Zhejiang Medicine has announced plans to spin off subsidiary Novocodex for separate listing on the Hong Kong Stock Exchange (HKEX) to enhance capital allocation and accelerate the development of its antibody drug conjugate (ADC) portfolio, including HER2-targeting ARX788 from an Ambrx licensing agreement. The subsidiary completed the acquisition of NewBio Therapeutics, gaining pre-clinical pipeline and linker technology patents to strengthen its platform capabilities. Novocodex's lead asset NCB001 targets a H2 2025 commercial launch, following positive clinical data in HER2-positive solid tumours.

The spin-off aims to optimise resource allocation for biologics research and manufacturing operations, with Novocodex completing a RMB 400 million Series B financing in 2022. Zhejiang Medicine noted the listing remains in preliminary planning stage and is subject to regulatory approvals and market conditions, with uncertainty regarding the timeline and final structure. The move follows an industry trend of biopharmaceutical subsidiaries pursuing independent listings to unlock value and secure dedicated funding for specialised therapeutic platforms amid growing ADC market competition.

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