--- title: "Shaanxi State-owned Assets bets on \"loss-making pharmaceutical company\" doubling on its first day of listing" type: "News" locale: "en" url: "https://longbridge.com/en/news/290823495.md" description: "MICOT PHARMA-B, supported by Shaanxi State-owned Assets, was listed on the Hong Kong Stock Exchange on June 24, with its stock price rising over 102% on the first day compared to the issue price, reaching a market capitalization of HKD 13.09 billion. As an 18A class unprofitable biotechnology company, its core asset MT1013 is in the Phase III clinical stage. The market has given a premium to its pipeline story, but the company still needs to verify whether the funding can support research and development and the core product to complete critical clinical processes" datetime: "2026-06-25T11:08:08.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/290823495.md) - [en](https://longbridge.com/en/news/290823495.md) - [zh-HK](https://longbridge.com/zh-HK/news/290823495.md) --- # Shaanxi State-owned Assets bets on "loss-making pharmaceutical company" doubling on its first day of listing **21st Century Business Herald Reporter Ling Chen** On June 24, Shaanxi Micron Technology Co., Ltd. was listed on the main board of the Hong Kong Stock Exchange, with the stock abbreviation "MICOT PHARMA-B" (2335.HK). This new 18A biotechnology stock from Xi'an High-tech Zone showed strong performance on its first trading day. It is reported that the issue price of the stock was HKD 18.20 per share, and it closed on the first day at HKD 36.9 per share, an increase of approximately 102.75% from the issue price. On June 25, the stock rose during the trading session but ultimately closed at HKD 29.64 per share, with a total market capitalization of HKD 13.09 billion. Against the backdrop of overall valuation differentiation among 18A companies in the Hong Kong stock market and investors placing greater emphasis on clinical certainty, such a performance on the first day is enough for MICOT PHARMA-B to quickly enter the market's sight. However, in contrast to the warming secondary market, MICOT PHARMA-B is not a pharmaceutical company that has entered a commercialization harvest period; rather, it is an innovative drug company still in the research and development investment stage. In other words, what the capital market is buying is not current profits, but the potential for future realization of its core pipeline. The doubling on the first day indicates that the market is willing to give a premium for its pipeline story and scarcity. However, the real question the company needs to answer after going public is how far this money can support it and whether its core products can complete the critical journey of clinical trials and registration. The "B" prefix is the most eye-catching identity label for MICOT PHARMA-B. According to the Hong Kong Stock Exchange's 18A rules, biotechnology companies that have not yet turned a profit and have not reached traditional financial listing thresholds can still go public in Hong Kong as long as their core products, R&D capabilities, and market prospects meet the requirements. For such companies, going public is not a victory on the income statement, but a financing relay during the R&D cycle. MICOT PHARMA-B's business focus is concentrated in the fields of metabolic diseases and cardiovascular and cerebrovascular diseases. The prospectus shows that the company has independently developed a product pipeline consisting of one core product and six other candidate products. Among them, MT1013 is currently the most critical asset, having advanced to Phase III. Whether it can continue to progress smoothly will directly affect the stability of the company's future valuation. This is also the most noteworthy aspect of MICOT PHARMA-B's listing story. It does not rely on cash flow from already listed products but instead exchanges clinical pipelines and technology platforms for the patience of the capital market. What investors see is a potential new drug commercialization window, while what the company needs is funding to continue pushing this window forward. From the issuance results, market sentiment is not weak. The public offering portion in Hong Kong was oversubscribed by approximately 1,181.46 times. This level of subscription enthusiasm indicates that 18A new stocks may still gain popularity in structural markets; on the other hand, it also means that the pressure to realize after the company's listing will be higher. The doubling of the stock price on the first day gave MICOT PHARMA-B a beautiful start. However, the long-term value of biotechnology companies is never determined by the increase on the first day but is jointly determined by clinical milestones, regulatory approvals, commercialization capabilities, and cash burn rates. Going public merely provides the company with the funds to continue running; the real competition is still ahead If we only look at the first-day stock price, MICOT PHARMA-B appears to be a highly popular new stock story. However, flipping through the prospectus, its financial background still resembles that of a typical 18A company, including the fact that there are currently no candidate drugs approved for listing, no commercialization revenue, rising R&D expenses, and expanding losses. The prospectus shows that MICOT PHARMA-B does not list any operating revenue for 2024 and 2025, with the main income item being other income, amounting to RMB 4.002 million and RMB 2.301 million, respectively. This means that the company has not yet entered the stage of relying on product sales to generate stable cash flow, and the revenue side is still absent. In contrast, investment in R&D is increasing. In 2024, the company's R&D expenditure is RMB 107 million; in 2025, it increases to RMB 130.1 million, a year-on-year growth of 21.6%. Losses are also expanding simultaneously. In 2024, MICOT PHARMA-B's annual loss is RMB 156.8 million, expanding to RMB 184.9 million in 2025. The net cash outflow from operating activities increases from RMB 107.7 million in 2024 to RMB 137.1 million in 2025. The prospectus explains that its operating cash outflow is mainly caused by R&D expenses. This is a common challenge for 18A companies. R&D investment must continue, and clinical trials cannot easily slow down, but commercialization returns have not yet arrived. The more stable the cash flow, the more opportunities the company has to push its core products toward registration and listing; the faster the cash consumption, the stronger the market's concerns about subsequent financing and valuation pressure. Therefore, the nearly HKD 1 billion net fundraising by MICOT PHARMA-B is significant not just for "successful IPO financing," but also for supplementing ammunition for the next stage of clinical advancement. The problem is that capital can only buy time, not certainty. Whether it can ultimately cross the threshold from R&D to commercialization depends on the clinical results and registration progress of the core product. For an innovative drug company, valuation is just the beginning; clinical trials are the real battle. The next first test for MICOT PHARMA-B is MT1013. MT1013 is a dual-target peptide drug that simultaneously targets the calcium-sensing receptor CaSR and the osteogenic growth peptide OGP receptor, primarily used for treating secondary hyperparathyroidism in chronic kidney disease. As the company's core product, it not only relates to whether the company can establish its first commercialization pivot but also affects external confidence in its peptide drug platform. If the core product advances smoothly, the subsequent pipeline will be easier to obtain valuation support. If there are setbacks in clinical trials or registration, the initial high popularity may quickly turn into pressure. The second test is whether the platform's capabilities can be validated. MICOT PHARMA-B does not only want to tell a single product story but hopes to rely on its dual/multi-specific peptide drug R&D capabilities to form a sustainable product pipeline. However, the capital market will not pay for "pipeline quantity" in the long term. It is more concerned with the stage of each pipeline, the space for indications, differentiated advantages, and whether it can form a commercialization closed loop in the future The third question is about the efficiency of capital usage. Before going public, the company's cash and cash equivalents at the end of 2025 were CNY 80.556 million. After going public, the net fundraising amount of approximately HKD 989.3 million will significantly alleviate short-term capital pressure. However, the investment intensity in innovative drug research and development is high and the cycle is long. Clinical advancement, registration applications, production preparations, and commercialization efforts may continue to consume substantial funds. The prospectus candidly states that assuming the future average cash burn rate is 1.5 times that of 2025, by the end of April 2026, the company's cash and cash equivalents, along with time deposits (approximately CNY 202.5 million), will only sustain about 10 months of financial operations. This also determines that the core narrative for MICOT PHARMA-B after its IPO cannot remain at "doubling on the first day." Short-term price increases can generate attention but cannot replace long-term realization. What truly supports the company in the long run is whether its core products can approach market launch, whether the platform can generate second and third valuable drug candidates, and whether the company can gradually transition from a research and development ledger to a product ledger. The capital market has given it a lively opening and a more expensive period of time. Moving forward, the market will shift its focus from subscription multiples and first-day price increases to clinical data, cash burn, and commercialization pathways. For MICOT PHARMA-B, going public is not the end, but rather the beginning of a more rigorous scrutiny ### Related Stocks - [02335.HK](https://longbridge.com/en/quote/02335.HK.md) ## Related News & Research - [Did the Trump White House just give Warsh the green light to hike interest rates? This analyst thinks so.](https://longbridge.com/en/news/290742665.md) - [Is inflation making these northern US cities harder to live in? 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