Anbio Biotechnology Announces Pricing of Initial Public Offering

Anbio Biotechnology, a global diagnostic company dedicated to the advancement of medical technology and the provision of in vitro diagnostics (IVD) products, has announced the pricing of its initial public offering (IPO). The company is offering 1,600,000 Class A ordinary shares at a public offering price of US$5.00 per share. The Class A Ordinary Shares have been approved for listing on the Nasdaq Global Market and are expected to commence trading on February 19, 2025, under the ticker symbol "NNNN."

The company expects to receive aggregate gross proceeds of US$8 million from the IPO, before deducting underwriting discounts and other related expenses. The IPO is expected to close on or about February 20, 2025, subject to the satisfaction of customary closing conditions. Proceeds from the IPO will be used for expansion of sales and distribution network in the strategically selected markets, research and development, and working capital and general corporate matters.

AC Sunshine Securities LLC is acting as the underwriter for the IPO, and Ortoli Rosenstadt LLP is acting as U.S. counsel to the Company, while Focus Law is acting as U.S. counsel to the Underwriter in connection with the IPO. A registration statement on Form F-1 relating to the IPO was filed with the U.S. Securities and Exchange Commission (the "SEC") (File Number: 333-284106), as amended, and was declared effective by the SEC on February 18, 2025.

Anbio Biotechnology is dedicated to the advancement of medical technology and the provision of in vitro diagnostics (IVD) products. It is an innovation-driven global diagnostic company offering a diverse portfolio of mature diagnostic assays and five key platforms for biomarker detection, including Fluorescent Immunochromatographic Solution (FIA), Chemiluminescent Immunoassay Solution (ChLIA), Polymerase Chain Reaction Solution (PCR), Lateral Flow Assay Solution (LFIA), and Loop-Mediated Isothermal Amplification Solution (LAMP). These solutions cater to point-of-care settings, laboratory, and over-the-counter applications, enabling healthcare providers and patients to access fast, reliable, and cost-effective diagnostic tools.

With a strong global presence across the EU, APAC, and the Americas, the Company's Conformité Européenne (CE)-marked products detect biomarkers associated with critical medical domains, encompassing infectious diseases, cancer, cardiovascular diseases, inflammation, drug abuse, endocrine disorders, renal disease, pharmacogenomics, and diabetes. Designed for compatibility with multiple sample collection matrices, including serum, plasma, whole blood, feces, urine, and saliva, the product lineup facilitates efficient and reliable diagnostic testing across diverse patient populations and healthcare settings. By prioritizing innovation, affordability, and speed, Anbio aims to transform the global diagnostics landscape, fostering a paradigm shift towards personalized and decentralized diagnostic solutions.

The global IVD market is driven by several key factors, including the rising prevalence of infectious diseases and chronic conditions, as well as the development of higher-throughput IVD systems in hospitals and laboratories. Anbio Biotechnology's product portfolio aligns with these trends in the following ways:

1. Diverse application areas: Anbio's IVD products cater to various applications, such as over-the-counter (OTC) utilization, point-of-care (POCT) settings, and laboratory applications. This diversity allows the company to address the growing demand in POCT settings and the OTC market, which are expected to expand due to the increasing need for rapid and accessible diagnostic solutions.
2. Broad range of biomarkers: Anbio's products detect biomarkers associated with critical medical domains, such as infectious diseases, cancer, cardiovascular diseases, inflammation, drug abuse, endocrine disorders, renal disease, pharmacogenomics, and diabetes. This wide range of biomarkers enables the company to address the rising prevalence of various health conditions, contributing to the market growth.
3. Compatibility with multiple sample collection matrices: Anbio's products are designed to work with multiple sample collection matrices, including serum, plasma, whole blood, feces, urine, and saliva. This flexibility allows for efficient and reliable diagnostic testing across diverse patient populations and healthcare settings, aligning with the market's need for versatile and adaptable diagnostic tools.
4. Innovation, affordability, and speed: Anbio prioritizes innovation, affordability, and speed in its product development, aiming to transform the global diagnostics landscape. This focus on innovation and affordability is crucial for capturing market share in the competitive IVD market, where cost-effectiveness and accessibility are essential factors for widespread adoption.

Anbio Biotechnology's financial performance, including revenue, profit margins, and cash flow, can be compared to its competitors in the IVD market using the data provided in the materials. Here's a comparison based on the information given:

1. Revenue:
* Anbio Biotechnology: The company's revenue has been fluctuating, with a significant portion coming from the EU region (63% in the six months ending June 30, 2024). The company's revenue growth is expected to be around 6.75% from 2025 to 2030, reaching $1190 billion by 2030.
* Competitors: The IVD market is dominated by large, established players such as Abbott Laboratories (ABT), Becton, Dickinson and Company (BDX), bioMérieux SA (BMXMF), Bio-Rad Laboratories (BIO), F. Hoffmann-La Roche Ltd. (RHHBY), Fluidigm, Qiagen N.V. (QGEN), QuidelOrtho (QDEL), Siemens AG (SIEGY), and Thermo Fisher Scientific (TMO). These companies have a significant market share and generate substantial revenue in the IVD market.
2. Profit Margins:
* Anbio Biotechnology: The company's profit margins have been volatile, with a significant drop in gross profit but an increase in gross margin percentage. The company's operating profit and operating cash flow have also been fluctuating.
* Competitors: The profit margins of Anbio Biotechnology's competitors are not explicitly stated in the materials. However, as established players in the IVD market, they likely have stable and high profit margins due to their market share, economies of scale, and operational efficiency.
3. Cash Flow:
* Anbio Biotechnology: The company's free cash flow for the twelve months ending June 30, 2024, was negative ($634,089). This indicates that the company is currently not generating enough cash from its operations to cover its capital expenditures and other cash outflows.
* Competitors: The cash flow situation of Anbio Biotechnology's competitors is not explicitly stated in the materials. However, as established players in the IVD market, they likely have positive and stable cash flows due to their market share, revenue growth, and operational efficiency.

In conclusion, Anbio Biotechnology's financial performance, including revenue, profit margins, and cash flow, varies significantly compared to its competitors in the IVD market. The company's revenue is expected to grow at a moderate pace, but its profit margins and cash flow have been volatile. In contrast, Anbio Biotechnology's competitors are likely to have stable and high profit margins and positive cash flows due to their market share and operational efficiency.

Anbio Biotechnology faces several regulatory challenges and opportunities in expanding its product offerings and geographical reach. Some of these include:

1. Regulatory approvals for new products and markets: Anbio must obtain regulatory approvals for its IVD products in various regions, such as the EU, APAC, Americas, and Africa. This process can be time-consuming and costly, requiring the company to navigate different regulatory environments and comply with local standards.
2. Market access and distribution: Expanding into new markets may require Anbio to establish partnerships with local distributors or set up its own distribution network. This can be challenging due to competition from established players and the need to understand and adapt to local market dynamics.
3. Data privacy and security regulations: As Anbio expands its product offerings and geographical reach, it must ensure compliance with data privacy and security regulations in each region. This includes protecting patient data and adhering to local data protection laws.

To address these regulatory challenges and opportunities, Anbio Biotechnology plans to:

1. Seek regulatory approvals: Anbio is actively pursuing regulatory approvals for its IVD products in various regions. The company has already obtained CE marking for its products, which allows them to be commercialized in the EU. Anbio is also working on expanding its product registrations to different device categories in the future.
2. Establish strategic partnerships: Anbio is forming partnerships with local distributors to expand its sales and distribution network in strategically selected markets. These partnerships will help the company navigate local market dynamics and gain a foothold in new regions.
3. Ensure data privacy and security: Anbio is committed to protecting patient data and complying with local data protection laws. The company is implementing robust data privacy and security measures to ensure the confidentiality and integrity of patient information.

By addressing these regulatory challenges and opportunities, Anbio Biotechnology aims to successfully expand its product offerings and geographical reach, ultimately transforming the global diagnostics landscape.