Group 1 - The biotechnology company Valiant Biotech (09887.HK) has launched an IPO, planning to globally offer 32.0544 million shares, with 28.8489 million shares for international offering and 3.2055 million shares for public offering in Hong Kong [3] - The price range for the shares is set between HKD 31.6 and HKD 35, with an estimated net proceeds of approximately HKD 967.7 million from the global offering, assuming no exercise of the over-allotment option [3] - The public offering in Hong Kong started on July 17 and will end on July 22, with the final offer price and allocation results to be announced on July 24 [3] Group 2 - Valiant Biotech has secured nine cornerstone investors, including Tencent (00700.HK) and OrbiMed, with a total subscription amount of USD 69 million (approximately HKD 541.6 million) for the offered shares [4] - The company focuses on discovering, developing, and commercializing new therapies for cancer, autoimmune diseases, and other major diseases, with a diverse product portfolio including four core products [4] - The core product LBL-024 has entered a single-arm registration clinical trial for advanced pulmonary neuroendocrine carcinoma, expected to submit the first biological product license application to NMPA by Q3 2026 [4] Group 3 - Another major product, LBL-034, targets both GPRC5D and CD3 and received orphan drug designation from the FDA for the treatment of multiple myeloma [5] - Valiant Biotech has not yet commercialized any products and has recorded operating losses, with losses of RMB 362 million, RMB 301 million, and RMB 75.367 million for the first quarters of 2023, 2024, and 2025 respectively [5]

Core Viewpoint - The biopharmaceutical sector is expected to fully return to the U.S. stock market by next year, but its recovery is lagging behind other industries due to consistently low returns for investors [1][2]. Group 1: IPO Activity - After a significant drop in IPOs last year, with only 18 companies, there have been only 5 biotech companies that raised over $50 million in IPOs this year [1]. - The recent IPO of Aardvark Therapeutics raised $98 million but has seen its stock price drop over one-third from the initial offering price of $16 [1]. - Only 4 out of the biotech companies that completed IPOs since last year with over $50 million in funding have stock prices above their offering prices [2]. Group 2: Market Performance - The Nasdaq Biotechnology Index has declined by 4% this year, underperforming the S&P 500 Index, which fell by 0.7% [2]. - Over the past five years, the biotechnology index has only achieved positive returns in one year and has never seen double-digit gains [2]. Group 3: Investment Sentiment - Many biotech companies that went public during the pandemic lack mature business models or reliable investment logic, leading to an average stock price drop of over 40% for those listed in 2020-2021 [2]. - Investors are becoming more stringent in their evaluation criteria, focusing not only on current data but also on future development paths [3]. - In an environment of uncertainty regarding drug pricing and regulatory policies, even successful clinical trials do not guarantee investment returns, making investors more cautious [3]. Group 4: Future Outlook - The industry is expected to see a gradual recovery in IPO activity over the next year, with predictions that the biotech IPO market will return to normal levels around 2026 [3]. - Large pharmaceutical companies facing "patent cliffs" are likely to invest in or acquire firms with strong clinical data to fill revenue gaps from expiring patents [3].