3SBio spin-off Mandi banks on hair-loss and weight-loss drugs in Hong Kong IPO bid

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Mandi, the Alibaba Health-backed consumer healthcare arm being spun off from mainland drug maker 3SBio, filed for an initial public offering in Hong Kong on Friday, betting that its market-leading minoxidil hair-loss products will attract investors.

The deal aims to tap into a red-hot Hong Kong market that has seen US$73 billion in equity capital market activity this year, a 232 per cent surge from the same period in 2024, according to data from the London Stock Exchange Group.

The company did not disclose its fundraising target or listing timeline. Mandi appointed Huatai International as the sole sponsor for its listing.

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The capital raised was expected to fund product expansion, refine the company's digital operating model, strengthen marketing and support early-stage research and development.

3SBio currently held an 87.16 per cent stake in Mandi, with Alibaba Health (Hong Kong) Technology owning 2.65 per cent, according to a filing with the Hong Kong stock exchange on Thursday. Alibaba Group Holding owns the Post.

Other minority shareholders include Hero Grand Management and the China healthcare-focused private equity firm GL Wecan Investment.

The spin-off would result in 3SBio completely exiting its stake in Mandi through an in-specie distribution to existing shareholders, while Mandi would raise capital through a global offering of new shares, the company said.

Alibaba Health, with a 2.65 per cent stake in Mandi, is one of its minority shareholders. Photo: Shutterstock alt=Alibaba Health, with a 2.65 per cent stake in Mandi, is one of its minority shareholders. Photo: Shutterstock>

In November, Mandi closed a series A financing round worth about US$50 million led by Alibaba Health, GL Wecan IV, Sunshine Mandi and 3SBio, according to a separate document on Friday.

Founded in 1997, the Chinese pharmaceuticals company develops and provides skin-health and weight-management products.

Its flagship Mandi-branded products, which are based on minoxidil - one of the world's leading topical treatments for pattern hair loss - is aimed at Chinese consumers under the age of 35.

The brand was the top seller in China's hair-loss drug market for 10 consecutive years since 2014, capturing a 57 per cent market share in 2024, according to the prospectus.

In its novel drug pipeline, Mandi was developing clascoterone cream, an acne treatment described as "the world's first and only-in-class topical androgen receptor inhibitor for acne vulgaris".

The company was also developing a semaglutide injection, a long-acting GLP-1 receptor agonist for weight management.

Both drugs were in phase III clinical trials in China to confirm efficacy, with regulatory submissions targeted for the first half of 2026 for semaglutide and 2027 for clascoterone, according to the filing.

The failure to develop and launch new products, or achieve widespread market acceptance, could have a detrimental impact on its business operations, the company warned.

Mandi's net profit rose 14.5 per cent year on year to 390.3 million yuan (US$54.9 million) in 2024.

China's consumer healthcare market last year grew to 1.64 trillion yuan and was projected to reach 4.06 trillion yuan in 2035, according to industry consultant China Insights Consultancy.

More than 60 late-stage diabetes drugs were undergoing clinical trials in China, potentially competing with products of incumbents such as Denmark's Novo Nordisk and US-based Eli Lilly, Boston-based global consultancy L.E.K. Consulting said in a report in May.

Innovent Biologics, based in eastern China's Jiangsu province, was the first domestic firm to win approval to market a weight-loss drug in the country.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.

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