HJ Science Suffers Brutal Hong Kong IPO Debut; Hengrui Pharma Seeks EU Approval for First Innovative Drug

A turbulent day for China's pharmaceutical sector saw a biotech IPO crash, a landmark European regulatory filing, and a major autoimmune drug approval — all within 24 hours.

Hengrui Pharma Goes European

Jiangsu Hengrui Pharmaceuticals Co., Ltd. took a significant step toward global expansion on June 22, when the European Medicines Agency accepted its marketing authorization application for revumenib tablets. The drug, designed to be used in combination with androgen deprivation therapy, targets adult male patients with high tumor burden metastatic hormone-sensitive prostate cancer.

The filing marks a watershed moment for the Chinese pharmaceutical giant: it is the first self-developed innovative drug from Hengrui Pharma to seek marketing approval in the European Union, signaling the company's ambitions to compete on the world stage beyond its dominant domestic market.

In a separate development on June 23, Hengrui Pharma withdrew its drug registration application for ritlecitinib ointment — a topical treatment for mild to moderate atopic dermatitis in adults — after determining that additional application materials were needed. The company made the decision following consultations with China's National Medical Products Administration.

HJ Science's Brutal Hong Kong Debut

The mood was far less celebratory for HJ Science Co., Ltd., which listed on the Hong Kong Stock Exchange on June 23 only to see its shares plunge 56.89% by the close of trading. The company's market capitalization fell to HK$2.595 billion, well below its Series C valuation — a stark reminder of the unforgiving nature of public markets for biotech companies in the current environment.

The steep decline reflects broader investor skepticism toward Chinese biotech IPOs, where companies that once commanded premium valuations in private funding rounds are now facing harsh repricing upon entering public markets.

Sanofi Scores Again in Autoimmune Space

Sanofi continued its winning streak in the autoimmune sector on June 23, when the European Medicines Agency approved Tolebrutinib for the treatment of non-relapsing secondary progressive multiple sclerosis. The approval is notable on two fronts: Tolebrutinib is the first drug approved specifically for non-relapsing SPMS, and it represents Sanofi's second autoimmune BTK inhibitor to reach the market.

The approval strengthens Sanofi's position in the competitive multiple sclerosis market, where BTK inhibitors have emerged as a promising new class of therapeutics targeting the underlying inflammatory processes of the disease.

Deal-Making and Clinical Progress

In deal-making news, Fanli Bio announced on June 22 an exclusive licensing agreement with clinical-stage biopharma company Bionyra Pharma covering two antibody drug candidates: an anti-TL1A monoclonal antibody (TL-001) and an anti-TL1A/IL-23p19 bispecific antibody (TL-003). Under the terms, Bionyra gains global rights outside Greater China for research, development, manufacturing, and commercialization. Fanli Bio is entitled to receive up to $985 million in total payments, including an upfront sum and milestone payments tied to development, regulatory, and commercialization progress.

On the clinical front, Atom Therapeutics announced on June 23 that its self-developed small molecule innovative drug ABP-671 (lingdolinurad) for gout has entered Phase 3 clinical trials in China, with the first patient enrolled and dosed.

Mabwell also received regulatory clearance on June 23 from China's National Medical Products Administration to proceed with clinical trials of its injectable 6MW5311 for hematological malignancies, including acute myeloid leukemia, chronic myelomonocytic leukemia, and multiple myeloma. The drug holds the distinction of being the world's first TCE innovative drug targeting LILRB4/CD3 to receive clinical trial approval.

MSD's TL1A Antibody Hits the Mark

Merck & Co. (known as MSD outside the U.S. and Canada) reported positive Phase 3 results on June 22 for its investigational drug Tulisokibart (MK-7240) in the ATLAS-UC induction study for moderate to severe active ulcerative colitis. The drug met both its primary and key secondary endpoints, achieving clinical remission at week 12 as measured by the Modified Mayo Score, with no safety concerns identified.

The results make Tulisokibart the first anti-TL1A monoclonal antibody to demonstrate clinical remission within 12 weeks in a Phase 3 trial, positioning MSD as a frontrunner in the rapidly evolving TL1A therapeutic space — the same target area where Fanli Bio just struck its licensing deal with Bionyra.