Two new drugs, RWA Revolution, are disrupting the innovative pharmaceutical industry within a week. Why now?

In the past week, two new drugs, RWA Revolution, are revolutionizing the innovative drug industry, why now? If the first globalisation of Chinese innovative drugs is "licensing out innovative drugs", the second will be "R&D capability on the chain". On July 31, IVD MEDICAL (01931, +19.82% intraday) announced the global first IVD medical equipment RWA project landing, anchoring the ownership of 3,000 testing equipment on the chain, releasing 3 billion liquidity. On August 4, Hybio Pharmaceutical (300199.SZ, +19.98% intraday) joined forces with the encrypted exchange KuCoin to launch the first innovative drug RWA token exploration in China in Hong Kong with GLP-1/rare disease and other peptide new drug pipelines as the underlying assets for "future income rights". Within a week, two medical/pharmaceutical companies opened the liquidity lock of trillion-dollar pharmaceutical assets with the same key - RWA (Real World Assets). While the traditional License-out is still celebrating the $12 billion offshore transaction volume, a paradigm shift from "BD authorization for offshore" to "asset securitization for offshore" revolution has quietly erupted. Chinese innovative drugs can no longer only "BD authorization for offshore," but can also "securitize assets for offshore". RWA Stablecoin: restructuring pharmaceutical asset liquidity RWA (Real World Assets): Tokenizing real assets (such as real estate, bonds, equipment revenue rights) through blockchain technology to achieve on-chain transactions. Stablecoin: A digital currency anchored to fiat/gold (such as USDT, USDC), acting as a payment medium and pricing unit for RWA transactions. Relationship: Stablecoins are the "infrastructure" of RWAs, providing stable valuation and cross-border settlement channels for high-risk pharmaceutical assets. Case: Circle's USDC is backed by 100% U.S. bond reserves, providing compliant payment tools for RWAs, with a market value exceeding $61 billion by 2025. Market size: The new engine of blockchain's trillion-dollar market Citigroup forecast: The RWA market size will reach $45 trillion by 2030 (securitization of securities) + $1 trillion (trade financing). Boston Consulting Group report: The global potential value of RWA is $16 trillion, with the proportion of pharmaceutical R&D assets rapidly increasing. Core DRIVE: Traditional asset illiquidity (such as long R&D cycles for innovative drugs, up to 10 years); blockchain enabling asset fragmentation and 24/7 trading. Differences between RWA and traditional finance Example: GCL Energy Technology's photovoltaic power station RWA financing of $200 million, investors subscribe to tokenized revenue rights for the power station through stablecoins, with T+0 settlement. Classic cases at home and abroad: Crossing from new energy to pharmaceuticals Core value of RWA for innovative drugs 1) Break the deadlock of going global Pain points of traditional BD model: Valuation discount (overseas pharmaceutical companies pressure pricing); Long cycles (average 18 months for licensing out); Concentration of risk (clinical failure leading to termination of cooperation). RWA solution: Asset securitization: Split future revenue of R&D pipeline into tokens, segmented subscription by global investors; Risk diversification: Retail investors bear R&D risks, reducing the likelihood of single institution default. 2) Restructuring the financing logic From "selling off rights" to "selling off expected income": Retain IP ownership, anchor revenue rights; From "relying on PE" to direct global funding: KuCoin connects Han Yu with 41 million cross-border investors. In 2024, Chinese innovative drug License-out reached $51.9 billion. If 10% is converted to RWA financing, over $5 billion in liquidity will be released. Why is new drug RWA now? Policy, capital, technology triple resonance 1) Policy inflection point: Global regulatory framework taking shape Hong Kong policy: "Stablecoin Ordinance" came into effect on August 1, providing compliant anchors, allowing sandbox testing for pharmaceutical RWAs; U.S. bill: The "GENIUS Act" passed in June, tying stablecoins to U.S. bonds, seeking new funding targets; Maturity of technology: AntChain released the "RWA on the chain technical standards", and medical data desensitization on the chain solution was implemented; Capital thirst: Global illiquid assets reaching $26 trillion, funds pouring into high-yield innovative drug RWAs. 2) Capital demand: Trillion-dollar liquidity release Boston Consulting predicts: By 2030, global RWA market size will reach $16.1 trillion, with medical assets accounting for over 20%. Currently, only 0.1% of pharmaceutical assets are tokenized, leaving vast room for growth. 3) Maturity of technology: Web3 infrastructure improvement Smart contracts: Automatically execute revenue distribution (e.g., dividends to token holders after drug listing); Oracle network: Secure on-chain medical data (such as clinical trial results) to solve information asymmetry. 4) Ecological synergy: New alliance of pharmaceutical companies + exchanges + VCs IVD MEDICAL model: Form a closed loop of "asset screening - token issuance - liquidity supply - reinvestment in R&D". Five core pain points of innovative drug companies 1) Long funding lock-in period, liquidity depletion An average of 10 years for a new drug to be developed, with 80% of funding consumed in clinical stages (especially phases II/III), but assets unable to circulate for liquidation, leading to long-term "bleeding" for companies. Traditional financing relies on PE/VC, but in H1 2025, healthcare IPOs only raised $18 billion, far from meeting the demand. 2) Valuation discounts and equity transfer dilemmas Although License-out (licensing out) brings in an annual transaction volume of $51.9 billion by 2024, down payments are low, and global rights need to be transferred; some sell to what is known in the industry as American "second-hand dealers", with the milestone revenue rights of shell companies that are later listed. 3) High investment threshold, exclusion of retail capital Funding for a single innovative drug project requires tens of millions of dollars, with only institutions able to participate, and ordinary investors unable to share in high-growth dividends. 4) High concentration of risk Clinical failure rate exceeds 90% (from Phase I to market), a single pipeline failure can directly lead to Biotech company bankruptcy. 5) Inefficiency in globalisation Cross-border capital flows restricted by foreign exchange controls, high compliance costs, making it difficult for Chinese innovative drugs to reach European and American retail and specialty fund investors. Exploring the landing path of innovative drug RWAs 1) Anchor design: Priority for three types of pharmaceutical assets R&D pipeline revenue rights (Han Yu model): Tokenize by clinical stage (e.g., risks and premiums vary by Phase I/III); Equipment ownership (HuaJian model): On-chain ownership of testing devices, tokenization of rental income; Data asset usage rights: De-identified clinical data pool (e.g., annual income from Malu grape data assets increased by $3 million). 2) Framework design Key avoidance: Exclude sensitive data such as human genetic resources Risks and prospects: From "dreaming" to "building roads" Challenges: Regulatory dynamics (Hong Kong Monetary Authority needs to refine pharmaceutical RWA rules); Complexity of new drug valuation (quantitative modeling of clinical failure probabilities); Technical security (prevent hackers from attacking smart contracts). Countermeasures: Adopt a tiered token system like Ondo Finance (high risk, high return); Cooperate with licensed custody organizations in Hong Kong. Outlook: If pharmaceutical RWAs prove successful, China's 3,000+ clinical pipelines could release trillions of dormant assets, driving innovative drugs from "single product going global" to upgrading to R&D capability global output. In conclusion: R&D capability on the chain, China Meheco Group's second globalisation Innovative drug RWA is not just a technological gimmick, but a restructuring of the relationship between "capital - research and development - market". When IVD MEDICAL's IVDD stablecoin flows through HKEX, and when Han Yu Pharmaceuticals joins forces with KuCoin to launch the first innovative drug RWA token exploration in Hong Kong with GLP-1 peptide new drug pipelines as the underlying asset, China Meheco Group finally bids farewell to the era of "making wedding dresses for foreign capital" in BD, moving towards a new era of R&D asset global pricing power and sitting on equal footing with multinational giants! This article is a reprint from the "Jos Essays" public account, GMTEight editing: Jiang Yuanhua.