Chinese drug maker seeks Hong Kong listing

IPO investors will need to weigh up United Laboratories' strong structural growth potential and generous valuation against a regulated market with plenty of competition and price controls.

The United Laboratories International TUL has started marketing an initial public offering of up to HK$825 million $105 million, which gives investors yet another chance to gain exposure to ChinaƆs rapidly growing, but heavily regulated, market for pharmaceuticals.

Sources close to the offering say the key selling points for the Chinese manufacturer of generic Western drugs will be its vertically integrated business model which gives it better control over product quality and production costs and also ensures higher...

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