Axiom Biosciences, a San Diego-based developer of regenerative and genetic medicines, plans to go public in Hong Kong in 2027, followed by a secondary U.S. listing in 2029. The company's CEO Remo Moomiaie-Qajar told CNBC the move will open the door to biotech-focused investors while bringing the firm closer to clinical and commercial partners across Asia. The decision reverses a decades-long trend of Chinese companies such as Alibaba and Baidu heading to the U.S. to list shares, citing deeper capital markets and higher valuations.
Hong Kong Biotech Index Climbs 75% Since January 2025
The Hang Seng Biotech Index in Hong Kong has climbed more than 75% since January 2025, according to LSEG data. The gains surpass the roughly 40%-50% increases in the ICE Biotechnology Index and the Nasdaq Biotechnology Index, which track U.S.-listed firms during the same period. Chinese biotech firms have flocked to the city's bourse amid a government push and as innovative drugmakers' financing needs grow.
Moomiaie-Qajar told CNBC that recent biopharma listings in Hong Kong have outperformed those on the Nasdaq. Hong Kong's stricter listing standards compared to the U.S. point to a mature biotech ecosystem, he said. The city's exchange has more than 70 listings in the biotech sector and introduced reforms that streamlined the IPO process.
Danny Xiang, founding partner at life science-focused private equity firm Fontus Capital, said the U.S. remains the deepest biotech capital pool in the world. George Wu, a Hong Kong-based partner at law firm DLA Piper, said the Hong Kong biotech sector's lower valuations relative to the Nasdaq have attracted more international investors seeking upside potential.
Axiom Co-Develops Brain Injury Therapy with South Korean Partner
Axiom is co-developing a therapy with South Korea-based biopharma firm Medinno for newborns with severe brain injuries linked to high death rates. The therapy has received two U.S. Federal Drug Administration designations for rare pediatric diseases. A Phase 1 trial involving nine newborns in South Korea has been completed, according to the company.
Axiom also plans to study the treatment as a possible therapy for adults who have suffered strokes. Moomiaie-Qajar told CNBC that because there are no regenerative therapies for these brain injuries, the company must move through clinical trials as rapidly as possible, and Asia is the right place to do that.
U.S. Imposes Restrictions on Chinese Biotech Firms
The Commerce Department has imposed export restrictions on several entities linked to genomics giant BGI Group. The Pentagon added pharmaceutical company WuXi AppTec to its list of firms that it alleges have ties to the Chinese military. WuXi sued the Department of Defense days later, seeking to overturn what it called an erroneous designation.
In December, a bipartisan U.S. legislative commission warned that China was beginning to outpace the U.S. in some areas of biopharmaceutical innovation. The commission urged coordinated action across the public and private sectors to retain U.S. biotechnology leadership.
A survey by the Cure Innovation Index in June found that despite leading in clinical development and supply chains, China still lags the U.S. in the quality, commercial reach and cutting-edge strength of its biomedical science. Xiang said the U.S. leads in breakthroughs in foundational science and novel biology, while China increasingly leads in fast, capital-efficient implementation to reach patients.
Hong Kong Requires 12 Months R&D for Biotech Listings
Nasdaq and the New York Stock Exchange allow biotech firms to apply for a listing before they generate revenue or begin human testing. Hong Kong requires at least 12 months of research and development and a core product past the concept stage, according to PwC.
Xiang said a U.S. IPO is generally faster for a company that qualifies, and Hong Kong's review times have stretched as applications piled up. Moomiaie-Qajar said public markets offer an alternative way to raise money as biotech firms face a tougher fundraising environment. While clinical trials become more expensive as they progress, the pool of venture investors willing and able to write large checks gets smaller, especially for companies that did not secure major backers early on, he added.
FAQ
Why is Axiom Biosciences listing in Hong Kong before the U.S.?
Axiom Biosciences plans to go public in Hong Kong in 2027 to access biotech-focused investors and move closer to clinical and commercial partners across Asia. The company's CEO told CNBC that Hong Kong's stricter listing standards point to a mature biotech ecosystem, and recent biopharma listings in the city have outperformed those on the Nasdaq.
How has the Hong Kong biotech market performed since January 2025?
The Hang Seng Biotech Index in Hong Kong has climbed more than 75% since January 2025, according to LSEG data. This surpasses the roughly 40%-50% gains in the ICE Biotechnology Index and the Nasdaq Biotechnology Index during the same period.
What therapy is Axiom developing with its South Korean partner?
Axiom is co-developing a therapy with South Korea-based biopharma firm Medinno for newborns with severe brain injuries linked to high death rates. A Phase 1 trial involving nine newborns in South Korea has been completed, and the therapy has received two U.S. FDA designations for rare pediatric diseases.
