QuantumPharm (XtalPi) Begins Trading on Hong Kong Stock Exchange
QuantumPharm, operating as XtalPi, an AI-driven drug research company from China, commenced trading on the Hong Kong Stock Exchange on Thursday.
Founded in 2015 by three quantum physicists from the Massachusetts Institute of Technology (MIT), XtalPi leverages artificial intelligence and robotic automation in drug research. The company has attracted significant early investment from notable backers, including Tencent, Google, and Chinese venture capital firm HongShan.
In preparation for the listing, XtalPi raised 989.3 million Hong Kong dollars (approximately $126.8 million), positioning it as the third-largest initial public offering (IPO) in Hong Kong this year.
See also: Tech-First Companies Take the Lead in AI Drug Discovery
XtalPi's client portfolio features global pharmaceutical giants such as Johnson & Johnson and Pfizer, alongside domestic firms like Chia Tai-Tianqing Pharmaceutical Holdings and CK Life Sciences, part of CK Hutchison.
Despite reporting net losses of 1.9 billion yuan ($268 million) for 2023 and 1.4 billion yuan for 2022 due to substantial research and development expenditures, XtalPi's revenue surged by 30% in 2023 to 174 million yuan. This growth follows a revenue doubling the previous year, driven by increased contributions from its drug discovery and automation solutions.
At a press conference on June 3, Chief Financial Officer Ronald Tam expressed confidence in XtalPi's financial stability, stating that the company can sustain operations for another four years without additional funding.
Topics: Startups & Deals
