Group 1 - The core point of the article is that Bai'ao Saitou (688796.SH) has released its prospectus for an initial public offering (IPO) on the Sci-Tech Innovation Board, planning to issue 47.5 million shares, which will account for 10.63% of the total share capital post-issue [1] - The company was established in 2009 and operates as a preclinical CRO and biotechnology firm, providing innovative animal models and preclinical drug development services based on its proprietary gene editing technology [1][2] - The company has completed approximately 5,300 customized gene editing projects and developed over 4,300 types of gene-edited animals and cell line models, expanding its business into innovative animal sales, preclinical pharmacology evaluation services, and antibody drug collaboration [2] Group 2 - The company's main business revenue for the reporting periods were 533 million yuan, 716 million yuan, 980 million yuan, and 621 million yuan, with a compound annual growth rate of 35.56% from 2022 to 2024 [2] - The funds raised from the IPO, after deducting issuance costs, will be invested in projects including early drug development service platform construction, antibody drug research and evaluation, preclinical research projects, and supplementing working capital, totaling 1.185 billion yuan [3]

Core Viewpoint - The company leverages gene editing technology to create a comprehensive antibody drug development platform, focusing on innovative solutions and high-quality antibody molecules targeting over 1,000 epitopes [1][2]. Group 1: Financial Performance - In the first half of 2025, the company achieved revenue of 621 million yuan, representing a year-on-year growth of 51.3%, with a gross margin maintained at a high level of 74.4% [1]. - The company is expected to turn a profit for the first time in 2024, with a net profit of approximately 48 million yuan in the first half of 2025 [1]. - Revenue from preclinical animal products and pharmacodynamic services is a solid foundation, with sales of model animals reaching 274 million yuan in the first half of 2025, a year-on-year increase of 56% [1]. Group 2: Business Development - The company has established partnerships with all of the top ten global pharmaceutical companies, leveraging its expertise in gene editing and model animals [2]. - The antibody development business has become the core driver of revenue growth, with a compound annual growth rate (CAGR) of 53% from 2021 to 2024, and revenue of 163 million yuan in the first half of 2025, up 38% year-on-year [2]. - The company has signed approximately 280 agreements for cooperation, authorization, or transfer of antibody molecules as of the first half of 2025, with 61 projects already transferred or authorized [2]. Group 3: Future Outlook - Revenue growth is projected at 45%, 36%, and 35% for 2025 to 2027, with net profit growth expected at 323%, 103%, and 75% respectively [3]. - The company is anticipated to generate revenues of 1.42 billion yuan, 1.93 billion yuan, and 2.61 billion yuan in 2025, 2026, and 2027, respectively, with a current market value corresponding to price-to-sales ratios of 7.6, 5.6, and 4.1 [3]. - Given the high growth potential and solid foundation of the preclinical animal and pharmacodynamic evaluation business, the company is rated as a "buy" [3].

Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [6]. Core Insights - The company leverages gene editing technology to create a comprehensive antibody drug development platform, focusing on innovative solutions [2][16]. - The company has shown significant revenue growth, with a projected revenue CAGR of over 40% from 2021 to 2024, and is expected to turn profitable in 2024 [28][30]. - The antibody development business is a key driver of growth, with a revenue CAGR of 53% from 2021 to 2024 [5][34]. Summary by Sections Company Overview - Established in 2009, the company has developed a full human antibody library using its proprietary RenMice® platform, launching the "Thousand Mice, Ten Thousand Antibodies" initiative in 2020 [3][17]. - The company has created over 1 million full human antibody sequences targeting more than 1,000 potential drug targets [3][17]. Financial Performance - In the first half of 2025, the company achieved revenue of 621 million yuan, a year-on-year increase of 51.3%, with a gross margin of 74.4% [3][30]. - The company is expected to achieve revenues of 14.2 billion yuan, 19.3 billion yuan, and 26.1 billion yuan from 2025 to 2027, with net profit growth rates of 323%, 103%, and 75% respectively [6][8]. Business Segments - The preclinical animal products and pharmacological services provide a stable foundation, with model animal sales reaching 274 million yuan in the first half of 2025, a 56% increase year-on-year [4][34]. - The antibody development business has become the core driver of performance, with 163 million yuan in revenue in the first half of 2025, a 38% increase year-on-year [5][34]. Market Position - The company has established partnerships with the top ten global pharmaceutical companies, leveraging its expertise in gene editing and model animals [4][21]. - The antibody drug market is experiencing rapid growth, with the global antibody drug market projected to reach 2.704 trillion USD in 2024, growing to 4.634 trillion USD by 2031 [47][49].

Core Viewpoint - Baiaosaitu's IPO on the Sci-Tech Innovation Board was approved on September 24, aiming to raise 1.185 billion RMB for early drug research and development services [1][4]. Group 1: IPO and Market Reaction - Baiaosaitu's stock price rose over 10% on September 25 after the IPO approval, closing at 29.5 HKD per share, a 5.73% increase [1]. - The company completed its H-share IPO in September 2022, and if the Sci-Tech Innovation Board listing is successful, 77.81% of its shares will be traded on the A-share market [2]. Group 2: Financial Performance - For the first half of 2025, Baiaosaitu reported revenue of 621 million RMB, a 51.27% increase year-on-year, and a net profit of 48 million RMB, marking a turnaround from losses in the previous year [2][3]. - The company's preclinical product and service business, primarily from innovative animal model sales, generated revenue of 4.58 million RMB, up 56.9%, with a gross margin of approximately 70% [2]. Group 3: Fundraising and Investment Plans - The company plans to allocate the raised funds as follows: 38.28% for early drug research platform construction, 26.70% for antibody drug research and evaluation, 13.92% for preclinical research projects, and 21.10% for working capital [5]. - The projected revenue growth from 2022 to 2024 shows a compound annual growth rate of 35.56%, with net profits turning positive in 2024 [5]. Group 4: Research and Development Focus - Baiaosaitu has focused on gene editing technology since its establishment in 2009, developing four major technology platforms [4]. - The company aims to continue its "thousand mice, ten thousand antibodies" initiative, leveraging its gene editing platform to develop innovative mouse models for various diseases [10]. Group 5: Ownership Structure - As of the date of the prospectus, the company's major shareholders, Shen Yulei and Ni Jian, control 27.03% of the voting rights [6][9].

Core Viewpoint - Baiaosaitu (Beijing) Pharmaceutical Technology Co., Ltd. is set to return to A-share market after successfully passing the listing review by the Shanghai Stock Exchange, marking its A+H listing strategy [1] Group 1: Company Overview - Baiaosaitu, established in 2009, is a preclinical CRO and biotechnology company that provides innovative model animals and preclinical drug development services based on its proprietary gene editing technology [1] - The company has developed a comprehensive platform that includes gene-edited model animal preparation, innovative model animal breeding and supply, preclinical pharmacology and efficacy evaluation, and antibody drug discovery [1] Group 2: Business Achievements - As of the reporting period, Baiaosaitu has completed over 5,100 customized gene editing projects and developed more than 3,500 types of RenMice and other gene-edited animals and cell line models [2] - The company has established partnerships with numerous renowned biotech and pharmaceutical companies for antibody drug discovery, leveraging its RenMice platform and "thousands of mice, ten thousand antibodies" approach [2] Group 3: Financial Performance - From 2022 to 2024, Baiaosaitu's revenue is projected to be 534 million yuan, 717 million yuan, and 980 million yuan, with a compound annual growth rate of 35.56% [3] - The net profit for the same period is expected to be -602 million yuan, -383 million yuan, and 33.54 million yuan, indicating a turnaround to profitability in 2024 [3] Group 4: IPO and Fundraising - Baiaosaitu plans to raise 1.185 billion yuan through its IPO, which will be directed towards enhancing its existing business and core technologies [3] - The fundraising will support projects aimed at expanding the production capacity of model animals, improving early drug discovery capabilities, and enriching the preclinical research pipeline [3]

Core Insights - The global biopharmaceutical industry is undergoing a transformation driven by the rising popularity of antibody-drug conjugates (ADCs), with a projected market size of $11 billion by 2030 and a compound annual growth rate (CAGR) of 28.4% from 2022 to 2030 [1] Group 1: Company Overview - Founded in 2009, the company initially focused on model animal services and has since established over 4,390 gene-edited animal models, including nearly one-third humanized mice for drug efficacy and safety evaluation [2] - The company's proprietary RenMice® platform allows for the generation of high-affinity, low-immunogenicity fully human antibodies, supporting various antibody formats [2] - The "Thousand Mice, Ten Thousand Antibodies" initiative has created a library of over one million fully human antibody molecules, significantly reducing early-stage drug development costs and enhancing discovery efficiency [2] Group 2: Business Performance - In the first half of 2025, the company reported revenue of 621 million yuan, a 51.5% increase year-on-year, and a net profit of 48 million yuan, marking a successful turnaround [4] - The humanized mouse business generated 274 million yuan in revenue, up 56% year-on-year, while the antibody transfer and development business reached 163 million yuan, a 38.1% increase [4] - The company has maintained a gross margin above 74% and a net operating cash flow exceeding 200 million yuan, indicating strong self-sustainability [4] Group 3: Strategic Collaborations - The company has established partnerships with seven of the top ten global pharmaceutical companies, signing approximately 280 antibody transfer or development agreements, with 80 new collaborations in the first half of 2025 alone, a 60% increase year-on-year [3] - Recent collaborations include a partnership with Tubulis for next-generation ADC therapies and an expanded collaboration with Merck to explore antibody-conjugated LNP delivery systems [5][6] Group 4: Market Position and Growth - The company is positioned as a key player in the ADC market, leveraging its unique technology platform to attract global partnerships and drive innovation [6] - The rapid growth of China's innovative drug license-out transactions, exceeding $60 billion in the first half of 2025, highlights the company's successful integration into the international pharmaceutical ecosystem [7] - The company's stock price surged over 400% from the end of 2024 to August 2025, reflecting strong market confidence in its dual-driven business model [7] Group 5: Conclusion - The ADC wave is reshaping the global biopharmaceutical landscape, with the company transitioning from a domestic leader in model animals to a global supplier of antibody molecules [8] - The ongoing expansion of international collaborations and the continuous growth of its antibody library position the company as a representative example of Chinese biotech's globalization efforts [8]

Core Insights - The article highlights the rapid evolution of the biopharmaceutical industry, particularly focusing on the dual-target antibody-drug conjugates (ADC) showcased at the WCLC and the increasing trend of business development (BD) in China [2][8] - The company, Baiaosaitu, is positioned as a key player in the global innovation drug landscape through its dual business lines and the "Thousand Mice, Ten Thousand Antibodies" initiative, which enhances its capabilities in antibody discovery and validation tools [1][8] Industry Trends - The WCLC 2025 showcased the promising efficacy data of the dual-target ADC (BL-B01D1) from Chinese company Bailitianheng, reinforcing the development direction of "dual-target + delivery" [2] - The first half of 2025 saw a historic high in the number of external licensing deals and total transaction value for Chinese innovative drugs, driven by multinational pharmaceutical companies facing patent cliffs and the advantages of Chinese firms in early discovery and clinical efficiency [2] Company Evolution - Baiaosaitu originated from gene-edited model animals and has developed humanized mouse models and comprehensive preclinical evaluation capabilities, shifting its focus to antibody discovery with the "Thousand Mice, Ten Thousand Antibodies" plan [3] - This initiative aims to create a large library of high-quality human antibodies by pre-creating model mice for thousands of potential druggable targets, significantly reducing the time and cost from discovery to proof of concept (PoC) [3] Synergy of Dual Business Lines - The company's business engine consists of two parts: the model animal business providing standardized, high-quality humanized and disease models, and the antibody platform business generating a continuous supply of developable human antibodies [4] - This synergy enhances the company's infrastructure-level position and influence in the industry chain, ensuring a broad and deep supply of validation tools and molecular supply [4] Trend Alignment - Baiaosaitu's RenLite® platform simplifies the development of dual-target antibodies by addressing the complexity of chain mismatches, making production more akin to monoclonal antibodies and improving project advancement efficiency [5] - The company is actively collaborating with partners in the dual-target/ADC space, with the B7-H3/PTK7 dual-target ADC (IDE034) expected to file for IND in Q4 2025, targeting solid tumors like lung and colorectal cancer [5] External Collaborations - In the ADC field, Baiaosaitu signed an antibody licensing agreement with Germany's Tubulis to develop innovative ADCs using antibodies from its RenMice® platform, ensuring continuous monetization of its antibody assets [6] - The company is also exploring precision delivery solutions for antibody-conjugated lipid nanoparticles (LNP) through a collaboration with Merck, expanding the application boundaries of human antibodies beyond traditional therapies [6] Platform-Based Business Model - Baiaosaitu's business model is BD-oriented, focusing on being a "basic infrastructure supplier" for molecular discovery and validation rather than relying on a single self-developed pipeline [7] - The "Thousand Mice, Ten Thousand Antibodies" initiative serves as an open platform, allowing multiple validation opportunities across different partners and indications, enhancing the probability of success for individual molecules [7] Competitive Barriers and Outlook - The company has established high barriers to entry in providing standardized, scalable human antibodies and models from a technical perspective, while its "platform + assets + BD" combination creates strong synergistic effects [8] - As the industry moves towards integrating dual-target/ADC and nucleic acid drugs, Baiaosaitu is expected to continue acting as an "industry accelerator," delivering high-quality source molecules and validation tools to enhance global drug development efficiency [8]

Core Insights - The pharmaceutical industry is currently focused on dual antibodies, ADCs, and nucleic acid delivery systems, with significant data emerging from WCLC regarding dual antibody ADCs [1] - Baiaosaitou has been actively collaborating with various partners, including Merck and Tubulis, to enhance its capabilities in antibody-drug conjugates and nucleic acid delivery [1][4][5] Group 1: Business Model and Strategy - Baiaosaitou has transformed the complex molecular discovery process into a "shelf-style" selection, allowing partners to choose from a vast library of potential drug candidates, significantly reducing time and increasing success rates [2] - The company operates with a dual business model: one focusing on model animals for target humanization and disease modeling, and the other on antibody platforms that continuously produce antibodies for licensing and joint development [3] Group 2: Recent Collaborations and Developments - The collaboration with Merck aims to enhance the delivery of nucleic acid drugs through antibody-conjugated LNPs, potentially benefiting mRNA and siRNA therapies [4] - Tubulis has selected a fully human antibody from Baiaosaitou's RenMice® platform to develop a new generation of ADCs, with Baiaosaitou receiving upfront payments, milestone payments, and sales royalties [5] - IDEAYA's IDE034, developed from the RenLite® platform, targets two tumor-related antigens and is expected to file for IND by Q4 2025, indicating a strong pipeline for dual antibody ADCs [6] Group 3: Market Position and Trends - The global pharmaceutical industry is facing a patent cliff, creating a demand for new pipelines, which aligns with Baiaosaitou's strategy of focusing on molecular discovery and validation tools rather than broad self-research [7] - The shift from single-target competition to multi-target and delivery systems positions Baiaosaitou as a key player in providing reliable molecules and validation tools, establishing itself as a foundational infrastructure in the industry [8]

Summary of Key Points Core Viewpoint - This week, one new stock will be available for subscription, while four companies are undergoing IPO reviews, indicating ongoing activity in the capital markets [2][3]. Group 1: New Stock Subscription - One new stock, Aomeisen, will be available for subscription on Monday, September 25 [2]. - Last week, Shichang Co. debuted on the North Exchange, experiencing a significant first-day increase of 271.56% [2]. Group 2: Company Performance and Financials - Shichang Co. specializes in the research, production, and sales of automotive fuel systems, primarily selling to major vehicle manufacturers like Geely and FAW [2]. - Baiaosaitu, known as the "first stock in gene editing," plans to raise approximately 11.85 billion yuan for early drug development services and other projects [3][5]. - Baiaosaitu's projected revenues for 2022, 2023, and 2024 are 534 million yuan, 717 million yuan, and 980 million yuan, respectively, with net profits expected to improve from a loss of 602 million yuan in 2022 to a profit of 33.54 million yuan in 2024 [3][4]. Group 3: Fundraising and Investment Plans - The fundraising plan for Baiaosaitu includes allocations of 45.36 million yuan for early drug development services, 31.65 million yuan for antibody drug research, and 16.5 million yuan for preclinical research [6]. - The total investment amount for these projects is 118.5 million yuan, with the majority directed towards early drug development services [6].

Core Insights - The innovative drug industry in 2025 is witnessing a surge in business development (BD) activities, with over 70 pipeline licensing agreements signed by Chinese pharmaceutical companies in the first half of the year, totaling over $60 billion, setting a historical record [1] - The urgency of multinational pharmaceutical companies to fill the "patent cliff" gap has positioned Chinese firms as significant sources of global pipelines due to their efficient R&D and cost advantages [1] Company Overview - Baiaosaitu's growth path can be summarized as "from point to surface," starting with gene-edited mice and accumulating industry-leading humanized mouse resources, providing stable cash flow and early engagement with innovative drug companies [2] - The company's antibody discovery platform, initiated in 2020 with the "Thousand Mice, Ten Thousand Antibodies" plan, has positioned Baiaosaitu at the forefront of the innovative drug R&D chain, enabling partners to significantly reduce time and uncertainty in the development process [2] - Baiaosaitu operates a "dual business line" model: stable cash flow from standardized model animal products and high-growth potential from high-throughput antibody production through licensing and collaboration [2] Market Valuation Logic - In the secondary market, traditional biotech companies often rely on a few pipeline "stories" for high valuations, which carry significant risks and volatility, while Baiaosaitu's platform-centric model offers stronger risk resilience [3] - The value of platform-based biotech lies in its ability to "empower" others, sharing clinical risks and revenues through collaborations and licensing, functioning as a "R&D infrastructure" for global innovative drug companies [3] Recent Collaborations - In September, Baiaosaitu announced three international collaborations, further demonstrating the value of its platform [4] - The collaboration with Merck explores antibody-conjugated LNP nucleic acid delivery, expanding the boundaries of antibody applications in emerging therapies and creating potential long-term cash flow [5] - A licensing agreement with Tubulis involves a fully human antibody derived from the RenMice® platform entering ADC development, exemplifying the "antibody supermarket" model by allowing molecules to enter clinical trials through licensing rather than self-research [6] - The partnership with IDEAYA focuses on the dual-antibody ADC IDE034, with preclinical data showing significant synergy when combined with small molecule drugs, highlighting Baiaosaitu's technical capabilities in this hot sector [7] Role in Business Development Wave - Multinational pharmaceutical companies are willing to pay high prices for early pipeline access, and Chinese firms are achieving a positive cycle of funding and technology through BD, with Baiaosaitu's model aligning well with this trend [9] - The open platform allows molecules to be licensed multiple times to different partners, increasing the probability of success, while the value capture model includes upfront payments, milestones, and sales shares, forming a long-term "value pyramid" [9] - Baiaosaitu serves as an "accelerator" for new drug development, providing "ready-to-use" candidate molecules for various-sized pharmaceutical companies, thus lowering innovation barriers [9] - The company's story reflects the rise of Chinese biotech and the inevitable result of the fine division of labor in the innovative drug industry, with BD transactions expected to be a long-term trend driven by the "patent cliff" and "efficiency dividend" [9]