With a blockbuster of over 20 billion US dollars, Bailey Tianheng (02615) Hong Kong stock “debuted in C position”

Technology-driven, burgeoning demand, and policy support are the three major drivers for ADC drugs to continue to be sought after by the market in recent years. As far as the Hong Kong stock market is concerned, despite experiencing many rounds of IPOs and a bullish market for innovative drugs, there are still few optional stocks with major ADC assets or major BDs on the market. “Long Bull” targets that have exclusive FIC/BIC varieties and can also maintain overseas market interests on an equal footing with the global MNC through the CO-CO model are even scarce.

Now, Bailey Tianheng is about to enter Hong Kong stocks. While filling the investment gap in the Hong Kong market in this field, it is also presenting investors with a “free point problem” of asset allocation.

On November 7, Bailey Tianheng (02615) issued an announcement announcing the launch of the global public sale of H shares and plans to list it on the main board of the Hong Kong Stock Exchange. The Zhitong Finance App learned that the basic number of H shares issued by Baili Tianheng's global offering is 8,634,300 shares. Among them, preliminary arrangements were made for a public sale of 863,500 shares in Hong Kong (subject to redistribution), accounting for about 10% of the total number of global sales; an international sale of 7,770,800 shares (subject to redistribution), accounting for about 90% of the total number of global sales. The price range for the issue was initially determined to be HK$347.50 to HK$389.00. It is expected that the shares will officially start trading on the Stock Exchange on November 17 this year.

It is worth mentioning that according to relevant regulations, the earliest possible time for its H shares to be transferred to Hong Kong Stock Connect shares of Shanghai-Hong Kong Stock Connect is the listing date. In other words, Bailey Tianheng is expected to be included in the Hong Kong Stock Connect on the day of the H-share listing.

In the current issuance process of Bailey Tianheng H shares, it was not only co-sponsored by Goldman Sachs, Xiaomo, and CITIC Securities, which attracted well-known cornerstone investors such as Bristol-Myers Squibb (BMS), but also won the favor of top institutions such as Aobo and Telford. The investor lineup is strong.

The reason why Baili Tianheng's long-term value growth is highly anticipated by the market is its strong ADC drug research and development, independent global clinical development capabilities, deep innovation and commercialization accumulation in the international market, and unique international cooperation. At present, Bailey Tianheng has taken the lead in the global ADC innovative drug market and has sent a strong signal of transformation into a global MNC.

As a high-quality target that has been verified by the A-share Science and Technology Innovation Board market, Baili Tianheng's successful listing in the Hong Kong stock market also means that the biomedical industry's prosperity continues to rise. In the future, as the Hong Kong stock market becomes more attractive and receptive to high-quality innovative pharmaceutical companies, Bailey Tianheng's own multi-dimensional benchmarking effect is expected to bring more market expectations to the Hong Kong stock innovative drug sector.

Investment certainty brought about by the “next generation cornerstone cancer therapy”

This time, Bailey Tianheng Hong Kong stock IPO introduced three major cornerstone investors. Among them, the participation of the multinational MNC Bristol-Myers Squibb is particularly remarkable. As a result, the company became an important strategic shareholder of Bailey Tianheng. Through the deep binding of “capital+commerce”, the strategic relationship between the two sides is expected to further evolve into a “global community of business interests”, which is conducive to the long-term stability of cooperation between the two sides.

In 2023, Bailey Tianheng and Bristol-Myers Squibb (BMS) reached a BD transaction with a total price of 8.4 billion US dollars for the EGFR/HER3 dual-antibody ADC product iza-Bren (BL-B01D1) with the characteristics of “high down payment, high milestone, and high score”, setting a record for the highest BD transaction amount for ADC drugs in the world.

It is worth mentioning that this BD between Bailey Tianheng and BMS is not a license-out model where the seller plays a passive role of “low share and light participation” in the traditional sense, but rather a CO-CO model where both parties “study together globally and share rewards”. Under this model, both parties to the transaction have equal cooperative positions, are deeply tied and cooperated in the drug development stage, and share rich rewards during the commercialization stage.

In fact, this type of transaction model was rare in cooperation between domestic innovative pharmaceutical companies and multinational MNCs in the past. The reason why BMS is willing to cooperate with Bailey Tianheng from an equal perspective is not only because of the vision and persistence of the core management team of Bailey Tianheng, but also because iZa-Bren is a major variety with peak sales potential of over $20 billion and potential as a “next generation cornerstone cancer therapy.”

According to the Zhitong Finance App, iza-Bren is the world's first (first-in-class), new-concept (New concept) bispecific antibody ADC drug independently developed by Bailey Tianheng. It is also the only EGFR×HER3 dual-antibody ADC in the world to date that has entered phase III clinical development. It carries the topoisomerase inhibitor Ed-04 as a cytotoxic payload, and the drug-antibody ratio (DAR) is as high as 8, so it can achieve stronger anti-tumor activity in terms of mechanism of action.

In 2023, IZA-Bren attracted the attention of countless international industries with its outstanding early data. Eight of the top ten MNCs in the world extended olive branches to Bailey Tianheng. In the end, the BD deal cost BMS $8.4 billion in consideration. Today, Iza-Bren's performance confirms BMS's unique vision as an established MNC.

At the 2025 European Society of Medical Oncology (ESMO) Annual Meeting held in October this year, Bailey Tianheng presented IZA-Bren's overseas multi-center solid tumor research data for the first time. Research results showed that the drug had an overall objective remission rate (CoRR) of up to 55% and a median progression-free survival (mPFS) of 5.4 months in patients with advanced severe treated solid tumors.

Since this is the world's first ADC originally developed in China to read large sample and multi-tumor research data for Western people, and the efficacy results showed that patients with solid tumors in East and West had consistent benefits even compared to early clinical data in China, while achieving highly consistent tumor benefits while also having a higher response rate, it fully demonstrates that the curative effects of iza-Bren have broken through ethnic and geographical restrictions, and has the potential to become a broad-spectrum drug across races and tumors.

Currently, first-line phase II and phase III clinical treatments with iZA-Bren as a single drug or combination PD- (L) 1 antibody/TKI are being intensively developed, and have shown more clear treatment advantages over traditional chemotherapy. In the future, as multiple first-line indications are approved one after another, iza-bren is expected to become a “next-generation cornerstone cancer treatment”. The potential annual sales peak is expected to reach or exceed 20 billion US dollars, and the commercialization prospects are very clear.

On September 30 of this year, IZA-Bren's global phase II/III key registration clinical trial izabright-breast01 milestone was reached. As a result, Bailey Tianheng's wholly-owned subsidiary Systimmune will soon receive the first milestone payment of US$250 million from BMS. At a time when the milestone rate in the field of global biomedical cooperation is less than 30%, BMS's efficient cooperative payment shows that international peers have highly recognized Iza-Bren.

Overall, going overseas in the form of BD transactions, sharing global market dividends through technical licensing, and deeply participating in the international division of labor in the global pharmaceutical industry has become a major trend in China's innovative pharmaceutical industry in recent years. The current CO-CO cooperation model with BMS shows that Baili Tianheng enjoys an equal position in the international division of labor for innovative drugs. In the long run, in-depth cooperation with BMS is expected to accelerate the company's transformation to a global MNC and drive the company's investment certainty to continue to increase.

Relying on advanced platforms to build differentiated innovation technology barriers

As we all know, the core value of ADC innovative R&D companies depends on platform value and drug value. IZA-Bren's victory at the starting line is actually a strong verification of Bailey Tianheng's HIRE-ADC innovative drug development platform technology.

The Zhitong Finance App learned that the HIRE-ADC platform is an innovative ADC drug development platform independently developed by the company. Baili Tianheng has end-to-end capabilities developed completely independently. Its massive amount of basic research data can continuously iterate innovative ADC technology and continuously improve the company's systematic innovation capabilities.

Based on this advanced platform technology, 10 innovative ADC drugs have entered the clinical phase. In addition to Iza-Bren, another major variety with BIC potential, the T-Bren, is also worth watching.

T-Bren is an innovative HER2 ADC with best-in-class (best-in-class) potential. It is also the company's second ADC drug to enter phase III clinical research.

According to the latest clinical data released at the 2025 ESMO annual conference, in clinical studies on patients with HER2-positive post-line BC, compared with DS-8201, the median number of treatment lines in the DB-02 study was 2 lines, which was worse than the patient's baseline, but T-Bren eventually achieved the highest CORR of 82.2%, and the longest MPFS reached 18 months, showing better treatment potential compared to DS801.

Thanks to the high stability of the HIRE-ADC platform connector and the innovative design of the toxin, t-Bren also showed advantages in terms of safety compared to the DS-8201. Compared with the 12% incidence of interstitial pneumonia (ILD) in DS-8201, the ILD rate shown by t-Bren was only 3%, and no grade 4-5 ILD occurred.

Simply put, with remarkable efficacy and safety, Baili Tianheng T-Bren has completely surpassed DS801's dominant indications, including low HER2 expression.

Referring to the DS801 sales data disclosed by AstraZeneca, its global sales volume for the first nine months of this year reached US$3,575 billion, an increase of 31% year over year. If it maintains steady year-on-year growth, annual sales are expected to exceed US$5 billion for the first time. As a potential BIC variety on the same track, T-Bren seems to have reached a potential commercialization level of 5 billion US dollars.

However, T-Bren's upper limit is far more than that. As another “masterpiece” of Bailey Tianheng's HIRE-ADC platform, T-Bren is also a broad-spectrum anti-tumor drug with a wide range of indications.

At this ESMO conference, Bailey Tianheng also simultaneously released data from multiple clinical studies of T-Bren to verify its therapeutic potential for gastric cancer indications. In fact, the company has conducted 12 clinical trials for T-Bren at home and abroad, covering various indications including breast cancer, lung cancer, gastrointestinal tumors, urinary system tumors, and gynecological tumors. This is expected to push T-Bren's potential commercialization expectations to a new level.

In fact, whether it is IZA-bren or T-Bren, they are only a microcosm of Baili Tianheng's remarkable achievements in innovative drug development based on its self-developed advanced technology platform.

In addition to the ADC platform, Bailey Tianheng has also built the world's leading innovative multi-specific antibody development platform (GNC platform), specificity-enhanced bispecific antibody platform (SEBA platform), and innovative ARC (nuclear drug) research and development platform (HIRE ARC platform), and has achieved abundant pipelines and technical reserves based on advanced platform technology. For example, in the field of polyantibodies, Bailey Tianheng's GNC-038 (CD3×4-1BB×PD-L1×CD19 quadruple antibody) is also the world's first quadripartite drug to enter clinical development, and the first-mover advantage is obvious.

Accelerating the transformation to a global MNC

As a 100-billion-level innovative biopharmaceutical company, industrialization capabilities are indispensable if the vision of becoming an MNC is to be realized. One of the main differences between MNC and Biotech is the ability to industrialize. To become an MNC, we must not only have strong R&D capabilities, global multi-center clinical development capabilities, and global commercialization capabilities, but also global drug supply capabilities. Establishing and improving an integrated global R&D, production and marketing structure is an important path for Baili Tianheng to accelerate its transformation to a global MNC.

In terms of global R&D, on the one hand, Bailey Tianheng is increasing its investment: in the first half of 2025, the company's R&D investment reached 1,039 billion yuan, reaching a year-on-year growth rate of 90.74%, and the corresponding R&D team expanded to nearly 1,400 people; on the other hand, the company is also continuously improving the “0-1” R&D structure with US R&D centers to achieve a “1-N” collaboration model with Chinese R&D centers, maximizing the core advantages of “American Early Research” and “China's Transformation”.

With continuous funding and R&D team investment, as of the end of September this year, the company had 16 innovative drugs in clinical trials at the two major R&D centers in China and the US, and is currently conducting nearly 90 clinical trials (nearly 80 in China and 10 in the US). Of these, 3 innovative drugs have entered phase III registered clinical trials, and 6 innovative drugs are in overseas clinical trials.

In terms of global production and supply, based on the global supply base built in Chengdu, Baili Tianheng has established a flexible GMP-standard multi-specific antibody and ADC drug production technology platform, which can independently complete the full development and early commercial production of innovative drugs. According to the global R&D progress of pipeline drugs, in order to further support the company's subsequent clinical trials and future commercialization of innovative drugs.

In terms of global commercialization, take IZA-Bren as an example. With excellent global clinical data, its commercialization prospects are becoming more and more clear: with BMS's global registration, clinical development and commercialization network, it is expected that Baili Tianheng will accelerate the construction of its own global commercialization team.

In the future, as the company's overseas pharmaceutical registration capabilities, clinical development and international cooperative operation capabilities continue to improve, it will also help iza-Bren reach mainstream global markets more quickly, unleash its commercialization potential as a “super bombshell” of over 20 billion US dollars, and use this as a paradigm to pave the way for the global commercialization of the company's follow-up pipeline.

It is worth mentioning that as an important part of the transformation to a global MNC, in addition to speeding up the establishment of global R&D, production and marketing integration, Baili Tianheng has also incorporated License-in into the company's development strategy.

From a financial perspective, as of June 30 this year, Bailey Tianheng's cash reserves exceeded 5 billion yuan, compounded by a fixed increase of 3,764 billion yuan of A-shares completed in September this year. The milestone payment of 250 million US dollars was confirmed in September of this year, and the company's cash on the books exceeded 10 billion yuan. In addition to this, with Hong Kong stock IPO fundraising, additional payments of up to US$7.1 billion following cooperation between the company and BMS, and iZA-Bren's future commercialization expectations of over US$20 billion, Bailey Tianheng's capital is expected to be further strengthened, laying a solid foundation for its continued expansion of global R&D and commercialization and acceleration of MNC transformation.

Summarize

In summary, as a 100-billion-level innovative biopharmaceutical company, Baili Tianheng is continuously unleashing its intrinsic value with strong integrated competitive advantages, an innovative research and development platform full of room for imagination, and generous cash flow support.

As far as the Hong Kong stock market is concerned, after experiencing a bull market for innovative drugs in 2025, the long-term valuation repair market in the pharmaceutical sector is gradually unfolding. In this context, the main capital of the market will favor those with stable, moderate and positive fundamentals such as Baili Tianheng and successfully opening up a global market for innovative drugs. This layout strategy is also expected to become an important weather vane for the long-term allocation of investors in the future.