Over 20 billion US dollars blockbuster bombshell leading the world, Sichuan Biokin Pharmaceutical (02615) made its debut in the "C position" of Hong Kong stocks.

Technology-driven, explosive demand, and policy support are the three main drivers that have led to the continuous market attention for ADC drugs in recent years. For the Hong Kong stock market, despite experiencing multiple rounds of IPO frenzy and a bull market for innovative drugs, stocks with heavyweight ADC assets or BD assets are rare, especially those with exclusive FIC/BIC varieties that can also retain overseas market rights and sit at par with global MNCs through the CO-CO model, are even scarcer. Now, Sichuan Biokin Pharmaceutical is set to debut on the Hong Kong stock market, filling the investment gap in this area in Hong Kong and offering investors an asset allocation "bonus question." On November 7, Sichuan Biokin Pharmaceutical (02615) announced the launch of a global public offering of H shares and plans to list on the Main Board of the Hong Kong Stock Exchange. It was reported that the basic number of H shares offered in this global offering is 8,634,300 shares. Of these, about 10% are preliminarily arranged for public offering in Hong Kong, with 863,500 shares (which may be reallocated), and about 90% for international offering, with 7,770,800 shares (which may be reallocated). The preliminary price range for the offering is set at HK$347.50 to HK$389.00, and the shares are expected to start trading on the Hong Kong Stock Exchange on November 17 this year. It is worth mentioning that, according to relevant regulations, the H shares of Sichuan Biokin Pharmaceutical are eligible to be included in the Shanghai-Hong Kong Stock Connect as early as the listing date. This means that Sichuan Biokin Pharmaceutical may be included in the Hong Kong Stock Connect on the day of its H share listing. In the process of this H share issuance of Sichuan Biokin Pharmaceutical, it not only has the joint underwriting of Goldman Sachs, JP Morgan, and CITIC SEC, attracting well-known cornerstone investors such as Bristol-Myers Squibb (BMS), but also has received favor from top institutions such as Orbis and DF. The lineup of investors is strong. The reason why the market has high expectations for the long-term value growth of Sichuan Biokin Pharmaceutical is due to its strong ADC new drug R&D, independent global clinical development capabilities, innovative-commercial accumulation in international markets, and unique international cooperation advantages. Currently, Sichuan Biokin Pharmaceutical has already joined the first echelon of global ADC innovative drugs and has sent a strong signal of transformation to global MNCs. As a target that has been validated by the A-share sci-tech innovation board market and a high-quality asset, the successful listing on the Hong Kong stock market of Sichuan Biokin Pharmaceutical also signifies the continued rise in the prosperity of the biopharmaceutical industry. In the future, with the increasing attractiveness and accommodation of high-quality innovative drug companies in the Hong Kong stock market, the multidimensional benchmark effect brought by Sichuan Biokin Pharmaceutical is expected to bring more market expectations to the innovative drug sector of the Hong Kong stock market. "The next generation cornerstone cancer therapy" brings investment certainty The Hong Kong IPO of Sichuan Biokin Pharmaceutical this time has introduced three heavyweight cornerstone investors. Among them, the participation of the multinational MNC Bristol-Myers Squibb is particularly eye-catching. The company has become an important strategic shareholder of Sichuan Biokin Pharmaceutical. Through the "capital + business" deep binding, the strategic relationship between the two parties is expected to further evolve into a "global operational common interests community," which is conducive to long-term and stable collaboration between the two parties. In 2023, Sichuan Biokin Pharmaceutical reached a landmark BD transaction worth $8.4 billion for the EGFR/HER3 dual-target ADC product Iza-bren (BL-B01D1) with Bristol-Myers Squibb (BMS), which features a BD transaction with "high down payment, high milestone, high revenue sharing" characteristics. This deal set a new record for the highest single-drug BD transaction amount in the global ADC drug market. It is worth noting that the BD between Sichuan Biokin Pharmaceutical and BMS is not the traditional seller "low revenue sharing, low participation" passive role-play License-out model, but a CO-CO model in which both parties in the transaction cooperate and share returns. In this model, the cooperative positions of both parties are equal, and they are deeply bound and work together in the drug development stage, and share rich returns in the commercialization stage. In fact, such a transaction model is not common in the collaboration between domestic innovative drug companies and multinational MNCs in the past. BMS is willing to cooperate on an equal footing with Sichuan Biokin Pharmaceutical not only because of the vision and persistence of Sichuan Biokin Pharmaceutical's core management team, but also because Iza-bren, a product with over $200 billion in sales peak potential and potential as the "next generation cornerstone cancer therapy," is a heavyweight variety. It is understood that Iza-bren is the world's first EGFRHER3 dual-antibody ADC to enter Phase III clinical development, developed independently by Sichuan Biokin Pharmaceutical. With the topoisomerase inhibitor Ed-04 as the cytotoxic payload, a high drug-antibody ratio (DAR) of 8, Iza-bren can achieve stronger anti-tumor activity at the mechanism level. In 2023, Iza-bren attracted global attention with its outstanding early-stage data, with eight out of the top ten global MNCs extending olive branches to Sichuan Biokin Pharmaceutical. Eventually, the BD transaction involving Iza-bren was concluded with Bristol-Myers Squibb at a price of $8.4 billion. Today, the performance of Iza-bren confirms the keen insight of BMS as a well-established MNC. At the 2025 European Society for Medical Oncology (ESMO) annual meeting held in October, Sichuan Biokin Pharmaceutical unveiled the overseas multicenter solid tumor research data for Iza-bren for the first time. The research results showed that in patients with advanced heavily treated solid tumors, the overall objective response rate (cORR) of the drug reached 55%, with a median progression-free survival (mPFS) of 5.4 months. As the first large-sample, multi-tumor study data on ADC developed in China specifically for Western populations, and with efficacy results showing consistent benefits in both Western and Chinese solid tumor patients, as well as achieving higher response rates compared to early-stage clinical data in China, the efficacy of Iza-bren has broken through racial and regional boundaries, demonstrating the development potential of a broad-spectrum drug across different races and tumor types. Currently, Iza-bren is undergoing up to 10 single-agent or combination PD-(L)1 antibody/TKI first-line treatment Phase II and III clinical trials, and has shown clearer treatment advantages compared to traditional chemotherapy. With multiple first-line indications expected to be approved in the future, Iza-bren is poised to become the "next generation cornerstone cancer therapy," with a potential peak annual sales value exceeding $20 billion, and a very clear commercial prospect. On September 30, the milestone of the global Phase II/III key registration clinical trial IZABRIGHT-Breast01 for Iza-bren was reached, and Sichuan Biokin Pharmaceutical's wholly-owned subsidiary SystImmune will soon receive the first $250 million milestone payment from BMS. With a milestone achievement rate of less than 30% in the global biopharmaceutical cooperation field, BMS's efficient cooperation payment indirectly demonstrates the high international recognition of Iza-bren. Overall, by going global through BD transactions, sharing global market benefits through technology licensing, and deep participation in the international division of labor in the global pharmaceutical industry, has become a major trend in the Chinese innovative drug industry in recent years. The CO-CO cooperation model with BMS presented by Sichuan Biokin Pharmaceutical demonstrates the company's equal position in the international division of labor in innovative drug development. In the long run, deeper cooperation with BMS is expected to accelerate the company's transformation into a global MNC, and promote the continuous improvement of investment certainty for the company. Building Differentiated Innovative Technological Barriers based on Advanced Platforms It is well known that the core value of ADC innovative R&D companies depends on platform value and drug value. Iza-bren's success is also a strong validation of Sichuan Biokin Pharmaceutical's HIRE-ADC innovative drug R&D platform technology. The HIRE-ADC platform is an innovative ADC drug R&D platform developed independently by the company, providing Sichuan Biokin Pharmaceutical with end-to-end development capabilities. The company's extensive research data allows for continuous iteration of ADC innovation technology and improvement of the company's systematic innovation capabilities. Based on this advanced platform technology, ten innovative ADC drugs have entered clinical stages. In addition to Iza-bren, another potential blockbuster variety with BIC potential, T-Bren, is also worth noting. T-Bren is an innovative HER2 ADC with Best-in-class potential, and is the company's second ADC drug to enter Phase III clinical research. According to the latest clinical data released at the 2025 ESMO meeting, in clinical studies for HER2-positive advanced breast cancer patients, T-Bren achieved the highest objective response rate (cORR) of 82.2% and the longest median progression-free survival (mPFS) of 18 months, showing better treatment potential compared to DS801. Thanks to the high stability of the linkers and the innovative design of the toxins in the HIRE-ADC platform, T-Bren also demonstrates advantages in safety compared to DS-8201. The incidence of interstitial lung disease (ILD) for T-Bren is only 3%, compared to 12% for DS-8201, and there were no occurrences of grade 4-5 ILD. In summary, with significant effectiveness and safety, Sichuan Biokin Pharmaceutical's T-Bren has surpassed DS-8201 in multiple adaptation areas, including HER2 low expression. Referring to AstraZeneca's DS-801 sales data, its global sales for the first nine months of this year reached $3.575 billion, a year-on-year increase of 31%. If the stable year-on-year growth is maintained, the annual sales are expected to exceed $5 billion for the first time. As a potential BIC variety in the same track, T-Bren has already reached the potential high of $5 billion in commercialized sales. However, the ceiling for T-Bren is much higher. As another "masterpiece' of Sichuan Biokin Pharmaceutical's HIRE-ADC platform, T-Bren is also a broad-spectrum anti-tumor big drug with pan-adaptation potential. At the ESMO conference, Sichuan Biokin Pharmaceutical also released multiple clinical trial data for T-Bren, verifying its therapeutic potential in gastric cancer indications. The company has conducted 12 clinical trials for T-Bren domestically and internationally, covering indications such as breast cancer, lung cancer, digestive tract tumors, urological tumors, and gynecological tumors. This is expected to elevate the potential commercial expectations of T-Bren to a new level. In fact, whether it is Iza-bren or T-Bren, they are just a microcosm of Sichuan Biokin Pharmaceutical's significant achievements in innovative drug development based on advanced technology platforms. In addition to the ADC platform, Sichuan Biokin Pharmaceutical has also established a leading global innovative multi-specific antibody development platform (GNC platform), a specific enhancement bispecific antibody platform (SEBA platform), and an innovative ARC (nuclear medicine) research and development platform (HIRE ARC platform), and based on advanced platform technology, has achieved a pipeline and technical reserve. For example, in the area of multiple antibodies, Sichuan Biokin Pharmaceutical's GNC-038 (CD34-1BBPD-L1CD19 Tetra-Anti) is the world's first tetra-antibody drug to enter clinical development, showing a clear first-mover advantage. Accelerating Transformation into a Global MNC As a billion-dollar innovative biopharmaceutical company, to achieve the vision of becoming an MNC, industrialization capability is essential. One of the main differences between MNCs and Biotechs lies in industrialization capabilities. To become an MNC, not only does a company need strong research and development capabilities, global multicenter clinical development capabilities, and global commercialization capabilities, but also global drug supply capabilities. Building and perfecting a global research, production, and sales integrated architecture is an important path for Sichuan Biokin Pharmaceutical to accelerate its transformation into a global MNC. In terms of global research, Sichuan Biokin Pharmaceutical is increasing its investment: in the first half of 2025, the company's research investment reached 1.039 billion yuan, with a year-on-year growth rate of 90.74%, expanding the research team to nearly 1400 people; on the other hand, the company is continuously improving its "dual-center in China and the U.S." research architecture: achieving a synergistic mode of "0-1" in the U.S. research center and "1-N" in the Chinese research center to maximize the core advantages of "early research in the U.S." and "transformation in China." With continuous investment in funds and research teams, by the end of September this year, the company had 16 innovative drugs in clinical trials at its two major R&D centers, and was conducting nearly 90 clinical trials around innovative drugs (nearly 80 in China, 10 in the U.S.), with three innovative drugs entering Phase III registration clinical trials, and six innovative drugs in overseas clinical trials. In terms of global production and supply, relying on the global supply base - DuoTech Bio Base built in Chengdu, Sichuan Biokin Pharmaceutical has established a flexible GMP-standard multi-specific antibody and ADC drug production technology platform, which can independently and autonomously complete the entire process of R&D and early commercial production for innovative drugs, and according to the global R&D progress of pipeline drugs, to further support the future clinical trials and future commercialization of the companys innovative drugs. In terms of global commercialization, using Iza-bren as an example, with excellent global clinical data, its commercial prospects are becoming increasingly clear: leveraging BMS's global registration, clinical development, and commercialization network, Sichuan Biokin Pharmaceutical's establishment of its own global commercialization team is accelerating. In the future, as the company enhances its capabilities in overseas drug regulatory registration, clinical development, and international cooperation operations, it will also help Iza-bren reach global mainstream markets more quickly, unleashing its commercial potential as a super-heavyweight bomb with over $20 billion in potential sales, and using this as a paradigm to facilitate the global commercialization of the company's follow-up pipeline. It is worth mentioning that, as an important part of the transformation into a global MNC, in addition to accelerating the construction of a global research, production, and sales integrated model, Sichuan Biokin Pharmaceutical has also incorporated License-in into its development strategy. From a financial perspective, as of June 30 this year, Sichuan Biokin Pharmaceutical had a cash reserve of over 5 billion yuan, plus the completion of a 3.764 billion yuan A-share private placement in September, the confirmation of a $250 million milestone payment in September, the company's cash balance exceeded 10 billion yuan. In addition, with the additional payment of up to $7.1 billion from the Hong Kong IPO fundraising, and the potential sales expectations of over $20 billion for Iza-bren in the future, Sichuan Biokin Pharmaceutical's financial firepower is expected to further increase, laying a solid foundation for the continued expansion and accelerated transformation into a global MNC in global R&D and commercialization. In conclusion, as a billion-dollar innovative biopharmaceutical company, Sichuan Biokin Pharmaceutical's intrinsic value is continuously being released with its strong integrated competitive advantage, imaginative innovation research and development layout, and rich cash flow support. For the Hong Kong stock market, after experiencing the 2025 bull market for innovative drugs, the long-term valuation repair trend in the pharmaceutical sector is gradually unfolding. Against this backdrop, market funds are likely to favor value targets like Sichuan Biokin Pharmaceutical, which have stable fundamentals, successfully opened the global market for innovative drugs, making it an important trend indicator for long-term investor portfolios.