Core Insights - The pharmaceutical industry is witnessing significant strategic collaborations, with companies like Kangzheng Pharmaceutical partnering with global giants like Novartis to enhance their market presence in specialized fields such as ophthalmology and dermatology [1] Group 1: Kangzheng Pharmaceutical's Strategic Moves - Kangzheng Pharmaceutical has signed a distribution agreement with Novartis, gaining exclusive rights for two ophthalmic drugs in mainland China, indicating a strong commitment to the ophthalmology sector [1] - The company is also focusing on its dermatology segment through the spin-off of its skin health business, Dermy Pharmaceuticals, which has submitted a listing application to the Hong Kong Stock Exchange [1] Group 2: Market Potential in Dermatology - The white spot disease (vitiligo) market is highlighted as a significant opportunity, with the treatment market projected to grow from 2.8 billion RMB in 2024 to approximately 21.9 billion RMB by 2035, reflecting a compound annual growth rate (CAGR) of 20.7% [2] - Dermy Pharmaceuticals is advancing its lead product, Ruxolitinib cream, which is the first and only FDA and EMA-approved topical JAK inhibitor for vitiligo, currently in the new drug application approval stage in China [3] Group 3: Other Dermatological Conditions - Psoriasis, affecting around 7.2 million patients in China, is seeing a shift towards biologics and small molecule drugs as preferred treatment options, with Dermy Pharmaceuticals' Tildrakizumab injection positioned as a second approved IL-23 monoclonal antibody in the market [4] - Atopic dermatitis, impacting over 54 million people in China, is expected to see its treatment market grow from 12.1 billion RMB in 2024 to 39.4 billion RMB by 2035, with Dermy Pharmaceuticals pursuing multiple pipeline strategies to address this demand [6][7] Group 4: Acne Treatment Innovations - Acne is a prevalent skin issue, with a reported prevalence of 8.1% in the Chinese population, leading to a growing market for effective skincare solutions [8] - Dermy Pharmaceuticals is leveraging its brand advantage with the launch of the Xiliao Duo series, targeting acne treatment and prevention, while also offering soothing products for atopic dermatitis and sensitive skin [8]

Core Viewpoint - Demy Pharmaceutical Co., Ltd. is seeking to list on the Hong Kong Stock Exchange, focusing on prescription dermatological drugs and skincare products, with a significant growth trajectory in revenue and product pipeline [2][11]. Company Overview - Demy Pharmaceutical was established in 2020 and is headquartered in Haikou, Hainan Province. It was spun off from CMS Group in 2021 and operates independently [2][3]. - The company employs a dual approach of collaborative and independent research and development, targeting innovative products in the dermatology sector [3]. Product Pipeline - As of April 15, 2025, Demy has three marketed products and several candidates in various clinical stages, addressing major skin diseases such as psoriasis, vitiligo, and atopic dermatitis [3][10]. - Key products include: - **Rituximab Injection (Yilvqu)**: Approved for moderate to severe plaque psoriasis, requiring administration only four times a year [7]. - **Polysaccharide Mucopolysaccharide Cream (Xiliao)**: A skin barrier repair agent approved for treating bruises and superficial venous inflammation [8]. - **Lukotini Cream**: A JAK inhibitor for vitiligo, currently under NDA review in China [8]. - **MG-K10**: A long-acting monoclonal antibody for atopic dermatitis, completing Phase III trials in China [9]. Financial Performance - Revenue growth has been driven by increased sales of dermatological prescription drugs and skincare products, with revenues of 384 million RMB, 473 million RMB, and 618 million RMB for 2022, 2023, and 2024 respectively [11][12]. - The company reported net losses of 55.2 million RMB, 4.7 million RMB, and 106 million RMB during the same periods, primarily due to high sales and R&D expenses [12]. - Total R&D expenditures were 291 million RMB, 187 million RMB, and 265 million RMB, representing 76.0%, 39.5%, and 42.9% of total revenue for the respective periods [15]. Market Potential - The dermatology treatment and care market in China is projected to grow from 76.4 billion RMB in 2023 to a compound annual growth rate (CAGR) of 10.6% through 2035 [10]. - The market for atopic dermatitis treatments is expected to reach 12.3 billion RMB in 2024, growing to 24.7 billion RMB by 2029 [10]. Operational Scale - As of March 31, 2025, Demy employed 764 full-time staff, with a commercialization team of 650, and its sales network covers over 10,000 hospitals and 100,000 retail pharmacies across China [12].