---
title: "Weijian Pharmaceutical re-enters the Hong Kong Stock Exchange: A story of specialty kidney disease drugs supported by an acquisition"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/290935434.md"
description: "Weijian International Holdings Group submitted a listing application to the Hong Kong Stock Exchange on June 25, with CICC and Ping An International as joint sponsors. The company's revenue is expected to reach 1.68 billion yuan in 2025, primarily benefiting from the acquisition of five exclusive original research drugs and production bases from Concord Kirin China. Weijian is positioned as a specialized drug asset integration platform for nephrology, aiming for commercialization through license-in and acquisition of mature assets, and is seen as a new benchmark for the valuation system repair of Hong Kong stocks in the pharmaceutical sector"
datetime: "2026-06-26T08:23:14.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/290935434.md)
  - [en](https://longbridge.com/en/news/290935434.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/290935434.md)
---

# Weijian Pharmaceutical re-enters the Hong Kong Stock Exchange: A story of specialty kidney disease drugs supported by an acquisition

After a round of valuation compression for innovative drugs in the Hong Kong stock market, the market is no longer willing to pay high valuations for pipelines, targets, and FIC expectations, but instead is starting to demand: revenue realization, cash flow quality, asset return rates, and profit elasticity.

In this industry context, on June 25, Weijian International Holdings Group Limited submitted a listing application to the Hong Kong Stock Exchange, with CICC and Puyin International as joint sponsors. Weijian's financial report shows that its revenue is expected to reach 1.68 billion yuan in 2025, a significant increase from 902 million yuan in 2024. The key catalyst behind this is the acquisition of Concord Kirin China, which brings five exclusive original research drugs and a production base.

Weijian International is not a typical high R&D innovative drug company; rather, it resembles a specialized drug asset integration platform for nephrology: by License-in, acquiring mature original research drugs, and commercializing at the hospital level, it takes over the Chinese assets gradually divested by multinational pharmaceutical companies and amplifies their value using local channels and production systems.

The Hong Kong stock market for pharmaceuticals needs a new narrative, and Weijian's application happens to fall between the retreat of old innovative drug valuations and the revaluation of mature specialized drug assets. Weijian may become a new barometer for observing changes in risk appetite in the Hong Kong pharmaceutical market.

**The localization of foreign pharmaceutical assets is becoming a new expectation differential in the Hong Kong pharmaceutical market**

Weijian's IPO cannot be viewed solely from the perspective of financing for a single company; it corresponds to three lines: the restructuring of multinational pharmaceutical companies' businesses in China, the restoration of the valuation system for Hong Kong pharmaceuticals, and the filling of local commercialization platforms.

In recent years, multinational pharmaceutical companies have clearly reduced their strategies in the Chinese market: retaining core innovative drugs and major products while divesting some mature products, reducing local teams, and lowering the occupation of non-core assets. For foreign capital, this is a round of capital efficiency optimization; for local enterprises, it provides a rare asset window. Mature original research drugs have completed clinical validation, physician education, and market access, with risks far lower than early-stage R&D pipelines. As long as the acquirer has an understanding of hospital-level channels and payment systems, it can quickly convert into revenue and cash flow.

The acquisition of Concord Kirin China in 2024 is a key step in Weijian's development. This transaction allows the company to obtain permanent commercialization and production rights for five original brand drugs that Concord Kirin has already launched or commercialized in China, while also receiving production bases and commercialization systems. This step marks Weijian's transition from a CSO service provider to a specialized pharmaceutical platform with products, production capacity, and commercialization channels.

Weijian and Kangzhe Pharmaceutical are quite similar in the industry; both have License-in and commercialization service genes. The difference lies in Kangzhe's main layout in multiple disease tracks, while Weijian focuses on nephrology and hematology. Chinese biopharmaceutical companies and Hansoh Pharmaceutical rely more on independent R&D and large-scale R&D investments, with valuation logic leaning towards the realization of innovative drug pipelines. Weijian's R&D expense ratio is only about 1.5%, which is both a shortcoming and a boundary that must be identified during market repricing: is Weijian a research-driven company or an asset integration + commercialization realization company? The Hong Kong stock market is not unfamiliar with this model. Kangzheng Pharmaceutical has long proven that a mature pharmaceutical commercialization platform can achieve stable valuation anchors. The difference with Weijian lies in its choice of a narrower but deeper track—nephrology. If the market recognizes the scarcity of specialty drugs for kidney diseases, the company has the opportunity to break free from pure CSO discounts; if the market believes it is merely relying on acquisitions to grow revenue, the valuation ceiling will be pushed back to the range of commercialization service providers.

The trading logic here is clear: in the short term, look for the catalyst of filing and the recovery of sentiment in the Hong Kong pharmaceutical sector; in the medium term, look for performance realization after the consolidation of Xiehe Qilin's assets; in the long term, consider whether the company can continuously capture the window of foreign pharmaceutical companies divesting assets. The story Weijian wants to tell is also very clear: after the reflow of pharmaceutical assets, who can become the local acquirer and amplifier.

**Weijian must prove that growth is not a one-time consolidation**

Chronic kidney disease is a solid foundation in Weijian's narrative. There are over 120 million chronic kidney disease patients in China, expected to increase to about 129 million by 2035. The CKD drug market is projected to grow from 28.1 billion yuan in 2025 to 86.6 billion yuan in 2035, with a compound annual growth rate of nearly 12% over ten years. The characteristics of this market are well-suited for specialty pharmaceutical companies: a large patient base, long treatment cycles, strong hospital stickiness, and a network of dialysis centers and nephrologists forming natural channel barriers.

The growth rate in the segmented market is also not low. The CKD-SHPT medication market has long benefited from the increase in dialysis patients and the standardization of treatment, while medications for accompanying symptoms like kidney itch are still in a stage of insufficient supply. Weijian has already captured about 15.9% of the CKD-SHPT segmented market, ranking among the top three in the industry. This means the company is not starting from scratch in market education, and subsequent growth will come more from channel deepening, product portfolio expansion, and indication coverage.

The financial statements have already provided the first round of realization. From 2023 to 2025, the company's revenues are projected to be 887 million yuan, 902 million yuan, and 1.68 billion yuan, with a compound annual growth rate of about 37.6% over two years. The explosion in 2025 mainly comes from the consolidation of Xiehe Qilin in China. More importantly, there is a change in revenue structure: the proportion of self-owned product sales rises to 90.9%, and the company gradually breaks free from reliance on low-margin CSO services. The gross margin remains in the range of 52% to 62%, with the gross margin of self-developed original drugs stable above 60%, forming a core profit pool for commercialization pharmaceutical companies.

However, Weijian incurred a loss of about 17 million yuan in 2023, is expected to make a profit of 8.57 million yuan in 2024, and will again incur a loss of 79.03 million yuan in 2025. If only the net profit attributable to the parent company is considered, it is easy to conclude that profitability is unstable. Breaking it down, the losses mainly come from acquisition loan interest, share-based payments, and one-time expenses. After excluding these impacts, the adjusted net profit for 2025 reaches 113 million yuan.

There is a clear expectation gap here: the accounting losses suppress valuations, but operational profitability has turned positive. If financial expenses decrease and the sales expense ratio continues to dilute, profit elasticity may be more pronounced than revenue growth However, this growth curve also carries risks. Weijian's top five customers account for nearly 60% of its revenue, indicating a higher customer concentration than many peers; the company's R&D investment is relatively low, and its pipeline heavily relies on mergers and acquisitions and external introductions; whether the acquired assets can be continuously purchased, bought at a low price, and scaled up after acquisition is key to determining ROIC. In the pharmaceutical industry, mature assets do not equate to risk-free assets; medical insurance cost control, product life cycles, competition substitutes, and changes in hospital access will all affect the final realization.

Weijian needs to prove to the market that the Concord Qilin China model is a replicable acquisition template. If it continues to introduce specialized products for kidney disease, blood diseases, and rare diseases through business development (BD) in the future, and leverages its existing hospital network to improve sales efficiency, the company will transition from "high growth through consolidation" to "platform growth." If it subsequently fails to find assets of the same level, or if the returns on newly acquired varieties are lower than expected, the market will quickly invalidate the trading logic.

**Valuation anchor on cash flow, acquisition discipline, and overseas BD**

The valuation anchor for Weijian post-IPO is closer to a type of "integrator of mature original research drug assets": low R&D investment, but products already generating revenue; no explosive clinical catalysts in the short term, but stronger visibility for cash flow and profit recovery.

For reference in the Hong Kong stock market, one can look at Kangji Pharmaceutical, while in the US stock market, Viatris serves as an example of a pharmaceutical company that takes on mature drug assets and generates stable cash flow through a chronic disease product portfolio. These companies provide Weijian with the insight that the capital market does not reject acquisition-type pharmaceutical companies, provided that the acquisition discipline is clear, asset return rates are verifiable, and cash flow can cover the next round of expansion. Weijian needs to continuously clarify "purchase price, sales scaling, gross margin improvement, cash recovery, and reinvestment efficiency" to potentially complete the valuation switch.

From the perspective of shareholders and capital structure, Weijian also has certain institutional endorsements. The company previously brought in shareholders such as Kangji Venture Capital, Hangzhou Gongshu Guotou, Temasek's capital, Kaitai Capital, and related funds from Tigermed, raising over 1.2 billion yuan in two rounds of financing, primarily to serve drug acquisitions and capacity expansion. If the joint sponsors are ultimately confirmed as CICC and Puyin International, it will also strengthen its cross-border pricing capability and institutional coverage in the Hong Kong stock market. For the IPO stage, this type of shareholder structure helps alleviate market concerns about "insufficient liquidity for small pharmaceutical companies."

Greater imagination lies in overseas expansion and overseas BD. Weijian has already established subsidiaries in Switzerland and Japan, and in the future, it can seek mature specialized drug assets from Europe and Japan while promoting existing products to markets in Southeast Asia and Japan, where there is rapid growth in kidney disease patients and insufficient supply of specialized drugs. If overseas business runs smoothly, Weijian's revenue will no longer be entirely constrained by domestic medical insurance cost control, and its gross margin structure may also improve. For Hong Kong pharmaceutical companies, "finding assets overseas + domestic commercialization + regional market expansion" is a capital language that is easier for foreign investors to understand.

However, Weijian's long-term valuation ceiling still depends on R&D. In the future, if the company can introduce late-stage clinical pipelines or form a differentiated product lineup around kidney disease complications, blood diseases, and rare diseases, the market may further switch its classification from a commercialization platform to a specialized pharmaceutical platform. Conversely, it may be labeled as an "asset acquirer." The capital story of the pharmaceutical industry is becoming more realistic. Those who can buy assets correctly, sell well, collect payments quickly, and have high reinvestment efficiency are closer to the main line of the next round of Hong Kong stock pharmaceutical pricing. The question that Weijian Pharmaceutical needs to answer is precisely this

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