BIOKIN PHARMACEUTICAL(SH:688506) Sou Hu Cai Jing·2025-11-07 10:38Core Viewpoint - Baili Tianheng (688506.SH) officially launched its Hong Kong IPO on November 7, 2025, aiming to raise up to HKD 3.36 billion by offering 8.6343 million H-shares at a price range of HKD 347.5 to HKD 389 per share, with plans to list on the Hong Kong Stock Exchange on November 17, 2025 [1][4]. Group 1: IPO Details - The IPO marks a significant step in Baili Tianheng's global strategy following its listing on the STAR Market in China [4]. - The company has attracted notable cornerstone investors, including Bristol-Myers Squibb (BMS), which has a longstanding relationship with Baili Tianheng [4]. - The expected net proceeds from the IPO are approximately HKD 3.018 billion, with funds allocated for key international expansion initiatives [4][5]. Group 2: Fund Allocation - 60% of the funds will be used for the development of biopharmaceutical candidates outside mainland China, enhancing the company's global clinical trial capabilities [5]. - 30% of the funds will be directed towards building a global supply chain, including overseas production facilities, crucial for becoming a multinational pharmaceutical company [5]. - The remaining 10% will support operational expenses and general corporate purposes, aiding overall business expansion [5]. Group 3: Company Background and Performance - Baili Tianheng transitioned from a generic drug manufacturer to an innovative drug developer, establishing SystImmune in Seattle in 2014 [6]. - As of October 2025, the company has 15 innovative drugs in clinical stages and 28 additional candidates in the pipeline [6]. - The company reported a significant revenue increase in 2024, driven by an USD 8 billion upfront payment from BMS, but faced a revenue decline in the first half of 2025 due to the absence of large collaboration payments [7][8]. Group 4: Recent Financial Performance - In Q3 2025, the company reported a revenue of HKD 2.066 billion, a 63.52% year-on-year decline, but turned a profit of HKD 623 million due to the recognition of a USD 250 million milestone payment from BMS [9]. - R&D expenses remained high, totaling HKD 1.772 billion in the first three quarters of 2025, representing 85.79% of revenue [9]. - The company plans to utilize the HKD 3 billion raised from the IPO to further its innovative drug projects and enhance its global supply chain [9].