Apr 25, 2018

U.S. biotech startups may IPO in Hong Kong

Illustration: Sarah Grillo, Axios

Hong Kong this week unveiled new stock exchange rules that will allow listings of unprofitable biotech companies, plus dual-class share structures.

Bottom line: The revised regs, which go into effect shortly, could attract some highly-valued U.S. biotech startups.

Conventional wisdom is that the new rules will act as a magnet for many Chinese companies that otherwise would list in the U.S., thus improving the odds of "holding onto" the next Alibaba.

More interesting is an argument we're hearing from stateside biotech investors, who believe many U.S.-based biotech "unicorns" will look east as a way to maintain their high valuations. Their idea is that there will be an initial deluge of Asia-based money because of the new diversification opportunity, and that could result in artificially high multiples. Sure it's cynical, but that doesn't make it wrong.

Go deeper

Acting Navy secretary resigns over handling of virus-infected ship

Thomas Modly. Photo: Chip Somodevilla/Getty Images

Acting Navy Secretary Thomas Modly resigned Tuesday after apologizing for comments he made about Capt. Brett Crozier, who was removed when a letter he wrote pleading with the Navy to address the coronavirus outbreak aboard the USS Theodore Roosevelt was leaked to the press. The resignation was first reported by Politico.

Why it matters: The controversy over Crozier's removal was exacerbated after audio leaked of Modly's address to the crew, in which he said Crozier was either "too naive or too stupid to be a commanding officer of a ship like this." After initially backing Modly's decision, President Trump said at a briefing Monday that he would "get involved."

Go deeperArrowUpdated 3 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 4 p.m. ET: 1,407,123— Total deaths: 81,103 — Total recoveries: 297,934Map.
  2. U.S.: Total confirmed cases as of 4 p.m. ET: 386,800 — Total deaths: 12,285 — Total recoveries: 20,191Map.
  3. Federal government latest: Trump removes watchdog overseeing rollout of $2 trillion coronavirus bill — Senate looks to increase coronavirus relief for small businesses this week
  4. Public health latest: Testing capacity is still lagging far behind demand.
  5. World latest: China reopens Wuhan after 10-week coronavirus lockdown.
  6. Wisconsin primary in photos: Thousands gathered to cast ballots in-person during the height of the coronavirus crisis in the U.S.
  7. What should I do? Pets, moving and personal health. Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it.

Subscribe to Mike Allen's Axios AM to follow our coronavirus coverage each morning from your inbox.

America's food heroes

Photos: Charlie Riedel/AP (L); Brent Stirton/Getty Images

The people who grow, process and keep food stocked on shelves are doing heroic work in these conditions, often for bottom-barrel pay.

Why it matters: Millions of Americans don't have the luxury of working from home, and it's essential that food workers keep working so we can keep eating.

Go deeperArrow18 mins ago - Health