The stock price of an innovative drug company, once dubbed a "meme stock" with a market cap nearing 270 billion Hong Kong dollars, has now collapsed to less than 4 billion.
On June 23rd, TRANSTHERA-B (HKEX: 02617), which had just passed its one-year listing anniversary, saw its shares crash by a staggering 59.71% in a single day, closing at HK$11.25.
Over the following two trading days on June 24th and 25th, the stock continued its decline, falling 11.11% and 5.7% respectively, to end at HK$9.43. This left the company with a latest market capitalization of just HK$3.847 billion.
Market analysis suggests the recent sharp sell-off may be primarily due to the commencement of the second phase of post-IPO share lock-up expiries. This has raised concerns among investors about potential large-scale selling by major shareholders and early-stage investors looking to cash out.
In reality, the company's current business scale is far from sufficient to support its previous valuation exceeding 200 billion Hong Kong dollars. Its 2025 annual report reveals the firm has no commercially launched products yet and has not achieved profitability.
Since 2022, the company has accumulated a net loss attributable to shareholders of 1.166 billion yuan over four years. Until successful commercialization is achieved, massive research and development costs continue to erode the company's finances.
Notably, in 2025, the combined compensation for Chairman & CEO Wu Yongqian and President & CFO Wu Di reached 10.994 million yuan, accounting for approximately 76% of the total remuneration for the company's directors, supervisors, and senior management.
Precipitous Share Price Decline
Established in April 2014, the company successfully listed on the Hong Kong Stock Exchange on June 23, 2025, with an issue price of HK$13.15 per share. However, less than three months later, its stock price skyrocketed.
On September 16th of the same year, the share price surged intraday to HK$679.5, representing a gain of over 50 times from the IPO price and pushing its total market value close to 270 billion Hong Kong dollars.
That afternoon, however, the stock price plunged dramatically, closing at HK$192, down 53.73% from the previous trading day. The extreme volatility was attributed to several factors: strong market narrative around its core product TT-00420 (Tinengotinib), its inclusion in the Stock Connect program attracting southbound capital, and an extremely low free float that made the stock susceptible to being cornered with minimal capital.
Following that, the stock traded within a range of HK$100 to HK$260 until the end of last year. Since the beginning of this year, the overall trend has been downward.
The sharp decline on its one-year listing anniversary involved the unlocking of approximately 119 million shares, representing 29.19% of the total share capital, with a market value of around HK$3.324 billion at the time.
While the expiration of lock-up periods does not guarantee immediate selling by shareholders, it alters market perceptions of supply and demand. The fear that major shareholders and early investors may begin offloading their holdings can deter buyers and trigger a selling stampede, leading to a price collapse.
Years Without Revenue and Persistent Losses
The company is a clinical-stage biopharmaceutical firm focused on discovering and developing novel small molecule therapies for oncology, inflammatory, and cardiometabolic diseases.
Financially, the company has recorded revenue in only three years since 2019 (2020, 2022, 2023), with the amounts being 65.326 million yuan, 124,000 yuan, and 1.181 million yuan respectively. All other years, including 2025, showed zero revenue.
Over this period (excluding 2021), the cumulative net loss attributable to shareholders amounts to 1.362 billion yuan. From 2022 to 2025 alone, the four-year cumulative loss is 1.166 billion yuan.
The annual report states that the group has incurred significant net losses since its inception and expects to continue recording losses in the foreseeable future, with no guarantee of ever achieving profitability.
Prior to commercialization, the losses stem largely from substantial R&D expenses. In 2025, for instance, R&D costs reached 247 million yuan, constituting over 80% of that year's net loss of 296 million yuan.
As of the end of last year, the company had 123 employees, 93 of whom (75.61%) were in R&D. Total employee benefit expenses for 2025 were 68 million yuan, averaging over 550,000 yuan per employee.
During the same period, total remuneration for directors, supervisors, and senior management was 14.47 million yuan, an increase of about 20% year-on-year. The combined pay for Chairman & CEO Wu Yongqian (4.997 million yuan) and President & CFO Wu Di (5.997 million yuan) totaled 10.994 million yuan, representing roughly 76% of the total senior management compensation.
Pipeline and Financial Strain
As of last year-end, the company's pipeline includes six clinical-stage candidates and several preclinical candidates.
Its lead asset, TT-00420 (Tinengotinib), has received Breakthrough Therapy Designation from China's NMPA for cholangiocarcinoma and is on the Priority Review list. It has also received Fast Track Designation from the U.S. FDA for cholangiocarcinoma and metastatic castration-resistant prostate cancer, along with Orphan Drug Designations from both the FDA and EMA for biliary tract cancers.
The company describes 2026 as a critical year for its commercial transformation and for deepening its pipeline strategy and global footprint. The core goal is the launch of TT-00420.
However, the development of this product has significantly drained the company's financial resources. Following its Hong Kong IPO last year, which raised net proceeds of approximately HK$161 million, 90% was allocated to the global Phase III trial for TT-00420 in cholangiocarcinoma, with expected full utilization by the end of 2027. By the end of 2025, HK$42 million had been spent on this trial.
Despite the IPO funding, cash and cash equivalents at year-end 2025 stood at 415 million yuan, down nearly 30% from the end of 2024 and marking the lowest level in four years.
This year, the company has already conducted three placings within less than six months to raise additional capital, with the issue price consistently declining. The three placements raised a combined net amount of HK$624 million.
Founder's Journey to Listing
According to the shareholding structure, Wu Yongqian ultimately controlled approximately 131 million shares, or 32.97% of the total, as of the end of last year.
In his 60s, Wu holds a bachelor's degree in chemistry from Nanjing University and a Ph.D. from Wayne State University in the U.S., with postdoctoral research experience at Brandeis University. He returned to China in 2011 and joined Sihuan Pharmaceutical, later becoming General Manager of its subsidiary Xuanzhu Biopharma and Chief Scientist of Sihuan.
Wu was not the original founder. The company was established in 2014 by Yang Minmin (founder of Pharmaron) and Wu Xihan, then a director at Pharmaron. Wu Yongqian acquired a 40% stake in the company in 2016 and took over leadership.
Under his leadership, the company completed multiple financing rounds, raising over 1.7 billion yuan in total capital by February 2023. The path to listing was arduous, with three failed attempts to list in Hong Kong in 2021, 2022, and 2024, and an aborted plan for a STAR Market listing in 2022. The fourth Hong Kong application in early 2025 finally succeeded, leading to the June 2025 listing.
Following the extreme stock price volatility, the market continues to watch whether Wu Yongqian can steer the company toward a commercial and financial breakthrough.
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