Core Viewpoint - The Hong Kong stock market's innovative drug sector has shown strong performance since 2025, with a cumulative increase of nearly 100%, indicating a rising capital market interest. Jiangxi Biological has submitted a listing application to the Hong Kong Stock Exchange, potentially becoming the first "serum stock" in Hong Kong [1]. Industry Overview - Jiangxi Biological focuses on the essential demand in infectious disease prevention, differentiating itself from other innovative drug companies by integrating both human and veterinary medicines, thus enhancing its value growth path amid the competitive landscape of innovative drug targets [3]. - The global infectious disease sector faces a long-term shortage of medical resources, creating a clear growth trajectory for the antiserum industry. Traditional vaccines and antibiotics have limitations, making antiserum increasingly vital in public health systems [4]. Market Potential - The antiserum market is expanding, with Tetanus Antitoxin (TAT) meeting approximately 60% of China's clinical demand, with an annual consumption exceeding 20 million doses. TAT's rapid efficacy and cost advantages make it a preferred choice in price-sensitive markets [5]. - The global TAT market is projected to grow from $8.46 million in 2024 to $20 million by 2028, with a CAGR of 24%. In China, the TAT market is expected to increase from $3.35 million to $6.62 million during the same period, with a CAGR of 18.6% [6]. Company Strengths - Jiangxi Biological is a leading antiserum company with a fully integrated supply chain, ensuring quality and cost-effectiveness. It is the only company globally using inactivated antigens, recombinant proteins, and mRNA antigens for antiserum development [11]. - The company maintains a dominant market position, holding over 50% market share in China for 18 consecutive years, with TAT accounting for 36.6% of the global market and 65.8% of the Chinese market [15]. - The company has a robust pipeline, addressing significant gaps in the market for snake antivenom and other products, with clinical trials planned for various antivenoms starting from 2025 [16][17]. Distribution and Market Reach - Jiangxi Biological has a comprehensive sales network covering 23,500 medical institutions in China, with TAT included in national health insurance, facilitating rapid access to grassroots medical and emergency scenarios [18]. - The company exports TAT to over 30 countries in Asia and Africa, holding a 90% market share in countries like the Philippines and Egypt, demonstrating its competitive edge in international markets [18]. Conclusion - Antiserum is being re-evaluated for its strategic importance in public health. Jiangxi Biological is positioned to leverage technological advancements and its integrated capabilities to enhance its role in the global antiserum supply chain, addressing the needs of millions while contributing to global infectious disease prevention [19].

Core Viewpoint - Jiangxi Biological Products Research Institute Co., Ltd. is seeking to go public on the Hong Kong Stock Exchange, focusing on its core product, tetanus antitoxin (TAT), amidst a growing market for traditional antiserum therapies [1][2]. Market Position - Jiangxi Biological holds over 65% market share in China's tetanus antitoxin market and is the largest provider and exporter of human TAT in the country [2][3]. - The global tetanus antitoxin market is projected to reach USD 8.46 million by 2024, with a compound annual growth rate (CAGR) of 24.0% from 2024 to 2028 [2][8]. Financial Performance - The company’s revenue from human TAT accounted for 93.9%, 93.0%, and 93.3% of total revenue in 2022, 2023, and 2024, respectively [4][5]. - Total revenue increased from RMB 141.96 million in 2022 to RMB 220.76 million in 2024, reflecting a CAGR of 15.9% [4][5]. Profitability - Jiangxi Biological's overall gross margin fluctuated significantly, recorded at 75.4%, 67.8%, and 70.3% for the years 2022 to 2024, primarily due to the volatility in the average selling price of human TAT [6][4]. - The gross margin for domestic sales of human TAT was 88.7%, 81.8%, and 84.3% during the same period, influenced by the cost of horse plasma used in production [6]. Product Diversification - The company is actively working to diversify its product offerings beyond human TAT, including the development of snake antivenom and rabies immunoglobulin F(ab')2 [9][10]. - Plans are in place to enhance its veterinary product line, focusing on veterinary tetanus antitoxin and PMSG, with a new production line expected to meet EU GMP standards by Q4 2026 [10][12]. Market Growth Potential - The veterinary tetanus antitoxin market in China is projected to reach USD 2.2 million by 2024, with a CAGR of 42.8% from 2024 to 2028, indicating significant growth potential despite its smaller size [8][9].