Group 1 - The biopharmaceutical B-class stocks have been strong performers in the Hong Kong stock market this year, with 26 stocks in the sector doubling in value, including Kintor Pharmaceutical (06990.HK), Lepu Biopharma (02157.HK), and Hengrui Medicine (02142.HK) [2] - BlissBio Inc. (百力司康) has recently submitted its IPO application, with Goldman Sachs, Huatai International, and Jianyin International serving as joint sponsors [2][3] - The founders of BlissBio, Dr. Wei Ziping and Dr. Zhou Yuhong, have extensive academic backgrounds and over 25 years of experience in drug development, having previously worked at major pharmaceutical companies [3] Group 2 - BlissBio is focused on developing next-generation antibody-drug conjugates (ADCs), which combine the targeting ability of antibodies with the cytotoxicity of potent drugs, aiming to improve treatment efficacy while reducing off-target toxicity [3][4] - The ADC therapy is recognized as one of the fastest-growing cancer treatment modalities, often referred to as a "golden track" [4] - BlissBio has completed five rounds of financing, with participation from several institutional investors, including Hillhouse Capital and Eisai [4] Group 3 - The company has signed a licensing agreement with Eisai, granting exclusive global rights (excluding Greater China) to use a specific linker in ADCs targeting HER2, EGFR, and B7-H3 [7] - BlissBio has four ADC products in clinical stages targeting HER2, EGFR, B7-H3, and CD73, with three utilizing the linker from Eisai [7][8] - In April 2023, BlissBio entered into a collaboration agreement with Eisai for the development and commercialization of BB-1701, which includes potential milestone payments of up to $2 billion [9] Group 4 - BlissBio currently has no commercialized products, and its revenue for 2023 and 2024 is projected to be RMB 180.2 million and RMB 22.6 million, respectively, primarily from collaboration agreements with Eisai [10][11] - The company is expected to incur significant losses, with projected annual losses of RMB 206.4 million in 2023 and RMB 556.6 million in 2024, largely due to high R&D costs and the impact of redemption liabilities from investor agreements [10][11] Group 5 - The IPO is crucial for BlissBio to secure funding for ongoing R&D and commercialization efforts, with plans to use the raised funds for advancing core product development, supporting existing pipeline assets, and enhancing technology platforms [12]

Core Viewpoint - The article discusses the challenges and opportunities faced by Baileiskang, a biopharmaceutical company, particularly after the termination of its collaboration with the Japanese pharmaceutical company Eisai, which has cast a shadow over its commercialization prospects for its core product BB-1701 [3][12][15]. Group 1: Company Background - Baileiskang was co-founded by two overseas PhD graduates, Wei Ziping and Zhou Yuhong, who have extensive experience in the pharmaceutical industry [5][6]. - The company focuses on developing innovative drugs targeting breast cancer and non-small cell lung cancer, with its core product BB-1701 currently in critical stages of clinical development [5][9]. Group 2: IPO and Market Context - In the first half of 2025, there is a surge in IPO applications on the Hong Kong Stock Exchange, particularly from the biopharmaceutical sector, driven by supportive listing regulations for innovative companies [4]. - Baileiskang submitted its IPO application on June 29, 2025, aiming to attract capital despite the challenges posed by its recent partnership termination [5][31]. Group 3: Collaboration with Eisai - Baileiskang had a significant partnership with Eisai, which included a potential $2 billion in milestone payments for the development and commercialization of BB-1701 [12]. - The sudden termination of this collaboration in May 2025 has left Baileiskang to independently manage the global development and commercialization of BB-1701, raising concerns about its financial stability and operational capabilities [12][15]. Group 4: Financial Challenges - Baileiskang has not yet achieved profitability, reporting net losses of 206 million yuan in 2023 and 557 million yuan in 2024, with a significant increase in losses year-over-year [24]. - The company has raised approximately 874 million yuan through five rounds of financing, but faces pressure from redemption clauses tied to its funding agreements, which could trigger cash buybacks under certain conditions [25][28]. Group 5: Competitive Landscape - The ADC (antibody-drug conjugate) therapy market is highly competitive, with several established players already having approved HER2 ADC drugs, which poses a challenge for Baileiskang's BB-1701 targeting the "resistant patient" segment [20][21]. - The company must navigate potential pricing pressures and market competition to successfully commercialize its product [21].