Sichuan Baili Tianheng Pharmaceutical Co., Ltd. (hereinafter referred to as "Baili Pharmaceutical", stock code: 688506) has passed the IPO filing and is preparing to be listed on the Hong Kong Stock Exchange.

Rumors suggest that Baili Pharmaceuticals could raise US$500 million, making it one of the largest deals planned in Hong Kong.

Baili Pharmaceutical has been listed on the Science and Technology Innovation Board in January 2023, and once it is listed on the Hong Kong Stock Exchange, it will also achieve "A+H" share listing.

Revenue in the first four months was 5.5 billion

Founded in 1996, Baili Pharmaceutical Co., Ltd. is a modern biopharmaceutical enterprise integrating drug R&D, production and marketing, with chemical drug preparations and Chinese patent medicine preparations and innovative biological drugs.

Baili Pharmaceutical has a full range of drug R&D and production capabilities, including small molecule chemical drugs, large molecule biological drugs and antibody drug conjugates (ADC drugs); It has R&D centers in China and the United States (USA: Systimmune; China: Baili Pharmaceutical and Duote Biotech, etc.), 1 large molecule biologics and antibody drug conjugate (ADC drug) manufacturer (Duote Biotech), 2 chemical drug preparation manufacturers (Baili Pharmaceutical and Guorui Pharmaceutical), 1 chemical API manufacturer (Jingxi Pharmaceutical), 1 chemical intermediate manufacturer (Haiyate Technology) and 2 pharmaceutical marketing companies (Baili Tianheng and Lhasa Xinbo); It covers the upstream and downstream integration capabilities from intermediates, APIs to preparations, and the complete life cycle commercial operation capabilities of "R&D-production-marketing".

According to the prospectus, Baili Pharmaceutical's revenue in 2021, 2022, and 2023 will be 795 million yuan, 700 million yuan, and 560 million yuan respectively; The losses during the period were 108 million yuan, 280 million yuan and 780 million yuan respectively.

Baili Pharmaceutical's revenue in the first four months of 2024 was 5.5 billion yuan, compared with 145 million yuan in the same period last year, and the profit for the period was 4.864 billion yuan, compared with a loss of 228 million yuan in the same period last year.

Ten years ago, in 2014, Baili Pharmaceutical founded SystImmune in Seattle, USA, and began to develop the first-in-class EGFR × HER3 bispecific antibody ADC (BL-B01D1).

Ten years later, in 2024, Baili Pharmaceutical and BMS reached a global strategic licensing and cooperation transaction with a total amount of US$8.4 billion and an initial payment of US$800 million for BL-B01D1, the largest total transaction value of a single asset in the global ADC field to date.

The significant increase in revenue of Baili Pharmaceutical was due to the receipt of advance payment from BMS during the reporting period. In the first four months of 2024, Baili Pharmaceutical's revenue from licensing fees was 5.33 billion yuan, accounting for 97% of revenue.

As of April 30, 2024, Baili Pharmaceutical held cash and cash equivalents of 5.87 billion yuan.

Zhu Yi controls 74% of the shares

The executive directors of Baili Pharmaceutical are Dr. Zhu Yi, Ms. Zhang Suya, Kang Jian, Zhuo Zhi and Dr. Zhu Hai; The non-executive Director is Dr. Wang Guowei, and the independent non-executive Directors are Li Mingyuan, Yu Xiong, Yang Min and Dr. Xiao Geng.

As of March 31, 2024, the controlling shareholder and actual controller of Baili Pharmaceutical is Zhu Yi, a natural person, holding 74.34 shares of the company. Zhu Yi also serves as the chairman and general manager of the company.

Zhu Yi, born in December 1963, holds a bachelor's degree in radio from Sichuan University, a master's degree in biology from Fudan University, and a doctorate in management from Sichuan University. He is currently the chairman, general manager, chief scientific officer and core technical personnel of the company. From September 1987 to December 1990, he taught in the Department of Microbiology and Immunology, West China Medical University. From January 1991 to March 1992, he served as the director of Sida Biochemical Plant of Chengdu Biomedical Engineering Center; From March 1992 to October 2012, he served as the chairman of Xinbo Technology;

From August 1996 to September 2011, Zhu Yi established Baili Pharmaceutical and served as chairman and general manager; From November 2010 to October 2011, he served as the chairman and general manager of Tianheng Co., Ltd.; Since November 2011, he has served as the chairman and general manager of the company; At present, he is also the company's chief scientific officer and core technical personnel, chairman of Baili Pharmaceutical, executive director and manager of DotBio, executive director of Pangu Capital, and executive director and general manager of SystImmune.

OAP III (HK) Limited holds 7.11% of the shares, Guangzhou Telford Investment Consulting Partnership (Limited Partnership) - Guangzhou Telford II Equity Investment Fund (Limited Partnership) holds 2.76%, Zhang Suya holds 2.39% of the shares, Bank of China Co., Ltd. - GF Healthcare Equity Securities Investment Fund holds 1.1% of the shares, and China Construction Bank Corporation - Wells Fargo Precision Medicine Flexible Allocation Hybrid Securities Investment Fund holds 0.57% of the shares. CITIC Securities-Industrial Bank-CITIC Securities Baili Tianheng employees participated in the strategic placement of the Science and Technology Innovation Board and held 0.56% of the shares;

Shanghai Alixiang Private Equity Fund Management Partnership (Limited Partnership) - Alexiang Dunmin No. 2 Private Securities Investment Fund holds 0.54% of the shares, China Merchants Bank Co., Ltd. - ChinaAMC SSE Science and Technology Innovation Board 50 Component Exchange-traded Open-ended Index Securities Investment Fund holds 0.46% of the shares, and Essence Securities Investment Co., Ltd. holds 0.38% of the shares.