New Stock News | Venture into the new capital path of Hong Kong stocks 18A! Yiteng Medicines stock-for-stock reverse acquisition of GENOR-B (06998)

According to the disclosure of the Hong Kong Stock Exchange on April 15, GENOR-B (06998) submitted its listing application to HKEX. Yiteng Pharmaceutical completed a reverse acquisition of Jiahe Bio through a share swap, and the merged company was renamed "Yiteng Jiahe Pharmaceutical Group Limited". Morgan Stanley and Pu Yin International are the joint sponsors for the new listing application. Jiahe Bio will issue new shares to Yiteng Pharmaceutical shareholders as consideration, and the actual controller of Yiteng Pharmaceutical will become the controlling shareholder of the merged company. This is also the first case of a reverse acquisition of an innovative drug company since HKEX issued Rule 18A. Yiteng Pharmaceutical is a comprehensive professional biopharmaceutical company. By acquiring branded drug assets from multinational companies and obtaining the development and commercialization rights of innovative patented drugs authorized by global biopharmaceutical companies, it has established a competitive and highly marketable portfolio of original research drugs and innovative drugs. Yiteng Pharmaceutical's product portfolio includes five main products, including three original products, namely Wenkeyin, Xikelao, and Yiruiping, as well as two innovative products (Vascepa and Mulpleta), all of which have been commercialized. Each product targets medical needs in large or rapidly growing therapeutic fields, including anti-infection, CVD, and respiratory system diseases. For the fiscal years ending December 31, 2022, 2023, and 2024, Yiteng Pharmaceutical's revenues were RMB 2.0738 billion, RMB 2.3038 billion, and RMB 2.546 billion, respectively. The steady growth in sales is mainly attributed to the strong performance and potential of its product portfolio. It is understood that by integrating the innovative research and development resources of Jiahe Bio, Yiteng Pharmaceutical will be able to accelerate the research and market promotion of innovative drugs. In particular, the upcoming listing of Jiahe Bio's CDK4/6 inhibitor, Palbociclib, can synergize with Yiteng Pharmaceutical's existing HDAC inhibitor, Jiazhuda, to jointly explore a broader market space. The merger of Jiahe Bio and Yiteng Pharmaceutical will lay a solid foundation for the future expansion of overseas markets for both companies.