Core Viewpoint - The stock price of Jacob Pharma continues to decline despite a significant licensing agreement with AstraZeneca, raising concerns in the industry about the low upfront payment relative to the total deal value [2][22]. Group 1: Licensing Agreement Details - Jacob Pharma announced a global exclusive licensing agreement with AstraZeneca for its KRAS inhibitor, with an upfront payment of $100 million and a total deal value of up to $1.915 billion, including tiered royalties on net sales outside of China [2][22]. - The agreement is considered the largest collaboration for a small molecule anti-cancer drug in clinical stages in China, yet the stock fell by 13.58% on the first trading day after the announcement [2][22]. Group 2: Market Reaction and Company Strategy - The market's reaction to licensing deals has been generally cold this year, with other biotech companies like Rongchang Biotech and Innovent Biologics also experiencing stock declines post-announcement [6][26]. - Jacob Pharma's business model is heavily reliant on licensing out, which was established from its inception, and the company aims to focus on "First in class" products, avoiding "Best in class" options [6][27]. Group 3: Financial Position and Future Outlook - As of June 30, 2025, Jacob Pharma reported cash and cash equivalents of approximately RMB 1.07 billion, indicating a relatively strong cash position despite the challenging capital environment [8][28]. - The company plans to have ten products in clinical trials that rank among the top three globally by 2024, which could lead to more licensing opportunities [38][39]. Group 4: Leadership and Vision - CEO Wang Yinxiang emphasizes the importance of maintaining a balance between research and market presence, advocating for a robust production and sales system to avoid being solely reliant on external financing [39][40]. - Wang's background includes founding Jacob Pharma after a successful tenure at Betta Pharmaceuticals, where he recognized the potential for innovation in the Chinese pharmaceutical market [30][31].