Core Viewpoint - Beijing Xiantong International Pharmaceutical Technology Co., Ltd. (referred to as "Xiantong Pharmaceutical") has submitted an application for an IPO on the Hong Kong Stock Exchange, drawing attention back to the nuclear medicine sector [1] Group 1: Company Overview - Xiantong Pharmaceutical is one of the earliest companies in China engaged in the research and development of nuclear medicine, focusing on innovative radioactive drugs since 2014 [2] - The company has a pipeline that includes 15 assets targeting oncology, neurodegenerative diseases, and cardiovascular diseases, with core products including XTR008, XTR006, XTR004, and XTR003 [2][3] Group 2: Product Details - XTR008 is a radioligand targeting somatostatin receptors for treating neuroendocrine tumors, currently in the registration phase [3] - XTR006 is a PET diagnostic radioligand for suspected Alzheimer's disease, while XTR004 is used for PET myocardial perfusion imaging [3] - Xiantong Pharmaceutical's diagnostic nuclear medicine, fluorine-18 beta-phenyl injection (marketed as Ouweining), has been approved, along with adenosine injection (marketed as Oudal) for assisting in diagnosing myocardial ischemia [3] Group 3: Market Potential - The global nuclear medicine market is projected to grow from $5 billion in 2018 to $9.7 billion in 2024, with a compound annual growth rate (CAGR) of 11.7%, and is expected to reach $57.3 billion by 2035, with a CAGR of 17.5% from 2024 to 2035 [4] Group 4: Funding and Financials - Xiantong Pharmaceutical has raised over 2.9 billion yuan through nine rounds of financing since 2017, with a post-investment valuation of 5.188 billion yuan [4] - The net proceeds from the IPO will primarily be used for R&D of core products, development of other candidates, enhancing sales and marketing capabilities, and establishing a new production base in the Beijing-Tianjin-Hebei region [5][6] Group 5: Revenue Sources - The company is currently in a research investment phase, with revenues of 10.232 million yuan in 2023 and 44.064 million yuan in 2024, alongside net losses of 309 million yuan and 156 million yuan respectively [7] - The main source of income is from external licensing, accounting for 31% and 15% of total revenue in 2023 and 2024, respectively, while CRO/CDMO services are expected to become the primary revenue source in 2024 [7] Group 6: Market Challenges - The approved PET tracer Ouweining will only be available for sale starting January 2025, and the company has established partnerships with about 50 medical institutions in key regions [8] - The production and delivery of nuclear medicine are time-sensitive, with a shelf life of only 10 hours for Ouweining, necessitating a robust production network [8]