Zelgen(SH:688266) Xin Lang Cai Jing·2026-01-08 12:45Core Viewpoint - Zai Jing Pharmaceutical, the first innovative drug company to list on the STAR Market under the "Fifth Set of Standards," has struggled to achieve profitability since its IPO in 2020, despite launching several products and transitioning from a clinical biotech firm to a commercial pharmaceutical company [4][6][9]. Financial Performance - Since its listing, Zai Jing Pharmaceutical has reported continuous losses, with a net loss of 1.5 billion RMB in 2024 and a net loss of 1.38 billion RMB [6][10]. - As of the end of Q3 2025, the company reported revenues of 5.93 billion RMB, surpassing the total revenue for 2024 [10][11]. - The company's debt ratio exceeded 60% by Q3 2025, with total liabilities reaching 18.64 billion RMB, primarily driven by short-term debts [17][18]. Product Development and Sales - Zai Jing Pharmaceutical's product portfolio includes multiple drugs, with its main revenue source being Donafenib, which has been approved for use in over 2,200 hospitals [20][21]. - The company has launched several products, including Donafenib, Recombinant Human Thrombin, and JAK inhibitor Gika Xitini, with the latter expected to enter the national medical insurance directory in January 2026 [8][21]. - Despite revenue growth, the company faces high sales and distribution expenses, which reached 3.32 billion RMB in the first three quarters of 2025, indicating a sales expense ratio of over 56% [9][21]. Strategic Moves - Zai Jing Pharmaceutical is pursuing a dual listing on the Hong Kong Stock Exchange to raise funds for international expansion and brand establishment [11][12]. - The company recently announced a licensing deal with AbbVie for its drug ZG006, which could provide up to 1 billion USD in milestone payments, marking its first overseas licensing agreement [16][24]. - The cancellation of its U.S. subsidiary, Gensun Biopharma, was aimed at optimizing resource allocation and enhancing R&D efficiency, although it raised questions about the rationale behind the acquisition of a loss-making asset [12][15]. Market Sentiment - The stock price of Zai Jing Pharmaceutical saw a nearly 50% increase in the first half of 2025, but market sentiment has shifted, with concerns about the company's ability to achieve profitability and manage high sales expenses [22][23]. - As of January 8, 2026, the stock price was reported at 97.25 RMB per share, reflecting a decline, indicating market skepticism regarding the company's future performance [23][24].