Core Viewpoint - The reverse acquisition of Jiahe Biotechnology-B by Yiteng Pharmaceutical marks a significant milestone as the first reverse merger of an unprofitable biotech company in the Hong Kong market, with the merger expected to be completed by December 30 [2][3]. Group 1: Merger Details - Yiteng Pharmaceutical will acquire Jiahe Biotechnology through a share swap, valuing Yiteng at $677 million and Jiahe at $197 million, resulting in Yiteng shareholders holding 77.43% and Jiahe shareholders 22.57% of the new entity [3]. - The new company will be named Yiteng Jiahe Pharmaceutical Group Limited, reflecting the merger of the two entities [2]. Group 2: Industry Context - The merger is seen as a "self-rescue" move for Jiahe Biotechnology, which has struggled with slow clinical progress and regulatory approvals, while Yiteng has faced challenges in its IPO attempts [4][6]. - The combination aims to leverage Jiahe's research capabilities and Yiteng's commercialization strengths, potentially creating a synergistic effect that enhances market competitiveness [7][9]. Group 3: Future Prospects - The merger is expected to accelerate the commercialization of Jiahe's product, GB491, and optimize its multi-specific antibody technology platform, while also establishing necessary commercial and regulatory capabilities [7][8]. - The transaction is viewed as a signal to the market regarding the value of mergers and acquisitions in the biotech sector, particularly for companies lacking stable cash flows [9].