BIOKIN PHARMACEUTICAL(SH:688506) 2 1 Shi Ji Jing Ji Bao Dao·2025-06-05 10:30Core Viewpoint - The significant rise in the stock price of Baili Tianheng (688506.SH) and the wealth of its chairman, Zhu Yi, is primarily attributed to a groundbreaking licensing agreement with Bristol-Myers Squibb (BMS) for the drug BL-B01D1, with a potential total transaction value of $8.4 billion [2][3][11]. Company Overview - Baili Tianheng's stock price surged by 5.31% on May 30, 2023, marking a market capitalization exceeding 120 billion yuan for the first time [1]. - The stock has seen increases of 37% and 56% in 2024 and 2025, respectively [1]. - Zhu Yi holds a 74.35% stake in Baili Tianheng, with his personal wealth rising to nearly 90 billion yuan, making him the richest person in Sichuan [1]. Strategic Developments - The licensing agreement with BMS, completed on December 12, 2023, is a landmark deal that revitalized the pharmaceutical market in China, marking the first successful international venture for a locally developed bispecific antibody drug [2][3]. - This deal not only set records for upfront and total transaction amounts in China's innovative drug business but also signifies China's growing influence in the global pharmaceutical sector [3]. Financial Implications - The agreement is expected to lead to explosive growth in Baili Tianheng's revenue and net profit in 2024, fundamentally altering the company's financial trajectory [3]. - Despite the influx of BD income, Baili Tianheng faces a significant funding gap for R&D and operations over the next three years, estimated at 4.819 billion yuan [13]. Capital Raising Initiatives - In response to funding needs, Baili Tianheng has initiated dual capital-raising strategies: applying for an IPO on the Hong Kong Stock Exchange and preparing for a targeted issuance in the A-share market [4][14]. - The IPO aims to leverage the mature valuation system of the Hong Kong market, while the A-share issuance is seen as a quicker way to raise capital [4]. R&D Focus - Baili Tianheng has significantly increased its R&D investment, from 181 million yuan in 2019 to 746 million yuan in 2023, with R&D expenses constituting 132.82% of its revenue in 2023 [10][11]. - The company has 15 candidate drugs in clinical stages and over 80 clinical trials globally, including multiple Phase III trials [13]. Industry Context - The Chinese innovative drug sector has seen a surge in original research, with the number of new drugs entering clinical trials surpassing that of the U.S. from 2015 to 2024 [15]. - The recent ASCO conference highlighted the achievements of Chinese companies in innovative drug research, showcasing a growing presence on the global stage [15][16].