On August 26, Capital State learned thatYaojie AnkangA prospectus was submitted to the Hong Kong Stock Exchange to be listed on the Hong Kong Main Board.
According to the prospectus, Pharmaceutical Jieankang is an R&D-oriented, clinical-stage global biopharmaceutical company focusing on the discovery and development of small-molecule innovative therapies for tumors, inflammation, and cardiovascular diseases. According to Frost & Sullivan, Pharmacojet Ankang is one of the first Chinese developers dedicated to innovating small molecules to establish a global R&D and clinical development platform.
As of the last practical date, in key tumor treatment areas, Pharmacojieankang has five small tumor products, including two products in clinical development; in the non-tumor pipeline, it has four small molecule products, two of which are in clinical trials, and it is expected to submit an IND application for one product in August 2021.
On the financial side, the company currently has no products approved for commercial sale, and does not generate any revenue from product sales. During the record period, the company was not profitable and had operating losses. For the year ended 2019 and December 31, 2020, and the five months ended May 31, 2021, the company incurred losses of RMB 111 million (same below), RMB 853.72 million and RMB 204 million respectively. The company recorded losses due to large R&D costs and administrative expenses.
It is worth noting that since its inception, the company's operations have consumed a lot of money. During the above period, the company's R&D costs were 74.719 million yuan, 83.932 million yuan and 135 million yuan respectively.
The company admits that it expects to continue to generate net amounts and net operating cash outflows in the foreseeable future, and may never be profitable. If a company fails to achieve or maintain profits, it will reduce the value of the company and may reduce the company's ability to raise capital, continue research and development, expand business, or maintain operations.