Micro Chengdu reported that after planning to go public in Hong Kong, Baili Tianheng (688506. SH) has made another big move. On the evening of March 9, Baili Tianheng issued a fixed increase plan, planning to issue no more than 20.05 million shares to specific objects, and the total amount of funds raised will not exceed 3.9 billion yuan. According to the announcement, all the funds raised this time will be used for innovative drug research and development projects. This is also the company's first private placement fundraising plan since its listing.

The funds raised will be used for the research and development of innovative drugs

Specifically, the above-mentioned funds will be used for the research and development of innovative drugs related to the innovative ADC drug R&D platform (HIRE-ADC platform), the innovative multi-specific antibody R&D platform (GNC platform) and the innovative ARC (nuclear medicine) R&D platform (HIRE-ARC platform), including ADC pipeline BLB01D1, BL-M07D1, BL-M11D1, BL-B16D1, BL-M17D1, BL-M09D1, Clinical trials of GNC pipelines GNC-038 and GNC-077, ARC pipelines BL-ARC001 and BL-ARC002.

The private placement is issued to no more than 35 (inclusive) specific investors, and the number of shares issued does not exceed 20.05 million shares (including the number of shares). After the issuance, the shareholding ratio of Zhu Yi, the actual controller, will be reduced from 74.35% to 70.81%, which will not lead to a change in the control of the listed company.

Regarding the purpose of the fixed increase, Baili Tianheng mentioned in the announcement: "The company will accelerate the research and development process of innovative drugs, expand the depth and breadth of its own product layout under development, and lay a solid foundation for the commercialization of more products." ”

According to the data, Baili Tianheng is an innovative drug company, and the company's business focuses on the field of tumor drugs. According to the announcement, the multinational pharmaceutical company with global leading advantages has a global R&D layout, has R&D centers in China and the United States, has built a product pipeline system with rich types, echelon layout and global competitiveness, and has successfully advanced a number of products under development to the clinical trial stage on a global scale.

Previously, Baili Tianheng attracted attention with a BD deal with global pharmaceutical giant Bristol-Myers Squibb (BMS) with a potential total transaction value of $8.4 billion. This transaction represents the gradual demonstration of the international competitiveness of China's innovative drug industry, and enhances the confidence and vitality of China's ADC R&D and innovation.

Focusing on the field of tumor treatment, the company has built a world-leading innovative ADC drug R&D platform, an innovative multi-specific antibody R&D platform, and an innovative ARC (nuclear medicine) R&D platform. As of the date of this report, the Company has 14 clinical-stage drug candidates, many of which are advancing into global clinical development. In addition to the drugs under development in the clinical stage, the company has a rich pipeline of research projects, and a number of ADC drugs, GNC drugs and ARC drugs are in the preclinical research or clinical application stage. Based on its strong R&D strength, the company has the ability to drive 3-5 new pipelines into the clinical stage every year.

It is planning to go public in Hong Kong

It is worth mentioning that Baili Tianheng is planning to go public in Hong Kong. As early as May 2024, Baili Tianheng officially announced the news of its plan to go public in Hong Kong, and submitted the form for the first time in July of that year. In December of the same year, Baili Tianheng announced that the company had received a filing notice issued by the China Securities Regulatory Commission, and the company planned to issue no more than 24.271 million overseas listed ordinary shares and be listed on the Hong Kong Stock Exchange. Subsequently, on January 21 this year, Baili Tianheng re-submitted the application for the issuance and listing of H shares to the Hong Kong Stock Exchange, and published the application materials at the same time.

While planning to list on the Hong Kong stock market, Baili Tianheng wants to raise 3.9 billion yuan, what is its current capital situation?

According to the annual performance report, the company's total operating income in 2024 will be 5.823 billion yuan, a year-on-year increase of 936.31%; Net profit attributable to the parent company was RMB3.658 billion, a year-on-year turnaround, and the main source of income was the US$800 million down payment made by BMS. The third quarterly report shows that the company's monetary funds on the account reached 4.976 billion yuan.

The listing in Hong Kong and the private placement of funds may reveal the urgent financing needs of Baili Tianheng. Behind the planned large-scale fundraising, Baili Tianheng's R&D expenses have increased year by year. From 2021 to 2023 and the first three quarters of 2024, Baili Tianheng's R&D expenses will be about 279 million yuan, 375 million yuan, 746 million yuan, and 932 million yuan respectively.

As of press time, Baili Tianheng reported 215.12 yuan per share, up 1.95%, with a total market value of 86.263 billion yuan.