Group 1 - HaiXi Pharmaceutical (02637) saw its stock price rise over 10%, reaching a new high of HKD 145.9, which is nearly a 70% increase from its IPO price of HKD 86.4 [1] - As of the IPO disclosure date, HaiXi Pharmaceutical has 15 approved generic drug products, covering multiple therapeutic areas including digestive, cardiovascular, endocrine, and nervous systems [1] - The four core generic drugs, namely Anbili, Ruiantuo, Haihuitong, and Saixifu, are expected to contribute over 90% of the company's revenue, projected to reach CNY 425 million in 2024 [1] Group 2 - HaiXi Pharmaceutical is also developing an innovative drug pipeline, including C019199, an immunotherapy targeting CSF-1R/DDR1/VEGFR2, currently in I/II clinical stages for indications like osteosarcoma and tenosynovial giant cell tumor, with plans to start a Phase III trial in the second half of 2025 [1] - Another drug, HXP056, is an oral treatment for wet age-related macular degeneration, expected to complete its Phase I clinical trial by the end of 2025 [1]

Core Viewpoint - Haixi New Drug (02637) has seen a significant stock price increase, reaching a new high of 145.9 HKD, which is nearly 70% higher than its IPO price of 86.4 HKD [1] Company Overview - Haixi New Drug is a commercial-stage pharmaceutical company with 15 approved generic drug products covering various therapeutic areas, including digestive, cardiovascular, endocrine, and nervous systems [1] - Since 2021, four core generic drugs have been included in the national drug procurement program, contributing over 90% of the company's revenue, projected to reach 425 million CNY in 2024 [1] Research and Development Pipeline - The company is also developing innovative drugs, including C019199, an immunotherapy targeting CSF-1R/DDR1/VEGFR2, currently in I/II clinical stages for indications like osteosarcoma and tenosynovial giant cell tumor, with plans to start a Phase III trial in the second half of 2025 [1] - Another drug, HXP056, is an oral treatment for wet age-related macular degeneration, expected to complete its Phase I clinical trial by the end of 2025 [1]

Core Viewpoint - Haixi New Drug officially listed on the Hong Kong Stock Exchange on October 20, opening at HKD 102 per share, a rise of 18.06% from the issue price of HKD 86.4. The company's performance heavily relies on the national volume-based procurement (VBP) plan, with over 90% of revenue from this channel from 2022 to 2024, raising concerns about sustainability and profitability due to price pressures [2][6][8]. Revenue and Profitability - Revenue from Haixi New Drug is projected to be approximately RMB 212.5 million, RMB 316.6 million, and RMB 466.7 million for the years 2022, 2023, and 2024 respectively, with profits of about RMB 69.8 million, RMB 117.5 million, and RMB 136.1 million during the same period [4][6]. - The company faces significant price declines due to the VBP model, with the average price of its product Haihuaitong® dropping from RMB 3.56 to RMB 2.19, a decrease of 38.48%, and Anbili®'s price falling from RMB 1.16 to RMB 0.46 [6]. Dependency on Procurement - Haixi New Drug's revenue is highly dependent on a few products, with over 90% of revenue from procurement channels in 2022, 2023, and 2024. The two main products, Anbili® and Haihuaitong®, contributed 81.3%, 79.9%, and 72.2% of revenue respectively during these years [5][6]. - The procurement qualifications for Haihuaitong® and Anbili® will expire in 2025 and 2026 respectively, raising concerns about potential revenue disruptions if renewals are unsuccessful [6]. Innovation Pipeline - The company is attempting to pivot towards innovation with four drugs in the research pipeline targeting oncology, ophthalmology, and respiratory diseases. One notable drug, C019199, is in I/II clinical trials and aims to start a Phase III trial in late 2025 [7]. - However, the competition in the oncology space is intense, with several similar drugs already in development, posing risks to the success of Haixi's pipeline [7]. R&D Investment - R&D expenditures are expected to increase from RMB 34.82 million in 2022 to RMB 67.53 million in 2024, but this is still considered insufficient compared to the high costs associated with developing innovative drugs [7]. - The company needs to enhance its R&D efficiency and speed to compete effectively in the market [8].

Core Viewpoint - Haixi New Drug officially listed on the Hong Kong Stock Exchange on October 20, opening at HKD 102 per share, a rise of 18.06% from the issue price of HKD 86.4. The company's performance heavily relies on the national volume-based procurement (VBP) plan, with over 90% of revenue from this channel from 2022 to 2024, raising concerns about sustainability and profitability due to price pressures [1][5][6]. Group 1: Financial Performance - Revenue from 2022 to 2024 is projected to be approximately CNY 212.465 million, CNY 316.633 million, and CNY 466.683 million, respectively, with profits of about CNY 68.981 million, CNY 117.454 million, and CNY 136.079 million [4][5]. - The company’s net profit margin is expected to decline by 7.9 percentage points in 2024 compared to 2023, resulting in a net profit margin of 29.2% [5][6]. Group 2: Dependency on Procurement - Haixi New Drug's revenue is highly dependent on a few products, with over 90% of revenue from procurement channels in 2022, 2023, and 2024. The combined revenue contribution from Anbili® and Haihuitong® is 81.3%, 79.9%, and 72.2% for the respective years [5][6]. - The prices of key products have significantly decreased due to procurement, with Haihuitong® dropping from an average price of CNY 3.56 to CNY 2.19, a decline of 38.48% [5][6]. Group 3: Innovation Pipeline - The company is attempting to develop a "second growth curve" through its pipeline of innovative drugs, currently having four drugs in development targeting oncology, ophthalmology, and respiratory diseases [7][8]. - The innovative drug C019199 is in I/II clinical stages, with plans for a Phase III trial in late 2025, but faces intense competition from similar drugs globally [8]. - R&D expenditures are projected to increase from CNY 34.82 million in 2022 to CNY 67.525 million in 2024, but this may still be insufficient to support the high costs associated with innovative drug development [8][9]. Group 4: Market Perception and Challenges - The first-day performance of Haixi New Drug reflects short-term market recognition of its generics business and innovative drug potential, but long-term challenges include reducing reliance on procurement channels and accelerating the R&D process [9].

Core Viewpoint - Haixi New Drug successfully listed on the Hong Kong Stock Exchange, marking a significant milestone for the company and the local biopharmaceutical industry [2][21]. Company Overview - Haixi New Drug, founded by a couple with strong academic backgrounds, has developed four core generic drugs and has a unique dual-track model combining generic and innovative drugs [9][15]. - The company was established in collaboration with three state-owned asset platforms in Fujian province [18]. Listing Process - The company initially planned to list on October 17 but delayed the listing due to the need for additional time to finalize announcements and obtain regulatory approval [4][5]. - Haixi New Drug became the first new stock to experience a delayed listing after dark pool trading under the FINI system in Hong Kong [6]. Stock Performance - The stock opened at 102 HKD, a 18.06% increase from the issue price of 86.4 HKD, and reached 110.2 HKD by midday, representing a 27.5% increase [2]. - The stock's trading volume reached 219 million HKD on the first day [2]. Financial Performance - The company has achieved profitability, with revenue projected to grow from 212.5 million RMB in 2022 to 466.7 million RMB in 2024, and net profit expected to rise from 68.98 million RMB to 136.08 million RMB in the same period [17][25]. - The four core generic drugs contribute over 90% of the company's revenue, with projected revenues for 2024 from these drugs totaling approximately 4.5 billion RMB [17]. Future Plans - The company plans to use the net proceeds of 940 million HKD from the IPO to enhance its research and development capabilities and expand its product pipeline [26]. - Haixi New Drug has four innovative drugs in early clinical stages, with the most advanced candidate targeting osteosarcoma expected to enter Phase III trials by the second half of 2025 [28].

Core Viewpoint - Haixi New Drug (02637) has successfully listed, with an initial share price of HKD 86.40, raising approximately HKD 940 million from the issuance of 11.5 million shares [1] Company Overview - Haixi New Drug is a commercial-stage pharmaceutical company with 15 approved generic drug products across various therapeutic areas, including digestive, cardiovascular, endocrine, and nervous systems [1] - The company’s revenue forecast for 2024 indicates that four core generic drugs will contribute over 90% of its revenue, totaling HKD 425 million [1] Product Pipeline - The company is focused on innovative drug development, with a pipeline that includes an innovative oncology drug and a potential first oral medication for treating wet age-related macular degeneration (wAMD), diabetic macular edema (DME), and retinal vein occlusion (RVO) [1] - Additionally, there are two other innovative drugs in the preclinical stage targeting oncology and respiratory diseases [1] - The most advanced drug in development is C019199 for osteosarcoma, which is set to enter Phase III trials in the second half of this year [1]

Group 1 - The core viewpoint of the article highlights the successful IPO of Haixi New Drug, with shares priced at HKD 86.40 and a total issuance of 11.5 million shares, raising approximately HKD 940 million in net proceeds [1] - As of the prospectus disclosure date, Haixi New Drug has 15 approved generic drug products covering various therapeutic areas, including digestive, cardiovascular, endocrine, and nervous systems [1] - The four core generic drugs, which have been included in the national volume-based procurement (VBP) program since 2021, are expected to contribute over 90% of the company's revenue, projected to reach HKD 425 million in 2024 [1] Group 2 - The company's innovative drug pipeline focuses on various indications, including an innovative oncology drug and a potential oral medication for wet age-related macular degeneration (wAMD), diabetic macular edema (DME), and retinal vein occlusion (RVO) [2] - Among the innovative drugs, the most advanced is C019199, targeting osteosarcoma, which is set to enter Phase III trials in the second half of this year [2]

Core Viewpoint - The listing of Haixi Pharmaceutical (02637.HK) on the Hong Kong Stock Exchange has been delayed, originally scheduled for October 17, 2025, due to the need for additional time to finalize the announcement and obtain regulatory approval [2][3]. Group 1: Listing Delay Details - The company announced that the final announcement regarding the offering price and subscription levels must be published before 8:00 AM on October 17, 2025 [2]. - The company plans to issue approximately 11.5 million shares at a price range of HKD 69.88 to HKD 86.40, with a final cap set at HKD 86.40 per share [3]. - During the dark market trading phase, the stock price opened high but closed at HKD 107.6, reflecting a 24.54% increase, which may be linked to speculation about the delayed listing [3]. Group 2: Market Reactions and Speculations - There are rumors regarding irregularities in the international placement distribution, including issues with repeated applications and non-compliant participants, which may cast doubt on the effectiveness of dark market transactions [6]. - If the listing is merely delayed, completed dark market orders may still be valid; however, if the listing is ultimately canceled, all dark market transactions will be voided, although financing interest and fees typically are not refunded [7]. Group 3: Company Background and Financial Performance - Haixi Pharmaceutical has 14 approved generic drugs and four innovative drugs in development, with a dual-track approach of generics and innovative drugs [11][12]. - The company's revenue for the years 2022, 2023, 2024, and the first five months of 2025 were HKD 213 million, HKD 317 million, HKD 467 million, and HKD 249 million, respectively, with net profits of HKD 69 million, HKD 118 million, HKD 136 million, and HKD 90 million [12][13]. - The majority of the company's revenue comes from three products, which accounted for 98.2%, 92.9%, 82.6%, and 84% of total revenue during the respective reporting periods [14]. Group 4: Research and Development Pipeline - The company is developing several innovative drugs, including C019199, which targets multiple cancers, and HXP056, a potential oral treatment for eye diseases [16][17]. - C019199 has received IND approval and is undergoing various clinical trials, while HXP056 is expected to complete its Phase I trial by the end of 2025 [16][17]. - The combination of generics and innovative drugs has provided revenue and profit, but the generics segment may face future challenges due to market pressures [17].

Core Viewpoint - Fujian Haixi New Drug Creation Co., Ltd. is seeking to go public on the Hong Kong Stock Exchange (HKEX) after previously considering an A-share listing, highlighting its established position with 14 approved generic drugs and profitability [1][5]. Company Background - Founded in March 2012 by Dr. Kang Xinshan and Feng Yan, the company transitioned to a joint-stock company in November 2022, headquartered in Fuzhou, Fujian Province [1][4]. - The company is currently valued at approximately 1.948 billion yuan [4]. Shareholding Structure - The main controlling shareholders include Dr. Kang Xinshan, Feng Yan, and Tai Rui He Investment, holding about 41.17% of the issued share capital [2][3]. Business Model - Haixi New Drug operates a dual-track model, focusing on both generic and innovative drugs, with 14 approved generic drugs and 4 innovative drugs in the pipeline [5][7][11]. - The company’s generic drug portfolio addresses various therapeutic areas, contributing to over 25% of China's pharmaceutical sales in 2023 [8]. Financial Performance - Revenue growth has been observed, with reported revenues of 212 million yuan in 2022, 317 million yuan in 2023, and projected revenues of 467 million yuan in 2024 [19][21]. - The net profit for the same periods was 68.98 million yuan, 117.45 million yuan, and 136.08 million yuan respectively [19][21]. Product Portfolio - The company’s revenue is primarily derived from three products, which accounted for 98.2%, 92.9%, 82.6%, and 84% of total revenue in the respective years [22]. - The product "Haihui Tong" has achieved significant market share, reaching 59.3% in 2024 [22]. Challenges and Competition - The company faces pressure from national centralized procurement, with contracts for four products expiring between 2025 and 2026, which may impact future revenues [23][24]. - The innovative drug pipeline, particularly the C019199, faces intense competition from multiple companies developing similar agents for solid tumors [17][19].

Core Viewpoint - Haixi New Drug, the first pharmaceutical company in Fujian to obtain a drug production license, is advancing its IPO process on the Hong Kong Stock Exchange, showcasing significant revenue growth but facing various operational risks [1][2]. Financial Performance - Haixi New Drug's revenue surged from 2.12 billion in 2022 to 4.67 billion in 2024, with a net profit increase from 690 million to 1.36 billion during the same period, reflecting a compound annual growth rate (CAGR) of 48.2% for revenue and 40.5% for net profit [4]. - In the first five months of 2025, the company reported revenue of 2.49 billion and a net profit of 902 million [4][20]. Revenue Dependence and Risks - The company heavily relies on 13 approved generic drugs, with 4 included in the national volume-based procurement (VBP) program, leading to a significant dependency on VBP products, which accounted for 72.6% of revenue in 2024 [6]. - The top five customers contributed over 70% of total revenue, with the largest customer accounting for 44.5% [6]. - Key VBP products are approaching contract expiration, with two set to expire by the end of 2025 and others in subsequent years, raising concerns about future revenue stability [6][7]. Cash Flow and Financial Health - Despite impressive revenue growth, the company's cash flow is under pressure, with a cash balance of only 380 million at the end of 2024, covering just 21% of current liabilities [15][21]. - The operating cash flow has shown fluctuations, with a net cash flow of 1.64 billion in 2024, but a decline to 800 million in the first five months of 2025 [11]. Sales and Marketing Expenses - The sales expense ratio increased from 22% in 2022 to 35.5% in 2024, significantly higher than the industry average, which may erode profit margins [12][13]. - The rising sales costs are attributed to increased channel maintenance expenses and the need for additional marketing resources for newly included VBP products [12]. Innovation Pipeline - Haixi New Drug has four innovative drugs in development, but all are in early stages, with the first clinical trials just starting [17][19]. - The company’s R&D expenditure is relatively low, with rates below the industry threshold of 20%, which may hinder future innovation [19][23]. - The company plans to use funds from the IPO to support clinical development and expand its sales network, but faces competition from established products that are already ahead in the market [24]. Production Capacity Concerns - The company’s production facility in Chang Le has a designed capacity of 2 billion tablets per year, but actual sales in 2024 were only 460 million tablets, raising concerns about potential overcapacity [25].