BAO PHARMA-B (02659) Interim Results: Loss Narrowed, Abundant Cash Flow, High-Quality Pipeline Matrix Strengthening Long-Term Value

On August 28, BAO PHARMA-B (02659) released its interim results for the year 2026. In the first half of 2026, the operating quality of Baoji Pharma significantly improved, with losses sharply reduced to 154 million yuan, a substantial year-on-year narrowing of 16.1%. At the end of the period, the company had cash and cash equivalents totaling 1.042 billion yuan, indicating ample financial resources. Furthermore, the company's R&D pipeline is advancing rapidly as planned, with R&D expenditures reaching 93 million yuan, building core momentum for long-term development. In terms of strategic layout, Baoji Pharma is focused on creating a high-value product pipeline, delving deeply into four major areas: high-capacity subcutaneous delivery, antibody-mediated autoimmune diseases, assisted reproduction, and synthetic biological upgraded recombinant biopharmaceuticals. Currently, the company's self-developed products under research include three core products (SJ02, Shengnuowa; KJ017, Baoshuyi; KJ103) and six other clinical-stage candidate drugs (KJ101, BJ044, KJ015, BJ007, BJ009, and SJ04), as well as three preclinical assets (BJ045, BJ047, and BJ008), creating a high-quality product matrix with an orderly tiered approach. Baoji Pharma has achieved a comprehensive breakthrough in commercialization: the domestically advanced recombinant human hyaluronidase Baoshuyi was approved for market launch by the National Medical Products Administration in March for use in assisting subcutaneous infusion. Simultaneously, formal collaborations have been established with WUXI BIO, Shanghai RAAS Blood Products, and Quanxin Biotechnology, among others. Currently, over sixty partners are using the company's recombinant hyaluronidase for product development, covering different stages from early research to clinical development; Shengnuowa is the first long-acting recombinant human follicle-stimulating hormone approved for sale in the country, facilitating "once-a-week" injections and significantly enhancing patient convenience. As of June 30, 2026, Shengnuowa has been listed on online procurement platforms and secured market access in 29 provinces nationwide, covering over 70 medical institutions. The exclusive CSO partner Anhui Anke Biotechnology has initiated actual commercial sales. Another core product, KJ103, has had its NDA application for the desensitization indication prior to kidney transplantation in highly sensitive populations accepted by the National Medical Products Administration in June 2026, and this application will undergo priority review. Currently, Baoji Pharma is at a critical juncture in its transformation from a research-driven biotech company to a commercial biopharmaceutical company. With abundant cash flow, a high-quality pipeline matrix, and multiple commercialization layouts driving growth, it is expected to continue releasing growth potential.