Core Viewpoint - The recent surge in Hong Kong's innovative pharmaceutical stocks, including the upcoming IPO of Tide Pharmaceutical, highlights the growing interest in the sector, particularly in peptide drugs, which are experiencing significant market expansion [1][12]. Industry Overview - Tide Pharmaceutical specializes in the CRDMO (Contract Research, Development, and Manufacturing Organization) sector focused on peptides, providing research, development, and manufacturing services to pharmaceutical companies [2]. - The global peptide drug market is on the verge of explosive growth, with sales expected to rise from $60.7 billion in 2018 to $89.5 billion in 2023, reflecting a compound annual growth rate (CAGR) of 8.1%, and projected to reach $261.2 billion by 2032, with a CAGR of 12.6% [2]. - The GLP-1 drug segment, a key driver of this growth, is anticipated to grow from $9.3 billion in 2018 to $38.9 billion in 2023, with a CAGR of 33.2%, and further to $129.9 billion by 2032, with a CAGR of 14.3% [5]. Company Positioning - Tide Pharmaceutical ranks as the third largest global CRDMO focused on peptides by sales revenue as of 2023, positioning itself to leverage the expanding market [7]. - The company has a diversified business model encompassing both CRO and CDMO services, allowing it to capture value throughout the drug development lifecycle [8]. - As of the end of 2024, Tide Pharmaceutical has 1,217 ongoing CRO projects and 332 ongoing CDMO projects, enhancing its resilience and growth opportunities across various business sectors [10]. Technological and Production Capabilities - Tide Pharmaceutical has established significant barriers to entry in peptide production, with extensive experience in peptide API production technology and large-scale manufacturing capabilities [10]. - The company operates a cGMP-compliant production facility in Hangzhou with an annual API production capacity of 500 kg, and is expanding its production capabilities with additional facilities in the U.S. and China [10][11]. Customer Base and Market Dynamics - Tide Pharmaceutical serves over 1,000 clients across more than 50 countries, including large pharmaceutical and biotechnology companies, which provides a stable revenue stream and mitigates geopolitical risks [11]. - The company enjoys high customer loyalty, with an average collaboration duration of about 10 years with its top five clients and a CDMO customer retention rate exceeding 90% [11]. Market Timing and IPO Prospects - The current market environment is favorable for Tide Pharmaceutical's IPO, with renewed investor interest in the innovative drug sector and a strong performance of recent Hong Kong IPOs [12][13]. - The company is well-positioned to capitalize on the rapid expansion of the peptide drug market, supported by its technological expertise, comprehensive business model, and robust customer relationships [15].
多肽药物“卖水人”，泰德医药(03880.HK)港股上市能否借势起飞？