Core Viewpoint - The Hong Kong Stock Exchange welcomes another "A+H" biopharmaceutical company, Baillie Tianheng, which has launched its IPO with a price range of HKD 347.50 to HKD 389.00, despite facing significant financial challenges and a lack of sustainable revenue sources [2][4]. Financial Performance - In 2024, Baillie Tianheng is projected to generate revenue of CNY 58.23 billion and a net profit of CNY 37.08 billion, largely due to an $800 million upfront payment from a partnership with Bristol-Myers Squibb (BMS) [2]. - However, in the first half of 2025, the company's revenue is expected to plummet to CNY 1.71 billion, a staggering decline of 96.92% year-on-year, with a net loss of CNY 11.18 billion [2]. - The company's R&D expenses reached CNY 10.39 billion in the first half of 2025, a 90.74% increase, amounting to approximately six times its revenue during the same period [2]. Product Pipeline - Baillie Tianheng's core product, iza-bren, is the world's first EGFR×HER3 dual-targeted ADC drug and the only one in Phase III clinical development, with a total licensing agreement worth up to $8.4 billion with BMS [4]. - Clinical data presented at the 2025 European Society for Medical Oncology meeting showed an overall objective response rate of 55% in patients with advanced heavily pre-treated solid tumors, indicating its potential as a broad-spectrum drug [5]. - Another promising drug, T-Bren, demonstrated an objective response rate of 82.2% in HER2-positive breast cancer patients, with a median progression-free survival of 18 months, showcasing better therapeutic potential compared to its competitor [6]. Market Dynamics - The IPO has attracted five cornerstone investors, including BMS and Athos Capital, who collectively subscribed to approximately HKD 248 million worth of shares, representing 7.8% of the offering [7]. - The absence of a greenshoe option in the IPO raises concerns about price stability post-listing, especially given the recent underperformance of A+H shares in the biopharmaceutical sector [8]. - The high entry cost of HKD 39,292.31 for retail investors may deter participation, suggesting a cautious approach for those less familiar with the biopharmaceutical industry [8].