Baoji Pharma-B (02659) Launches IPO with One Approved Drug, Signaling Revival of HKEX's 18A Biotech Listings

Stock News12-04

The Hong Kong stock market's 18A biotech listing wave has regained momentum, with institutional investors refocusing on these pre-revenue biopharma firms under Chapter 18A of HKEX's listing rules. Thirteen such companies have raised over HK$26 billion in 2025, nearing 2021's peak levels.

Baoji Pharma-B (02659), launching its HK$1 billion IPO from December 2-5 at HK$26.38/share, stands out with four therapeutic platforms and 12 pipeline candidates. The company already secured approval in August 2025 for China's first long-acting recombinant FSH fertility drug, Shinnova®, with exclusive distribution through Anke Biotechnology. Another subcutaneous delivery product, KJ017, has entered NDA review for 2026 approval.

Unlike typical 18A listings with early-stage pipelines, Baoji Pharma demonstrates advanced commercialization readiness: - 1 marketed product (fertility) - 1 NDA-submitted product (hyaluronidase for subcutaneous delivery) - 1 Phase III candidate (transplant desensitization) - 1 Phase II asset

Financials show accelerating revenue growth: 2023: RMB6.93m 2024: RMB6.16m H1 2025: RMB41.99m (boosted by licensing income)

The company's HK$450m cash reserves and imminent product launches contrast with most loss-making 18A peers. Founder Dr. Liu Yanjun, a veteran pharmaceutical executive, built Baoji as an AI-driven synthetic biology platform to ensure sustainable revenue streams beyond single-product dependence.

The 18A sector's resurgence is evident in 2025 performance: - Average first-day gain: 69.4% - One-month return: 88.7% - 33 new applicants in H2 2025 alone

Investors now prioritize clinical-stage maturity, with 75% of recent listings having at least one Phase III candidate versus earlier listings with only Phase II assets. Baoji's combination of platform technology and near-term commercialization potential positions it favorably in this selective market environment.

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