As the second half of 2026 unfolds, the landscape of hot sectors in the A-share market has shifted. The previously quiet innovative drug sector has recently experienced a rapid surge, propelling the entire pharmaceutical sector to become a standout performer alongside technology stocks. Among these, the so-called "Big Four" of innovative drugs are particularly noteworthy. Ranked by their latest total market capitalization, BeiGene, Hengrui Pharmaceuticals, and WuXi AppTec have each surpassed 370 billion yuan, while BIOKIN (ASX: 02615) holds a market cap of approximately 130 billion yuan. However, looking at monthly performance, after gaining 23.25% in June, BIOKIN shares have risen about 11.07% as of midday on July 6th. In terms of share price, it has climbed steadily from a low near 200 yuan on June 2nd to a peak of 353.88 yuan on July 2nd.
Tan Xiongtian, a member of the investment committee at Puzhuo Capital, analyzed: "According to the company's share repurchase progress announcement, by June 30, 2026, approximately 170 million yuan had been cumulatively paid for the repurchase program, which has a total planned amount of 100 to 200 million yuan. This represents an execution progress of about 85%. The repurchased shares will be used for an employee stock ownership plan, further aligning the long-term interests of the core R&D and management teams." Due to the disclosure of the repurchase details, the latest shareholder structure of BIOKIN has also been revealed. As of June 1st, six public funds occupied over half of the top ten shareholder seats. Notably, star fund managers Ge Lan, managing China Europe Healthcare, and Xie Zhiyu, managing Xingquan He Run, increased their holdings and newly entered the stock, respectively.
Breakthrough in the Industry
BIOKIN's First Commercialized Innovative Drug Launches
On June 22nd, the National Medical Products Administration (NMPA) announced the approval for marketing of iza-bren (Lun Kang Yi Long Tuo Dan Kang), a globally first-in-class EGFR×HER3 bispecific antibody-drug conjugate (ADC) independently developed by BIOKIN. This marks the world's first approved bispecific ADC and the first innovative drug from BIOKIN's portfolio.
The approval announcement described the drug: "Iza-bren has undergone over 40 clinical trials for various tumor types in China and the US, including 19 Phase III clinical studies (including Phase II/III). To date, seven indications for iza-bren have been included in the Breakthrough Therapy Designation list by the Center for Drug Evaluation (CDE) of the NMPA, two indications have been included in the Priority Review list by the CDE, and one indication has been included in the Breakthrough Therapy Designation list by the US Food and Drug Administration (FDA)."
Commenting on this, Tan Xiongtian emphasized: "BIOKIN's (688506) first approved ADC drug, iza-bren (commercial name Yi Ze Kang®), is the world's first bispecific ADC product to receive market approval. Its core strengths are reflected in three dimensions. First, it features a first-in-class mechanism using an EGFR×HER3 dual-target antibody design, simultaneously blocking the main proliferation pathway and resistance bypass of tumor cells, fundamentally overcoming the clinical bottleneck of traditional single-target ADCs prone to resistance. Second, it employs fully self-developed technology, utilizing a proprietary topoisomerase I inhibitor payload and a cathepsin B-cleavable linker, ensuring potent anti-tumor activity while significantly reducing off-target toxicity, offering outstanding safety advantages. Third, it has significant potential across indications, with over 40 cross-cancer clinical trials currently underway in China and the US, covering more than ten solid tumors including nasopharyngeal carcinoma, esophageal squamous cell carcinoma, and triple-negative breast cancer. It has received eight Breakthrough Therapy designations in total, with marketing applications for esophageal squamous cell carcinoma and triple-negative breast cancer already accepted by regulators."
Sell-side institutions also widely interpret this event as a "milestone moment." A CITIC Securities research report noted: "The approval and launch of iza-bren mark the beginning of the bispecific ADC era with accelerated expansion of indications." A Huayuan Securities pharmaceutical industry weekly report offered a conclusive view: "China's global competitiveness in ADCs is becoming increasingly evident, with attention on Kelun-Bota and BIOKIN." Their explanation was: "BIOKIN's core ADC asset BL-B01D1 was approved for domestic marketing on June 22, 2026. Its overseas partner, BMS, also registered a global first-line EGFRmtNSCLC indication clinical trial on July 2, 2026, targeting a major lung cancer indication for first-line therapy, indicating promising future prospects."
There is also a prevailing view in the market that Kelun-Bota and BIOKIN are the dual global leaders in ADCs. Regarding this, Tan Xiongtian pointed out: "This needs to be viewed rationally and dialectically. On one hand, this evaluation affirms the company's globally leading position in the bispecific ADC niche. Its pioneering technology and solid clinical success have placed it at the global forefront, making it a typical representative of China's innovative drug sector shifting from following to leading. On the other hand, it should be recognized that the current lead is still concentrated in the specific direction of bispecific ADCs. The company still has room for improvement in terms of the richness of its ADC pipeline, commercialization execution capability, and independent global market coverage. Consolidating its position as an industry leader requires the long-term realization of subsequent major clinical successes and sustained global commercial volume growth."
Another industry insider who wished to remain anonymous also emphasized: "Although both are strong companies in the ADC field, it's important to note that Kelun-Bota produces single-target products, while BIOKIN produces dual-target products." Furthermore, for BIOKIN, beyond this approved product, there are still promising surprises to anticipate in its subsequent R&D pipeline.
According to the company's disclosure in its 2025 annual report: "In 2025, the company's R&D expenses were 25,137.255 million yuan, a year-on-year increase of 74.23%. As of the date of this report, the company has 17 drug candidates in clinical stages and is conducting over 100 clinical trials globally, including 30 key registration clinical studies worldwide. The company's clinical pipeline is rich and highly competitive, demonstrating its profound strength and forward-looking layout in the innovative drug R&D field."
Star Funds Increase Their Positions
Ge Lan, Xie Zhiyu, and Qiao Qian Shine in Top Ten Shareholders
Shifting from an industrial to a financial perspective, institutions are not only supporting BIOKIN through published research reports but are also actively buying its shares, with public funds, the standard-bearers of institutions, being particularly prominent. The company's latest top ten shareholder list proves this conclusion, featuring star fund managers such as Ge Lan, Xie Zhiyu, Qiao Qian, and Zhang Wei.
Due to the disclosure of repurchase matters, the top ten shareholders of BIOKIN as of June 1st were revealed. Comparing this with the list at the end of Q1 highlights recent institutional changes. Wind data shows that from the 4th to the 8th positions in the top ten shareholders as of June 1st, shareholders either increased their holdings or newly entered. These included active equity public funds such as China Europe Healthcare, Fullgoal Innovation Pharma, Xingquan Business Model Select, and Xingquan He Run Hybrid. Additionally, the last two positions showing reductions were also equity funds: ChinaAMC SSE STAR 50 ETF and China Europe Medical Innovation Stock.
Among these active funds, the most well-known is China Europe Healthcare managed by Ge Lan. Looking at BIOKIN's past financial reports, this fund first appeared in the top ten shareholders in the 2024 annual report, ranking ninth with approximately 1.8794 million shares. In the Q1 2025 report, the fund significantly increased its position in BIOKIN, holding 4.0211 million shares as of March 31st. By the half-year report, Ge Lan continued to add, with the fund holding about 4.2797 million shares of BIOKIN. In the Q3 report, the position was further increased to 5.5578 million shares.
Although it was slightly reduced to 5.4265 million shares in the annual report, the Q1 report this year showed it was increased again to 5.7942 million shares. The latest holdings as of June 1st show BIOKIN was further increased to 6.3423 million shares. It's not just China Europe Healthcare; another fund managed by Ge Lan, China Europe Medical Innovation, also entered BIOKIN's top ten shareholders this year. At the end of Q1, this fund ranked eighth among the top ten shareholders of BIOKIN, but by June 1st, it had dropped to tenth position.
Not only Ge Lan, but another top-tier star fund manager based in Shanghai, Xie Zhiyu, also shows a strong preference for BIOKIN. In the latest top ten shareholder list disclosed on June 1st, the Xingquan He Run fund managed by Xie Zhiyu newly entered the list, ranking eighth with a holding of 2.2759 million shares. Another star fund manager from Xingquan Fund, Qiao Qian, also appeared in the top ten shareholder list this year. The Xingquan Business Model fund, which she manages independently, has consecutively appeared on the top ten shareholder list twice.
Beyond active equity funds, a review of the list reveals that one passive equity fund may have held the position for an even longer time: the ChinaAMC SSE STAR 50 ETF. Wind data shows its investment in BIOKIN can be traced back to Q4 2023. Subsequently, the E Fund SSE STAR 50 ETF also entered the top ten shareholders in the 2024 half-year report, with both products shining side-by-side for eight quarters. It was only in the latest disclosure on June 1st that the latter exited the top ten shareholder list.
Furthermore, based on incomplete review, other star public fund products that have appeared in the top ten shareholder list in previous years include the Wells Fargo Precision Medicine fund managed by Zhao Wei and the GF Healthcare Stock fund managed by Wu Xingwu.
Institutions Ramp Up Company Research
BIOKIN's Half-Year Earnings Outlook Appears Promising
The attitude of these funds towards BIOKIN can also be corroborated from another angle: public fund research. Wind data shows that BIOKIN first held an institutional research session via a web conference on April 28th, followed by another via video conference on May 13th, with a total of 53 institutions participating.
During the web conference, public funds primarily inquired in detail about the company's industrial breakthroughs and potential breakthroughs. For example, in response to the question "What is the progress and data readout schedule for the company's Phase III clinical trials this year?", BIOKIN stated: "The company's iza-bren is undergoing over 40 clinical trials domestically and internationally, including 3 global key registration clinical studies and 2 NDA acceptances in China, 12 Phase III clinical studies, 2 Phase II/III studies, 24 Phase II studies, and 4 Phase Ib studies. In total, 2 indications have been included in the Priority Review procedure by the CDE, 8 indications have been included in the Breakthrough Therapy Designation list, of which 7 are by the CDE and 1 by the US FDA."
"The ongoing Phase III clinical studies are expected to reach their endpoints successively from 2026 to 2027, with corresponding clinical data potentially disclosed at subsequent academic conferences; the new global Phase III clinical trials planned for iza-bren this year will be based on BMS's registrations on ClinicalTrials.gov. The company's T-Bren (HER2 ADC) is undergoing 17 clinical trials domestically and internationally, including 8 Phase III, 1 Phase II/III, 2 Phase II, 3 Phase I/II, and 3 Phase I trials, with 1 indication included in the Breakthrough Therapy Designation list," BIOKIN continued.
During the video conference research, more public funds focused on questions about changes in fundamentals. For instance, when asked about "future key business focuses," BIOKIN responded: "The company focuses on the oncology treatment field, pursuing breakthrough innovation for breakthrough efficacy. It emphasizes three cutting-edge technology tracks: ADC (Antibody-Drug Conjugate), ARC (Antibody-Radionuclide Conjugate), and GNC (Multispecific T Cell Engager). Relying on four core technology platforms, it continuously incubates new pipelines, explores new indications and combination therapy regimens for existing products, continuously expands the pipeline matrix, and creates more blockbuster innovative products with international competitiveness, providing patients with superior treatment options."
Furthermore, with the earnings season approaching, BIOKIN's half-year earnings are also a focal point for investors and the industry. In the company's previous Q1 report, Q1 operating revenue was 94.5868 million yuan, a year-on-year increase of 40.25%; however, net profit attributable to shareholders was -775 million yuan, a year-on-year decrease of 45.75%. Looking at recent institutional forecasts, different brokerages predict the company's full-year 2026 revenue to range between 2.035 billion and 2.723 billion yuan. There is a general consensus that the company's core pipeline technology is leading and has significant commercialization potential. As the core product iza-bren is launched and gradually scales up, subsequent earnings realization capability is expected to continuously improve, maintaining a "Buy" investment rating.
Regarding the company's half-year earnings outlook, Tan Xiongtian emphasized that five core indicators need close attention in BIOKIN's 2026 half-year report. First, revenue structure and scale, focusing on tracking the initial commercial sales revenue of iza-bren following its June approval, as well as the confirmation of milestone payments under the BMS collaboration. This is a core verification signal of the company's transition from a pure R&D phase to a commercialization phase. Second, the scale and efficiency of R&D investment. As an R&D-driven enterprise, attention should be paid to the scale of expensed R&D costs, the allocation of R&D expenses for core pipelines, and whether the clinical advancement pace meets expectations. Third, cash flow and capital reserves, observing the scale of monetary funds and highly liquid assets to assess the sustainability of funding for subsequent multi-pipeline clinical advancement and commercialization team building. Fourth, gross margin level, tracking production costs and pricing systems after the launch of the first innovative drug to judge the long-term profit potential of commercialized products. Fifth, disclosure of key pipeline progress, including clinical milestones for core pipelines like T-Bren and DLL3 ADC, as well as the application and review progress for new indications of iza-bren. These form the core support for the company's long-term valuation.
Additionally, when discussing the differences between BIOKIN and the other three innovative drug leaders, Tan Xiongtian stated: "The four have significant differences in business models and development stages, requiring an objective view of their strengths and weaknesses. In terms of development stage, the company has just entered the initial commercialization phase, with only one product launched. Its revenue scale is far below the other three companies, and it remains in a high-R&D-investment, loss-making stage. In terms of globalization capability, its overseas commercialization relies on the BMS partnership, and the maturity of its independent global sales system is far inferior to BeiGene's. In terms of pipeline breadth, the company is highly focused on the oncology ADC and bispecific antibody tracks, with its indication coverage and pipeline richness significantly weaker than Hengrui's. Overall, BIOKIN is a typical technology-driven emerging innovative pharmaceutical company, possessing globally top-tier competitiveness in the ADC niche, but there remains a gap compared to industry leaders in terms of overall scale, commercialization capability, and full-industry-chain layout."
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