The Capital Group Raises Stake in New Horizon Health
The company reportedly increased its shares by 1.66 million at HK$34 in an investment of around HK$57 million.
CapitalWatch Staff
CapitalWatch Staff
Nov. 03, 2021 22:06
The Capital Group Raises Stake in New Horizon Health

(CapitalWatch, Nov. 4, Hong Kong) Financial services company The Capital Group increased its holdings of Chinese cancer screening technology developer New Horizon Health (HKEX: 6606), according to filings with the Stock Exchange of Hong Kong.

The Capital increased its shares by 1.66 million at an average price of around HK$34 for an investment of around HK$57 million. The Capital's latest shareholding number is 21,897,200 shares, bringing the company's shareholding ratio to 5.1% from 4.7%.

The Capital was founded in Los Angeles in 1931 and is considered one of the largest and oldest investment management organizations in the world. The company reported that, as of the end of 2020, it managed over $2.2 trillion in funds. The Capital is also the parent company of the investment management firm American Funds Distributors, Inc.

New Horizon Health is a Chinese biotech company that focuses on the development and commercialization of early cancer screening and genetic testing for families with a high incidence of cancer. The company's flagship product is ColoClear, a non-invasive DNA test for colorectal cancer specifically developed for individuals who are of Asian ethnicity and have been confirmed to perform at 95.5% sensitivity in the detection of colon cancer. 

This investment is an indicator of investors' confidence in innovative Chinese biotechs and their increasing presence in the global market. Over the past year, at least five Chinese biotech companies have secured out-licensing deals potentially worth over $1 billion, according to Reuters. The biotech sector has surged in China thanks to supportive government policies, a faster drug approval process, and national initiatives on increasing the populations' health. 

While Chinese biotechs have yet to make a significant breakthrough into Western markets, many of them have been seeking overseas listings. Last year, according to Reuters, 19 Chinese biotech companies went public and raised a combined $5.2 billion. To compare, only 13 companies debuted in 2019 raising around $2 billion. 

This week, China-U.S. company LianBio (Nasdaq: LIAN) celebrated its $325 million IPO in New York. And it's no doubt the emerging sector will make more and more headlines overseas. 

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