Paris listing for Chinese pharma

Watson Biology, a Chinese producer of active principles for the drug industry, is applying for a listing on the Paris (France) Bourse - the first time a Chinese pharmaceutical enterprise has sought to do this in continental Europe. The company posted sales of 7.6 million euros ($9.7 million) last year and employs a staff of 280.

Cao Shengyu, president of Watson, has said he hopes to awake "strong interest" among French and European investors, adding that the Euronext financial market had done an excellent marketing job in China to attract small and medium-sized companies to the Bourse. While the advent of the Chinese drugmaker in France is being viewed as a little marvel, it is nothing new in Europe as a whole, with 44 Chinese companies listed in London, UK, and 38 on the Alternative Investment Market reserved for small firms. Watson Biology is based in Shaanxi province and envisages market capitalization of 60.0 million euros. It hopes to be able to raise about 8.0 million euros to fund development. The company's production includes paclitaxel, marketed by Bristol-Myers Squibb as Taxol before patent expiry five years ago, which accounts for 70% of Watson's revenue.