[SINGAPORE] Hong Kong-listed China Medical System (CMS) is seeking a secondary listing on the mainboard of the Singapore Exchange (SGX) in July this year.
CMS is a specialty pharma with a focus on sales and marketing in China, with capabilities across the full lifecycle of drug development, from identifying clinical needs to research and development (R&D) regulatory approval, and commercialisation.
It has been listed on the Stock Exchange of Hong Kong since 2010.
The pharmaceutical company expects the secondary listing will help it deepen its presence in South-east Asia and “tap into a new and sophisticated investor base in Singapore”.
CMS said it is looking to replicate its success in South-east Asia – building on the proven track record attained in China’s pharmaceutical industry.
“This region, with a population of nearly 700 million, is experiencing surging pharmaceutical demand due to rapid economic growth, the rise of the middle class, ageing population, and the increasing burden of non-infectious diseases,” it said.
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Its financial performance in 2023 and 2024 were hit by China’s volume-based procurement (VBP) policy – three of its products were included in the VBP list.
This policy aims to lower the prices of drugs with generic competition, by guaranteeing certain procurement volumes from public hospitals at significantly reduced prices through a bidding process.
But CMS had a top-line rebound in H2 2024, driven by progress in commercialising innovative drugs and the continued growth of non-VBP exclusive products.
The company moved towards innovative drugs, given that they typically enjoy a pricing advantage due to their exclusiveness, novelty and quality, and are supported by favourable government policies.
It expects growth momentum will accelerate on the back of the replenishment of its pipeline of innovative drugs to about 40 products as at Dec 31, 2024.
It noted four key platforms to scale its pharmaceutical ecosystem across Asia-Pacific.
CMS R&D is involved in drug discovery and development targeting global markets, while PharmaGend is a development and manufacturing platform for regional manufacturing and supply.
It also has Rxilient Health, a Singapore-headquartered entity focused on registration and commercialisation in South-east Asia and a Singapore venture arm, which makes strategic investments to support regional pharma innovation.
In a statement on Jun 24, CMS said the proposed listing will not involve issuance of new shares, and the shares will continue to be primarily listed and traded on the Hong Kong Stock Exchange thereafter.
Singapore is its regional headquarters for its South-east Asia and Middle East business, the company said.
The announcement follows the news of several new listings on SGX – software services provider Info-Tech Systems, a data centre real estate investment trust (Reit) by Japanese telco Nippon Telegraph and Telephone (NTT), and a spin-off of mainboard-listed construction company Lum Chang Holdings’ interior fit-out business.
Info-Tech Systems, whose shares are expected to begin trading on Jul 4, is the first SGX mainboard listing in two years.
NTT DC Reit, which will have a portfolio of six of NTT’s data centre assets, will likely be the largest Singapore Reit listing in a decade.
Meanwhile, interior fit-out business Lum Chang Creations is looking to list on the Catalist board.
