Cloudbreak Pharma, a US-based biotech company, wants to develop better treatments for people suffering from eye diseases.
Eyesight problems are becoming more prevalent, as people around the world grow older, driving investment in drug development and research.
Short-sightedness is also on the rise among younger generations, who are spending more time on their phones and tablets.
Pharma companies are taking note. According to market researchers Frost & Sullivan, the global pharmaceutical market for eye treatments is expected to surge past the US$70 billion mark by 2033, rising rapidly from around US$40 billion in 2023.
Opportunities abound for new players, highlights Cloudbreak’s Founder and CEO Jinsong Ni.
Dr Ni created the company in 2015, after some 20 years working for pharmaceutical giants Pfizer and Allergan.
Cloudbreak is focusing on conditions that have few treatment options or for which existing remedies have too many unwanted side effects.
“Our goal is to develop first-in-class and best-in-class treatments to address unmet medical needs,” Dr Ni explains.
To advance its mission, the firm recently raised US$78 million after listing on the Hong Kong Stock Exchange (HKEX) in July.
The eyecare innovator, which is still in the testing phase for drugs in its pipeline, went public via HKEX’s Chapter 18A listing framework, designed for pre-revenue biotech companies.
These new rules, introduced in 2018, helped Hong Kong become one of the world’s biggest fundraising hubs for biotech.
In May, to further streamline the listing process for tech and biotech companies, HKEX and the Securities and Futures Commission unveiled a dedicated technology enterprises channel.
For Cloudbreak, access to sophisticated institutional investors who are familiar with biotech investment cycles was especially beneficial.
Hong Kong’s world-class financial services ecosystem can support efficient capital raising for future development needs.
Executives also value the city’s position as a regional hub to facilitate partnerships with both Chinese and international pharmaceutical players.
High-tech Hong Kong
Cloudbreak, which runs R&D centres in the US and Mainland China, is also leveraging Hong Kong’s science talent pool for drug development.
The company is working on a new dry eye treatment with the Centre for Eye and Vision Research (CEVR), a partnership between The Hong Kong Polytechnic University and Canada’s University of Waterloo.
CEVR, which focuses on research to prevent vision loss in the ageing population and preserve healthy vision, is part of InnoHK, a government-backed programme spanning AI, healthcare and robotics.
Cloudbreak and CEVR’s collaboration was forged at the Asia Summit on Global Health (ASGH).
This annual conference, organised by the Hong Kong Trade Development Council (HKTDC), fosters impactful healthcare-related thought leadership, connections and partnerships.
The HKTDC facilitated an MoU for strategic cooperation between Cloudbreak and CEVR, which was signed at ASGH, to explore opportunities to collaborate on research in ocular science.
At the event, Dr Ni experienced strong engagement from the medical and scientific communities as well as widespread interest from biotech and pharmaceutical investors, opening doors to his firm’s eventual listing in Hong Kong.
“I recognised the significant market demand and investment interest not only in Hong Kong but throughout the entire Asia region.”
Revenue from Cloudbreak’s IPO will help fast-track plans to commercialise its most promising treatments.
One advanced drug candidate is an emulsion used to treat pterygium, a condition commonly called surfer’s eye. Excessive exposure to UV light, mainly from sunshine, can cause a membrane to grow on the eyeball, making it more difficult to see.
Another commercially promising asset, an eyedrop for juvenile myopia, has been cleared by the US Food and Drug Administration for Phase III clinical trials, the final testing stage before being submitted for regulatory approval.
“We are fortunate to have garnered support from both the ophthalmic medical community and the investment sector,” Dr Ni says. “This enables us to develop crucial medications that enhance the quality of life for patients.”