HK$578 million! Another innovative pharmaceutical company raises funds at a discount

September 10, 2025, Laikai Medical Science and Technology(Shanghai) Co., Ltd.(Laekna, stock code: 2105.HK) announced in its report,WillAt HK$16.30 per share to no less than six placeesPlacement of 36 million new shares, with the placement price at a discount of approximately 9.5% compared to the closing price on September 9, is expected to raise net proceeds of about HKD 578 million.Of this amount, approximately 90% will be used to support the ongoing development of clinical and preclinical pipelines, with the remainder allocated for daily operations. Currently, Laikai Medical has not yet generated revenue, and in the first half of 2025, its net loss attributable to shareholders was RMB 130 million.

Laikai Medical Science and Technology (Shanghai) Co., Ltd., founded in 2016, has always been a "rising player" in the Hong Kong Stock Exchange's innovative drug sector.After successfully listing on the Hong Kong Stock Exchange in 2023, Laikai Medical Science and Technology(Shanghai) Co., Ltd. chose a dual-track approach in its R&D pathway: entering the metabolic disease and obesity sector, while also developing innovative oncology drugs.

In the field of metabolic disease and obesity treatment, Laikai Medical avoids the mainstream GLP-1 (glucagon-like peptide-1) receptor agonist development pathway,Focus on ActRII Target for InnovationThe ActRII receptor family (including ActRIIA and ActRIIB) plays a central regulatory role in muscle regeneration and fat metabolism, and its abnormal activation is closely related to metabolic disorders.

Core product LAE102 is an ActRIIA-specific monoclonal antibody., by blocking the Activin-ActRII pathway,Demonstrates a dual mechanism of "muscle gain and fat reduction" in preclinical models—promoting muscle synthesis while inhibiting fat accumulation.`, providing a new approach to obesity treatment that differs from traditional drugs. In addition, the company has also developed LAE103, an ActRIIB selective antibody, and LAE123, an ActRIIA/IIB dual antagonist antibody, forming a product matrix that covers different subtypes.`

In terms of clinical progress,LAE102 has completed the Single Ascending Dose (SAD) study in China., and initiate a Phase I multiple ascending dose (MAD) trial recruiting 60 overweight or obese subjects in March 2025.Meanwhile, its Phase I clinical trial in the United States completed the first dosing in May 2025 and is expected to finish the primary study phase in the fourth quarter.

The tumor pipeline centers around LAE002 (afuresertib).，Targeting the AKT signaling pathway, a key target in cancer treatment.Abnormal activation of the AKT pathway drives the proliferation and survival of various tumor cells, while LAE002 is one of only two late-stage clinical development AKT inhibitors globally targeting breast cancer and prostate cancer. It can simultaneously inhibit all three AKT subtypes: AKT1, AKT2, and AKT3. The Phase Ib study of LAE002 combined with fulvestrant showed that the median progression-free survival (PFS) for this regimen was significantly prolonged compared to fulvestrant alone in such patients.

Currently, the first patient has been enrolled in the Phase III clinical trial AFFIRM-205 for breast cancer, and the Phase III protocol for prostate cancer has received FDA approval, demonstrating potential for cross-tumor development.

The "money-burning" nature of innovative drug development is well-known.：A global clinical trial typically requires an investment of hundreds of millions of RMB, with early Phase I trials alone needing tens of millions in funding. Laikai Medical Science and Technology (Shanghai) Co., Ltd. is advancing multiple clinical studies in the fields of metabolic diseases and oncology, including two Phase III trials for LAE002 and Phase I trials for LAE102 in both China and the United States, along with preclinical programs and commercialization preparations.The urgent need for funds makes a discounted rights issue a realistic choice to sustain R&D.

This strategy is not an isolated case in the industry:BeiGene raised over 10 billion yuan through multiple discounted share placements from 2019 to 2021 to support global multicenter trials of tislelizumab; Legend Biotech raised funds through additional share issuance after its IPO on NASDAQ in 2020, accelerating the development of CAR-T therapy.

From a broader perspective, Laikai's financing is not only a choice of the company itself, but also a mirror of the industry cycle.

In the metabolic disease track, the market is rapidly expanding.According to data from The Business Research Company, the global metabolic syndrome market size was approximately USD 84.03 billion in 2024 and is expected to increase to USD 120.69 billion by 2029, with a compound annual growth rate (CAGR) of about 7.4%. Biotechs with differentiated mechanisms of action in the metabolic disease field will have the opportunity to seize a share if they can achieve clinical value validation and commercialization.

In the oncology drug track,According to Fortune Business Insights, the global oncology drug market size reached $201.75 billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 11.3% from 2024 to 2032, reaching $518.225 billion. Intense competition and substantial investment in trials are realities that companies must face.

At the capital market level, the valuation adjustment of the biotech sector exhibits significant common characteristics.According to PwC's "2023 IPO Market Performance and Outlook for Mainland China and Hong Kong," 313 new stocks were listed in 2023, raising a total of 356.4 billion yuan. Compared with the same period last year, the number of new stocks decreased by 26%, and the amount of financing fell by 39%.As the financing environment cools, companies either cut expenses or opt for discounted financing to sustain R&D.The rights issue operation of Laikai Medical Science and Technology (Shanghai) Co., Ltd. is a microcosm of this trend.

When capital no longer pays for "storytelling," companies must prove themselves with clinical data and milestone deliveries. Behind the discounted financing lies the market's pressure on the speed of R&D fulfillment.

Back to the news event itself, Laikai Medical Science and Technology(Shanghai) Co., Ltd.'s recent discounted financing raised HKD 578 million, providing "endurance" for its multiple clinical pipelines. The story of Laikai illustrates,In a capital tightening cycle, the competitiveness of innovative drug companies is no longer just about target selection and pipeline breadth, but about how to use limited funds to cross clinical milestones and win market confidence with real trial data.