Tianchen Biopharmaceutical (Suzhou) Co., Ltd. - B (referred to as Tianchen Biotech) has resubmitted its listing application after its previous prospectus lapsed. Jinyuan International Securities (Hong Kong) continues to act as the sole sponsor.
Founded in 2020, Tianchen Biotech focuses on allergic and autoimmune diseases. It has attracted prominent investors such as Honghui Fund, Qiming Venture Partners, and CSPC Pharmaceutical Group through its core product LP-003 (a next-generation anti-IgE antibody) and key candidate LP-005 (a bispecific antibody fusion protein targeting C5/C3b). The company completed seven funding rounds within just five years, with its valuation surging from RMB 400 million to RMB 2 billion. However, beneath this apparent investor enthusiasm, the company faces several underlying challenges.
**Mounting Losses and Tight Cash Flow Pose Significant Commercialization Challenges** Financially, Tianchen Biotech remains in the clinical stage and has not yet commercialized any products. The company reported continuous net losses in 2023, 2024, and the first three quarters of 2025, with losses widening over time. Net losses during these periods were RMB 95.778 million, RMB 137 million, and RMB 138 million, respectively.
Lacking self-sustaining revenue, the company has long relied on external financing to support operations, leading to high financial costs. In the reported periods, financial expenses amounted to RMB 16.515 million, RMB 30.993 million, and RMB 16.606 million, with interest on redeemable equity liabilities consistently accounting for over 90% of these costs.
Prior to its IPO application in May 2025, investors' redemption rights were irrevocably terminated, which may alleviate some of the company's financial cost pressures. This termination, however, may have been a reluctant acceptance by investors. Throughout the reporting periods, Tianchen Biotech's net cash flow from operating activities remained negative, with outflows increasing gradually. Cash used in operating activities was RMB 60.865 million, RMB 104 million, and RMB 90.785 million, respectively.
In the first three quarters of 2025, the company raised RMB 189 million in net financing. As of September 30, 2025, it held RMB 174 million in cash and total current assets of RMB 236 million. However, with redeemable equity liabilities of approximately RMB 359 million and R&D expenses of about RMB 100 million during the same period, the company has been unable to meet its redemption obligations. An IPO has become the only viable exit route for pre-IPO investors.
**Pipeline and Market Challenges** Tianchen Biotech's drug candidates include anti-IgE antibody LP-003, intended for allergic diseases such as allergic rhinitis (AR), chronic spontaneous urticaria (CSU), allergic asthma, and other allergies; and bispecific antibody fusion protein LP-005, targeting C5 and C3b complement proteins for conditions like paroxysmal nocturnal hemoglobinuria (PNH) and complement-mediated kidney diseases.
The core product, LP-003, is a next-generation anti-IgE antibody with high expectations, primarily targeting AR and CSU. Its AR indication is the most advanced, currently in Phase III clinical trials, with a Biologics License Application (BLA) planned for the third quarter of 2026.
Technically, LP-003 features a novel sequence design and demonstrates best-in-class potential. In March 2026, Tianchen Biotech released Phase II topline data for LP-003 in CSU. The study showed comprehensive clinical advantages over omalizumab, with superior statistical results across key endpoints and a favorable safety and tolerability profile. Specifically, by the fourth week of treatment, complete symptom resolution rates in LP-003 treatment groups ranged from 35% to 35.9%, indicating early efficacy superiority over both placebo and omalizumab groups.
However, translating technical advantages into commercial success remains challenging. First, the target market is relatively limited. In AR treatment, first-line therapies (such as intranasal corticosteroids and antihistamines) and second-line options are well-established and low-cost. Biologics like LP-003 primarily target patients with inadequate response to existing treatments or those with moderate-to-severe conditions, representing a narrower segment. Despite a large allergic patient population, the proportion eligible for innovative biologics may be lower than expected.
Second, market competition is intense, and Tianchen Biotech holds no significant edge. Although LP-003 leads in the anti-IgE pathway, multiple competing mechanisms target AR pathogenesis. Type 2 immune response is key in allergic diseases, with popular targets beyond IgE including cytokines like IL-4, IL-13, and IL-5. Currently, eight monoclonal antibody candidates for AR are in clinical stages in China, involving well-established players such as Eli Lilly (targeting IL-13), Sanofi (dupilumab targeting IL-4), Zhixiang Jintai (Telikibart targeting IL-4), and Kangnuoya (CM310 targeting IL-4). Over ten other companies, including Sansheng Guojian, Quanxin Biotech, Akeso Biopharma, and Hengrui Pharmaceuticals, have also entered the IL-4 space. Upon launch, LP-003 may face fierce competition from both global pharmaceutical giants and domestic innovators.
Third, Tianchen Biotech lacks commercial experience, a major weakness. The company, established less than six years ago, has no track record in commercialization. Promoting autoimmune and allergy drugs differs from oncology, requiring broad coverage across hospital tiers, deep penetration into primary care networks, and substantial long-term investment in physician and patient education—a daunting task for a startup.
**Valuation Surge and Pre-IPO Transactions** Tianchen Biotech's capital operations have been highly efficient, with seven funding rounds completed in five years, raising over RMB 500 million in total. Its valuation jumped from RMB 400 million post-Series A to RMB 2 billion post-Series C. Notably, in the 12 months before its initial listing application, the company completed Series B2, B3, and C rounds in quick succession, driving its valuation from RMB 1.312 billion to RMB 2.008 billion.
The clustering of institutional investors just before the IPO reflects both capital enthusiasm for the sector and raises questions about potential valuation inflation motives. High valuations impact not only the founding team's wealth but also the paper returns of early investors.
In terms of valuation attractiveness, using the price-to-research ratio common for innovative biotech firms, Tianchen Biotech's ratio based on 2024 R&D expenditure was approximately 20.41 times, higher than comparable companies like Quanxin Biotech and Zhixiang Jintai. With no products launched and zero revenue, the company's valuation is already at an elevated level. If commercialization faces delays post-IPO, its high valuation could be under significant downward pressure.
Additionally, it is noteworthy that Tianchen Biotech's actual controller cashed out millions before the listing application. On December 20, 2024, Liu Heng, the actual controller, signed an agreement with Changshu Sanyiyihao Venture Capital Partnership (LP) to transfer RMB 69,700 in registered capital of Tianchen Biopharmaceutical for RMB 12.5534 million. Typically, original shareholders stand to gain substantial profits after an IPO, making such a pre-listing transfer by the controller unusual.
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