Shanghai Henlius Biotech, a Chinese biotech company, is poised for privatization, with its founder and major shareholders committing to buy out the company’s publicly traded shares. The move is expected to pave the way for its listing on the Hong Kong Stock Exchange (HKEX) in the second half of 2024.
Henlius Biotech was founded in 2014 and is known for its innovative platform technologies in the fields of cell therapy and gene engineering. The company has developed several lead products, including a CD20-CD3 bispecific antibody for the treatment of cancer, and a PDA-001, a transarterial chemoembolization (TACE) treatment for liver cancer.
The privatization plan is subject to approval from the Chinese regulatory authorities and other relevant parties. If successful, the company’s shares will be suspended from trading on the Shanghai Stock Exchange, and its shares will be cancelled. The privatization is seen as a strategic step for the company to focus on its growth and development, and to prepare for its listing in Hong Kong.
TipRanks analysts have a “buy” rating on the company, citing its promising pipeline of products and strong growth potential. The company’s stock is expected to benefit from the consolidation and refinancing, with potential upside of 50% in the next 12 months.