HKEX Announces Formation of Biotech Advisory Panel

• Biotech Advisory Panel formed to provide advice on biotech applications for listing under the new Chapter 18A of the Listing Rules that took effect on 30 April 2018

• Panel initially consists of 13 members, while HKEX will look to include additional members as appropriate 

HKEX today announced that it has assembled a panel of experienced participants in the biotech industry to form a Biotech Advisory Panel.

The panel’s formation comes as HKEX implements major reforms to its listing regime aimed at attracting a more diversified pool of companies to list in Hong Kong. As part of the reforms, HKEX added a new chapter to the Main Board Listing Rules to permit listings of biotech issuers that do not meet any of the Main Board financial eligibility tests. 

Given the specialised nature of the biotech sector, HKEX has set up the panel to assist in its review of listing applications from biotech firms applying under the new regime. The function of the members of the panel is advisory only and members will be consulted by HKEX on an individual and “as needed” basis. HKEX will first ensure that there is no actual or potential conflict of interest arising out of such consultation.

The scope of services to be provided by each individual member includes: 

• market expertise and advice on certain aspects of the prospectus disclosure, such as accuracy and completeness of the description of the biotech product(s), risks involved, approval and testing processes and timeline, competitive landscape, commercial acceptance, addressable market and potential demand; 

• acting as a sounding board for policy recommendations; and 

• training/ guidance in their relevant fields of expertise.  

Members of the panel are appointed for an initial term of two years, and may be extended by mutual agreement. Panel members will each receive an honorarium of HK$80,000 per annum in recognition of their services. 

“The Biotech Advisory Panel will allow HKEX to benefit from the knowledge and expertise of experienced industry participants,” said David Graham, HKEX’s Chief Regulatory Officer and Head of Listing.

“This knowledge and expertise will help HKEX to determine the suitability of biotech applicants and the compliance with the relevant disclosure requirements with the goal of maintaining our high standards of investor protection,” said Mr Graham.

A list of the panel’s initial members is set out below in alphabetical order. HKEX will look to include additional members as appropriate. 

Please tap Read More for a brief description of the function of the panel together with the biographies of the panel members.