Hengrui's veteran R&D leader leads Mingyu Pharmaceutical's sprint for Hong Kong stock IPO

Mingyu Pharmaceutical mainly focuses on the fields of oncology and autoimmune diseases, with a product pipeline covering 13 candidate products, of which 10 have entered the clinical stage. Key Points: Mingyu Pharmaceutical has reached a cooperation agreement with Qilu Pharmaceutical for MHB088C in the Greater China region, with a total transaction value of 1.345 billion yuan. Since its establishment, Mingyu Pharmaceutical has completed five rounds of financing, with investors including Aobo Capital, Qiming Venture Partners, Huazhang Fund, and Tigermed. Molly Hengrui Medicine (600276.SH; 1276.HK) has performed excellently since its listing on the Hong Kong stock market, and its significant "wealth creation effect" has also made Mingyu Pharmaceutical, founded by former R&D head Dr. Cao Guoqing, highly favored by the capital market. On November 24, Mingyu Pharmaceutical Co., Ltd. officially submitted its main board listing application to the Hong Kong Stock Exchange, with joint sponsors including Morgan Stanley, Bank of America Securities, and CITIC Securities. Mingyu Pharmaceutical was established in 2018, and founder Cao Guoqing holds a Ph.D. in Biochemistry from Ohio State University. He previously worked as a senior biologist in the cardiovascular and metabolic diseases department at Eli Lilly in the United States, where he received the highest research award, the R&D President's Award. In 2012, Cao Guoqing returned to China to join Hengrui Medicine as the deputy general manager of biological R&D, fully responsible for the discovery and preclinical development of early antibody macromolecules and small molecule drugs, laying the foundation for his subsequent entrepreneurship. Mingyu Pharmaceutical mainly focuses on the fields of oncology and autoimmune diseases, with a product pipeline covering 13 candidate products, of which 10 have entered the clinical stage. In the field of cancer treatment, Mingyu Pharmaceutical has built a differentiated product portfolio around ADC drugs and bispecific antibodies, while its autoimmune projects are expected to generate revenue in the near future. Among them, MHB036C is one of the company's core products, an ADC product targeting TROP-2 for the treatment of solid tumors. The combination therapy study with the PD-1/VEGF bispecific antibody MHB039A has been initiated, involving indications such as non-small cell lung cancer and breast cancer, which have a large patient population. According to a report by the consulting firm ZhiShi, the global TROP-2 ADC market size is expected to soar from USD 1.5 billion in 2024 to USD 42.5 billion in 2035, with a compound annual growth rate of 35.4%. Another ADC product, MHB088C, focuses on the treatment of small cell lung cancer and has currently entered the Phase III clinical trial for second-line monotherapy of small cell lung cancer. The potential of this product has been recognized by peers. In March 2025, Mingyu Pharmaceutical reached a strategic cooperation with Qilu Pharmaceutical for the rights of MHB088C in the Greater China region, with a total transaction value of up to 1.345 billion yuan, including a 280 million yuan upfront payment and subsequent milestone payments. In addition, in the field of autoimmune diseases, Mingyu Pharmaceutical has laid out two products close to commercialization, among which MHB018A is a subcutaneous insulin-like growth factor 1 receptor (IGF-1R) antibody for the treatment of thyroid eye disease (TED), which has currently entered Phase III clinical trials. This product has shown strong best-in-class potential, with an eye bulging relief rate of 81% in Phase II trials MH004 is a globally pioneering topical JAK inhibitor. The new drug application for this product targeting mild to moderate atopic dermatitis was submitted in China in 2025, with approval expected in the second half of 2026. According to a report by ZhiShi Consulting, the global market for atopic dermatitis treatment drugs is projected to expand from USD 14.9 billion in 2024 to USD 29.5 billion by 2035, with the Chinese market experiencing particularly rapid growth driven by the increasing prevalence of targeted therapies. In addition to atopic dermatitis, MH004 is also suitable for treating various skin autoimmune diseases such as vitiligo. Cumulative Loss of 587 Million Yuan Over Two and a Half Years Mingyu Pharmaceutical is currently still in a phase of continuous investment, with only 264 million yuan in operating revenue generated in the first half of 2025 from its licensing cooperation with Qilu Pharmaceutical. The R&D expenditures for 2023, 2024, and the first half of 2025 were 182 million yuan, 281 million yuan, and 98 million yuan, respectively, with net losses during the same periods amounting to 137 million yuan, 283 million yuan, and 167 million yuan, resulting in a cumulative loss of 587 million yuan over two and a half years. However, thanks to its star founding team, Mingyu Pharmaceutical has completed five rounds of financing since its establishment, with investors including Aobo Capital, Qiming Venture Partners, Huazhang Fund, Tigermed, IDG Capital, Yuanhe Holdings, and Wuyuan Capital. The latest Pre-IPO round of financing was completed in July 2025, co-led by internationally renowned healthcare investment institutions Aobo Capital and Qiming Venture Partners, with existing shareholder Taifu Capital continuing to support, raising USD 131 million and bringing the post-investment valuation of the company to 3.936 billion yuan. Nevertheless, strong support from the capital market does not guarantee a smooth commercialization path. Mingyu Pharmaceutical currently lacks a commercialization team, and several key products will face direct competition from its former employer, industry leader HengRui Medicine. In the indication of atopic dermatitis, MH004 will compete with HengRui Medicine's emapalumab ointment, both of which are in the new drug application stage. In the oncology field, MHB036C will face direct competition with HengRui Medicine's target product SHR-A1921 in the non-small cell lung cancer indication, both of which are in clinical phases I/II, and the TROP-2 ADC track has also attracted multinational pharmaceutical companies such as Daiichi Sankyo, AstraZeneca, and Gilead Sciences, making competition quite fierce