A small American biotech company is betting on Hong Kong - and the fast pace of Chinese clinical trials - to bring a new stem-cell treatment to market.
The cash will fund testing of its lead drug, a stem-cell treatment for diseases of the nervous system.
The company is based in San Diego and was previously called Cytonus Therapeutics. Axiom secured $11.7 million in a Series A investment round in 2023. Institutional investors from China, South Korea, and Japan have backed the company.
Its lead candidate targets hypoxic-ischemic encephalopathy in newborns, a severe brain injury with few approved treatments. The therapy is being co-developed with South Korea's Medinno Inc., combining Axiom's stem-cell platform with Medinno's manufacturing capabilities. The company has already begun discussions with multiple Chinese firms about potential drug-development collaborations, aiming to leverage China's faster regulatory environment for clinical trials.
The CEO, Remo Moomiaie-Qajar, put it bluntly. "The speed at which people can move in China is really very critically important in an industry that is otherwise quite slow," he said.
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That speed matters for drug development. Axiom recently reported Phase 1 results for its lead program in newborns with severe brain injury, co-developed with South Korea's Medinno Inc. After the Hong Kong listing, Axiom plans to partner with Chinese firms and run clinical trials there.
Axiom is not the first US biotech to look at Hong Kong. In 2018, Stealth BioTherapeutics evaluated a Hong Kong IPO before ultimately opting for Nasdaq. Another firm, TheraVectys SA, based in France and the US, is also exploring a potential Hong Kong IPO.
Hong Kong's stock exchange changed its rules in 2018 to make it easier for biotechs without revenue to go public.
The broader IPO market in Hong Kong is also active. Total proceeds from all first-time share sales hit $35 billion in 2026, near a six-year high.
The 2018 rule change allowed pre-revenue biotechs to list, making Hong Kong a strong alternative to Nasdaq for companies like Axiom that have yet to generate sales. This regulatory flexibility, paired with Asia's large patient populations and faster trial enrollment, has drawn several US and European biotechs to consider Hong Kong listings.
Additionally, Axiom plans to later seek a secondary listing on a U.S. exchange.
Axiom's stem-cell platform is designed to target central nervous system disorders, with the lead candidate focusing on hypoxic-ischemic encephalopathy. The partnership with South Korea's Medinno Inc. combines Axiom's technology with Medinno's manufacturing capabilities, aiming to produce the therapy at scale. The Series A round of $11.7 million in 2023, backed by institutional investors from Asia, provided early validation for the company's approach.
Hypoxic-ischemic encephalopathy affects roughly 1-3 per 1,000 live births in developed countries, with higher rates in developing nations. Current standard treatment is therapeutic hypothermia, but it is only partially effective and must be administered within hours of birth. Axiom's stem-cell therapy aims to repair damaged brain tissue, offering a potential breakthrough for infants who currently have few options.
The planned Hong Kong listing underscores Axiom's bet on China's efficient clinical trial environment. With faster trial timelines and a large patient population, the company hopes to move its therapy through development more quickly than would be possible in the United States.
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