Core Viewpoint - Kewang Pharmaceutical has submitted its third IPO application to the Hong Kong Stock Exchange, focusing on addressing the unmet needs of patients who are resistant to existing PD-1 therapies, while facing significant financial challenges and leadership changes [1][9]. Company Overview - Founded in 2017, Kewang Pharmaceutical targets the critical issue of PD-1/PD-L1 therapy resistance, leveraging the expertise of its founders in the biopharmaceutical field [2]. - The company has developed a pipeline of six major assets, with four in clinical stages, including its core product ES102, a six-valent OX40 agonist antibody [2][3]. Product Development - ES102 is one of only two six-valent OX40 agonists in clinical development globally, aiming to improve treatment outcomes for patients unresponsive to PD-1 inhibitors [3]. - Clinical data shows that ES102 combined with PD-1 inhibitors achieves an objective response rate of 41.7% in PD-L1 high-expressing non-small cell lung cancer patients and 50% in head and neck squamous cell carcinoma patients [3]. Financial Situation - Kewang Pharmaceutical has incurred cumulative losses exceeding 1.8 billion yuan (approximately $250 million) as of September 30, 2025, with cash reserves of only 93.9 million yuan [7][8]. - The company relies on external licensing for its core products, which imposes significant financial obligations, including potential milestone payments totaling over $200 million [5][6]. Revenue Generation - The only revenue reported during the period comes from a collaboration with Astellas, projected to yield 107 million yuan in 2024 [4]. - Kewang's BiME platform, which activates macrophages through a dual-targeting mechanism, has shown promising preclinical results [4]. Leadership Changes - A significant leadership change occurred with the co-founder Lu Hongtao transitioning to a strategic advisor role, raising concerns about the company's future direction [1][11]. - The company has faced talent retention issues, including the departure of its Chief Medical Officer, which could impact its research capabilities [12]. Market Position - Kewang's focus on macrophage-targeting therapies differentiates it from competitors primarily pursuing T-cell therapies, positioning it uniquely in the oncology landscape [2][3].

Group 1 - The core viewpoint of the article is that Kewang Pharmaceutical Group is preparing for an IPO in Hong Kong, aiming to enhance its competitiveness through commercialization of clinical pipelines and global strategic collaborations [1][2]. - Kewang Pharmaceutical, established in 2017, focuses on innovative immunotherapy products for tumor immunity and autoimmune diseases [1][2]. - The company has entered a strategic partnership with Astellas, valued at over $1.7 billion, to collaborate on its proprietary BiME platform and candidate drug molecules [1]. Group 2 - As of the end of 2024, Kewang Pharmaceutical has four key products in various stages of clinical development, including ES014, the world's first CD39/TGFβ bispecific antibody, and ES102, a leading six-valent OX40 agonist [1][2]. - The company is also actively developing multiple candidate drugs for autoimmune diseases, targeting conditions such as inflammatory bowel disease and rheumatoid arthritis [2]. - Financially, Kewang Pharmaceutical reported a net cash flow from operating activities of 2.71 million yuan, with operating losses narrowing by 70% to 37.77 million yuan, and an annual net loss of 88 million yuan, a 90% reduction, attributed to cash income from global product licensing [2].