6 Aug 2009 09:29

Pharma companies apply to list on Shenzhen GEM

Shanghai. August 6. INTERFAX-CHINA - A total of 19 pharmaceutical companies have applied to list on the Shenzhen Stock Exchange's new Growth Enterprise Market (GEM), an industry insider told Interfax on Aug. 5.

"The 19 companies include drug manufacturers Beijing Beilu Pharmaceutical Co. Ltd. and Shenzhen Gaozhuo Pharmaceutical Co. Ltd., medical device manufacturer Trauson Medical Instrument Co. Ltd. and biopharmaceutical company Xi'an Haotian Bio-Engineering Technology Co. Ltd.," a Shanghai-based stockbroker, who preferred to remain anonymous, said.

"As of Aug. 4, the China Securities Regulatory Commission (CSRC) had issued acceptance notices to 105 companies. The CSRC will be carrying out a preliminary review in the next 20 days though we expect that application results may not be released until early September this year," the stockbroker added.

Local media earlier reported that a total of 111 companies had submitted applications as of July 31.

The GEM, expected to be launched in October this year, is the second board system in Shenzhen City, Guangdong Province, for small-cap and mainly high-technology companies modeled after the Nasdaq.

"Previously, only large-sized companies with strong financial performances could go public in China. This will be a good opportunity for emerging companies such as biopharmaceutical companies since most biopharmaceutical companies are not profitable in their first five years," Zhang Fei, an analyst with Donghai Securities, told Interfax on Aug. 5.

In the last two years, many growing companies in China such as BioPharma Asia Inc. have applied to list on domestic stock exchanges but failed to meet listing requirements.