From its New Third Board listing, to a withdrawn Beijing Stock Exchange application, and then two consecutive Hong Kong IPO filings, the capital market journey of Beijing Puqi Pharmaceutical Technology Co., Ltd. (hereinafter referred to as Puqi Pharma) has been marked by repeated twists and turns.
On July 24, 2026, the company submitted its prospectus to the Hong Kong Stock Exchange Main Board, seeking to list as a biotech company under Chapter 18A of the Listing Rules, with CITIC Securities (Hong Kong) and CMBC Capital serving as joint sponsors. The company's initial filing on January 21, 2026, had previously lapsed. The current fundraising is intended to support the development of the core product pumicitinib, advance other candidate products, enhance innovation and commercialization capabilities, as well as fund daily operations and general corporate purposes.
According to the prospectus and Tianyancha data, Puqi Pharma was established in 2016, focusing on treating immuno-inflammatory diseases through targeted therapies delivered locally. The candidate product portfolio is anchored by the core product PG-011 (pumicitinib), a small-molecule JAK1/2 inhibitor designed specifically for topical application. The pumicitinib gel targets mild-to-moderate atopic dermatitis, while the pumicitinib nasal spray is intended for moderate-to-severe seasonal allergic rhinitis. Additionally, the pipeline includes PG-033 tablets for pruritus, PG-018 tablets for autoimmune kidney diseases, PG-040 eye drops for glaucoma, and five generic drug candidates. However, the company has yet to generate primary revenue, sustained losses throughout the reporting period, and as of April 30, 2026, its net asset value had shifted from positive to negative, rendering it insolvent. Furthermore, the multiple switches in its capital market path and the heavy concentration of its pipeline on the core product are issues warranting investor attention.
Accumulated Losses Approaching RMB 400 Million, Net Asset Value Turns Negative
Financially, for 2024, 2025, and the first four months of 2026 (referred to as the reporting period), the company recorded net losses of RMB 178 million, RMB 141 million, and RMB 77.5 million, respectively, totaling RMB 397 million in losses, with no primary revenue during the period. Other net income for the reporting period was RMB 11.22 million, RMB 36.296 million, and RMB 5.998 million, respectively, of which government subsidies were RMB 9.9 million, RMB 35.5 million, and RMB 3.9 million, with the remainder primarily from interest income.
The net losses are mainly attributed to hefty research and development expenses and general and administrative costs. During the reporting period, R&D expenses were RMB 146 million, RMB 128 million, and RMB 54.492 million, respectively, with the core product pumicitinib's R&D expense share at 60.7%, 65.4%, and 70.6%. General and administrative expenses were RMB 40.753 million, RMB 46.993 million, and RMB 27.841 million, respectively. The prospectus indicates that R&D expenses grew 50.1% year-on-year in the first four months of 2026, primarily reflecting increased share-based payments to R&D personnel under the 2021 share incentive plan following the shortened vesting period. As of the latest practicable date, the company had 63 R&D personnel, accounting for 73.2% of all full-time employees.
In terms of solvency and cash flow, the company's net asset value fell from RMB 154 million at the end of 2024 to RMB 37.329 million at the end of 2025, and turned into a net liability of RMB 7.191 million by April 30, 2026. The current ratio declined from 2.19 to 1.37. During the reporting period, net cash used in operating activities was RMB 160 million, RMB 94.2 million, and RMB 9.2 million, respectively, showing continuous outflows. As of April 30, 2026, the company held cash and cash equivalents of RMB 128 million. On a year-on-year basis, the net loss for the first four months of 2026 widened by 56.9% compared to RMB 49.398 million in the same period of 2025, with R&D expenses increasing from RMB 36.252 million to RMB 54.492 million.
The prospectus anticipates that the net loss for the year ending December 31, 2026, will increase compared to 2025, driven by significant R&D expenditures from continuing to advance and expand the pipeline and enhance the technology platform, as well as expected listing expenses related to the proposed IPO. Regarding the company's going-concern capability and liquidity pressures, Liu Shengyu, Managing Partner of Gaohe Investment, commented: "The biggest risk for Puqi Pharma is not R&D failure itself, but the apparent time gap between product commercialization and cash burn. As of end-April 2026, the company's cash and cash equivalents were approximately RMB 128 million, and net assets had turned negative, while net cash outflows from operating activities in 2024 and 2025 were approximately RMB 160 million and RMB 94 million, respectively. For a biotech without primary revenue, this means the urgency of a Hong Kong IPO is quite high. However, a negative net asset value doesn't equate to an immediate cash crunch; the real focus should be on the subsequent cash burn rate. Even if pumicitinib receives approval, it will still need to go through pricing, market access, hospital coverage, and physician education, so revenue won't materialize on a large scale immediately. If approval is delayed by six months to a year, or if post-launch sales ramp up slower than expected, the company may need to continue relying on equity financing, bank loans, and milestone payments from partners. If the IPO financing encounters setbacks and milestone payments aren't realized in time, the cash cushion will thin rapidly. So, this Hong Kong IPO is more like a critical financing window for Puqi Pharma rather than routine capital maneuvering."
Regarding suppliers, the company primarily procures R&D services from contract research organizations and CDMOs. During the reporting period, purchases from the top five suppliers accounted for 30.6%, 27.1%, and 19.8%, respectively, indicating a relatively manageable concentration. Due to accumulated losses, the company is currently prohibited under Chinese law from distributing dividends to shareholders. The directors believe that, considering existing cash, available bank financing, and estimated IPO proceeds, the company has sufficient working capital to cover 125% of its cash expenditures for at least the next 12 months from the date of this document.
Pipeline Heavily Bet on Pumicitinib, Awaiting Approval After NDA Acceptance
Puqi Pharma's valuation logic is almost entirely tied to its core product, pumicitinib. The pumicitinib gel, intended for treating mild-to-moderate atopic dermatitis in adults and adolescents aged 12 to 17, has completed its Phase IIb/III clinical trial, and the New Drug Application (NDA) was accepted by the National Medical Products Administration in February 2026. According to Frost & Sullivan data, it has the potential to become the first topical JAK inhibitor gel approved for atopic dermatitis, and the company is also planning to initiate a Phase I clinical trial for children aged 2 to 11. The pumicitinib nasal spray, for moderate-to-severe seasonal allergic rhinitis, has completed the last dosing of its Phase IIb/III trial and is currently in Phase III, positioning it as the only JAK inhibitor candidate for allergic rhinitis.
Regarding the product itself, the prospectus shows that the pumicitinib gel inhibits multiple pro-inflammatory factors, treating atopic dermatitis symptoms while ensuring safety, long-term tolerability, and patient compliance. It addresses issues such as insufficient efficacy of traditional topical drugs, significant systemic side effects of oral JAK inhibitors, and the greasy, heavy texture of existing ointments. Its relatively low systemic exposure suits long-term maintenance therapy for chronic diseases and could potentially extend to pediatric populations with thinner, more sensitive skin. The pumicitinib nasal spray delivers the JAK inhibitor locally via a nasal device, offering a novel non-steroidal treatment option for allergic rhinitis that can alleviate both nasal and ocular symptoms.
From a market perspective, atopic dermatitis is a chronic inflammatory skin condition that recurs and requires long-term management, affecting over 74 million patients in China, with mild and moderate cases accounting for more than 90%. The Chinese atopic dermatitis drug market was valued at RMB 13.2 billion in 2025, projected to reach RMB 25.4 billion by 2028 and RMB 48.4 billion by 2033. For allergic rhinitis, there are approximately 248 million patients in China, with the market at RMB 5.3 billion in 2025, expected to grow to RMB 23.6 billion by 2033. Looking at the broader inflammatory and immune space, the Chinese autoimmune disease drug market grew from RMB 16.2 billion in 2019 to RMB 38.1 billion in 2025, a compound annual growth rate of 15.3%, and is projected to hit RMB 228.6 billion by 2033. The Chinese allergic disease drug market rose from RMB 30.5 billion in 2019 to RMB 66.1 billion in 2025, expected to reach RMB 306 billion by 2033.
In terms of competition, as of the latest practicable date, three oral JAK1 inhibitors have been approved in China for moderate-to-severe atopic dermatitis, with 22 JAK inhibitor candidates in clinical stages, including three in NDA review and eight in Phase III. There are approximately 25 candidates for allergic rhinitis. The market space is substantial, but competition is equally intense. Beyond the core product, the company's other pipeline programs are at early stages: PG-033, an oral small-molecule TRPV3 inhibitor for pruritus, is in Phase I clinical trials. With approximately 263 million chronic pruritus patients in China in 2025 and 18 domestic pruritus candidates, PG-033 is the only TRPV3 inhibitor. PG-018, a JAK1 and ROCK dual-target inhibitor for autoimmune kidney diseases, is in Phase I, with Phase II expected to commence in 2027; the prospectus notes there are no approved drugs globally for membranous nephropathy. PG-040, a ROCK-JAK dual-target inhibitor eye drop for glaucoma, had its IND application submitted in May 2026, with Phase I expected to start in 2027; China had approximately 23.8 million glaucoma patients in 2025. Additionally, the company has five generic drug candidates focused on dermatology, with PG-F06's ANDA application accepted in September 2025 and PG-F04's in July 2026.
On the commercialization front, Puqi Pharma has proactively established channels. In May 2026, the company entered into an exclusive cooperation agreement with Jiangsu Simeere Pharmaceutical Co., Ltd., a wholly-owned subsidiary of Simeere Pharmaceutical Group (02096.HK), for the pumicitinib gel. This grants Simeere commercialization, distribution, marketing, and promotion rights for approved indications in Mainland China, Hong Kong, and Macau. In return, the company received a one-time upfront payment of RMB 60 million (already collected) and regulatory milestone payments totaling up to RMB 140 million. The company is responsible for manufacturing and holding the marketing authorization, while Simeere bears promotion costs, with no royalty arrangement between the parties. In January 2026, the company also signed an exclusive cooperation agreement with Jiangsu Jumpcan Pharmaceutical Co., Ltd., a wholly-owned subsidiary of Hubei Jumpcan Pharmaceutical Co., Ltd. (600566.SH), for the pumicitinib nasal spray. The company has received an upfront payment of RMB 40 million, with milestone payments of up to RMB 60 million after regulatory approval.
In terms of agreement terms, the pumicitinib gel cooperation agreement stipulates that neither party may develop, manufacture, or sell other pumicitinib products in the form of ointments, gels, creams, or similar topical dermatological drugs without the other's consent. If the company plans to cooperate with third parties on competing products, Simeere must be granted a right of first refusal. If Simeere terminates the agreement due to the company's intentional or gross negligence in breach, it is entitled to a penalty of RMB 40 million. The company can also terminate the cooperation if Simeere fails to meet agreed minimum sales volumes for two consecutive years. For the nasal spray collaboration, Jumpcan can terminate the agreement and claim a penalty of 30% of the upfront and milestone payments if the company fails to obtain regulatory approval by June 30, 2028, among other conditions. However, uncertainty remains over whether both products can secure timely approval, inclusion in medical insurance, and achieve sales volume. The prospectus also notes the company has no track record of launching and marketing candidate drugs.
Regarding whether a single core product can sustain post-listing valuation, Liu Shengyu commented: "Pumicitinib is a product with commercial value, but it's not yet sufficient on its own to support a very high long-term valuation. On the positive side, the pumicitinib gel targets mild-to-moderate atopic dermatitis, and local delivery reduces systemic exposure, so it doesn't directly compete head-on with oral JAK inhibitors mainly used for moderate-to-severe patients. The company's Phase III study has met its expected endpoints, and the NDA is in review. Meanwhile, the Chinese atopic dermatitis drug market is still rapidly expanding. The real pressure comes from the fact that the topical JAK space itself is becoming crowded quickly—for example, the NDA for ruxolitinib phosphate cream for mild-to-moderate atopic dermatitis in China was accepted in February 2026 and entered priority review, and other domestic topical JAK products are advancing. Therefore, the partnership with Simeere is a clear plus, as Simeere can help solve the commercialization capability weakness that plagues small biotechs and reduce the cash burn from building an in-house sales force. Simeere has also publicly confirmed obtaining exclusive promotion rights for the pumicitinib gel in dermatology across Mainland China, Hong Kong, and Macau. Ultimately, the capital market won't just look at whether a drug can get approved; it will look at how much it can sell after approval. Puqi's post-listing valuation ceiling will ultimately depend on pumicitinib's peak sales, Simeere's commercialization execution, and whether the nasal spray and other indications can transform the company from a 'one-drug company' into a genuine topical delivery immuno-inflammatory platform."
Multiple Capital Path Switches, Chief Medical Officer's Compensation Surges
In terms of listing history, Puqi Pharma's capital path has been quite tortuous. Founded in September 2016, the company was restructured into a joint-stock company in April 2022, with its shares listed on the National Equities Exchange and Quotations (New Third Board) from December 7, 2022, to December 22, 2025. On June 25, 2025, it submitted an A-share listing application to the Beijing Stock Exchange, which was withdrawn on October 30, 2025. It first filed with the Hong Kong Stock Exchange on January 21, 2026, which lapsed, and this marks its second filing. The company's listing path has shifted multiple times from the New Third Board to the BSE and then to Hong Kong, and investors need to comprehensively evaluate the consistency of information disclosure, inquiry concerns, and business model maturity across these transitions.
Regarding shareholding structure, the prospectus shows that, as of the latest practicable date, Chairman Li Yuliang is entitled to exercise voting rights attached to approximately 43.22% of the company's total issued share capital, with direct holdings of 29.16% and control over 10.41% and 3.65% of voting rights through Chifeng Qingxi and Chifeng Mingquan, respectively. Li Yuliang, aged 45, founded the company in 2016 and has served as General Manager since January 2025. He graduated from Hebei Financial University with a finance major and previously held positions at companies including Chifeng Jinquan Health Technology Co., Ltd. and Chifeng Sailintai Pharmaceutical Co., Ltd., giving him a solid industrial background in the pharmaceutical and health sectors.
On corporate governance, the prospectus discloses that the company has established an audit committee, a compensation committee, and a nomination committee, and has appointed independent non-executive directors. A wholly-owned subsidiary, Pharmaceutical Technology, newly established after the reporting period, was registered on May 9, 2026, primarily providing pharmaceutical technology services, development, consulting, exchange, transfer, and promotion. It should also be noted that the company's primary working capital relies on pre-IPO financing and bank loans. As cash continues to be consumed, if the listing progress falls short of expectations, the company may face further financing pressure.
A noteworthy detail is the compensation level of senior executives. The prospectus shows that total remuneration for directors and supervisors was RMB 17.383 million and RMB 20.213 million in 2024 and 2025, respectively, and reached RMB 18.737 million in the first four months of 2026. Among them, Executive Director, Deputy General Manager, and Chief Medical Officer Dr. Du Yunlong received total compensation of RMB 7.444 million in 2024 (including share-based payments of RMB 5.325 million), RMB 10.389 million in 2025 (including RMB 8.285 million), and RMB 12.52 million in the first four months of 2026 (including RMB 11.819 million). Against the backdrop of widening losses and negative net asset value, the rapid growth in share-based compensation warrants attention regarding its reasonableness and impact on equity dilution.
On intellectual property, as of the latest practicable date, the company holds nine granted patents in China, 36 granted patents overseas, and has 76 patent applications pending, with approximately 24 granted patents and pending applications related to the core product pumicitinib. According to its plans, the IPO proceeds will primarily fund clinical development of the core product and pipeline programs, innovation and commercialization capability building, and working capital. Whether Puqi Pharma can leverage the channels of Simeere and Jumpcan to achieve commercialization of its core products and successfully clear the Hong Kong Stock Exchange remains to be seen over time.
Comments