Core Insights - The Hong Kong stock market remains a primary fundraising venue for innovative biopharmaceutical companies, with nearly HKD 30 billion raised and 26 companies listed in 2025, over half of which are unprofitable biotech firms [2][4][10] - The true challenge for these companies lies in crossing the profitability threshold post-IPO, which has become a key measure of value realization [2][11] - The IPO landscape is evolving, with a trend towards companies with mid-to-late stage pipelines and products nearing commercialization, as well as increased cases of overseas licensing [2][4][7] Fundraising and IPO Trends - In 2025, the Hong Kong stock market is expected to see around 100 IPOs, with total fundraising estimated at approximately HKD 272.1 billion, marking a year-on-year increase of 43% and 210% respectively [4][10] - The biopharmaceutical sector is a significant driver of this growth, with 26 companies (including 8 medical device firms) listed, a rise of 17 from 2024, and total fundraising reaching HKD 29.265 billion, a substantial increase of 751.7% year-on-year [4][10] - Notably, 16 unprofitable biotech companies raised a total of HKD 13.771 billion, accounting for 47.06% of the total fundraising, compared to only 4 such companies in the same period of 2024 [4][11] Performance of Leading IPOs - Leading IPOs have shown remarkable performance, with Heng Rui Pharmaceutical raising HKD 11.374 billion, representing about 40% of the sector's total fundraising and ranking among the top ten global IPOs of the year [5][10] - Other notable contributions include Jingfang Pharmaceutical-B, Ying'en Biotechnology-B, and Weili Zhibo-B, which collectively contributed around 20% of the sector's fundraising [5][10] Market Dynamics and Challenges - The capital is increasingly concentrated in high-barrier areas such as cancer treatment, ADCs, metabolic diseases, and gene therapy, with AI drug development emerging as a focal point [7][10] - Despite overall market activity, there is a growing internal differentiation, where leading companies with mature pipelines and commercialization capabilities attract funding, while those lacking innovative pipelines face challenges in passing IPO reviews [7][11] - The Hong Kong Stock Exchange and the Securities and Futures Commission have expressed concerns over the declining quality of some new listings, emphasizing the need for maintaining quality standards while encouraging applications [9][10] Future Outlook - The 2025 IPO market for biopharmaceuticals is characterized by a high volume of listings, a focus on innovative sectors, and a significant presence of unprofitable companies seeking funding through the 18A rule [10][11] - The market is expected to remain active in 2026, but with a more stable growth pace and structural deepening, as companies will need to focus on enhancing intrinsic value to navigate increased competition [15][16]
2025港股生物医药IPO激增背后：Biotech如何从“上市热”到“生存战”？｜2025中国经济年报