Core Viewpoint - Rongchang Biopharma has entered into a business development agreement with Santen Pharmaceutical's subsidiary, granting exclusive rights for the RC28-E injection in several Asian markets, which reflects the company's strategy to expand its market presence and secure funding through licensing deals [2][6]. Group 1: Business Development Transactions - The agreement with Santen China includes an upfront payment of 250 million yuan, potential milestone payments totaling up to 5.2 billion yuan for development and regulatory achievements, and up to 5.25 billion yuan in sales milestone payments, along with a sales royalty based on product sales in the licensed regions [2][8]. - This is the second business development deal for Rongchang Biopharma in 2023, following a previous agreement with Vor Biopharma, which involved a total potential value of 4.23 billion USD, including an upfront payment of 125 million USD [7][8]. Group 2: Product and Market Potential - RC28-E injection is designed to treat ocular neovascular diseases and is currently undergoing Phase III clinical trials for wet age-related macular degeneration (wAMD) and diabetic macular edema (DME), with expected submission dates for market approval in China set for mid-2025 and mid-2026, respectively [3][4]. - The potential market for RC28-E is significant, with approximately 1.4 billion diabetes patients in China, including 5.7 million with clinically significant DME and 3.81 million with wAMD [4]. Group 3: Competitive Landscape - The DME and wAMD treatment markets are becoming increasingly competitive, with new clinical trials and product approvals from other companies, such as Boehringer Ingelheim and Regeneron, indicating a challenging environment for RC28-E [5][6]. - Santen Pharmaceutical's expertise in ophthalmology and its established market presence are expected to facilitate the rapid market entry and patient access for RC28-E [5]. Group 4: Financial Implications - Rongchang Biopharma's financial performance shows a significant revenue increase of 59.17% year-on-year in Q1 2025, but it also faces substantial net losses and high short-term debt, highlighting the need for cash flow relief through business development deals [8][9]. - The recent licensing agreements are seen as a necessary strategy for innovative pharmaceutical companies to manage research and development risks, especially in a tightening financing environment [9].