The most anticipated list in the Hong Kong stock market at the beginning of 2026 has been released. Starting March 9, PEGBIO CO-B (02565) officially became a constituent of the Hong Kong Stock Connect program. Currently, Eli Lilly (LLY) has established a formidable global dominance with a market capitalization in the trillions of dollars. PEGBIO CO-B, a GLP-1 star whose valuation has surged due to dual benefits from its product and market segment, is once again in the market spotlight as it gains access to mainland capital liquidity. Following its inclusion, a qualitative breakthrough in capital structure and liquidity is expected. The key question is whether it can follow the path of its predecessors and emerge as a significant "Chinese challenger" on the global GLP-1 stage. Historically, high-quality 18A biotech companies joining the Stock Connect typically experience three major changes: 1. Optimized capital structure: Southbound capital often shows a strong preference for the GLP-1, innovative drug, and weight-loss sectors, potentially leading to sustained buying. 2. Significant liquidity improvement: Direct participation from mainland investors boosts trading activity and turnover rates, reducing the risk of narrow price fluctuations. 3. Valuation model recalibration: A shift from foreign capital dominance to joint pricing by domestic and international investors, aligning more closely with domestic industry and policy dynamics.
PB119 (Paidacon®) is PEGBIO CO-B's self-developed, once-weekly long-acting GLP-1 receptor agonist, classified as a National Class 1 New Drug. It offers clinical advantages such as no need for titration and high patient compliance. On November 14, 2025, China's National Medical Products Administration (NMPA) officially approved Paidacon® for market launch, making it the company's first commercial product and shifting market focus from "speculating on expectations" to "assessing delivery." Concurrently, the company's dual-target pipeline candidate PB718 has advanced to the clinical stage, showing potential in the NASH and obesity fields, thereby further expanding its long-term valuation prospects.
What makes Paidacon® the star product of PEGBIO CO-B? 1. Tolerability is key for chronic disease management. For diseases like diabetes that require lifelong management, significant efficacy is unsustainable if patients discontinue treatment due to side effects. While some existing GLP-1 drugs demonstrate strong glucose-lowering effects, gastrointestinal reactions (e.g., nausea, vomiting, diarrhea) remain a major barrier to patient compliance. Paidacon® performs notably well in this aspect. Relevant clinical data indicate that the incidence of drug-related gastrointestinal adverse events is below 7%. This means over 93% of patients did not experience significant gastrointestinal discomfort during treatment, which helps improve the patient experience and compliance, potentially translating into stable usage rates and long-term revenue. 2. Long-term efficacy helps build treatment confidence. Paidacon® also demonstrates sustained effectiveness. It is reportedly the only once-weekly GLP-1RA that has achieved steady, sustained glucose reduction over 52 weeks as a monotherapy. This provides patients with relatively stable blood glucose control throughout the year, offering more certainty for both doctors and patients and potentially strengthening patient trust and dependence on the drug. 3. Multi-benefit approach and "Four-Highs Co-management" enhance user stickiness. Traditional diabetes management often involves a "whack-a-mole" scenario where controlling blood glucose leads to issues with weight, blood pressure, and lipids, forcing patients onto a long "medication marathon." In contrast, Paidacon® elevates treatment from the single dimension of "taking medicine to lower blood sugar" to a higher level of "killing multiple birds with one stone" and holistic health management. Clinical data show it significantly improves β-cell function and C-peptide levels. As a monotherapy over 52 weeks, it led to an average weight reduction of 4.77 kg, alongside demonstrated benefits in blood pressure and lipid management. When a single treatment not only protects pancreatic islet function and achieves significant weight loss but also comprehensively manages blood glucose, weight, blood pressure, and lipids, leading to physical ease and mental relief, patients enter a positive feedback loop. The comprehensive improvements from the treatment itself become the primary motivation for patients to persist. 4. Optimized injection experience lowers the barrier to use. For injectable drugs, the patient's actual experience directly influences willingness to use. The injection device for Paidacon® incorporates several user-friendly features: a hidden needle design to alleviate injection anxiety; no need for dose titration, allowing patients to receive an effective therapeutic dose from the first injection, simplifying the process; and a low 0.3ml volume design to reduce injection pressure and pain. These details help enhance the patient experience, making injectable therapy more acceptable and sustainable.
The market consensus is that the GLP-1 sector remains in a high-growth cycle. Currently, there are nine approved original GLP-1RA drugs in China. While competition is intense, there is still room for differentiated development. The commercialization of PB119 is just beginning, with potential for overseas licensing and the advancement of obesity indications expected to continuously release positive news. The incremental capital from Stock Connect inclusion is sufficient to absorb selling pressure and propel valuations to a new level. This view is strongly supported by the strategic moves of global pharmaceutical giants. Coinciding with PEGBIO CO-B's inclusion, the arms race among multinational pharma companies in the weight-loss segment has intensified. The fierce competition between Pfizer (PFE) and Novo Nordisk for the emerging GLP-1 company Metsera concluded with Pfizer securing full ownership for $10 billion. This deal reflects the strategic urgency even for R&D-powerful "big pharma" companies, who are opting for acquisitions to quickly gain a foothold in what could be one of the largest drug markets in history – the weight-loss medication market. The willingness of giants to deploy massive resources serves as the strongest endorsement of the GLP-1 sector's high growth potential and signals increasingly fierce competition in the global weight-loss market ahead. This presents both an opportunity and a challenge for PEGBIO CO-B.
For PEGBIO CO-B, Stock Connect inclusion is not the end of the story but a litmus test for transitioning from "capital-driven" to "performance-driven" growth. If giants are willing to spend tens of billions for a "ticket to the future of GLP-1," then PEGBIO CO-B, which already holds a commercial "ticket," should see its valuation logic reshaped through comparison with international peers, especially with the support of southbound capital.
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