Ascentage raises $126m in first biotech IPO of 2025

Chinese biotech Ascentage Pharma has taken the first US biotech initial public offering (IPO) of 2025 over the finish line, raising $126 million for its pipeline of small-molecule cancer drugs.

The Suzhou-based company – which is already listed in Hong Kong – sold 7,325,000 American depositary shares at $17.25 each, and started limited trading on the Nasdaq on 24th January under the AAPG symbol. Full trading is scheduled to start today.

Ascentage's lead development asset is olverembatinib, which is the only approved BCR-ABL1 inhibitor in China for patients with chronic phase or accelerated phase myeloid leukaemia (CML) with T3151 mutations, as well as for chronic phase CML that is resistant or intolerant to first and second-generation tyrosine kinase inhibitor (TKI) drugs.

The 'new-generation TKI' is also in three international phase 3 trials, including a study in the US as a monotherapy that, according to the company, could lead to an FDA filing next year. Along with CML, it is also being developed for Philadelphia-positive (Ph+) acute lymphoblastic leukaemia (ALL), and SDH-deficient gastrointestinal stromal tumours (GIST).

Takeda took an option on olverembatinib on all markets outside mainland China, Hong Kong, Macau, and Taiwan last year in a deal that involved a $100 million upfront payment.

That Ascentage is the first IPO to complete in the US ties in with the narrative that China is rapidly emerging as a major force in biopharma innovation, with a recent Stifel report suggesting that big pharma is now sourcing almost a third of its in-licensed candidates from Chinese biotechs – a trend that analyst Tim Opler believes is "just getting started."

According to its IPO prospectus, Ascentage will use the net proceeds of the listing to fund trials of olverembatinib and regulatory filings, and also accelerate the international development of its second programme lisaftoclax, a novel Bcl-2 inhibitor for relapsed and/or refractory chronic/small lymphocytic leukaemia (CLL/SLL) and other haematological malignancies that is already submitted for approval in China.

The company reckons that lisaftoclax may be a safer alternative to Roche/AbbVie's Venclexta (venetoclax), which had sales of just under $600 million in 2023. Ascentage's drug is in four phase 3 trials in CLL/SLL, acute myeloid leukaemia (AML), and myelodysplastic syndrome (MDS).

In a statement, Ascentage said it is the first pre-revenue biotech company on the Hong Kong Exchange to be dual-listed on the US stock market, adding that the milestone "marks the beginning of a new global chapter for Ascentage Pharma."