Core Viewpoint - The reverse acquisition of Jiahe Biotech by Yiteng Pharmaceutical marks a significant development in the Hong Kong stock market, being the first case of an unprofitable biotech company under the 18A rule completing a reverse merger [1][3]. Group 1: Reverse Acquisition Details - Jiahe Biotech submitted a new listing application that has passed the Hong Kong Stock Exchange hearing, indicating the merger is nearing completion [1]. - The merger involves a share swap where Yiteng Pharmaceutical is valued at $677 million and Jiahe Biotech at $197 million, resulting in Yiteng shareholders holding 77.43% and Jiahe shareholders 22.57% of the new entity [3]. - The expected completion date for the merger and name change to Yiteng Jiahe Pharmaceutical Group Limited is December 30 [1]. Group 2: Company Background and Market Context - Jiahe Biotech has faced challenges with its clinical pipeline, which has been slow, and its products have not yet received domestic approval, leading to skepticism about its ability to recover independently [4]. - Yiteng Pharmaceutical has attempted to go public multiple times but has been unsuccessful, and it is perceived more as a contract sales organization rather than a company with strong self-research capabilities [5][6]. - The merger is viewed as a "self-rescue" effort for both companies, allowing Jiahe to leverage Yiteng's commercialization capabilities while Yiteng gains access to Jiahe's research pipeline [7]. Group 3: Strategic Implications - The merger is expected to create a synergistic effect, enhancing the market competitiveness of the combined entity by integrating research-driven and product commercialization capabilities [8][9]. - Jiahe Biotech aims to accelerate the commercialization of its product GB491 and optimize its multi-specific antibody technology platform through this merger [9][10]. - The transaction is seen as a potential signal for the market, indicating that the Hong Kong Stock Exchange may be more focused on the real value changes brought by mergers rather than just the shell value of companies [12].
港股18A首例反向收购，释放哪些信号？｜港美股看台