The Zhitong Finance App learned that Fangzheng Securities released a research report saying that on January 24, Yasheng Pharmaceutical-B (06855) successfully listed on the NASDAQ. This time, the company registered US stocks to raise about 0.126 billion US dollars, further opened up US financing channels, received new financial support, provided more resources and certainty for subsequent product development, and is expected to accelerate the global commercialization of olebatinib and the development progress of other pipelines. The company's revenue for FY24-26 is expected to be 0.908/0.596/2.63 billion yuan, respectively, up 303.62%, -34.45%, and 341.68% year-on-year, and net profit corresponding to FY24-26 is -0.273/-0.657/1.194 billion yuan, up 70.56%, -141.17%, and 281.68%, respectively, maintaining the “Highly Recommended” rating.

Fangzheng Securities's main views are as follows:

Incident: Yasheng Pharmaceutical was officially listed on NASDAQ in the US on January 24, 2025, with the stock code AAPG. The company's current listing price was 17.25 US dollars/share, and 7.325 million shares were issued, raising a total of 0.126 billion US dollars.

The successful listing of Yasheng Pharmaceutical shows that its innovative ability and market potential in the global pharmaceutical field have been recognized by the international capital market.

The company is positioned for global development and focuses on designing and developing original and innovative drugs with “first-in-class” or “best-in-class” potential to meet the unmet medical needs of patients around the world. Currently, the company has a self-developed high-barrier technology platform for drug design targeting protein-protein interactions, and is at the global cutting edge in the development of new drugs for apoptosis pathways such as Bcl-2, IAP, and MDM2-p53.

Nellick, the core product of Yasheng Pharmaceutical, has been approved for marketing in China. It is an original innovative Chinese drug with BIC potential. Its clinical progress has been selected as an oral report for the ASH Annual Meeting for seven consecutive years. In addition, many clinical advances promoted by the company were presented at various international academic conferences in 2024, including the American Society of Clinical Oncology (ASCO) Annual Meeting, European Hematology Association Annual Meeting (EHA2024), and American Association for Cancer Research (AACR). The company has 4 new drugs under development that have obtained 16 FDA and 1 EU orphan drug qualification certification, 2 FDA fast track qualifications, and 2 FDA rare childhood disease qualifications.

In June 2024, Yasheng Pharmaceuticals and Takeda Pharmaceuticals signed an exclusive option agreement for Nellick totaling $1.3 billion. Takeda Pharmaceuticals will license Nellick's development and commercialization rights globally (excluding China). In addition, Takeda also invested 75 million dollars in Yasheng Pharmaceuticals and acquired 7.73% of Yasheng Pharmaceuticals's shares, becoming the second largest shareholder after the founder team of Yasheng Pharmaceuticals.

This move will help Yasheng Pharmaceutical further broaden financing channels, enhance its financial strength, and provide more financial support for future research and development, market expansion and commercialization activities.

This time, the company registered to the US stock market to raise about 0.126 billion US dollars, further opened up US financing channels, received new financial support, provided more resources and certainty for subsequent product development, and is expected to accelerate the global commercialization of olevatinib and the development progress of other pipelines.

Overseas, Nellick CML is expected to complete US registration phase III clinical POLARIS-2 enrollment in 2025, submit a new drug marketing application in the US in 2026, and be approved for marketing in 2026-2027 as soon as possible. APG-2575 is the second Bcl-2 selective inhibitor in the world and the first in China to enter critical clinical registration. With BIC potential, it is expected to surpass AbbVie Venetoclax and has the potential for large amounts of BD overseas. APG-2575 treatment R/RCLL/SLL is expected to be launched in 2025, and the 1.5-line treatment CLL will be launched in the US as soon as 2027-2028; first-line AML treatment and first-line treatment MDS are expected to be launched domestically in 2028, and first-line treatment MDS is expected to be launched in the US in 2028-2029. The total sales peak is expected to reach 9.309 billion yuan.

Risk warning:

Clinical results fall short of expected risks, product sales fall short of expectations, milestone revenue falls short of expectations, risk of industry policy changes, other systemic risks, etc.