S’pore biotech start-up Mirxes refiles for Hong Kong IPO, eyes growth in China
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The start-up was last valued at US$600 million (S$807.7 million).
ST PHOTO: AZMI ATHNI
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SINGAPORE – Local biotech firm Mirxes has refiled its draft prospectus for an initial public offering (IPO) in Hong Kong as it now weighs a listing within 2024.
The start-up, last valued at US$600 million (S$810 million), is seeking to raise over US$100 million. It planned to go public in late 2023 after its first filing in July 2023
Mirxes chief executive Zhou Lihan told The Straits Times on May 17: “Hong Kong’s capital market experienced significant volatility towards the end of 2023, prompting our board to delay the IPO, recognising it was not the most favourable window.”
Founded in 2014 as a spin-off from Singapore’s Agency for Science, Technology and Research (A*Star), Mirxes focuses on microRNA-based cancer detection. Its flagship product, GastroClear, is the world’s first molecular blood test
Dr Zhou said the firm is focused on the Asia-Pacific region, with China and South-east Asia as key near-term markets, and the United States and Japan as long-term growth drivers.
He added that China is set to be a significant market for Mirxes, with an estimated 660 million people eligible for stomach cancer screening, making the country a “perfect fit” for GastroClear. The product’s registration trial was completed in China in November 2023.
“This scale will boost our revenue, deliver economies of scale, and in turn accelerate profitability,” Dr Zhou said, adding that China contributed to about 20 per cent of the firm’s revenue in 2023. The country is expected to account for about 30 per cent to 40 per cent of its revenue post-regulatory approval of GastroClear.
In the 2023 financial year, Mirxes saw a 36 per cent growth in revenue to US$24.2 million, from US$17.8 million a year earlier. But it reported a loss of US$70.4 million in the same period, largely due to costs associated with preparing for the IPO as well as investments in research and development.
Dr Zhou said the losses are typical of deep-tech companies in their initial stages of product commercialisation.
He added that Mirxes’ growth trajectory is “keeping pace or even exceeding” that of US companies in the same sector at a similar stage.
He said: “Mirxes has built up a robust product pipeline and achieved good gross profit margins, with a steadily narrowing operating loss margin.
“This upcoming IPO is a strategic step for Mirxes – the capital raised will fuel further investment and position us for stronger growth and profitability in the coming years,” he added.
In a previous interview with ST, Dr Zhou said Mirxes was considering a dual listing
When asked if the new application would affect a possible dual listing, Dr Zhou said the firm is “actively engaged with SGX to explore possibilities” but declined to elaborate further.
He said that the Republic will remain Mirxes’ strategic headquarters where it designs, develops and manufactures most of its products.
“Singapore is a strategic location that allows us to navigate potential geopolitical tensions and access both the US and China markets effectively,” he added.
In 2020, Mirxes developed Singapore’s first Covid-19 polymerase chain reaction test kit, the Fortitude Kit
The firm has also introduced a lung cancer detection kit and is leading the world’s first large-scale clinical research project that will lead to the development of a multi-cancer early detection test that can screen for up to nine different cancers.
In July 2023, Mirxes announced that it raised US$50 million in a funding round which saw participation from new investors including Chinese state-owned fund Beijing Fupu and Japanese conglomerate Mitsui. A*Star, NHH Venture Fund and Singapore’s state-linked EDBI were returning investors.
