Core Viewpoint - The stock price of HeYu-B (02256) has surged nearly 200% year-to-date, driven by favorable policies and a warming investment climate in the Hong Kong innovative drug sector, leading to increased emphasis on the commercialization capabilities of innovative drug companies [1][2]. Group 1: Stock Performance and Market Recognition - On August 11, the company's stock price surpassed the IPO price of HKD 12.46, closing up 5.93%, and reached a new high of HKD 13.67 the following day [1]. - HeYu was included in the MSCI Global Small Cap Index, which tracks over USD 17 trillion in assets, enhancing its market liquidity and international visibility [4]. Group 2: Innovation and Financial Performance - HeYu's core product, Pimicotinib, is the first Chinese-developed CSF-1R inhibitor entering global Phase III clinical trials, with significant potential in various indications [5][6]. - The company secured a high-value partnership with Merck, receiving an upfront payment of USD 70 million, which is expected to lead to its first annual profit in 2024 [5][7]. - HeYu has maintained around HKD 2 billion in cash reserves over the past three years, ensuring financial stability and supporting ongoing R&D efforts [9]. Group 3: Pipeline and Future Prospects - HeYu's pipeline includes multiple innovative drugs, with Pimicotinib and the FGFR4 inhibitor Irpagratinib being highlighted as potential blockbuster products [10]. - The company has presented promising preclinical results at major conferences, showcasing its advancements in small molecule innovation [10]. - HeYu's stock buyback program, amounting to HKD 200 million, reflects its commitment to returning value to shareholders while maintaining a low price-to-sales (PS) ratio of 13.38, indicating significant growth potential [11].