Synthetic Biology Platform Powers Bao Pharma's HKEX Push: HK$8.6B Valuation, Core Products Approved, Losses Exceed HK$7B

BAO PHARMA, which was established in2019-year synthetic biology technology company, in “18A"Sprinting Toward Hong Kong Stocks Under the New Rules"IPO。

12Month2On [date], Bao Pharma announced the launch of its Hong Kong IPO, expected to12Month10Listed on the Hong Kong Stock Exchange, with CITIC Securities and Haitong International as joint sponsors.

BAO PHARMA's Global Offering3791.1710,000 shares, of which the Hong Kong public offering accounts for10%, international sales account for90%，The maximum public offering price per share is26.38HKD, Valuation85.99billion Hong Kong dollars.

Source: Prospectus (all images in the text are from the prospectus)

It is understood that thisIPOThe proceeds will be primarily used for the R&D and commercialization of core products, as well as the advancement and regulatory filing of the existing pipeline. A portion of the funds will also be allocated to optimizing the synthetic biology technology platform and developing new drug candidates, further strengthening the company’s competitive position in its four strategic therapeutic areas.

Meanwhile,2025Year12Month2Day,Anke BiotechnologyAnnounced the proposed use of approximately in self-raised funds1.12HK$100 million, as a cornerstone investor to participate in the subscription of BAO PHARMA's initial public offering shares on the Hong Kong Stock Exchange, and sign the relevant "Cornerstone Investment Agreement". The specific shareholding ratio of this investment will be determined based on BAO PHARMA's final issued market value.

As market attention turns to this synthetic biology pharmaceutical company, VCBeat has analyzed the prospectus and identified five key strengths and three potential weaknesses of BAO PHARMA.

1、Significant Progress Made in Three Core Products

SJ02(Shengnuowa®）A Long-Acting Recombinant Human Follicle-Stimulating Hormone Carboxyl-Terminal Peptide Fusion Protein (Long-ActingFSH-CTP), used for controlled ovarian stimulation in assisted reproductive treatment, has been2025Year8month, obtained approval from the National Medical Products Administration (NMPA) approved for market launch.

KJ017is a type ofNDAPhase-specificRecombinant Human Hyaluronidase, for large-volume subcutaneous administration (combination therapy), fluid loss due to various causes (monotherapy), and adjunctive subcutaneous rehydration (combination therapy); currentlyKJ017is the first and only in China to enterNDAstage recombinant human hyaluronidase.

KJ103is a type ofIIIPhase Clinical Study of Innovative Recombinant ImmunoglobulinG（IgG) degrading enzyme, used for desensitization prior to kidney transplantation and pathologicalIgGMediates autoimmune diseases.

2, Clear Domain Layout and Rich Product Pipeline

BAO PHARMA focuses on four major areas: large-volume subcutaneous administration, antibody-mediated autoimmune diseases, assisted reproduction, and recombinant biopharmaceuticals, and currently possesses12A suite of self-developed products covering multiple clinical stages.

3, a synthetic biology technology platform covering everything from target discovery to large-scale production

BAO PHARMA viaAILeveraging its AI-driven drug design platform, multi-host chassis cell engineering platform, and green scalable biomanufacturing platform, the company has established a full-chain technical system spanning from target discovery to commercial production, enabling the efficient, low-immunogenicity, and stable development and manufacturing of recombinant protein therapeutics.

Drug Design Platform:withAIDriven by this core, the platform integrates computational simulation with experimental validation for iterative optimization, focusing on the development of customized drug delivery systems characterized by low immunogenicity, high stability, and controllable production costs. This platform has successfully translated its efforts into core products.KJ103。

Chassis Cell Engineering Platform:Covering Escherichia coli, Pichia pastoris, andCHOThree major host systems achieve efficient, low-immunogenicity production of complex proteins through glycoengineering, metabolic pathway optimization, and regulation of protein expression. Its proprietaryCHOThe cell bank and Pichia pastoris system have significantly improved glycoprotein homogeneity and product stability, and have been successfully applied inSJ02、KJ017development and production of multiple core products.

Complete Biomanufacturing Platform:By integrating the three major expression systems—mammalian, yeast, and bacterial—and optimizing upstream expression through synthetic biology and genetic engineering, we achieve efficient, large-scale production of recombinant proteins. The platform emphasizes green manufacturing and cost control, featuring commercial-scale capacity and a rigorous quality control system to support end-to-end needs from clinical development to full-scale production.

4, In-house Production Capacity

BAO PHARMA possesses compliant facilities in ShanghaiGMPStandard production base, covering an area of63,000square meters, featuring advanced production lines for complex biologics to meet the needs of approved productsSJ02commercial production and clinical supply needs for other core candidate drugs.

To further increase production capacity, the company is constructing a facility covering an area of approximately37,000square meters of new production base, expected2026Year6Monthly production.At that time, the total reactor volume will increase to approximately26,100liters, with an estimated annual production capacity of2,25010,000-dose formulation.

Moreover, BAO PHARMA has established a comprehensive and robust quality control system to support large-scale commercial production and has obtained the relevant Drug Manufacturing License, thereby ensuring reliable production capacity and quality assurance for subsequent product launches.

5• Clear internationalization strategy

Against the backdrop of current volume-based procurement reshaping the rules and fierce competition in the domestic market, internationalization is becoming a decisive factor for ChineseBiotechAn Inevitable Choice for Corporate Survival and Development.

BAO PHARMA plans to expand into Europe EMAand the United StatesFDASubmitKJ017ofINDApplication, currently in preparationEMAandFDAofINDApplication, expected to be2026submitted one of the applications in the first half of the year, and subsequently completed the other region'sINDApplication.

MeanwhilePlan AdvancementSJ02Clinical development in multiple overseas emerging markets is planned to2026in the first half of the year to EuropeEMASubmitSJ02ofINDApplication.

1- Sustained losses, limited self-sustaining revenue generation, and heavy reliance on equity financing

2023Year,2024Year,2025In the first half of the year, BAO PHARMA generated revenue of69310,000 yuan,61610,000 yuan,419910,000 yuan,2025The significant revenue growth in the first half of the year was primarily driven by licensing income.400010,000 yuan. During the same period, the company's total losses were respectively1.6100 million yuan,3.64100 million yuan,1.83100 million yuan, with a total loss exceeding7100 million yuan; operating cash flows were respectively-1.4100 million yuan,-1.8100 million yuan and-1.2100 million yuan.

2、Insufficient experience in product commercialization

BAO PHARMA candidly stated in its prospectus,No experience in drug commercialization to date, and it has not yet demonstrated the ability to launch any candidate drugs and commercialize them. Compared with companies that have rich experience in launching and marketing candidate drugs, BAO PHARMA’s ability to successfully commercialize candidate drugs may involve more inherent risks, a longer cycle, and greater cost investment.

In response, BAO PHARMA’s strategy is to focus on establishing partnerships with leading domestic and international pharmaceutical companies, thereby leveraging its mature sales and marketing capabilities and distribution channels to rapidly enter the market and increase market penetration.

For example2025Year7Month9Recently, BAO PHARMA has reached an agreement with Anke Biotechnology regarding its first marketed productSJ02Grant full authority to Anke Biotechnology as the exclusive domestic agent,2025Year11The product has completed its first batch of shipments and has been officially launched in the Chinese market, indicating to some extent that its market performance will largely depend on Anke Biotechnology’s sales capabilities.

3、Core products face fierce competition from multinational corporations

For BAO PHARMA's marketed recombinant humanFollicle-Stimulating HormoneProductSJ02(Shengnuowa®), Currently, there are two long-acting products in China, and BAO PHARMA needs to compete directly with GenSci's Jinsaijia.

Short-acting products are also competitors of BAO PHARMA. In the field of short-acting products, there are seven marketed short-acting recombinant humanFSHProduct and four short-acting recombinant human products in clinical developmentFSHCandidate drugs and marketed products are developed by companies including multinational corporations such as Merck and Organon, as well as renowned domestic pharmaceutical enterprises like Qilu Pharmaceutical.

In overseas markets, there are three short-acting recombinant humanFSHCandidate drugs have entered the clinical stage, and seven approved products have been launched on the market.

Long-Acting Products Already Marketed in China

Short-acting Products Already Launched in China

Long-Acting Products Already Marketed Overseas

Short-Acting Products Already Launched Overseas

From this perspective, the listing of BAO PHARMA serves as a significant microcosm of the commercialization of synthetic biology in China’s pharmaceutical sector, while also highlighting the widespread challenges of commercialization and profitability faced by innovative drug companies.

With its core technology platforms and a product pipeline entering the harvest phase, BAO PHARMA has laid the foundation for long-term development. However, bridging the “last mile” from the laboratory to the market, coping with intense competition, and achieving self-sustaining profitability may well constitute the true tests it will face after its IPO.