From the Biotech to the 18A sector "bottom-level operator," BAO PHARMA-B (02659) how to hold the "entry ticket" to the trillion market.

In 2026, in the Hong Kong stock 18A biopharmaceutical sector, a profound paradigm shift regarding "biological manufacturing industrialization" and "drug delivery scene revolution" is quietly taking place. Over the past decade, China Meheco Group has been accustomed to competing on the "high ground" of popular targets such as monoclonal antibodies and ADCs, using money, talent acquisition, and clinical speed to increase valuation. However, as homogeneous competition leads to increased pressures in medical insurance negotiations and overseas market entry thresholds, the market is beginning to realize that the true moat lies not only in discovering a new target. In this grand industry narrative, BAO PHARMA-B (02659) is taking a different path, evolving from a traditional biotech company into a key "connector" for the upgrading of China's biopharmaceutical industry with its unique synthetic biology foundation and "scene-driven" strategy. From a high-level industry perspective, the second half of biopharmaceuticals is actually a competition about "manufacturing equals research and development". The core logic of Baoji Pharmaceutical lies in its profound understanding of biological manufacturing industrialization. It is understood that, relying on a commercial-scale production platform covering three mainstream host systems - CHO cells, Pichia pastoris, and E. coli, Baoji Pharmaceutical is achieving a "reductionist" technological substitution. Take recombinant human trypsinogen (KJ101) and recombinant urokinase (BJ044) as examples, this is not simply imitation, but using advanced genetic engineering methods to completely end the traditional era of biochemical drugs that relied on animal organ extraction, unstable raw material supply, and virus risks over the past few decades. This green manufacturing capability based on synthetic biology not only responds to the country's call for "bottleneck" technology breakthroughs but also gives enterprises strategic strength in "total cost leadership" in the era of medical insurance cost control. For Baoji Pharmaceuticals, industrial capacity is no longer just a late-stage support, but a competitive chip determined from the molecular design stage. It is worth mentioning that this "infrastructure" logic is reflected in the approval of the company's core product - injectable hyaluronidase (BosshuKJ017). Currently, global biopharmaceuticals are experiencing a historic turning point from "intravenous injection" to "large volume subcutaneous drug administration". Intravenous infusion not only consumes a lot of medical resources but also limits the potential for home treatment for patients. The emergence of KJ017 fundamentally builds a "highway" to the subcutaneous scene for the Chinese biopharmaceutical market. This typical "water seller" business model means that its value is no longer limited to its own sales volume but is deeply linked to the entire multi-billion-dollar biopharmaceutical market's process of "de-intravenous". With industry leaders such as WUXI BIO and Shanghai RAAS Blood Products joining Baoji's subcutaneous drug administration ecosystem, Baoji is actually reshaping the value ceiling of 18A enterprises by mastering the "access rights" to scenes. At the same time, Baoji Pharmaceuticals, with its "pyramid-like" pipeline layout, presents a standard answer to how 18A enterprises can create a self-sustaining blood supply: At the base of the pyramid, there are products like SJ02 (recombinant long-acting follicle stimulating hormone) with strong clinical certainty and scene pain points. In the context of increasing fertility anxiety and demand for assisted reproduction, SJ02 transforms the traditional "daily injection" pain into "one injection per week" and is rapidly becoming a steady cash flow pillar for the company through strong channel connections with Anhui Anke Biotechnology. At the top of the pyramid, revolutionary therapies such as KJ103 (recombinant IgG degrading enzyme) with FIC potential demonstrate lightning-fast efficacy in the field of acute severe autoimmune diseases. This dual-engine model of "steady cash flow + high value innovation" allows Baoji to demonstrate rare strategic resilience in the capital market volatility. Currently, Baoji Pharmaceuticals has set up production bases covering nearly 100,000 square meters in Shanghai, Jiangsu, and other places, with a reactor volume of 26,000 liters and over 70% of research and development personnel. This is not a signal to cash out in the short term, but a clear sign from management that they are long-term bound to their own interests and these scarce "industrial assets". In the mist of the cycle, Baoji Pharmaceuticals is no longer just a company that solely plays with clinical data, but a contributor of "standards" and "infrastructure" for the industrialization of Chinese biopharmaceuticals, deeply embedded in the gear of the entire industry upgrade. For a company that deeply cultivates underlying technology and focuses on clinical scenes, the long-term logic of being a "bottom-level operator" in Chinese biopharmaceuticals is gradually being unleashed.