Shanghai NewMed Medical, a China-based heart-valve device company which counts Singapore state-owned investment company Temasek Holdings among its backers, filed a draft prospectus Monday for a Hong Kong initial public offering of H-shares.
After the unlisted shares are converted to H-shares, the prospectus indicates Dr. Yu is the company’s controlling shareholder, with 39.57 percent voting rights via 118.84 million shares held directly and 142.31 million shares held by NewMed Enterprise Management and other platforms. Information about Yu’s expected stake post-IPO has been redacted.
Springleaf Investments, an indirect wholly owned subsidiary of Temasek, will hold 47.63 million H-shares in the company, the filing said.
OAP III, wholly owned by OrbiMed Asia Partners III, which is managed by OrbiMed Advisors III, will hold 76.26 million H-shares, the filing said.
Borui Yuye (Shanghai) Equity Investment Management will have a deemed interest in 47.90 million H-shares, the filing said.
Borui Yuyu is the general partner of Ningbo Meishan Bonded Port Area Borui Jiatian Equity Investment Management Partnership, which in turn is the general partner of Chengdu Boyuan Jiayu Venture Capital Partnership, which will be the ultimate holder of 27.48 million H-shares, the filing said. In addition, Borui Yuye is the general partner of Suzhou Boyuan Mingcheng Venture Capital Partnership, which will be the ultimate holder of 20.41 million H-shares, the filing said.
ZJ Leading VC, a China-based limited partnership, will hold 52.48 million H-shares, the filing said.
The company currently has no product approved for commercial sale and has never been profitable, the filing said. For 2020, the company posted a loss of 115.03 million yuan, and for the first four months of 2021, it posted a loss of 185.45 million yuan.
Shanghai NewMed Medical said it has a portfolio of transcatheter replacement and repair product candidates for treatment of all four human heart valves, as well as accessories for interventional cardiac procedures. Its core product, called Prizvalve is in a confirmatory clinical trial, the filing said.
Three product candidates — Mi-thos, Prizvalve, and Valveclip-M — have been recognised by China’s National Medical Products Administration as innovative medical devices qualified for expedited special review, the filing said.
The company’s accessory product candidates include valvuloplasty balloon catheter, expandable introducer sheath, suture-mediated closure device, cerebral embolic protection (CEP) device, atrial septal puncture device, flex catheter, and guide wire, the filing said.
Use of proceeds
Information on how much Shanghai NewMed Medical expects to raise in the offering, as well as potential pricing, was redacted.
Assuming the IPO prices at the mid-point of the indicative range, which was redacted from the prospectus, Shanghai NewMed Medical expected to use 34.5 percent of proceeds for research and development, clinical trials and commercialisation of product candidates Mi-thos, Valveclip-M and Valveclip-T.
Around 37 percent of proceeds were expected to be put toward research and development, clinical trials and commercialisation of core product candidate Prizvalve, the filing said.
Around 11 percent of proceeds would be allocated to other product candidates, while 7.8 percent would go to expanding manufacturing capacity and 9.7 percent toward working capital and general corporate purposes, the filing said.