Core Viewpoint - He Yuan Bio (688765.SH) has launched its IPO on the Sci-Tech Innovation Board with an issue price of 29.06 yuan per share, focusing on the production of recombinant human serum albumin using rice as a production platform, which is expected to alleviate the supply shortage of blood products in China [1][2][3]. Company Overview - He Yuan Bio specializes in biopharmaceuticals, specifically in the production of recombinant human serum albumin by implanting human serum albumin genes into rice, allowing for large-scale synthesis and purification from rice [1][2]. - The company has developed a third-generation technology platform that achieves an expression level of 20-30g/kg of human serum albumin in brown rice, addressing the historical supply issues of this critical blood product [1][6]. Market Potential - Human serum albumin is the most widely used blood product in clinical settings in China, with no equivalent alternatives available, indicating a strong market demand [2][3]. - The approval of He Yuan Bio's recombinant human serum albumin is expected to mirror the market penetration path of early recombinant insulin companies, potentially leading to rapid sales growth and strong cash flow for the company [2][3]. Funding and Investment - The company aims to raise 2.4 billion yuan through its IPO, with plans to invest 1.658 billion yuan in the construction of an industrialization base for recombinant human serum albumin, 642 million yuan in new drug research and development, and 100 million yuan to supplement working capital [2][7][8]. Research and Development - He Yuan Bio has invested significantly in R&D, with expenditures of 110 million yuan, 159 million yuan, and 117 million yuan from 2022 to 2024, totaling 386 million yuan over three years [5]. - The company holds 21 domestic and 62 international invention patents, with 17 patents applicable to its main business and capable of industrialization [5]. Production Capabilities - The company has established a rice endosperm cell bioreactor technology system, which includes a high-efficiency recombinant protein expression platform and a purification technology platform, facilitating large-scale and cost-effective production [6]. - He Yuan Bio has built a commercial-scale production line capable of producing 10 tons of OsrHSA raw liquid annually and is expanding to a new production line with a capacity of 120 tons [8]. Commercialization Strategy - Following the approval of its product, He Yuan Bio has initiated sales through its own team and partnerships with major distributors, establishing a sales network across over 30 provinces [7][8]. - The company has multiple drugs in development, with several at various stages of clinical trials, laying the groundwork for future commercialization [8][9].