Axiom Biosciences, a San Diego-based biotechnology company, is reportedly exploring an initial public offering (IPO) in Hong Kong in 2027. This move is considered rare for an American biotech firm. The primary goal of the IPO is to secure funding for clinical trials of its lead drug, a stem-cell therapy designed for neurological diseases, according to CEO Remo Moomiaie-Qajar. Axiom is also looking to tap into China's burgeoning clinical development capabilities and has been in discussions with several Chinese companies for drug development partnerships.
The decision to pursue an IPO in Hong Kong aligns with the company's strategy to expand its clinical work into China following a listing. Hong Kong has been actively positioning itself as a biotech hub, with reforms in its public markets that have made it accessible to pre-revenue biotechnology companies. This specialized capital ecosystem is attractive for biotech firms that require sustained investment throughout their long development cycles, from discovery to clinical development and commercialization. Access to a deep pool of investors who understand these timelines is crucial for promising scientific advancements to reach patients.
Axiom's investigational therapy is derived from Wharton jelly, a substance in the umbilical cord rich in mesenchymal stem cells (MSCs). The company recently announced positive Phase 1 results for its stem-cell therapy in newborns with severe brain injuries, including intraventricular hemorrhage (IVH) and hypoxic-ischemic encephalopathy (HIE). The therapy demonstrated a 0% mortality rate at 12 months, significantly lower than the historical natural mortality rate of approximately 46% for severe IVH. Axiom plans to advance this neonatal program into Phase 2 development and explore its application for adult ischemic stroke and other neurological disorders, as HIE and ischemic stroke share common mechanisms of tissue injury and inflammation.
