China Post Securities has issued a research report stating that Bao Pharma-B (02659) has a differentiated product portfolio that is gradually yielding results. Its unique subcutaneous delivery platform and synthetic biology platform have established solid technological barriers, and value is being continuously released through diversified collaboration models. The firm forecasts the company's operating revenue to reach RMB 82 million, RMB 235 million, and RMB 445 million for 2026 to 2028, respectively. Initiating coverage with an "Add" rating, China Post Securities' key views are as follows:
Financial Overview In 2025, the company achieved total revenue of RMB 49.16 million, a significant increase from RMB 6.16 million in 2024. This growth was primarily driven by RMB 40 million in licensing revenue and RMB 3.64 million in net revenue from its first commercialized product, SJ02. R&D expenditure was RMB 248 million, remaining largely flat compared to the previous year.
Commercialization Phase Begins, Core Products Enter Intensive Harvest Period The company's first product, the long-acting follicle-stimulating hormone SJ02, received market approval in August 2025, with the first batch of orders delivered in November, marking the official commencement of its commercialization phase. The core product, recombinant human hyaluronidase KJ017, was approved on March 31, 2026, representing the first domestically approved product of its kind, validating the company's internal R&D and production capabilities. Another core product, IgG-degrading enzyme KJ103, completed its Phase III clinical trial for desensitization prior to kidney transplantation in March 2026. A New Drug Application (NDA) is planned for submission in the first half of 2026. For another indication, glioblastoma (GBM), a Phase III trial is scheduled to commence in the first half of 2026, with plans to submit an Orphan Drug Designation application to the FDA in the second half of the year, along with an Investigational New Drug (IND) application prior to Phase III.
Clear Subsequent Pipeline, Synthetic Biology Platform Shows Initial Potential Progress is smooth for multiple clinical-stage products, including recombinant human chymotrypsin KJ101 and subcutaneous antibiotic candidates BJ007/BJ009.
Strategic Collaborations Deepen, Platform Value Gradually Realized The value of the company's high-volume subcutaneous delivery platform continues to be validated. Strategic collaborations have been established with several companies, including WuXi Biologics, Shanghai RAAS, and Quanxin Biotech, for the joint development of subcutaneous formulations. These partnerships are expected to generate sustained milestone payments and sales revenue, forming a second growth curve for the company.
Risk Warnings Potential risks include delays in innovative drug development timelines, intensifying market competition, unforeseen changes in the global pandemic situation, and unexpected policy shifts.
Comments