Massachusetts-based biotech accelerator LabCentral signed an agreement with Hong Kong Science and Technology Parks Corporation in June to connect founders with the U.S. ecosystem—and fuel more innovation.
With geopolitical risk rising around the swarm of Chinese biopharma deals, Hong Kong is looking to position its growing biotech sector as the next great destination for dealmaking.
This summer, representatives from two biotech accelerators on opposite sides of the Earth met at the BIO International Convention to sign an agreement that will fuel innovation for years to come—and, they hoped, make a statement that Hong Kong has plenty to offer as the low hanging fruit is picked out of China.
LabCentral signed a memorandum of understanding with Hong Kong Science and Technology Parks Corporation (HKSTP) at the convention, agreeing to trade scientists across borders so that they can build their startups and work to make more connections in China.
“I hope that we can find a way to collaborate with China. I think places like Hong Kong are key for that, because they’re a gateway,” said Maggie O’Toole, CEO of the Cambridge, Massachusetts biotech accelerator LabCentral, on the sidelines of the BIO conference in June.
The initiative came from a LabCentral program called the Loop, which invites founders from overseas to visit Cambridge for 90 days to build toward a U.S. visa application. The founders are paired with mentors and embedded in the biotech ecosystem, with an aim of learning the ways of the American venture capital system and building a pitch deck. Through this program, Lab Central connected with HKSTP, which jumped at the chance to exchange talent.
Terry Wong, CEO of HKSTP, told BioSpace that investment activity in China has helped buoy Hong Kong’s sector and generated excitement. HKSTP was simply taking advantage of the market opportunity.
From O’Toole’s perspective, the debate around China has thrown up unnecessary barriers to biotech innovation. “There are more and more barriers that are being put in place that are artificial to collaboration,” she said. “We are trying to find out how we can take some of those away and create opportunities for the scientists to collaborate.”
The Hong Kong orchestrator
Hong Kong has had a thriving life sciences sector for years, Wong said, with about 120 therapeutics developers that are aiming to break into U.S. markets. The region is a leader in venture capital investment and has strong intellectual property protections, he added, supporting a “very stable and very business-friendly place for people to land as a hub.”
He has seen plenty of interest in Hong Kong biotechs, with about two-thirds of venture capital investment coming from China and other Asian nations while one third is international. European VCs have also taken notice of Hong Kong biotechs, Wang said, particularly in the past two to three years.
Hong Kong is also home to a thriving stock market, which has become an attractive place for companies in China to list their initial public offerings, Raven Lin, CEO of Pilatus Biosciences, said during a panel discussion at BIO on June 24.
International companies may also target Hong Kong for their public debuts. Last month, Axiom Biosciences CEO Remo Moomiaie-Qajar told BioSpace that the San Diego–based biotech is looking to IPO in the territory instead of in New York next year. Moomiaie-Qajar said he views Hong Kong as more advantageous than the Nasdaq or New York Stock Exchange.
Wong referred to the HKSTP as an “orchestrator” to allow interested stakeholders a chance to explore Asia. The memorandum with LabCentral is simply riding the wave of excitement. “This is one of the actions that is driven by the market trends for us to get together,” he said.
He pointed to a partnership HKSTP has with Arthrosi Therapeutics. The accelerator helped connect the gout drug developer with hospitals and medical doctors in Hong Kong to boost diversity in the company’s clinical trial.
“That’s a very successful case. I would say without our part of the clinical trial, I think [it] would take much longer for the clinical trial to be successful,” Wong said.
This isn’t about replacing China, O’Toole clarified. The region still has plenty to offer. But in the age of the BIOSECURE Act and other legislative moves to curb China’s influence, Hong Kong can offer a potentially safer alternative in Asia to spread out investment, she argued.
“[Hong Kong is] sort of a hub where they’re engaged with all of these different groups, and they’re still considered safe to be engaged with.”
