B&K Corporation Limited, known as Bio-Bank Corp., has recently filed an initial public offering (IPO) prospectus with the Hong Kong Stock Exchange (HKEX), intending to list on the main board. The joint sponsors for the listing are Hua Tai International and CITIC Securities.
Company Background and Therapeutic Focus
Established in 2012, Bio-Bank Corp. is a biopharmaceutical company focused on the development of protein-based drugs, with a particular emphasis on discovering, developing, and commercializing multifunctional therapies for wound healing, including Platelet-Derived Growth Factor (PDGF) drugs.
Financial Performance and Commercialization Status
Despite being established for 12 years, Bio-Bank Corp. has yet to commercialize any products and has reported minimal revenue. According to the prospectus, the company had no revenue in 2022 and only generated 472,000 yuan in 2023, from providing research services related to wound healing medical devices to a single client, which is not part of its core business. The net losses for 2022 and 2023 were 85.926 million yuan and 105 million yuan, respectively.
Administrative Expenses Overshadow R&D
Unlike typical biopharmaceutical companies, Bio-Bank Corp.’s largest expense is administrative spending, with 44.223 million yuan and 42.117 million yuan in 2022 and 2023, respectively. Other expenses have increased, with R&D costs rising slightly to 34.818 million yuan and 39.915 million yuan, and financial costs growing significantly to 7.855 million yuan and 23.582 million yuan.
Fundraising History
The prospectus reveals that Bio-Bank Corp. has undergone three rounds of financing, raising over 400 million yuan in total. The Pre-A round in May 2021 raised 50 million yuan, valuing the company at around 800 million yuan. Five months later, a 750 million yuan Series A round was led exclusively by CDH Investments, valuing the company at around 2 billion yuan. The most recent Series B round in May 2023 was subscribed by Qingdao High-Tech Industry Development Co., Ltd, with Bio-Bank Corp.’s valuation reaching 3.3 billion yuan.
Pipeline and Market Potential
Bio-Bank Corp.’s pipeline includes ten promising candidates, nine of which are independently developed, and one is co-developed with the Academy of Military Sciences Institute of Bioengineering. The two advanced core products, Pro-101-1 and Pro-101-2, have entered Phase II and IIb clinical trials, respectively, and are recombinant human Platelet-Derived Growth Factor-BB (rhPDGF-BB) drugs. According to a Frost & Sullivan report, Pro-101-1 is the PDGF candidate with the most advanced clinical development progress in China for the treatment of burns and scalds, potentially becoming the first commercial PDGF product for this indication in China. Pro-101-1 is planned to complete trials in the second quarter of 2025, followed by Phase III clinical trials and a planned launch in China in 2027. Additionally, Pro-101-2 is expected to be the first PDGF drug commercialized in China for the treatment of diabetic foot ulcers (DMF).-Fineline Info & Tech
