Eye drug maker VivaVision feels the strain in IPO funding dash

The developer of new treatments for ocular disorders is in a race against time to secure a Hong Kong listing before its cash reserves run out

Key Takeaways:

• Two VivaVision drugs have reached Phase Three clinical trials, with one of them on a regulatory fast track as a breakthrough therapy for eye inflammation
• The company’s filing follows a rebound in Hong Kong’s biotech IPO market

By Molly Wen

You could say this company has an eye for an opportunity.

After biotech stocks staged a rebound last year, a cash-strapped developer of eye drugs has joined the queue of IPO hopefuls looking to stabilize their finances by listing on the Hong Kong equity market.

And VivaVision Biotech (Zhejiang) Co. Ltd. is under particularly strong pressure to succeed in its quest before its funds run out.

The ophthalmology biotech submitted its application to the Hong Kong Stock Exchange in mid-February, seeking a main board listing with CICC as sole sponsor.

Founded in 2016, VivaVision aims to develop innovative therapies for diseases affecting both the surface and the back of the eye, targeting disorders that lack existing treatments. The discoveries remain at the clinical testing stage, and, without any product income, the company’s finances are under mounting strain.

At the end of last September, the company held just 35.77 million yuan ($5.2 million) in cash, while net losses for the first three quarters of 2025 reached 131 million yuan, averaging roughly 43.33 million yuan per quarter. At the current burn rate, the cash balance is getting ever tighter.

To ease the pressure, VivaVision completed a D+ financing in November 2025, securing about 175 million yuan in emergency funds. But with an IPO typically taking around six months from filing to completion, the company has only a narrow window of opportunity to replenish its coffers before the money runs out.

VivaVision has a tiny revenue stream largely derived from government subsidies, but that trickle of income is dwarfed by outgoings. The company posted 8.57 million yuan in other income and gains in 2024, according to data in its application, alongside a loss of 202 million yuan. For the first nine months of 2025, other income and gains totaled 3.44 million yuan, while losses reached 131 million yuan.

R&D and finance costs were the biggest debits during the first nine months of 2025, at 65.18 million yuan and 59.31 million yuan.

Despite the financial challenges, VivaVision has reached Phase Three trials with two core products – a treatment for eye inflammation that has been granted a fast-track route through the Chinese regulatory process, and a therapy for dry eye issues. 

The first asset, VVN461(HD), is a novel selective dual inhibitor of Janus kinase 1 (JAK1) and tyrosine kinase 2 (TYK2) targeting an inflammatory condition known as non-infectious anterior uveitis (NIAU). Designated a breakthrough therapy by drug regulators, the product could become the first treatment of its kind to launch in China, if it reaches the commercial stage. According to data cited in the prospectus, China’s NIAU drug market expanded from $122.9 million in 2020 to $177.6 million in 2024, representing a CAGR of 9.6%, and is projected to reach $362 million by 2029.

The other core asset, VVN001, is a second-generation lymphocyte function-associated antigen-1 (LFA-1) antagonist for dry eye disease. Phase Three trials in China began in June 2024 and are expected to wrap up at the end of this year. Competition in this space is far more intense, however, with five innovative drugs already approved for dry eye disease in China and another 10 candidates at the Phase Two stage or beyond.

Repeated funding rounds

VivaVision was founded by an industry veteran, Shen Wang, with more than three decades of experience in drug development. His career included scientific and executive roles at global pharmaceutical names such as Abbott Laboratories (ABT.US), Sunesis (SNSS.US) and Amgen (AMGN.US), focusing on oncology, immunology, metabolic disorders and antiviral treatments.

Under his leadership, VivaVision has completed seven funding rounds from the angel stage to D2+, raising about 735 million yuan. As the company developed, its valuation climbed from roughly 17 million yuan to nearly 1.83 billion yuan after the latest injection of funds. Investors including Sequoia China and Longpan Healthcare have bought into the company, optimistic about the long-term potential of innovative eye care.

The VivaVision IPO filing follows a resurgence in Hong Kong biotech IPOs over the past year. Figures from the financial data provider Wind show that 28 healthcare companies listed in Hong Kong during 2025, 17 more than in 2024. The newcomers included eight businesses in the medical devices and services sector. Sixteen loss-making drug developers took the Chapter 18A route to a listing in 2025, which offers relaxed financial criteria for biotechs, compared with just four a year earlier.

That recovery, however, remains highly polarized. Loss-making biotechs that lack marquee partners or compelling clinical data have faced strong selling pressure since their IPOs. A fellow developer of eye drugs, Cloudbreak Pharma (2592.HK), is a prime example and cautionary tale for investors. It raised about HK$612 million at HK$10.10 per share, only to see the stock plunge nearly 39% in its trading debut and languish around HK$2 since then.

Overall, VivaVision faces a dual test. In the short term, it must bag its IPO before the cash runs dry. Over the longer term it will need to turn clinical breakthroughs into commercial returns in a competitive market.

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