New stock news | PEG Bio submits second prospectus to Hong Kong Stock Exchange, core product PB-119 is about to be commercialized

According to the disclosure by the Hong Kong Stock Exchange on November 13th, Peptide BioPharmaceuticals (Suzhou) Co., Ltd. (referred to as Peptide Bio) has once again submitted its listing application to the main board of the Hong Kong Stock Exchange with CICC as the sole sponsor. It is reported that the company had previously submitted an application to the Hong Kong Stock Exchange on February 23, 2024. The prospectus shows that Peptide Bio was founded in 2008 and is a biotechnology company focused on researching and developing innovative therapies for chronic diseases (mainly peptides and small molecule drugs), with a focus on metabolic disorders. The company has independently developed a core product and five other candidate products to capture market opportunities for common chronic and metabolic diseases such as type 2 diabetes (T2DM), obesity, non-alcoholic fatty liver disease (NASH), opioid-induced constipation (OIC), and congenital hyperinsulinism (a rare endocrine disorder characterized by recurrent episodes of low blood sugar). The company's core product, PB-119, is a long-acting glucagon-like peptide-1 (GLP-1) receptor agonist, which is close to commercialization and is mainly used for first-line treatment of T2DM and obesity. PB-119 has shown multiple benefits in glucose control, cardiovascular health, and weight management in various clinical trials. The long-acting GLP-1 receptor agonist, such as PB-119, is a once-weekly dosing product, while short-acting GLP-1 receptor agonists require daily or multiple dosing regimens. The new drug application (NDA) for PB-119 for the treatment of T2DM in China was accepted by the National Medical Products Administration in September 2023, marking an important milestone in its upcoming commercialization. On September 13, 2024, the company entered into a commercialization arrangement for PB-119 with a leading domestic pharmaceutical company in China in the commercialization stage. Through this commercialization arrangement, Peptide Bio expects to benefit from its decades of market experience, medical expertise in the rapidly growing Chinese healthcare industry, comprehensive market access for its product portfolio, and sales network covering both high-end and low-end markets to achieve broad market penetration in China. In overseas markets, the company plans to release asset value through commercialization arrangements with local partners. It may also seek collaborations for clinical development in the United States and Europe, and explore other overseas markets including countries along the "Belt and Road" initiative such as in the Middle East and South Asia. Financially, Peptide Bio is currently not profitable. According to the prospectus, research and development expenses for the fiscal years ending in 2022, 2023, and the eight months ending on August 31, 2024 were RMB 2.803 billion, RMB 2.367 billion, and RMB 0.761 billion, respectively. During the same period, the company recorded total losses of RMB 3.06 billion, RMB 2.79 billion, and RMB 2.02 billion in net income and comprehensive income.