As an innovative drug developer focused on oncology, metabolic, and autoimmune diseases, Inventisbio Co.,Ltd. has successfully launched two core products—befotertinib and glesoritib—which are now approved and included in China's national reimbursement drug list. However, the company does not maintain its own commercial sales team and has long relied on licensing partnerships for product distribution. While this approach reduces upfront investment, it also introduces operational risks such as unstable revenue and delayed payments.
Following a slight decline in revenue in 2024, Inventisbio's income fell sharply by nearly 80% in 2025. The company's revenue structure remains heavily dependent on milestone payments and sales royalties. Compounding these challenges are issues like delayed payments from partner Beta Pharma and the need to make provisions for bad debts, placing continued pressure on profitability. Since its listing on the STAR Market, the company has remained in a loss-making position.
Amid ongoing R&D expenditures and dwindling cash flow, Inventisbio has initiated a Hong Kong IPO to secure additional funding, aiming to advance key pipeline candidates such as D-0502 and D-2570 through clinical trials. For this innovative drug developer, grappling with licensing dependency and financial strain, a Hong Kong listing represents not only a financing opportunity but also a critical step for future R&D progress.
Inventisbio was founded in 2013 as an R&D-driven biopharmaceutical company with a global footprint, concentrating on major disease areas including cancer, metabolic disorders, and autoimmune conditions.
The company has commercialized two products: befotertinib, a third-generation EGFR tyrosine kinase inhibitor, and glesoritib, a KRAS G12C inhibitor. Befotertinib is indicated for EGFR mutation-positive non-small cell lung cancer (NSCLC), while glesoritib targets multiple cancers with KRAS G12C mutations, including NSCLC and colorectal cancer. Both drugs were approved by China's National Medical Products Administration—befotertinib in 2023 and glesoritib in November 2024—with the former approved for both first- and second-line treatments. Each product has been included in China's national drug reimbursement list.
Inventisbio has outsourced commercialization through licensing agreements: befotertinib's rights were granted to Beta Pharma, and glesoritib's to Zhengda Tianqing. The company earns revenue from upfront payments, milestone fees (covering both R&D and sales milestones), royalties, and sales commissions, which constitute its primary income streams.
Although licensing helps avoid the high costs of building an in-house sales team—a common strategy in the innovative drug sector—it also makes Inventisbio highly reliant on partners, amplifying operational vulnerability and leading to revenue volatility.
Financial reports indicate that the company generated revenue of RMB 1.86 billion in 2023, mainly from befotertinib's milestone payments and royalties. In 2024, revenue declined to RMB 1.69 billion, primarily from glesoritib milestones and royalties from both products.
Preliminary 2025 results show a dramatic 77.89% drop in revenue to RMB 37.33 million. This underscores the low conversion rate of end-market sales under the licensing model. The company acknowledges that its current revenue comes mainly from licensing and collaboration, with the composition of technology authorization and partnership income varying annually.
Inventisbio's revenue is directly influenced by partners' payment behaviors. For example, following approvals for first- and second-line indications of befotertinib, Beta Pharma was due to pay milestone fees of RMB 100 million and RMB 80 million, respectively. However, Beta Pharma delayed these payments, citing internal capital allocation plans.
Despite repeated attempts to collect the overdue receivables via email, phone calls, and in-person visits, Inventisbio failed to recover the funds. By the end of 2024, the company had made a bad debt provision of RMB 18 million, representing 10% of the amount. It was not until December 26, 2025, that Inventisbio received the RMB 80 million milestone payment from Beta Pharma. The company stated that it is actively negotiating the settlement of the remaining milestone payments.
Unstable revenue has weakened Inventisbio's ability to generate internal cash flow. Since its STAR Market debut in 2022, the company has not achieved profitability. Net losses attributable to shareholders were RMB 484 million in 2022, RMB 284 million in 2023, and RMB 240 million in 2024. Due to high R&D spending and insufficient income from technology licensing to cover costs, the net loss for 2025 is projected to widen to RMB 317 million.
Despite losses, Inventisbio continues to advance its pipeline. The oral selective estrogen receptor degrader D-0502 is undergoing a Phase III registration trial in China for second-line treatment. The TYK2 inhibitor D-2570 has entered clinical exploration for several autoimmune diseases, including a Phase II trial for ulcerative colitis and a Phase III trial for psoriasis in China, as well as a Phase I trial in the U.S. The URAT1 inhibitor D-0120 completed follow-up in a U.S.-based Phase II combination therapy trial and is expected to conclude all research by Q1 2026.
Inventisbio also disclosed two innovative preclinical candidates—YF087, a WRN inhibitor, and YF550, a KIF18A inhibitor—which have demonstrated strong antitumor potential in preclinical studies and are currently undergoing IND-enabling studies.
Advancing clinical pipelines and deepening commercialization of existing products will require substantial continued funding. The company has primarily relied on capital markets for financing, raising approximately RMB 2.084 billion in its STAR Market IPO. As of September 30, 2025, Inventisbio reported a net cash outflow from operating activities of RMB 160 million, with cash and cash equivalents shrinking to RMB 670 million.
Although the company's current financial position can support operations for the next year, Inventisbio acknowledges that due to expected ongoing operating losses, it will need to raise additional funds through public or private equity offerings or debt financing. Against this backdrop, the company is joining the trend of A-share firms seeking secondary listings in Hong Kong to open new funding channels. Proceeds from the Hong Kong IPO are intended primarily for clinical development of D-0502 and D-2570.
Industry observers note that a Hong Kong listing could enhance a company's brand presence in the global biopharmaceutical sector. However, the quality of innovative drug firms listed in Hong Kong varies widely, and stock price volatility may affect IPO pricing and short-term valuation. For Inventisbio, the key variable for a successful offering will be whether clinical progress and business metrics can support its valuation.
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