Shares in major biotech companies in Hong Kong have gained an average of 137 per cent in cumulative returns this year
Shares of Guangzhou Innogen Pharmaceutical Group soared on their Hong Kong debut, buoyed by strong investor appetite for China’s pharmaceuticals sector, which has enjoyed rising valuations and solid performance.
Trading under the stock code 2591, Innogen’s shares first changed hands at HK$72 on Friday, almost four times more than the initial public offering (IPO) price of HK$18.68 despite a declining market. The city’s benchmark Hang Seng index opened almost 1 per cent lower.
“We are taking a new step today at Innogen,” the company’s founder and chairman Wang Qinghua said before striking the ceremonial gong with Innogen’s Chief Financial Officer Jiang Fan to mark the company’s trading debut. “We will continue our drive for scientific innovations, guided by [the interests of] our patients.”
“There is a lot of unmet clinical demand for our metabolic drugs, which translate to tremendous commercial opportunities.”
