Core Viewpoint - The Hong Kong pharmaceutical sector, particularly in the inhalation drug segment, is experiencing a valuation recovery driven by supportive policies and improved market liquidity, with companies like Changfeng Pharmaceutical emerging as key players in this high-barrier market [1][4]. Group 1: Industry Overview - The inhalation drug market is characterized by high technical barriers and a complex supply chain, historically dominated by international giants like GlaxoSmithKline and AstraZeneca, indicating significant room for domestic players [2][4]. - The global inhalation drug market for respiratory diseases is projected to grow from 195.6 billion RMB in 2024 to 337.2 billion RMB by 2033, with a compound annual growth rate (CAGR) of 6.2% [3][4]. Group 2: Company Profile - Changfeng Pharmaceutical focuses on the research, production, and commercialization of inhalation drugs for respiratory diseases, showcasing strong competitive advantages and the potential to benefit from domestic market opportunities [4][8]. - The company has demonstrated impressive financial growth, with revenues increasing from 349 million RMB in 2022 to 608 million RMB in 2024, reflecting a CAGR of 31.9% [5][10]. Group 3: Product and R&D Strategy - Key products include CF017, an inhalation solution for asthma, which achieved sales of 610 million RMB in 2024 with a gross margin of 85.5%, highlighting its market competitiveness [8][9]. - The company maintains a robust R&D platform, with R&D expenses consistently above 20% of revenue, indicating a strong commitment to innovation and product line expansion [9][10]. Group 4: Market Position and Valuation - Despite a high dynamic price-to-earnings ratio, the company's valuation is supported by its unique position in the inhalation drug market, strong growth potential, and established cash flow generation capabilities [13][14]. - The company is expected to launch at least five new products in the next five years, further diversifying its offerings and enhancing market competitiveness [11][14].

Group 1 - He Eye Hospital's subsidiary has signed a share subscription agreement to acquire Japan's Ido Medical, marking a significant step in its international expansion in ophthalmology [1] - The investment requires approval from multiple regulatory bodies in both China and Japan, highlighting the complexities and high barriers of cross-border medical investments [1] Group 2 - Jin Cheng Pharmaceutical's actual controller and chairman, Zhao Yeqing, received a notice of administrative penalty for violating securities laws, resulting in a fine of 3 million yuan, with Zhao personally liable for 1.5 million yuan and a four-year market ban [2] - This incident raises concerns about the company's governance and internal control, potentially impacting its reputation and market confidence [2] Group 3 - Two senior executives at Nuo Si Ge have resigned from their vice president positions but will continue to lead subsidiary companies, indicating an internal management restructuring aimed at enhancing operational efficiency and strategic execution [3] Group 4 - Haikang Pharmaceutical's subsidiary has received acceptance for an IND application for HSK36357 capsules, a new small molecule drug with independent intellectual property rights, showing significant analgesic effects and potential in treating muscular dystrophy [4] - The dual mechanism of HSK36357 could provide a new treatment option for patients with Duchenne muscular dystrophy, indicating substantial market potential if clinical validation is achieved [4] Group 5 - Changfeng Pharmaceutical has successfully listed on the Hong Kong Stock Exchange with an IPO price of 14.75 HKD per share, focusing on the research, production, and commercialization of inhalation technologies for respiratory diseases [5] - The company's stock surged over 200% on its debut, reflecting strong market recognition of its leading position in the inhalation drug sector [6]

Core Insights - The collaboration between East China Pharmaceutical and Hangzhou Changxi Pharmaceutical focuses on the exclusive commercialization of the inhalation drug CXG87 in mainland China, marking a significant step in the high-barrier inhalation formulation sector [1][2] - CXG87 is a modified inhalation powder combining budesonide and formoterol, aimed at treating asthma and other respiratory diseases, with its Phase III clinical trials completed and a new drug application expected in the first half of 2026 [2][3] - The inhalation formulation market in China is projected to reach approximately 23.9 billion yuan by 2025, with a potential market space of up to 60 billion yuan due to unmet medical needs among respiratory disease patients [3] Company Overview - East China Pharmaceutical will leverage its extensive market resources to lead the commercialization of CXG87, supported by a professional marketing team and a multi-channel sales network across over 30 provinces in China [4][6] - The company has demonstrated strong commercial capabilities, with its innovative product segment achieving a revenue of 1.084 billion yuan in the first half of 2025, reflecting a significant year-on-year growth of 59% [4][5] - East China Pharmaceutical has successfully commercialized several innovative products, including CAR-T therapies and monoclonal antibodies, establishing a solid foundation for managing complex inhalation products like CXG87 [5][6]

Core Insights - Huadong Medicine has entered into an exclusive commercialization partnership with Hangzhou Changxi Pharmaceutical for the inhalation drug CXG87, aimed at addressing unmet medical needs in respiratory diseases in mainland China [1][7] Group 1: Product and Market Potential - CXG87 is a modified inhalation powder formulation of Budesonide/Formoterol, developed as a Class 2 new drug for treating asthma and other respiratory diseases, with Phase III clinical trials completed and a new drug application expected in mid-2026 [2] - The inhalation drug market in China is projected to reach approximately 23.9 billion RMB by 2025, with a potential market space of up to 60 billion RMB due to a large patient base, including around 50 million asthma patients and nearly 99 million with chronic obstructive pulmonary disease [4] Group 2: Competitive Landscape - The original drug for CXG87 is AstraZeneca's Symbicort, which has dominated the market since its launch in 2005, generating nearly 2.6 billion RMB in sales in 2023, indicating significant room for domestic alternatives with differentiated advantages [3] - The inhalation formulation sector is characterized by high technical barriers, with fewer than 20 domestic inhalation formulations approved in the past decade, making it a challenging field for many companies [3] Group 3: Commercialization Strategy - Huadong Medicine has a robust commercialization strategy, with a professional team focused on clinical value and academic promotion, utilizing a multi-channel marketing approach across over 30 provinces in China [5] - The company reported a 59% year-on-year increase in sales and agency service revenue for its innovative product segment, demonstrating its capability to successfully launch and scale new products [5] Group 4: Strategic Collaboration - The partnership between Huadong Medicine and Changxi Pharmaceutical signifies a shift in the domestic inhalation formulation sector from mere imitation to innovation, leveraging the strengths of both companies to tap into the respiratory medication market [7] - Both companies' leaders express confidence in the potential of CXG87, emphasizing the importance of this collaboration in maximizing the drug's commercial and clinical value [6][7]

Group 1: Company Developments - Transpire Bio, a wholly-owned subsidiary of Smoore International, has submitted an Abbreviated New Drug Application (ANDA) for Breo® Ellipta® and received acceptance from the FDA on September 23 [1][1] - If approved, Transpire Bio will have a 180-day exclusivity period in the U.S. market for Breo® Ellipta®, which is used for the maintenance treatment of asthma and COPD, with projected sales of $2.02 billion in 2024 [1][1] - This breakthrough highlights Transpire Bio's strategic positioning in the complex generic drug sector and strengthens Smoore International's innovative advantage in the global inhalation drug market [1][1] Group 2: Industry Trends - The FDA has launched a pilot program to enhance the efficiency of pre-market tobacco product applications (PMTAs) for nicotine pouch products, aiming for more frequent feedback and shorter review times [2][2] - The pilot program reflects the FDA's commitment to improving regulatory efficiency while maintaining scientific standards for tobacco product reviews [2][2] - As of now, the FDA has authorized 20 nicotine pouch products, with potential for more varieties in the future [2][2] Group 3: Export Data - In the first eight months of 2025, the export value of e-cigarettes and similar personal vaporizing devices reached $2.116 billion, a year-on-year increase of 14.55%, while other non-combustible nicotine products saw a decrease of 18.31% [3][3] - In August 2025, the export value of e-cigarettes was $301 million, up 34.01% year-on-year, while other nicotine products reached $635 million, down 5.68% year-on-year [3][3] - The average export price for e-cigarettes was $4.46 per unit, with an overall export price of $45.07 per kilogram in August [3][3] Group 4: Regional Insights - The top five export destinations (U.S., U.K., Germany, South Korea, UAE) accounted for 62.32% of total exports in the first eight months of 2025, a slight decrease of 0.56 percentage points year-on-year [4][4] - The U.S. remains the largest market with an export value of $2.199 billion, down 8.67% year-on-year, representing 33.56% of total exports [4][4] - Notable growth was observed in exports to the UAE and Indonesia, with increases of 60.57% and 67.25% respectively, while South Korea, Russia, and the Netherlands experienced significant declines [4][4]

Company Overview - Changfeng Pharmaceutical Co., Ltd. focuses on inhalation technology and drugs, launching a global offering of 41.198 million H-shares at a price of HKD 14.75 per share, with trading expected to start on October 8, 2025 [1] - The company has received multiple institutional investments but did not introduce cornerstone investors for this listing [1] - It has developed a comprehensive product portfolio targeting respiratory diseases, with six products approved by regulatory authorities, including CF017, which is among the best-selling inhalation drugs in China [1][3] Business Model - The core business revolves around inhalation formulations, creating an integrated "R&D-production-commercialization" model [4] - The company is developing over 20 candidate products for global markets, expanding its focus beyond respiratory diseases to include CNS diseases and infections [4] - Revenue is heavily reliant on CF017, contributing 96.2% to 91.6% of total revenue from 2022 to Q1 2025, while other products like CF018 are gradually increasing their revenue share [5] Financial Analysis - Total revenue grew from RMB 349 million in 2022 to RMB 608 million in 2024, with a compound annual growth rate (CAGR) of 31.9% [6] - The company recorded a net loss of RMB 49.4 million in 2022 but turned profitable in 2023 with a net profit of RMB 31.7 million, further increasing to RMB 12.8 million in Q1 2025 [6][7] - Gross margins remained high, averaging around 79.4% in Q1 2025, driven by the high margins of CF017 [7] Competitive Advantages - The company possesses significant technical capabilities in inhalation formulation development, including particle engineering and device design [9] - Its production facility in Suzhou has a capacity to support the annual production of various inhalation products, with ongoing expansions to increase capacity [9] - The commercial network covers over 31 provinces in China, with a shift from a promotion-heavy model to a distributor-led approach, enhancing market penetration [9] Industry Outlook - The global respiratory drug market is projected to reach USD 157.2 billion by 2033, with inhalation formulations being a key growth area [10] - In China, the inhalation drug market is expected to grow from RMB 831 billion in 2024 to RMB 1.355 trillion by 2033, driven by increased market awareness and application [10] - Changfeng's CF017 has captured approximately 15.7% of the Chinese budesonide inhalation market, indicating a strong position among domestic competitors [11] Valuation Analysis - The company's market capitalization at the IPO price is approximately HKD 60.77 billion (RMB 55.71 billion), with a price-to-earnings (PE) ratio of about 88.9, reflecting growth expectations [12] - Compared to peers like GSK and AstraZeneca, which have lower PE ratios, Changfeng's valuation is considered high but justified by its growth rate and product pipeline [13] - Future performance will depend on the successful launch of new products and maintaining high profitability levels [13]

長風藥業股份有限公司 C F P h a rm Te ch , I n c . （於中華人民共和國註冊成立的股份有限公司） 股份代號 : 2652 全球發售 聯席保薦人 整體協調人、聯席全球協調人、聯席賬簿管理人及聯席牽頭經辦人 重要提示 重要提示：倘 閣下對本招股章程任何內容有任何疑問，應徵詢獨立專業意見。 CF PharmTech, Inc. 長風藥業股份有限公司 （於中華人民共和國註冊成立的股份有限公司） 全球發售 足，多繳股款可予退還） 聯席保薦人 整體協調人、聯席全球協調人、聯席賬簿管理人及聯席牽頭經辦人 | 10中信证券 | | --- | | | | 聯席賬簿管理人及聯席牽頭經辦人 香港交易及結算所有限公司、香港聯合交易所有限公司及香港中央結算有限公司對本招股章程的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就 因本招股章程全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 本招股章程連同本招股章程「附錄八－送呈公司註冊處處長及展示文件」所述的文件均已遵照香港法例第32章《公司（清盤及雜項條文）條例》第342C條的規定送呈香港公司註 冊處處長登記。香港證券 ...

Core Viewpoint - Changfeng Pharmaceutical Co., Ltd. is preparing for an IPO to raise funds primarily for core pipeline research and development, production facility expansion, and commercialization capabilities [4] Company Overview - Established in 2007, Changfeng Pharmaceutical focuses on the research, production, and commercialization of inhalation technology and inhalation drugs, specifically targeting respiratory diseases [1] Market Opportunity - The global respiratory drug market is substantial, with nearly 2.5 billion people suffering from chronic respiratory diseases. The market is projected to grow from USD 99.9 billion (approximately RMB 729.2 billion) in 2024 to USD 157.2 billion (approximately RMB 1,147.4 billion) by 2033, reflecting a compound annual growth rate (CAGR) of 5.2% [3] Product Pipeline - The company has developed a pipeline of 16 products, with over 60% focused on respiratory diseases, addressing the clinical needs of 250 million respiratory disease patients in China. Key products include: - Recombinant human interferon β1b nebulized solution for viral pneumonia, currently in Phase III clinical trials - Salbutamol inhalation powder for asthma treatment, also in Phase III clinical trials, expected to submit for listing in 2026 [5][6] Technological Advantages - Changfeng Pharmaceutical's core technology is dry powder inhalation (DPI), supported by 32 Chinese patents and 11 international patents. Key advantages include: - Proprietary formulation technology that enhances drug stability by over 200% - Development of an active dry powder inhaler that improves patient compliance, especially among the elderly [7] Commercialization Capability - The company has achieved revenue scale through generic drug sales, with projected revenue of RMB 420 million in 2024, driven by two inhalation products contributing over 80% of revenue. Notable product performances include: - Ambroxol oral solution with a market share of 7.3% - Budesonide suspension with a projected sales growth of 56% year-on-year [8] Industry Landscape - The inhalation formulation market in China is expected to reach RMB 112 billion by 2024, with a CAGR of 18.7% from 2019 to 2024. There is significant potential for domestic companies to replace imported products, as foreign firms currently hold 72% of the market share. Changfeng aims to be the first domestic company to combine generic and innovative drug strategies in the respiratory field [9]

Core Viewpoint - The recent surge in the Hong Kong innovative drug sector, particularly the rise of companies like Health元, indicates a potential value reassessment in the market, especially in the inhalation drug segment, which is gaining renewed attention due to major acquisitions like Merck's purchase of Verona Pharma [1][2]. Group 1: Market Trends - The Hong Kong innovative drug sector has seen a significant increase, with the Shanghai Innovative Drug Index rising over 50% since April, marking it as one of the strongest themes of the year [1]. - Health元's stock price has only increased by about 20%, suggesting a potential undervaluation compared to its peers [1]. Group 2: Company Strategy - Health元 has strategically focused on the inhalation drug market, developing a comprehensive respiratory portfolio that includes PDE4 inhalation agents targeting mild to moderate COPD patients [2]. - The company has established a leading position in the inhalation drug space, with a pipeline that includes PDE4 inhalation agents, oral PREP inhibitors, and next-generation ICS inhalers, providing a robust solution for COPD treatment [2]. Group 3: Partnerships and Innovations - Health元 has partnered with Tsinghua University to gain exclusive rights to BRII-693, a new drug targeting drug-resistant infections, addressing a significant clinical need in China [3]. - The company is also advancing in the monoclonal antibody space, with products targeting IL-17A and PD-1 entering late-stage clinical trials, focusing on autoimmune diseases and cancer treatment [3]. Group 4: Policy Environment - The innovative drug sector is benefiting from favorable policies, with the National Healthcare Security Administration excluding innovative drugs from the latest procurement, alleviating profit margin concerns [4]. - The introduction of a commercial insurance support system for high-value drugs not included in basic medical insurance is expected to enhance payment pathways for innovative drugs [4]. Group 5: Investment Perspective - The market is shifting its preference towards platform and integrated companies rather than single-product firms, as these companies can leverage their pipeline and operational synergies for sustained cash flow and growth [5]. - Health元's current stock price remains below the average increase of most innovative drug indices, indicating that the market may be underestimating its dual identity as a leader in inhalation and integration [5].