China’s Sihuan Pharmaceutical Holdings Group Ltd (HKG: 0460) has announced a renewed attempt to spin off its subsidiary, Xuanzhu Biopharmaceutical Co., Ltd (Xuanzhu Biopharm), for an initial public offering (IPO) on the Hong Kong Stock Exchange. This follows an earlier aborted effort to list on Shanghai’s Sci-Tech Innovation Board (STAR) earlier this year. Concurrently, Hainan Sihuan Pharmaceutical Co., Ltd. is poised to acquire a 3.6177% stake in Xuanzhu for a consideration of RMB 308 million.
Business Growth and Industrialization
Xuanzhu Biopharm, the innovative drug unit of Sihuan, is a significant part of a large-scale domestic pharmaceutical and medical aesthetic group. The spin-off is intended to enhance business growth and industrialization of Xuanzhu, providing improved financial flexibility and the ability to raise external funds. This move is also expected to facilitate the development of Sihuan’s rapidly growing medical aesthetics business and other emerging ventures.
Focus on Therapeutic Areas and Platforms
Xuanzhu Biopharm is dedicated to advancing treatments in oncology, metabolism, anti-infection, and digestion, among other areas. The company boasts platforms covering small molecules, monoclonal antibodies, bispecific antibodies, fusion proteins, antibody drug conjugates (ADCs), protein degradation, and more. The previous suspension of the IPO to the STAR bourse in March 2023, due to business development and strategic planning considerations, as well as the prevailing market environment, led to the withdrawal of that filing in May of this year.-Fineline Info & Tech
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