AnPac Bio-Medical, Developer of Cancer Detection Technology, Files for $20 Million IPO

The company operates clinical studies labs in China and the United States and expects to commercialize its CDA tests in the U.S. next year.

Author: CapitalWatch Staff   

A biotech company, AnPac Bio-Medical Science Co. Ltd., has applied to raise up to $20 million in an initial public offering in New York.

Based in Lishui, Zhejiang Province, AnPac sells technology for the screening and detection of the occurrence of various cancers in humans. The technology is comprised of AnPac's patented cancer differentiation analysis (CDA) and cancer-detection device. The company also offers tests combining its CDA technology with supplementary technology such as biomarker-based tools, as AnPac stated in its preliminary prospectus filed with the U.S. Securities and Exchange Commission last week.

Domestically, AnPac operates two laboratories – in Lishui and Haikou, Hainan Province – and a research and development center in Shanghai. It also has a clinical studies lab in San Jose, for which it received registration in March 2019, and plans to open another facility in Philadelphia in 2020, according to the filing. In the United States, AnPac is working with universities and medical centers to conduct research.

AnPac said in its filing that it was among the first in the world to develop technology that uses sensors to assess the biophysical properties of blood for the detection and measurement of cancers, citing research by market analyst Frost & Sullivan.

As of September 2019, AnPac said its technology detected the risks of 26 types of cancers, which accounted for more than 80% of cancers in China, with high accuracy. To carry out a test, the company said it only requires "a standard blood sample" from an individual. The company noted it had an extensive database of clinical samples and in 2018 ranked first in terms of cancer screenings in China.

It had 121 patents as of September, and more than 100 patents pending in China and globally.

AnPac said it has been performing commercial CDA-based tests in China since 2015 and expects to commercialize its technology in the U.S. in 2020.

For the nine months through September, AnPac reported revenue of $1.1 million, up 22% year-over-year, on losses of $8.3 million. In 2018, the company made $1.4 million in revenue and had $5.9 million in losses. It had $3.4 million in cash and cash equivalents as of Sep. 30.

AnPac plans to invest the funds from the IPO for research studies in China and the United States, the development of new cancer detection tests, and for marketing and sales, according to the prospectus.

Underwriter on the offering, WestPark Capital Inc., may purchase up to an additional $1.7 million in shares, according to the filing.

AnPac expects to list on the Nasdaq Global Market as "ANPC." The exact amount of the offering and the pricing of the company's American depositary shares have yet to be determined.

"Our objective is to become the leading provider of highly accurate and cost-effective cancer screening and detection tests and to expand the application of our tests to other oncological areas, such as assistance in diagnosis, prognosis and recurrence," AnPac said.

AnPac was the second biotech company from China to have filed for a U.S. listing last week after I-Mab, which develops immunotherapy domestically and in the United States.