Hong Kong-listed Chinese pharma firm sets sights on SGX for secondary listing
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The proposed listing will not involve issuing new shares, and China Medical System will continue to be primarily traded in Hong Kong.
ST PHOTO: KUA CHEE SIONG
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SINGAPORE – A Hong Kong-listed pharmaceutical company is aiming to launch a secondary listing on the Singapore Exchange (SGX) later this month.
China Medical System (CMS) filed introductory documents with the SGX on June 27.
The proposed listing will not involve issuing new shares, and CMS will continue to be primarily traded in Hong Kong, where it was listed in 2010.
CMS said Singapore is the “ideal launch place” for its high-value innovations, given the country’s highly developed economy, robust IP protections, skilled talent pool and trade agreements.
It will use Singapore as a base to expand across South-east Asia and the Middle East, while employing the listing here to attract funds.
“The SGX listing marks a strategic step to deepen our regional footprint, boost visibility among South-east Asian stakeholders, and reinforce our reputation as a high-quality, innovation-led pharmaceutical player,” the company said.
It added that its regional expansion is being driven by the need to bolster supply chains.
CMS, which was set up in 1992, produces around 40 products that focus on three areas of healthcare: cardio-cerebrovascular and gastroenterology; dermatology and medical aesthetics; and ophthalmology.
Its financial performance in 2023 and 2024 was impacted by a new policy in China that centralised bidding and consolidated procurement processes in order to lower drug and medical device costs for public hospitals.
Three of CMS’ drugs fell under the new regulations but revenue rebounded in the second half of last year, allowing the firm to post profits of 1.61 billion yuan (S$290 million) in 2024.
The company highlighted four key platforms to boost its presence across Asia-Pacific, including its research and development arm and PharmaGend, the firm’s development and manufacturing platform for regional manufacturing and supply.
In December 2023, PharmaGend acquired a manufacturing facility in Tuas, which is expected to ship its first productions for the US market in the second half of this year.
CMS said it plans to add to its 200-strong workforce here, and will also outlay US$200 million to double capacity at the Tuas plant, a project that is expected to be fully operational by the end of 2028.
The firm stated that the Singapore facility, which can produce one billion tablets a year, eases supply chain risks by localising production for regional and Middle East markets.
“This aligns with Asean’s push for self-sufficiency in essential medicines and positions CMS as a reliable partner in regional health security,” it added.
South-east Asia’s pharmaceutical market is projected to hit a volume of US$18.28 billion by 2030, with an annual growth of 4.9 per cent.
The CMS listing will be the second on the mainboard this year, after the initial public offering of local firm Info-Tech Systems, which begins trading on July 4.
Last week, Japan’s telco giant Nippon Telegraph and Telephone filed its preliminary prospectus for a data centre Reit, which could mark SGX’s largest Reit listing since 2013.
