Core Viewpoint - He Mei Pharmaceutical is urgently seeking an IPO after 23 years of product development, with its first drug Mufemilast recently approved, amidst a highly competitive market for psoriasis treatments [1][4]. Company Overview - Founded in 2002, He Mei Pharmaceutical has raised over 1.2 billion yuan and incurred losses exceeding 1.1 billion yuan, achieving a valuation of 3.9 billion yuan without any products on the market [1][3]. - The company has been in a continuous state of high cash burn, with significant R&D expenditures primarily focused on Mufemilast, which has taken over 16 years to develop [2][3]. Product Development - Mufemilast's development timeline began in 2009, with clinical trials starting in 2012, and it received approval for treating moderate to severe plaque psoriasis in September 2025 [2]. - The R&D costs for Mufemilast accounted for 60% of the total R&D expenses from 2023 to mid-2025, reflecting the heavy investment required for its development [2]. Market Competition - The psoriasis drug market in China is highly competitive, with 18 approved targeted therapies, including 5 small molecules and 13 biologics, leading to a fierce price war [4][5]. - Major competitors include established products from international pharmaceutical giants, which have already captured significant market shares [4][5]. Pricing Strategy - He Mei Pharmaceutical plans to set Mufemilast's initial annual treatment cost between 52,700 and 119,900 yuan, positioning it above some small molecule competitors but below the price of leading biologics [7]. - The relatively high pricing strategy may hinder Mufemilast's competitiveness, especially among price-sensitive patients requiring long-term treatment [7][8]. Commercialization Challenges - The commercialization of Mufemilast is expected to be slow due to the nature of psoriasis as a chronic disease, which requires extensive academic promotion and trust-building among healthcare professionals [8]. - Even if Mufemilast successfully launches, it may not generate significant revenue quickly enough to offset the company's ongoing losses [8].

Core Viewpoint - He Mei Pharmaceutical is urgently seeking an IPO after 23 years of product development, with its first drug Mufemilast recently approved, amidst a highly competitive market for psoriasis treatments [1][6]. Company Overview - Founded in 2002, He Mei Pharmaceutical has raised over 1.2 billion RMB and incurred losses exceeding 1.1 billion RMB, achieving a valuation of 3.9 billion RMB despite having no products on the market [1][5]. - The company has been heavily reliant on external financing, completing six rounds of funding from 2021 to the end of 2024, with a post-investment valuation reaching 3.9 billion RMB after the E round [5]. Product Development - The development of Mufemilast has taken 16 years, starting from preclinical research in 2009 to receiving approval for treating moderate to severe plaque psoriasis in September 2025 [3]. - Research and development expenses for Mufemilast accounted for 60% of the total R&D costs, with losses reported at 156.4 million RMB for 2023 and projected losses of 123.4 million RMB for 2024 [3][4]. Market Competition - The psoriasis drug market in China is projected to grow from 18.2 billion RMB in 2024 to 48.3 billion RMB by 2028, with 18 approved targeted therapies already available, including 13 biologics [6][7]. - He Mei Pharmaceutical faces intense competition from established players like Novartis and Eli Lilly, which have already captured significant market shares with their products [6][7]. Pricing Strategy - He Mei Pharmaceutical plans to price Mufemilast between 52,700 RMB and 119,900 RMB annually, positioning it above some small molecule competitors but below the price of established biologics [8]. - The higher pricing strategy may hinder Mufemilast's competitiveness in a market where patients are sensitive to treatment costs, especially for chronic conditions requiring long-term medication [8][9]. Commercialization Challenges - The commercialization of Mufemilast is expected to be slow due to the need for long-term academic promotion and building trust among healthcare professionals [9]. - Even with successful market entry, Mufemilast is unlikely to generate significant revenue quickly, making it difficult for He Mei Pharmaceutical to reverse its overall loss situation [9].

Core Viewpoint - Ganfeng Pharmaceutical Co., Ltd. (referred to as "Ganfeng Pharma") has submitted a main board listing application to the Hong Kong Stock Exchange, seeking new funding avenues for its ongoing losses in research and development [1][4]. Financial Performance - Ganfeng Pharma reported losses of 156 million RMB and 123 million RMB for the years 2023 and 2024, respectively [3][4]. - The company has a net current asset value of only 4.5 million RMB by the end of 2024, with current liabilities reaching 25.5 million RMB by March 2025 [1][4]. - Cash flow remains negative, with net cash used in operating activities amounting to 141 million RMB and 91.3 million RMB for 2023 and 2024, respectively [4][5]. - The company has raised approximately 951 million RMB through multiple financing rounds, with a valuation of 3.9 billion RMB following the E-round financing in September 2024 [4][5]. Product Pipeline and Market Competition - Ganfeng Pharma's product pipeline includes seven small molecule candidates, with four in Phase II, III clinical trials, or NDA stages, targeting 12 indications [1][2]. - The core product Mufemilast is a novel small molecule PDE4B inhibitor, with an NDA submitted for psoriasis and expected approval in the second half of 2025 [1][2]. - The Chinese psoriasis drug market is projected to grow from 13.9 billion RMB in 2023 to 89.4 billion RMB by 2032, with increasing competition from existing therapies [2]. Research and Development Strategy - The company has invested heavily in R&D, with expenditures of 123 million RMB and 97 million RMB for 2023 and 2024, respectively, but has yet to generate revenue [4][5]. - Ganfeng Pharma plans to establish a commercialization team of about 80 members within a year of Mufemilast's launch [4]. Management and Governance - The company's ownership structure is highly concentrated, with the founders controlling approximately 46.51% of the voting rights [6]. - The CEO, Dr. Zhang Hesheng, has over 20 years of experience in biomedical research and management, with significant compensation tied to equity [6]. Challenges and Risks - The company faces significant cash flow pressures, with only 150 million RMB in cash and cash equivalents by the end of 2024, alongside 25.5 million RMB in current liabilities [4][5]. - There are concerns regarding the company's ability to successfully develop and commercialize its pipeline products, particularly given the lack of a marketed product [7].