BRIEF—Chi-Med in $262 million Nasdaq offering

Chi-Med, a Chinese biopharma company that is majority owned by the conglomerate CK Hutchison Holdings, has announced that it intends to offer $262 million of American Depositary Shares, each representing one-half of one ordinary share, par value $1 each, on the Nasdaq market.

The company is partnering with Eli Lilly to develop fruquintinib, a drug candidate targeting third line metastatic colorectal cancer (mCRC), which, if approved, will bring in peak sales of roughly $250mn per year. Chi-Med also has three other molecules in Phase III trials.

Proceeds from the offering, if completed, are expected to be used to fund ongoing research and development of the company’s pipeline and for working capital and general corporate purposes.