Source: Beast Finance Author: Beast Finance
Monster Finance learned that Hangzhou biopharmaceutical company Adlai Nortye has recently submitted a prospectus to the US Securities and Exchange Commission (SEC), applying for an IPO listing on Nasdaq (stock code: ANL), and Adlai Nortye plans to pass the IPO. The Nasdaq IPO raised $115 million.
Company Business
Arnold Pharma is a clinical-stage biopharmaceutical company developing therapeutic drugs for various cancer diseases, mainly through the development of kinase inhibitor-based drug combinations to treat resistant cancers and solid tumors.
Arnold's management is led by co-founder, chairman and CEO Lu Yang, who has been with the company since its inception in 2006, and before that he worked for Hanyu Pharmaceutical (300199) and was awarded Bachelor of Biotechnology from Xiamen University.
Arnold's main candidate drug AN2025 has obtained exclusive global authorization from Novartis Pharmaceuticals (NVC), and is currently undergoing Phase 2 and Phase 3 clinical trials for PIK3CA-mutant solid tumors and squamous cell carcinoma of the head and neck.
The following is the status of Arnold's drug development:
As of March 31, 2023, Arnold Pharma has received US$17.4 million from investors including Archer Future, Nortye Talent, ATCG Holding, JIN YIN (BVI) Limited, Nortye International, Unique Mark Ventures and PECO International investment.
Industry Overview
According to a 2022 market research report by Grand View Research, the size of the global head and neck cancer treatment market is estimated at USD 1.22 billion in 2021 and is expected to reach USD 3.5 billion by 2030.
This represents a forecasted CAGR (compound annual growth rate) of 12.5% for the industry from 2022 to 2030.
The key factors driving this projected growth are increasing incidence of HNSSC condition in the aging population globally and increasing treatment options for drug developers.
The chart below presents the historical and projected future growth of the head and neck cancer treatment market in the United States:
Arnold's main competitors in this industry include:
(1) Eli Lilly (LLY)
(2) Sanofi-Aventis (SNY)
(3) Merck (MRK)
(4) Clinigen Group plc
(5) Bristol-Myers Squibb
(6) AstraZeneca (AZN)
(7) Japan Takeda Pharmaceutical Company
(8) Teva Pharmaceutical Industries Ltd.
Arnold Pharmaceutical’s financial situation
According to the IPO prospectus, Bold Beast Finance organizes the financial performance of Arnold Pharmaceuticals as follows :
Arnold is a typical biopharmaceutical company in the development stage. It has recognized some one-time sales of some of its intellectual property revenue. As of March 31, 2023, Arnold has $59.8 million in cash and Total liabilities of $322.4 million.
Below are Arnold Pharma's financial results for the past two calendar years:
Details of the US stock IPO
According to the IPO prospectus, Boldbeast Finance organizes the IPO of Arnold Pharmaceuticals as follows:
Arnold Pharmaceuticals plans to raise 1.15 billion yuan in the form of IPO listing on Nasdaq through its American Depositary Shares (ADRs) representing Class A shares. billion dollars of funds.
Nippon Kayaku Co., Ltd. has agreed to purchase US$40 million of Class A shares of Arnold Pharma at the IPO price concurrently with private placement.
In addition, there is a "potential investor" who expressed interest in buying Arnold's stock at the IPO price for a total of not more than US$50 million.
According to Nasdaq rules, after the IPO, Arnold Medicine will immediately become a "controlled company".
With regard to pending legal proceedings, management indicated that Arnold Pharma is not currently involved in any legal proceedings that could have a material adverse effect on its financial condition or operations.
Risks to Arnold's prospects as a public company include the fact that the proposed IPO funds will fund the company for a relatively short period of only about 12 months.
As a result, Arnold may need to raise more capital in the near future, possibly diluting existing shareholders in the process, unless the share price gains from a milestone development are enough to offset the potential dilution.
Arnold Pharma's current syndicate of investors does not include any well-known or established life science venture capital firms.
The intermediary agency
Meng Beast Finance learned from Arnold Pharma’s IPO prospectus that CLSA is the bookrunner for Arnold Pharma’s Nasdaq IPO listing, and Cantor is Arnold Pharma’s Nasdaq IPO listing manager. Underwriters, the six IPOs the firm has led in the past 12 months have generated an average negative return (25.0%) since the IPO, the lowest performance of any major underwriter over that period.
