RiboBio IPO: Burdened with RMB 762 Million in Debt, Can 'Financing + BD' Quench Its Cash Thirst?

Looking at the niche tracks in drug development, there are always quite a few "promising candidates." Most of these pharmaceutical companies are in the clinical stage, holding several distinctive products and striving to become leaders in their specific fields. However, not having initiated product commercialization also implies significant financial burdens, making smooth financing channels the top priority for the development of these enterprises.

Suzhou Ribo Life Science Co., Ltd. ("Ribo Life Science"), which recently submitted its listing application to the Hong Kong Stock Exchange, is a microcosm of the industry.

According to the prospectus, Ribo Life Science mainly focuses on the research and development of small nucleic acid drugs, particularly emphasizing siRNA (small interfering RNA) therapies. It aims to provide optimal solutions for treating cardiovascular, metabolic, kidney, and liver diseases through pioneering innovation. The self-developed drugs clearly represent the concentrated embodiment of its investment value.

Behind Multiple Rounds of Financing, Product Innovation is Also "Magnet for Capital"

Judging from the financing trends alone, Ribo Life Science has already demonstrated its appeal to capital.

According to Tianyancha, as of now, Ribo Life Science has completed 7 rounds of financing, with investment institutions including Panthera Capital, Sanyi Innovation, CICC Capital, Hillhouse Ventures, SDIC Innovation, and CR Venture Capital, among others. Additionally, the prospectus shows that after the E2 round of financing and the equity transfer in 2025, Suzhou Ribo Life Science Co., Ltd.'s valuation could reach 3.58 billion yuan.

As a clinical-stage pharmaceutical company, why is Ribo Life Science able to continuously attract external funding? This is naturally related to industry prospects and the competitiveness of its products under development.

First, look at its track, which is about to explode. According to a Frost & Sullivan report, from 2019 to 2023, the global small nucleic acid drug market size grew from $2.7 billion to $4.6 billion, with a compound annual growth rate of 14.3%. With continuous technological advancements and increasing product achievements, the global small nucleic acid drug market size is expected to reach $46.7 billion by 2033.

A closer look at Ribo Life Science's business layout reveals that the company also possesses certain strengths as a leader in its field.

The prospectus shows that Ribo Life Science has currently built one of the largest siRNA drug pipelines globally, with six self-developed drug assets in clinical trials, covering seven indications related to cardiovascular, metabolic, kidney, and liver diseases. In addition, Ribo Life Science also maintains over 20 preclinical projects planned to advance into the clinical development stage.

In clinical projects, the core product RBD4059 (an siRNA targeting FXI) is the world's first and also the fastest-progressing siRNA drug in clinical development for the treatment of thrombotic diseases.

Ribo Life Science introduced that thrombotic diseases have become one of the leading causes of death globally, claiming more than 10 million lives each year. By selectively inhibiting FXI (Factor IX), RBD4059 can reduce the risk of thrombosis without significantly increasing the risk of bleeding (a common limitation of traditional anticoagulants), while producing long-lasting efficacy with low-frequency dosing, improving patient compliance.

In addition to the core product RBD4059, Ribo Life Science has two other key products — RBD5044 and RBD1016.

The former is the world's second siRNA drug targeting APOC3 (a protein that plays a key role in lipid metabolism) to enter clinical development, with an indication for hypertriglyceridemia.

The latter has a potent inhibitory effect on HBsAg (a key factor known to cause adverse liver complications related to CHB) and serves as an essential pillar therapy in the future combination approach to achieve a functional cure for CHB (chronic hepatitis B, caused by the hepatitis B virus HBV). It is also the leading siRNA candidate for the treatment of CHD (chronic hepatitis D, which can occur in CHB patients and is caused by the hepatitis D virus HDV).

Notably, the innovative product portfolio of Ribo Life Science has not only attracted attention from the investment market but also become the foundation for the company to promote BD collaborations.

BD Deals Fill "Revenue Gaps," but Still Fall Short

In the prospectus, Ribo Life Science highlighted two BD transactions.

In December 2023, Ribo Life Science entered into a licensing and cooperation agreement with Qilu Pharmaceutical (a supplementary agreement was further signed on June 12, 2024). According to the agreement, Ribo Life Science granted Qilu Pharmaceutical the rights to develop, manufacture, and commercialize RBD7022, a small nucleic acid drug targeting PCSK9 (Proprotein Convertase Subtilisin/Kexin Type 9) for the treatment of hypercholesterolemia, in Greater China (mainland China, Hong Kong, and Macao).

In the same year and month, Ribo Life Science also entered into a collaboration and license agreement (as amended from time to time) with Boehringer Ingelheim. Through this collaboration, the two parties will utilize Ribo Life Science's proprietary RiboGalSTAR™ technology to jointly develop innovative small nucleic acid therapies for the treatment of non-alcoholic or metabolic dysfunction-associated steatohepatitis (NASH/MASH).

These BD collaborations have provided Ribo Life Science with sources of revenue. The prospectus shows that in 2023 and 2024, Ribo Life Science's operating revenue reached 44,000 yuan and 143 million yuan, respectively. It can be said that Ribo Life Science, which is in the IPO sprint stage, is not entirely "revenue-blank."

But on the eve of product commercialization, the company's financial pressure still objectively exists.

According to the prospectus, in 2023 and 2024, Ribo Life Science's research and development expenditures were 316 million yuan and 280 million yuan, respectively; administrative expenditures were 81.11 million yuan and 92.51 million yuan, respectively. Under cost pressures, the annual losses for the same periods were 437 million yuan and 281 million yuan, respectively. Additionally, as of December 31, 2024, Ribo Life Science's total liabilities amounted to 762 million yuan, with a net asset value of -111 million yuan.

In this situation, for Ribo Life Science, it has become quite necessary to strengthen external "blood transfusion." In the current capital game, Ribo Life Science has already played its "trump card," namely its products. However, whether this will be enough in such a vast market remains open to debate.

At present, Ribo Life Science's drug development is in a race against time.

For example, Ribo Life Science mentioned in the prospectus that, as of the latest practicable date, no siRNA drugs targeting FXI have been approved for the treatment of thrombotic diseases, but globally, three candidate drugs are currently in clinical development. They are RBD4059 from the company, STP122G from Sirnaomics, and SRSD107 from Sirius Therapeutics.

Whoever can achieve better therapeutic efficacy and be the first to market will dominate. Among the aforementioned drug developments, Ribo Life Science is at the forefront of progress. However, uncertainties in drug development, such as whether clinical applications can be successfully completed and whether the product's efficacy truly leads, are all within the scope of consideration for the capital market. In this situation, it is crucial for Ribo Life Science to maintain strategic resolve.

Source: Medical Research Society

       Title: Ribo Life Science IPO: With 762 Million Yuan in Debt, “Financing + BD” Still Can’t Solve the Funding “Thirst”?