China-based biotech Ascentage Pharma has raised $126m in a US initial public offering (IPO), marking the first biotech IPO of 2025.
The company sold 7,325,000 American Depositary shares at $17.25 each. Shares for the company began trading today (24 January) on the Nasdaq under the ticker symbol “AAPG”, and are up by as much as 4% since markets opened, as per Bloomberg.
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By GlobalDataThe funds will primarily support the development of Ascentage’s cancer drug pipeline, including its lead candidate olverembatinib for the treatment of chronic myeloid leukaemia (CML). Olverembatinib, a tyrosine kinase inhibitor (TKI), is approved and marketed as Nelic in China for the treatment of adult patients with TKI-resistant chronic-phase CML (CP-CML) or accelerated-phase CML (AP-CML) with the T315I mutation, and for those with CP-CML resistant disease or intolerant to first and second generation TKIs.
The IPO comes after the company signed a significant licencing agreement with Takeda in 2024. Takeda paid $100m upfront for the option to licence olverembatinib outside China, Hong Kong, Macau, Taiwan, and Russia, and committed to potential milestone payments totalling $1.2bn.
The broader IPO market has seen fluctuations in recent years. Following a surge in 2020 and 2021, activity slowed, only to pick up slightly in late 2024. In September 2024, three biotech firms – Bicara Therapeutics, Zenas BioPharma, and MBX Biosciences – raised over $700m collectively in a single day on Nasdaq, reflecting renewed investor interest.
Industry sentiment remains optimistic for 2025, with many expecting IPO activity to increase. A Jefferies survey reported that 64% of respondents anticipate a stronger IPO market this year, with equity raising expected to play a significant role. Ascentage’s listing aligns with this outlook and suggests a favourable environment for biotech funding as the year begins.
Ascentage’s olverembatinib is being investigated in the Phase III POLARIS-2 registrational study (NCT06423911) which plans to enrol 285 patients with CML. Beyond olverembatinib, Ascentage has other candidates in its pipeline including lisaftoclax, a treatment for blood cancers. The candidate is in late-stage trials and under regulatory review in China.
