Mingyu Pharmaceutical Co., Ltd. has recently submitted a listing application to the Hong Kong Stock Exchange, seeking to go public under Chapter 18A rules.
As the domestic innovative drug sector continues to heat up, the industry's commercial value is being steadily released. Data shows that from January to June this year, the total value of out-licensing deals for China's innovative drugs reached approximately $110 billion, accounting for 80% of the 2025 full-year total and setting a new historical record. Against this backdrop, Mingyu Pharma, supported by product licensing agreements, a clinical pipeline, and an experienced founder, is embarking on its capital market journey. However, the company's lack of commercialized products and its pipeline's positioning in highly competitive markets introduce multiple uncertainties for this IPO.
Licensing Agreements Provide Interim Revenue
According to its prospectus, Mingyu Pharma, founded in 2018, is a biotechnology company focused on integrated oncology, specializing in the research and development of antibody-drug conjugates (ADCs) and advanced immunotherapies.
For the periods covering 2024, 2025, and the first five months of 2026, the company's operating revenue was RMB 0, RMB 264 million, and RMB 0, respectively. The company has not commercialized any candidate drugs, with the 2025 revenue primarily generated from a licensing agreement with Qilu Pharmaceutical. Net losses for the same periods were RMB 283 million, RMB 919 million, and RMB 210 million, respectively. The company attributed the rapid increase in losses in 2025 mainly to "changes in the fair value of financial liabilities due to financing activities and valuation adjustments."
Specifically regarding its collaboration with Qilu Pharmaceutical, Mingyu exclusively licensed the development and commercialization rights for its key product MHB088C in Greater China to Qilu. This deal provides Mingyu with a substantial tiered revenue system, including a non-refundable upfront payment of RMB 250 million, a recent payment of RMB 30 million, potential future milestone payments of up to RMB 1.065 billion, and tiered sales royalties based on the annual net sales in Greater China.
In terms of R&D, the company's investment curve has been relatively stable, with expenditures of RMB 281 million, RMB 230 million, and RMB 120 million during the reporting periods, accounting for 95.4%, 86.1%, and 89.0% of total operating expenses, respectively. The company stated that the decline in R&D investment in 2025 was mainly due to the substantial completion of the Phase III trial for its key product MH004 in 2024, leading to reduced outsourcing costs for preclinical and clinical work.
The company's product pipeline includes 11 candidate products, with 10 in the clinical stage. Core products include MHB036C (primarily for treating non-small cell lung cancer and breast cancer) and MHB018A (for treating thyroid eye disease). Regarding the use of IPO proceeds, the company plans to allocate 70% to the R&D of its existing pipeline, with the remainder directed toward advancing and expanding its therapeutic pipeline, enhancing commercial capabilities and production quality functions, and general working capital.
Navigating Crowded Markets to Establish a Foothold
According to market research cited in the prospectus, the multiple therapeutic areas the company is targeting possess long-term growth potential. By 2035, the global market size for breast cancer drugs is projected to reach $99 billion; for non-small cell lung cancer drugs, it is expected to climb to $115.8 billion; and the market for PD-(L)1/VEGF bispecific antibodies is anticipated to reach $91.4 billion. The large patient populations in oncology and autoimmune diseases underpin the sector's long-term growth expectations.
However, behind this vast market potential lies intense competition, with several of the company's core pipeline candidates entering highly contested "red ocean" markets. For its core product MHB036C's therapeutic area, only three products have gained regulatory approval, with another seven candidate drugs still in clinical development.
The PD-(L)1/VEGF bispecific antibody赛道 targeted by the company's MHB039A is similarly crowded. Akeso's ivonescimab has become the first domestically approved product in this category, with as many as 15 other candidate drugs in clinical development. Leading multinational pharmaceutical companies like Bristol-Myers Squibb and Pfizer also have布局 in this area, leveraging their established global clinical experience and commercial channels for a first-mover advantage. This means Mingyu's MHB039A will need to establish differentiated advantages to break through in the fierce competition.
MH004, the company's most advanced pipeline candidate, is a topical JAK inhibitor primarily for mild-to-moderate atopic dermatitis. The company first submitted its new drug application in May 2025, with approval expected in the first half of 2027. The topical treatment market for atopic dermatitis is already highly competitive, with multiple imported and domestic JAK ointments集中申报上市. Furthermore, Jiangsu Hengrui Pharmaceuticals Co.,Ltd. voluntarily withdrew the drug registration application for its similar product, ivarmacitinib ointment, in June this year, adding further uncertainty to the赛道. Even if approved on schedule, the company will need to invest significant effort in building a matching sales team. Whether it can quickly transform into a stable "cash cow" for the company remains to be seen.
Leadership from a Former Hengrui Pharma Executive
Although the commercial prospects of its products still require further validation, the company's operations are expected to remain stable in the short term. As of the end of May 2026, the company's cash and cash equivalents stood at RMB 605 million.
The company's development history shows reliance on multiple rounds of financing: an RMB 80 million Series A round shortly after its 2018 founding, an RMB 313 million Series B+ round in December 2020, and a $131 million Series C round in July 2025, resulting in a post-investment valuation of RMB 3.936 billion.
The frequent fundraising success is significantly attributed to the资深 industry履历 of founder Cao Guoqing. He previously worked for over a decade at Eli Lilly in the US, responsible for innovative drug R&D. During his tenure at Jiangsu Hengrui Pharmaceuticals Co.,Ltd. from 2012 to 2017, he served as Group Vice President overseeing the entire project management of early-stage antibody biologics and small molecule drugs. Currently, the company's R&D team consists of 107 employees, with over 40.2% holding postgraduate degrees.
However, in recent years, investors in Hong Kong's biotech sector have shifted their focus from merely valuing pipeline size to paying closer attention to commercialization capabilities and cash flow health. Mingyu's filing comes as the Hong Kong IPO market shows signs of recovery. Its success in listing and achieving a reasonable valuation will ultimately depend on market recognition of its pipeline's differentiated value and commercial potential. For Mingyu Pharma, as the ADC and bispecific antibody赛道 become increasingly crowded, accelerating the clinical progress of its core pipeline, expanding out-licensing collaborations, and building a commercial team are likely to be the three critical challenges it must urgently address in the future.
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