Biotech Firm Adagene Plans $200 Million U.S. IPO

(Bloomberg) -- Adagene Inc., a Chinese biotechnology company backed by WuXi AppTec Co. and private equity firm General Atlantic, is planning a U.S. initial public offering that could raise about $200 million, according to people familiar with the matter.

The company is currently having informal meetings with prospective investors for the offering, which could happen as soon as the end of this year, the people said, asking not to be identified as the information is private.

Deliberations are ongoing and details of the share sale including size and timeline could still change, the people said. A representative for Adagene didn’t immediately respond to requests for comment.

Adagene joins a record wave of fundraising in the health care sector globally this year, driven by surging investor demand for new offerings. The coronavirus pandemic has played a role in heightening interest in companies developing everything from better cancer detection and treatment to eye therapies and gloves.

Health care firms have raised some $16.3 billion through first-time share sales in Asia this year, more than the total fetched during any other year on record, data compiled by Bloomberg show.

Four Chinese health care companies have gone public in the U.S. this year, raising a combined $643 million, Bloomberg-compiled data show. Half are trading above their offer prices.

Suzhou-based Adagene, founded in 2012, develops oncology immunotherapy programs, according to its website. It raised $69 million in a series D financing round in January led by General Atlantic, bringing its total fundraising to more than $150 million since 2014. The company also counts WuXi AppTec and Sequoia China among its backers.

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