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Pre-rev­enue vac­cine de­vel­op­er CanSi­no lines up at a buzzing HKEX

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On the same day As­cle­tis start­ed pub­licly pitch­ing its his­toric IPO on the Hong Kong stock ex­change, an­oth­er home­grown drug­mak­er is tak­ing its own shot at a pub­lic list­ing.

Prob­a­bly best known for its Ebo­la vac­cine — which got ap­proved and ac­cept­ed in­to Chi­na’s na­tion­al stock­pile last Oc­to­ber — CanSi­no Bi­o­log­ics is de­vel­op­ing 15 vac­cine can­di­dates for 12 dis­ease ar­eas in to­tal. The lead pro­grams fo­cus on meningo­coc­cal con­ju­gate vac­cines, fol­lowed by ver­sions of the com­mon DTP vac­cine, both of which would be boost­ed by the raise.

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As its name (quite sub­tly) sug­gests, CanSi­no has its roots in the Cana­di­an/Chi­nese con­nec­tion the founders shared. It all start­ed, CEO Xue­feng Yu writes in an open­ing let­ter, on a sum­mer day about 10 years ago, when He­len Hui­hua Mao, Dongxu Qiu, Tao Zhu and him­self gath­ered for a bar­beque in Toron­to.

He­len Hui­hua Mao

As se­nior ex­ecs at Sanofi Pas­teur, As­traZeneca and Wyeth, they saw all too well the glar­ing gap in vac­cine de­vel­op­ment as il­lus­trat­ed by Yu’s sto­ries from his trips to Chi­na. Then they made a de­ci­sion that sur­prised even them­selves: to start a com­pa­ny that would not on­ly pro­duce bet­ter al­ter­na­tives to cur­rent or im­port­ed vac­cines, but al­so come up with “glob­al­ly in­no­v­a­tive” vac­cines based on Chi­na’s un­met med­ical needs.

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That was 2009. Nine years lat­er, they have at­tract­ed top-notch in­vestors at Lil­ly Asia Ven­tures (18.75%) and Qim­ing Ven­tures (8.10%) as well as the state-owned Fu­ture In­dus­try De­vel­op­ment Fund (5.50%) to back their vi­sion. The founders, who are now joined by for­mer As­traZeneca top ex­ec Shou-Bai Chao in run­ning the com­pa­ny, each hold around 10% of the stock.

Tao Zhu
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As CanSi­no moves for­ward with two Phase III MCV pro­grams, two Phase I DTP vac­cines, an ear­ly-stage tu­ber­cu­lo­sis boost­er and a slate of oth­er pre­clin­i­cal projects, they’ve al­so start­ed build­ing up a com­mer­cial plan. The plan, they write in the ap­pli­ca­tion, is to have 100 staffers ded­i­cat­ed to sell­ing the vac­cines to lo­cal cen­ters for dis­ease con­trol, ini­tial­ly in 30 eco­nom­i­cal­ly-de­vel­oped cities and grad­u­al­ly ex­pand­ing to oth­er lo­ca­tions.

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If As­cle­tis’ progress is any in­di­ca­tion, the HKEX reg­u­la­tors — as­sist­ed by a pan­el of es­teemed biotech pro­fes­sion­als — will have no prob­lem by keep­ing the vet­ting process with­in the promised 12 weeks.