Ming Yu seeks a share of the drug sector limelight

Led by a former research chief at drugs giant Hengrui, the Chinese biotech can boast solid credentials and big-name backers as it positions for a Hong Kong IPO

Key Takeaways:

• The company has a pipeline of 13 candidate drugs targeting cancer and autoimmune conditions, 10 of which are undergoing clinical trials
• Earlier this year it sold Chinese licensing rights for one of its discoveries to Qilu Pharmaceutical

By Molly Wen

A biotech founded by a former executive of Hengrui Pharma (600276.SH; 1276.HK) will be looking to bask in a halo effect as it files for a stock market listing.

Hengrui shares were warmly received on the Hong Kong Stock Exchange earlier this year, and now Ming Yu Pharmaceutical Ltd. is bidding for a place in the equity arena alongside the drugs giant, with Morgan Stanley, BofA Securities and CITIC Securities acting as joint IPO sponsors.

Ming Yu was set up in 2018 by Cao Guoqing, a biochemist with an international profile in cutting-edge drug research. Cao gained a U.S. doctorate and worked in a senior role for Eli Lilly before joining Hengrui, where he supervised work on antibody-based therapies and small molecule drugs as vice president of biologics research.

His latest venture focuses on oncology and autoimmune diseases, with 10 out of the 13 experimental drugs in its pipeline having entered clinical development. Targeted cancer therapies such as antibody-drug conjugates (ADCs) and bispecific antibodies form the core of Ming Yu’s portfolio, while its autoimmune programs are also approaching the commercial stage.

One of the company’s flagship assets is MHB036C, an ADC targeting the TROP-2 protein to tackle solid tumors. Studies are underway to test the drug in combination with another suppressive therapy, a PD-1/VEGF bispecific antibody, for conditions including non-small cell lung cancer and breast cancer. Both cancers have large patient populations, implying big potential markets. A study commissioned for the IPO application estimated that the global TROP-2 ADC market would jump from $1.5 billion in 2024 to $42.5 billion by 2035, a compound annual growth rate of 35.4%.

Another ADC developed by Ming Yu, MHB088C, targets small-cell lung cancer and has advanced into a Phase Three trial as a second-line monotherapy. The product’s commercial potential has attracted industry attention. In March Ming Yu struck a deal with Qilu Pharmaceutical over the rights to develop and launch the drug in Greater China. The partnership is worth up to 1.35 billion yuan ($190 million) including an upfront payment to Ming Yu of 280 million yuan.

Two autoimmune therapies have also reached advanced clinical research stages. An antibody treatment for thyroid eye disease, MHB018A, has progressed to Phase Three trials. The injection, which is designed to block inflammation through the IGF-1R receptor, showed potential in Phase Two trials, achieving an 81% response rate against proptosis, a condition in which the eyes bulge from their sockets.

Another Ming Yu drug under development, MH004, blocks Janos kinase (JAK) enzymes linked to inflammation. The company applied this year to register the drug as a treatment for mild to moderate atopic dermatitis and expects regulatory approval to come through in the second half of 2026. According to the pre-IPO study by China Insights Consultancy, the global market for atopic dermatitis therapies is forecast to expand from $14.9 billion in 2024 to $9.5 billion by 2035, with China projected to see even faster growth. The drug could also be used to treat other autoimmune skin disorders, including vitiligo.

Ongoing losses

But for now, Ming Yu needs investment cash. Its operating revenue of 264 million yuan in the first half of 2025 came solely from the out-licensing deal. R&D spending totaled 182 million yuan in 2023, 281 million yuan the following year and 98 million yuan in the first half of 2025, while net losses over the same periods came in at 137 million yuan, 283 million yuan and 167 million yuan. In total, losses over the past two and a half years reached 587 million yuan.

Burnished by its scientific credentials, the company has attracted investors including OrbiMed, Qiming Venture Partners, Hua An Fund Management, Tigermed, IDG Capital, Oriza Holdings and 5Y Capital over five funding rounds. The last financing in July 2025 was jointly led by OrbiMed and Qiming, with participation from existing shareholder TF Capital. The round raised $131 million and left the company valued at 3.94 billion yuan.

But the backing of key players does not guarantee a smooth transition from the research lab to the marketplace. Ming Yu has yet to set up a full-scale commercial team, and some of its key drugs will go head to head with products from industry giant Hengrui.

Ming Yu’s treatment for atopic dermatitis, MH004, would compete with Hengrui’s ruxolitinib cream, which is also under regulatory review. In oncology, MHB036C is up against Hengrui’s TROP-2 ADC candidate SHR-A192, with both products targeting non-small cell lung cancer and undergoing Phase One or Two trials. Multinational players such as Daiichi Sankyo, AstraZeneca and Gilead Sciences are also crowding into the same TROP-2 space.

A successful Hong Kong listing would not only generate critical funding. It would also strengthen Ming Yu’s negotiating position in further licensing deals for its discoveries. In September, another company developing oncology and autoimmune drugs, GenFleet Therapeutics (2595.HK), listed its shares in Hong Kong and now commands a market capitalization of around HK$10.4 billion.

Backed by a solid clinical pipeline and a well-regarded team, Ming Yu could achieve a premium over its pre-IPO valuation. That said, translating research into commercial returns will pose a major test of the company’s capabilities. Investors will need to closely monitor its progress going forward.

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