An American company, Johnson & Johnson Partners' stock, improved after investors repaper for China's health and tech sector. Its Chinese partner Legend Biotech also grew its stock value in Nasdaq's trading debut last Friday.
Chinese company Legend Biotech entered the Nasdaq IPO listing last Friday. The company is a partner of US company Johnson & Johnson. Their stock values increased from Friday. The increase in stock value said to have underscored the adverse effects of the growing tensions between China and the US.
Legend Biotech was perceived to raise about 423.8 million USD by the US exchange listing. It closed to 60.9 percent at 37 USD per share over the weekend. The company is also a subsidiary of another Chinese company called GenScript. The latter is involved with drug research and runs via contract basis.
The founder of GenScript Zhang Fangliang also holds a PhD in biochemistry from Duke Univesity and was a former employee of Schering-Plough. Zhang's fortune reached one billion USD in the first quarter of 2019. Forbes also estimated his overall wealth to be approximately 900 million USD.
The listing was said to manifest hope amid the rising tensions between China and the US. Some Chinese companies have been opting for double listings at the New York Stock Exchange and the Hong Kong stock exchange to prevent from suffering more losses. The said losses were perceived to be a possible outcome once the Congressional Stock Market Abuse Act of 2017 would be enforced.
The US Congress initially moved to delist Chinese companies from US exchange listings after the Luckin Coffee scandal. Since the scandal, Chinese companies were then proposed to disclose their accounting and audit reports, including their rules to mirror those of American businesses. The US political leaders were said to have complained about some American companies' heavy reliance on medical-related imports from China during the pandemic.
GenScript also enlisted under the Hong Kong exchange, as Legend Biotech experienced a significant decline on its stock value last year. Technically, GenScript lost about 96.9 million USD of its revenue only 273.4 million USD during the said period. Legend Biotech, on the other hand, lot 132.9 million USD of its revenue and only generated 57.2 million USD.
Looking ahead, Legend Biotech partnered with Johnson & Johnson's leading subsidiary Janssen Biotech in developing treatments for myeloma along with other projects. Last April, Legend Biotech raised 150 million USD from its investors. The fund would be used for the commercialization of the company's research, manufacturing, programs, and general expenses.
