology was established in April 2018, all called shenghe (China) biopharmaceutical co., ltd., located in Nanjing city, Jiangsu province. At present, the company's registered capital is about 0.188 billion yuan, the legal representative is Yin Liusong, and the wholly-owned shareholder is Shenghe Pharmaceutical Technology (Zhejiang Anji) Co., Ltd.

bedo finance and economics found that shenghe biology had undergone several industrial and commercial changes in August and September 2023, of which the registered capital increased by about 7.68 million yuan. At the same time, investors added Guangzhou Yuexiu Kangjian Phase II Venture Capital Fund Partnership (Limited Partnership) and Guangzhou Vision Mingkang Industrial Investment Partnership (Limited Partnership), but quickly withdrew.

Shenghe Bio said in its prospectus that it has completed phase I clinical trials for advanced solid tumors (including non-small cell lung cancer "NSCLC" and colorectal cancer "CRC") and initiated phase II clinical trials for biliary tract cancer (BTC) and CRC. At present, the company has nine pipeline products, in addition to the core products, three of which are in clinical stage, also focused on cancer treatment.

It is important to note that no products have been approved for commercial sale and no revenue has been generated from the sale of the products. In its prospectus, Shenghe Bio emphasizes that the company cannot guarantee that it will eventually successfully develop and sell its core products or any pipeline products.

However, according to Shenghe Bio, the core business model includes in-house discovery, development and commercialization of antibody cytokines and other immunotherapies that regulate the immune microenvironment by directly regulating the innate and adaptive immune system to address market needs in the field of oncology and autoimmune diseases.

In addition, Shenghe Bio will seek opportunities to cooperate with leading international pharmaceutical companies to advance overseas clinical research of its products through external licensing arrangements. The international registration team will also be expanded to ensure global clinical development and registration programs and to enhance flagship products, particularly the antibody cytokine pipeline, including IAP0971, IAE0972 and IBB0979.

according to the prospectus, Shenghe Bio's other income in 2021, 2022 and the first three quarters of 2023 is about 3.224 million yuan, 13.795 million yuan and 16.223 million yuan respectively, and the net loss is about 70.632 million yuan, 51.988 million yuan and 75.405 million yuan respectively.

Shenghe Bio stated in its prospectus that it expects its forecast loss for the year ending December 31, 2023 to increase, mainly due to the continued and expanded clinical development projects and the advancement of pipeline candidates in the preclinical stage. Research and development, the company expects to generate more research and development expenditures.

According to the prospectus, Shenghe Bio entered into a cooperation agreement (the "IBC0966 Agreement") with Yiming Onco Biomedical Technology (Shanghai) Co., Ltd. ("Yiming Onco", HK:01541) in respect of the technology transfer, development, manufacturing and commercialization of IBC0966 in October 2019.

According to the agreement, Shenghe Bio has the right to enjoy all the rights and interests of the IBC0966 in the authorized area and continue to develop the IBC0966, including IBC0966 preclinical and clinical research, registration application, manufacturing and commercialization in the authorized area at its expense. Yiming Onco reserves the right to develop, register and commercialize the IBC0966 outside the authorized area.

In exchange for rights, Shenghe Biology is obliged to pay the transfer fee of RMB 20 million in installments. At present, the rights and interests related to the IBC0966, as well as relevant documents and materials, have been officially transferred to Shenghe Biology. It has paid a transfer fee of 10 million yuan to Yiming Onco, and the remaining 10 million yuan will be paid after the IBC0966 is approved for listing.

In addition, Yiming Onco is entitled to a single-digit percentage of royalties based on the annual net sales IBC0966 in the authorized area until the tenth year after the IBC0966 is first listed or the expiration date of the IBC0966 molecular sequence patent (whichever is earlier).

According to the prospectus, Shenghe Biology completed round A financing of RMB 0.21 billion yuan and round A + financing of RMB 0.602 billion yuan in August and September 2023 respectively. The cost per share is 12 yuan, and the corresponding post-investment valuation is about RMB 1.41 billion yuan and 1.47 billion yuan respectively.

According to Bedo Finance, Shenghe Bio's investor is Leaning Capital, which costs $12 per share. In addition, Yifeng Capital has also participated in the investment of 3D Medicines Inc. (Siludi, HK:01244), Heyuan Biology (SH:688238), Microcore Biology (SH:688321), Yasheng Medicine (HK:06855), etc.

before this listing, Sunho Wisdom's shareholding in shenghe biology was 71.83, No5XJR and Sunho Stellar both held 4.90 respectively, yi feng capital held 9.52 and 4.76 respectively through yi feng ansheng and yi feng anhe, and Yuexiu industrial investment fund held 4.09 respectively through Beijing yue he.

Among them, Sunho Wisdom is controlled by Zhang Feng, Executive Director and Chairman of the Board (I. e. Chairman) of Shenghe Bio. According to the prospectus, Zhang Feng can exercise the voting rights of Sunho Wisdom, No5XJR and Sunho Stellar, with a total of about 85.11 percent of the voting rights of Shenghe Bio.

In addition, Yin Liusong is the Executive Director, Chief Executive Officer and Chief Scientific Officer of Shenghe Bio.