Core Viewpoint - A patent dispute between two biopharmaceutical companies, HAPO (和铂医药-B) and Baiaosaitu (百奥赛图-B), has sparked significant discussion in the industry and impacted their market valuations. HAPO recently secured a major contract worth up to $620 million based on its antibody technology, while the patent dispute centers around HAPO's claims of patent infringement by Baiaosaitu regarding antibody technology [1][2]. Company Overview - HAPO, founded in 2016, acquired a Dutch biotechnology company to obtain its fully human antibody transgenic mouse platform, HarbourMice, which is now a core asset. The ongoing patent case involves the only heavy chain antibody (HCAb) technology from this platform [2][4]. - Baiaosaitu, established in 2009, initially focused on gene-edited mice and has developed a reputation for its PD-1 humanized mice, which are used in antibody development. The company has transitioned to antibody discovery and has seen significant revenue growth [3][4]. Patent Dispute Details - The patent dispute began in September 2024 when HAPO accused Baiaosaitu of infringing on its "combining molecule" patent related to the production of fully human heavy chain antibodies [4][6]. - The global market for antibody drugs has surpassed $200 billion, with the technology in question being considered a "chip-level" technology in biomedicine [1][5]. Market Position and Financials - HAPO has not yet launched any drugs but has achieved profitability through business development partnerships, with potential transaction values exceeding $5.5 billion since 2022 [2][3]. - Baiaosaitu's antibody business revenue reached 318 million yuan in 2024, reflecting over 80% year-on-year growth, with seven of the top ten global pharmaceutical companies as clients [3][6]. Technical Aspects of the Dispute - The dispute centers on the methods of producing heavy chain antibodies, with HAPO using a method that knocks out the light chain, while Baiaosaitu employs a silencing technique. The core issue is whether these methods are equivalent [9][10]. - There are only six companies globally with fully human heavy chain antibody mouse platforms, highlighting the competitive landscape [6]. Legal Proceedings - Following the lawsuit, Baiaosaitu has taken steps to challenge the jurisdiction of the Shanghai Intellectual Property Court and has sought to invalidate HAPO's patent [10][11]. - The Chinese biopharmaceutical sector is experiencing a surge in patent applications, indicating a potential increase in related legal disputes in the future [11].

Core Viewpoint - The company emphasizes its commitment to sustainable development and technological innovation, aiming to enhance both economic and social value in the healthcare industry [1] Group 1: Internationalization and Product Innovation - The company focuses on core business areas such as cardiovascular intervention, health protection, and emergency rescue, leveraging strong R&D capabilities to introduce medical products that meet international market demands [2] - The company has established a multinational medical device platform, with 61 subsidiaries in over 20 countries and regions, and has developed a global R&D system with over 600 technical personnel [2] - In 2024, the company plans to develop nearly 60 new products, including innovative medical devices and treatments, showcasing its strong R&D strength and ability to meet market needs [3] Group 2: Industry Chain Collaboration and Green Technology - The company actively promotes industry chain collaboration to accelerate the transformation and application of innovative results, including a strategic partnership with Wanhua Chemical to explore new product applications [4] - The company has made significant progress in reducing production costs and improving product competitiveness through collaborations with educational institutions and technological upgrades [4] Group 3: Environmental Initiatives and Efficiency Improvements - The company invested approximately 188.34 million yuan in environmental protection, accounting for 3.01% of its revenue, while optimizing production processes to enhance efficiency [5] - The company has implemented changes in production methods, such as replacing ceramic hand molds with metal molds, resulting in a 30% reduction in energy consumption and significant coal savings [5] - The annual production capacity of nitrile gloves across several subsidiaries reaches 20.07 billion pieces, with potential coal savings of 46,161 tons if all ceramic molds are replaced [5]