New stock announcement | Tongyuan Kang Medicine-B (02410) held a public offering from August 12th to August 15th, introducing cornerstone investor Changxing Xingchang.

Tongyuan Kangyi Pharmaceuticals-B (02410) is scheduled for IPO from August 12, 2024 to August 15, 2024, with plans to globally issue 47.88 million shares. Of these, 10% will be issued in Hong Kong and 90% internationally. The offer price per share is HK$12.1, with a minimum subscription of 500 shares per lot. It is expected that the H shares will begin trading on the Hong Kong Stock Exchange at 9:00 a.m. on August 20, 2024 (Tuesday). The company is a clinical-stage biopharmaceutical company dedicated to discovering, acquiring, and developing differentiated targeted therapies for commercialization to meet unmet medical needs in cancer treatment. Since its establishment in 2017, the company has built a pipeline consisting of 11 candidate drugs, including the core product TY-9591, six clinical-stage products, and four pre-clinical or early-stage clinical development products. The company is currently conducting a key Phase II clinical trial in China for TY-9591 as a monotherapy for first-line treatment of non-small cell lung cancer (NSCLC) with brain metastasis in patients with epidermal growth factor receptor (EGFR) mutations, as well as a registrational Phase III clinical trial for TY-9591 in China for first-line treatment of locally advanced (stage IIIb-IV) or metastatic NSCLC with EGFR L858R mutation. All of the company's candidate drugs are still in development. The company's revenue generation and profitability depend on the successful completion of drug development, obtaining necessary regulatory approvals, and the ability to manufacture and commercialize the candidate drugs. As of the final practicable date, the company has identified and developed a pipeline consisting of 11 candidate drugs in different stages of development, including the core product TY-9591, the key product TY-302, internally developed key product TY-2136b, four other innovative clinical products, and four products in preclinical or early clinical development stages. For the company's core product, it is currently conducting a key Phase II clinical trial for TY-9591 as a monotherapy for first-line treatment of EGFR mutation NSCLC with brain metastasis. The company expects to complete patient enrollment for this clinical trial in the third quarter of 2024 and submit a conditional marketing approval application to the National Medical Products Administration in the first quarter of 2025. Additionally, the company is currently conducting a registrational Phase III clinical trial for TY-9591 as a monotherapy for first-line treatment of locally advanced or metastatic NSCLC with EGFR exon 21 L858R mutation. The company expects to complete patient enrollment for this clinical trial in the fourth quarter of 2024 and submit a New Drug Application in the second half of 2026. The company has entered into a cornerstone investment agreement with Changxing Xingchang Industrial Investment Partnership Enterprise (Limited Partners) (Changxing Xingchang or cornerstone investor). Changxing Xingchang has agreed to subscribe at the offer price, or cause specified entities to subscribe at the offer price for the number of shares purchasable (rounded down to the nearest whole number of complete trading units of 500 H shares per lot), for a total amount of USD 26.3242 million (equivalent to approximately HKD 205.7 million). It is reported that Changxing Xingchang is an entity supervised and managed by the People's Government of Changxing County (a county government in Zhejiang Province). As certain existing shareholders of the company (namely Huzhou Talent, Changxing Xingyin, Changxing Xinsheng, CICC Qihuan, Changxing Guohai, Haibang Shuhu, Wangying Shanghe, and Fuqi Investment (collectively referred to as "Zhejiang Related Entities")) ultimately have 30% or more of the equity interest supervised and managed by the Government of Zhejiang Province, the Zhejiang Related Entities will collectively hold 10% or more of the total issued share capital of the company after listing. The company believes that the cornerstone placement will enhance the company's image and demonstrate the investor's confidence in the company's business and prospects. The company was introduced to Changxing Xingchang by its existing shareholders. The company estimates that, after deducting underwriting commissions, expenses, and other estimated expenses already paid or payable for the global offering at an offer price of HK$12.10 per share, the company will receive net proceeds of approximately HKD 506 million. Of this, 70.0% will be used for research, development, and commercialization of the company's core product (TY-9591); 20.0% will be used for the research and development of other candidate products; 3.0% will be used for potential strategic acquisitions, investments, licenses, or collaboration opportunities; and 7.0% will be used for working capital and other general corporate purposes.