Core Viewpoint - Shanghai Aike Baifa Biopharmaceutical Technology Co., Ltd. (referred to as "Aike Baifa") has submitted its prospectus to the Hong Kong Stock Exchange for the fourth time since 2021, facing challenges in its capital market journey due to reliance on licensed-in R&D models, questionable commercialization potential, and ongoing cash flow pressures [1][2]. Group 1: Capital Market Attempts - Aike Baifa's journey to capital markets has been fraught with difficulties, having first submitted its listing application to the Hong Kong Stock Exchange in June 2021, only to terminate the process in October of the same year [2]. - The company then shifted focus to the domestic market, applying for a listing on the Sci-Tech Innovation Board in April 2023, but withdrew its application in January 2024 after multiple inquiries [2]. - The changing capital market environment, regulatory policies, and investor preferences have led to missed financing opportunities, while R&D expenditures continue to accumulate, exacerbating financial pressures [2]. Group 2: Financial Performance - Aike Baifa is currently in a state of deep losses, with revenues of 6.7 million yuan in 2023 and a cumulative net loss of 571 million yuan during the same period [2]. - The company's cash flow is under significant pressure, with net cash flow from operating activities for 2023, 2024, and the first half of 2025 reported as -232.8 million yuan, -188.7 million yuan, and -71.7 million yuan, respectively [3]. - As of June 30, 2025, the company had only 96.74 million yuan in cash and cash equivalents, having exhausted most of its financing from angel to B-round and approximately 80.29% of C to D-round funds [3]. Group 3: R&D and Product Pipeline - Aike Baifa focuses on innovative therapies for respiratory and pediatric diseases, with a product pipeline consisting of six candidate drugs, primarily developed through a License-in model [4][6]. - The core product, Qiruisuo Wei (AK0529), was developed during the founder's tenure at Roche and is marketed as the first RSV-specific antiviral drug to show positive results in critical Phase III trials, although its non-original research background raises market concerns [6]. - The reliance on external technologies for product development has led to regulatory scrutiny regarding the company's core competitiveness, especially as most products are licensed-in [6][7]. Group 4: Market Challenges - Despite having a first-mover advantage, Qiruisuo Wei faces significant challenges, particularly in the treatment market where existing preventive monoclonal antibody drugs have already gained approval [7]. - The licensing agreements for Qiruisuo Wei include substantial upfront and milestone payments, which could limit the company's long-term profitability even if the product is successfully commercialized [7].

Core Viewpoint - The biotechnology sector in the Hong Kong stock market has seen a surge in new listings, with several companies experiencing significant first-day gains, indicating a favorable environment for IPOs in this industry [2][12] Company Overview - Aikobio, established in 2013, focuses on discovering and developing therapies for respiratory and pediatric diseases, with six candidate drugs targeting various stages of these conditions [2][10] - The company has made multiple attempts to go public, with its latest effort being the third attempt to list on the Hong Kong Stock Exchange [2][6] Product Pipeline - Aikobio has developed six candidate drugs, including: - Qiruisuo (AK0529), a novel RSV treatment that has shown positive results in pivotal Phase III trials [7][8] - AK0610, a monoclonal antibody for RSV prevention currently in Phase II [3] - AK3280, targeting idiopathic pulmonary fibrosis, in the post-proof of concept clinical stage [3][9] - AK0901, an ADHD treatment in the NDA stage [3] - Additional candidates include AK0705 for COPD and AK0406 for influenza [4] Financial Backing - Aikobio has secured multiple rounds of financing from notable investors, achieving a post-money valuation of 4.69 billion yuan after its D round in June 2022 [6] Financial Performance - In 2023, Aikobio reported revenue of 6.701 million yuan, but projected zero revenue for 2024 and the first half of 2025 due to a paused collaboration on an HBV candidate drug [10][11] - The company has incurred losses of 270 million yuan in 2023, 197 million yuan in 2024, and 104 million yuan in the first half of 2025, highlighting its reliance on external financing [11] IPO Plans and Fund Utilization - If successful in its IPO, Aikobio plans to allocate funds towards: - R&D for core products Qiruisuo and AK3280 - Clinical research for other candidates including AK0610, AK0901, AK0705, and AK0406 - Milestone payments and potential licensing opportunities - Commercialization efforts in the Chinese market - General operational expenses [11]