The revolution of subcutaneous vein transfer has arrived, KJ017 has officially been approved, Boji Pharmaceutical (02659) is becoming the "hub core" of the large molecule drug ecosystem.

After experiencing a long period of valuation clearance and structural cleansing, the Hong Kong stock market's 18A biopharmaceutical sector is now at a key turning point from "PPT-driven" to "performance verification". There was a time when investors were willing to pay for a forward-looking PPT, but when popular tracks like PD-1 and ADC got stuck in low-level repetition and price wars, market aesthetic logic underwent a fundamental reversal - companies with a definite commercial loop, rare clinical applications, and the ability to achieve "self-hematopoiesis" were becoming the leaders of a new round of valuation recovery. Against this background, BAO PHARMA-B (02659)'s core product, injectable human hyaluronidase (Bo Shi Yi, project code KJ017) has officially obtained approval from the National Medical Products Administration (NMPA), marking the official entry of China's first and only recombinant human hyaluronidase. This milestone event not only signifies the entry of Baoji Pharmaceutical's second core product into the commercialization stage, but also signifies the company's official transformation from a single R&D-focused Biotech to a glamorous Biopharma with continuous self-hematopoietic capabilities. In the current wave of "decentralization" in the biopharmaceutical industry, KJ017s official entry will leverage BOB PHARMAs and even the entire subcutaneous drug market's valuation ceiling. KJ017: Breaking the technological monopoly of "water sellers" and redefining the clinical and market boundaries of large molecule drug delivery The approval of Baoji Pharmaceutical's KJ017 for listing goes far beyond the birth of a regular new drug, it is more like a revolutionary "underlying technological plug-in" that precisely addresses the long-standing pain points in the clinical delivery of biologics. As a recombinant human hyaluronidase, the clinical value of KJ017 lies in its ability to temporarily degrade hyaluronic acid in the subcutaneous interstitium, significantly increasing the permeability of subcutaneous tissue. This characteristic allows large volume biologic drugs (such as monoclonal antibodies, bispecific antibodies, ADCs, immunoglobulins, etc.) that traditionally required hours of intravenous infusion to be administered subcutaneously within minutes. This "decentralized" delivery method revolution not only significantly shortens the patient's treatment time in the hospital, improves medication compliance and quality of life, but also macroscopically relieves the pressure on medical institutions' infusion rooms, in line with the global trend of medical services transitioning to a more family-friendly and convenient approach. In addition, compared to traditional animal-derived products, Baoji Pharmaceutical's KJ017 developed using synthetic biology platforms eliminates the risk of animal-derived virus contamination, and has high consistency and safety. Importantly, its low immunogenicity eliminates the need for cumbersome skin testing during clinical use, providing great convenience to clinical staff and patients, truly solving the "last hundred meters of drug delivery" problem for patients with difficult venous access. From a market value perspective, KJ017 demonstrates an extremely scarce "water seller" business model. Referring to the development path of global recombinant human hyaluronidase giant Halozyme, its ENHANZE platform has enabled multiple blockbuster drugs such as trastuzumab and rituximab to transition from intravenous to subcutaneous, and its valuation has also crossed from the Biotech stage to nearly tens of billions of dollars. The approval of Baoji Pharmaceutical's KJ017 is a replication and upgrade of this logic in the Chinese market: KJ017 can not only be used as a single drug for large volume subcutaneous administration of crystal solutions, treatment of fluid loss and other basic medical scenarios, but it also has imaginative platform empowerment effects. It is understood that Baoji Pharmaceutical has established deep strategic partnerships with WUXI BIO (02269), Qusen Biosciences (02509), Shanghai RAAS Blood Products (002252.SZ) and other leading pharmaceutical companies to jointly develop subcutaneous preparations of antibodies and immunoglobulins. This means that KJ017 is becoming a strategic hub for the "decentralization" revolution of large molecule drugs in China, whether monoclonal antibodies, bispecific antibodies, or immunoglobulins, they can significantly extend the drug's life cycle and improve patient compliance through joint development with KJ017. This "carrying effect" means that KJ017's commercial ceiling is not limited to its own sales, but deeply integrated with the trend of subcutaneous drug delivery in the entire Chinese biopharmaceutical market, giving it a higher market certainty and anti-risk ability than single innovative drugs. With more joint development varieties entering clinical and commercial stages, Baoji Pharmaceutical will lock in the certainty of growth in the subcutaneous drug delivery market in the next ten years through a multi-dimensional income model of "product sales + technical authorization + revenue sharing". According to Frost & Sullivan forecasts, the market size of Chinese recombinant human hyaluronidase and related preparations is expected to reach about RMB 7 billion by 2033. KJ017, as the only approved product of its kind domestically, its first-mover advantage and platform barriers will directly long-term valuation support. From "research and development" to "harvest": the 18A sample with dual-core driving starts a new cycle of valuation restoration With the finalization of KJ017, Baoji Pharmaceutical has officially formed a commercial dual-engine structure with SJ02 (recombinant long-acting follicle-stimulating hormone) and KJ017 as core products. It is understood that SJ02, as the first domestically approved long-acting FSH product, targets the pain points of "daily injections" in the assisted reproduction field, significantly improving patient experience by reducing dosing frequency. It has already accelerated penetration into the billion-dollar reproductive medicine market through an exclusive sales agency agreement with Anhui Anke Biotechnology. The addition of KJ017 has created another high-frequency, wide-coverage scenario-driven growth pole for the company. With two core products entering the commercialization stage, Baoji Pharmaceutical's positioning in the Hong Kong stock market's 18A sector has been completely transformed - the company is no longer just a start-up relying on financing for survival and in a vacuum period of R&D, but a growth-oriented pharmaceutical company with a mature industrial base that can continuously generate cash flow through high-barrier products. This transformation from "blood transfusion" to "hematopoiesis" is extremely demonstrative for the 18A sector post-winter, and is the most important valuation anchor change that capital markets value. It indicates that the company is expected to achieve a balance between profits and losses first, and provide stable internal financial support for more disruptive pipelines such as KJ103 (recombinant IgG degrading enzyme) in the future. With the first presentation of revenue data in the 2025 financial report and the enhanced expected increase in volume of KJ017 in 2026, Baoji Pharmaceutical is poised to achieve a double "David's double strike" in valuation and stock price. On the one hand, the increasing certainty of performance will gradually eliminate the risk discount commonly found in 18A companies, and with the gradual release of sales, the company is expected to demonstrate excellent revenue growth and profit elasticity in future financial reports; on the other hand, KJ017 as a scarce asset domestically, its premium space will continue to rise with more cooperative pipelines. The approval of KJ017 this time will be a catalyst for Baoji Pharmaceutical to achieve value reconstruction in the Hong Kong stock market, and the simultaneous progress of SJ02 and KJ017 will set a sustainable growth example for the Hong Kong biopharmaceutical sector to successfully transition from technology-driven to scenario-driven, from financing-driven to performance-driven.