Core Viewpoint - The article discusses the journey of Junfang Pharmaceutical, founded by scientist Lyu Qiang, focusing on its innovative drug development, particularly in targeting RAS proteins, and the challenges faced in the biotech industry in China [1][2][3]. Company Overview - Junfang Pharmaceutical was established in August 2017 in Zhangjiang, Shanghai, during a favorable period for innovative drug development in China [1]. - The company successfully listed on the Hong Kong Stock Exchange, with its stock price increasing over 110% on the first day, but later faced a decline of over 30% due to market adjustments [4]. Innovation and Drug Development - The company is heavily invested in RAS targets, which have historically been considered "undruggable," with no approved drugs for over 40 years until Amgen's Lumakras received FDA approval in May 2021 [2][3]. - Junfang's drug, Daberu (GFH925), became the first RAS-targeted drug approved in China and the third globally, highlighting the company's rapid development capabilities [3]. Market Strategy - Lyu Qiang emphasizes the importance of a product matrix approach rather than relying on a single blockbuster drug, aiming to cover a significant portion of pancreatic cancer patients with multiple RAS-targeted drugs [9][12]. - The company plans to establish a "small but beautiful" commercialization strategy, focusing on complementary drug projects rather than a broad market approach [12]. Competitive Landscape - Junfang's pipeline is compared to that of Revolution Medicines, a leading U.S. company in the RAS space, which has not yet launched products but has a market capitalization exceeding $13.5 billion [5]. - The article notes that many Chinese biotech firms are seen as following international innovations, but Lyu argues that Junfang's approach is based on clinical breakthroughs and a deep understanding of existing research [7][8]. Financial and Strategic Insights - Lyu highlights the need for a balanced approach to business development (BD) and emphasizes that Junfang is not BD-driven but data-driven, focusing on solving patient needs rather than merely financial returns [14][15]. - The article mentions that the financial expectations for BD in the industry may have become unrealistic, suggesting a potential market correction in the future [15].