Chengdu Biotech, Valued at $2.7 Billion, Files for Hong Kong IPO with Pipeline in Autoimmunity, Metabolic and Oncology

On May 11, the HKEX News officially posted the prospectus of HJ Science. This clinical-stage biotechnology company, rooted in Chengdu, has formally launched its bid for the main board of the Hong Kong stock market, with CITIC Securities as the sole sponsor.

HJ Science, founded by Ji Jianxin, a cross-disciplinary expert from both the medical and industrial fields, has rapidly completed team building, technology platform implementation, pipeline clinical advancement, and multiple rounds of capital financing in recent years. After the pre-IPO C2 round of financing, its post-investment valuation has reached 2.7 billion yuan. As a small-molecule innovative drug company rooted in Chengdu Medical City, HJ Science has been focused on the three golden tracks of autoimmune diseases, metabolism, and oncology since its inception, developing several self-innovated Class 1 new drug pipelines. With differentiated molecular design and tissue-targeting technology, it has carved out its own niche amidst the intense competition in the innovative drug sector.

The growth trajectory of HJ Science is a highly representative microcosm of China's innovative drug wave. In an era where capital is becoming more rational and industry competition increasingly fierce, the company's IPO journey is not only crucial for its own ability to secure continuous funding to advance R&D but also serves as a new sample for observing the value logic and survival pathways of China's Biotech enterprises.

The story of HJ Science is inseparable from the past experiences of its founder, Dr. Jianxin Ji.

Ji Jianxin, now 50 years old, graduated from Lanzhou University in 1998, obtained a master's degree from the Chengdu Institute of Biology, Chinese Academy of Sciences in 2001, and received a Ph.D. in Philosophy from the Hong Kong Polytechnic University in April 2004. In July of the same year, he joined Vanderbilt University in the United States as a chemistry research assistant, with many years of in-depth research in synthetic methodology, medicinal chemistry, and molecular pharmacology.

During this period, he has published more than 40 high-level academic papers and submitted nearly 30 patent applications, demonstrating a strong scientific research foundation. On the industry side, Ji Jianxin also boasts an impressive track record: after joining Chengdu DiAo Pharmaceutical in 2007, he held several core positions and eventually rose to the rank of Executive Vice President, deeply engaging in the entire process of pharmaceutical R&D, management, and industrial operations. Since 2017, he has also served as an Investment Decision Committee member at CAS Venture Capital, further integrating into the biomedical capital circle, achieving comprehensive alignment among scientific research, industry, and capital.

The accumulation of academic research combined with the executive experience of leading pharmaceutical companies became the core confidence for Ji Jianxin to establish HJ Science. At that time, China's innovative drug sector was entering a period of explosive growth, but large-molecule biologics were crowded and highly competitive, while there remained significant unmet clinical needs in the differentiated small-molecule drug space. Ji Jianxin keenly identified this industry opportunity, decisively avoided the over-saturated areas, and focused on three essential fields: autoimmune diseases, metabolic diseases, and solid tumors. Concentrating on the development of Class 1 innovative small-molecule drugs, he aspired to build a locally-based pharmaceutical company with global competitiveness.

In 2017, Ji Jianxin participated in the founding of HJ Science. Starting from September 2018, he served as the Chief Executive Officer, and in March 2025, he further assumed the roles of Chairman of the Board and General Manager. Under his leadership, HJ Science rapidly grew by fully leveraging the advantages of Chengdu's biopharmaceutical industry cluster, successively attracting well-known industry capital and investment institutions such as SDIC Venture Capital, Legend Capital, Junshi Biosciences, PeiKun Investment, and Shengyu Investment. After the completion of the C2 round of financing in June 2025, its post-investment valuation officially exceeded 2.7 billion yuan. Before the IPO, through direct shareholding and as the general partner controlling two employee shareholding platforms, Chengdu WenShao and Suzhou Jishitang, Ji Jianxin collectively controlled approximately 57.50% of the voting rights of HJ Science.

These factors jointly depict a distinct profile of technology-driven biotechs.  Centered on top scientists, they focus on original innovative drug R&D, accelerate pipeline clinical advancement with capital support, and steadily advance toward the capital market.

For clinical-stage biotech companies, pipeline strength is the core valuation support and the foundation of their standing in the industry. The prospectus shows that HJ Science's core focus is on three self-developed small-molecule Class 1 innovative drugs: HJ787, HJ178, and HJ891. Additionally, the company has a clinical-stage candidate drug, HJ197, and five preclinical research varieties, fully covering the three major fields of autoimmune diseases, metabolism, and oncology. Each product possesses differentiated competitive advantages, precisely addressing unmet clinical needs.

HJ787 is the core pipeline of HJ Science and, to date, the only topical selective Tyrosine Kinase 2 (TYK2) inhibitor in clinical development in China. TYK2, a key protein in the JAK-STAT signaling pathway, is closely associated with various autoimmune diseases such as atopic dermatitis, acne vulgaris, and neurodermatitis. Currently, the number of patients with autoimmune skin diseases in China is substantial. In 2024, the market size for atopic dermatitis drugs in China has reached 12.1 billion yuan and is expected to increase to 22.1 billion yuan by 2028. However, there are no topical TYK2 inhibitors approved for marketing in China yet. Existing JAK inhibitors and PDE4 inhibitors commonly have significant side effects and limitations on long-term use, indicating a clear gap in the market.

HJ787 targets this market gap and covers multiple indications including atopic dermatitis, acne vulgaris and neurodermatitis. It is developed in both topical and oral formulations, with clinical development currently prioritized for topical preparations for mild-to-moderate atopic dermatitis and acne vulgaris. Clinical data demonstrate that HJ787 delivers favorable efficacy. It features extremely low skin penetration and causes far fewer systemic side effects than conventional JAK inhibitors, boasting prominent safety advantages. At present, HJ787 is in Phase II clinical trials for atopic dermatitis. It is expected to submit an NDA application in 2028, aiming to become the first domestic topical TYK2 inhibitor to hit the market and fill the unmet medical need.

Amid the globally booming GLP-1 track, HJ Science has refrained from blind follow-up and taken a distinctive approach. It has developed HJ178, an oral GLP-1/GIP dual-target agonist mainly indicated for type 2 diabetes, overweight and obesity. Currently, injectable formulations still dominate the global GLP-1 drug market, which are commonly accompanied by gastrointestinal side effects such as nausea and vomiting. In contrast, oral preparations have emerged as a new R&D hotspot in the industry thanks to their convenient administration and favorable tolerability.

As an oral small molecule drug, HJ178 effectively avoids the inherent drawbacks of injectables. In clinical trials, it has not only demonstrated excellent glucose-lowering and weight-reducing effects but also shown no significant gastrointestinal side effects, with tolerability notably superior to similar drugs under research. Currently, the Phase II clinical trial of HJ178 for Type 2 diabetes in China is proceeding smoothly. In terms of global strategy, an IND application targeting Type 2 diabetes and overweight or obesity is planned to be submitted to the FDA in 2026.

KRAS G12C is a highly prevalent mutation target in non-small cell lung cancer. Although several related drugs have been approved globally, they generally suffer from limited efficacy and high liver toxicity, leaving clinical needs unmet. HJ891, developed by HJ Science, is a novel oral KRAS G12C inhibitor. With its unique molecular design, it achieves targeted accumulation in the lungs, reducing drug exposure in the liver and kidneys, thereby significantly lowering toxic side effects and enhancing treatment safety.

Its clinical data shows impressive results: the objective response rate (ORR) of monotherapy in patients with KRAS G12C-mutant non-small cell lung cancer reaches 47.2%, far exceeding the industry average of 36% for Sotorasib. In combination with Toripalimab from Junshi Biosciences, the ORR hits as high as 92.3%, while the incidence of grade 3 and above adverse reactions is merely 13.5%, reflecting markedly superior safety versus other marketed drugs of the same class. Currently, HJ891’s Phase IIb monotherapy study and Phase Ib/III combination therapy studies are advancing steadily, and it is expected to become one of the preferred options for targeted therapy against lung cancer.

Beyond its three core pipelines, HJ Science also owns one clinical-stage candidate drug HJ197 and five preclinical candidates, forming a well-structured product portfolio. HJ197 is a domestically advanced FGFR4 inhibitor targeting hepatocellular carcinoma. No equivalent drugs have been approved worldwide so far. It has shown promising clinical efficacy and holds great potential to become a blockbuster therapy. Overall, the company features precise and highly differentiated pipeline layout covering multiple billion-yuan market segments, which constitutes its core asset value.

As a research-driven Biotech, HJ Science has not yet had any drugs on the market, and its revenue relies on external licensing. It has not achieved profitability, making cash flow crucial to support its ongoing R&D efforts.

From the perspective of revenue structure, HJ Science's revenue mainly comes from pipeline out-licensing and cooperation milestone payments reached with Junshi Biosciences and Junze Chuangyao.

Specifically, in November 2020, HJ Science and its subsidiary Shanghai Zheye entered into a cooperation agreement with Junshi Biosciences for the co-development and commercialization of HJ197 in all Asian countries and regions. In June 2025, HJ Science and its subsidiary Shanghai Zheye further entered into a quadruple agreement with Junshi Biosciences and Junze Chuangyao, transferring all rights and obligations of Junshi Biosciences under the HJ197 agreement to Junze Chuangyao. According to the agreement, Junze Chuangyao may choose to pay 50% of the actual costs incurred for Phase I, Phase II, and Phase III clinical trials, thereby acquiring 50% of the rights and interests of HJ197 in the cooperation region. Additionally, HJ Science also entered into an agreement with Junshi Biosciences regarding the development of HJ191 within the cooperation region, exclusively licensing the rights and interests of this pipeline within the cooperation region to Junshi Biosciences.

These deep collaborations have not only brought capital inflows to HJ Science but also supplemented R&D resources, effectively advancing the clinical progress of its core pipeline. As of now, HJ Science has cumulatively received upfront payments and milestone payments totaling 50 million yuan under the HJ197 agreement, as well as an advance payment of 15 million yuan under the HJ191 agreement, amounting to a total of 65 million yuan.

In terms of R&D investment, HJ Science Continues to Bet on Pipeline Clinical Progress, with R&D Expenditures Increasing Year by Year: R&D Investment Reached 74.97 Million Yuan in 2024, and Increased to 110 Million Yuan in 2025, a Year-on-Year Increase of Nearly 47%. As a pharmaceutical enterprise with no drug sales revenue generated yet, hefty R&D expenses are the core cause of its sustained losses.

In terms of cash flow, as of the end of March 2026, HJ Science's cash and cash equivalents, and financial assets measured at fair value totaled 331.3 million yuan. The prospectus pointed out that the directors believe the existing working capital is sufficient to cover at least 125% of the operating costs for the next 12 months, and the short-term cash flow pressure is relatively manageable. But this also indirectly suggests that this HKEX IPO financing is crucial for supporting HJ Science's long-term R&D investment in the future, advancing pipeline clinical trials, and commercialization layout.

For HJ Science, 2026 is a critical year as multiple pipelines enter the late-stage clinical phase and gear up for commercialization. If HJ Science successfully goes public through an IPO and secures sufficient funding, it will accelerate the clinical advancement of its core pipelines while starting to build a commercialization team in preparation for product launch.

According to the use-of-proceeds plan disclosed in the prospectus, the net proceeds from HJ Science's IPO will be largely allocated to the research and development of core pipelines and preclinical drug candidates, as well as the upgrading of R&D platforms and the establishment of new pipelines. The remaining funds will be used for building a commercialization team and daily operations. As HJ787, HJ891, and HJ178 enter critical clinical stages, the substantial fundraising will effectively alleviate cash flow pressures and expedite the product launch process.

From the perspective of industry trends, market demand in the fields of autoimmune diseases, metabolism, and oncology continues to grow. If HJ Science's core products can successfully enter the market, they are expected to capture market share and achieve profitability breakthroughs by leveraging their differentiated advantages.

Finally, the challenges for HJ Science remain: Whether in TYK2, GLP-1, or KRAS G12C, these fields have already become the "key battlegrounds" for global pharmaceutical companies. For instance, in the GLP-1 space, although HJ178, as an oral dual-target drug, has its unique features, it still needs to compete against strong products from Novo Nordisk, Eli Lilly, and a large number of domestic competitors that have entered Phase III clinical trials in China. The prospectus also acknowledges that it faces fierce competition from large multinational pharmaceutical companies and biotech firms.