MoFo partner Chuan Sun has been quoted in a recent article that discusses Chinese pharmaceutical companies seeking to list on the Hong Kong Stock Exchange.
According to Chuan, the key to a pharmaceutical company's successful listing in Hong Kong lies in whether it has a strong support system. After listing under the 18A rules, whether it can continue to succeed will depend on the strength of such support systems.
Chuan said, “In addition to the results of Phase I and II trials, the market size and competitive landscape for the drugs should also be taken into consideration.” Chuan believes that success also depends on a company's supporting infrastructure and the strategic decisions of its leadership. Companies need to establish robust R&D systems and management strategies to address the challenges posed by market changes.