Obesity drug maker Sciwind targets IPO, with heavyweight backers

Supported by Tencent and Meituan, the biotech aims to launch a targeted GLP-1 drug next year that could challenge established products, but it faces stiff competition

Key Takeaways:

• Clinical trials indicate that Sciwind’s candidate drug, ecnoglutide, can outperform existing GLP-1 receptor agonists such as semaglutide
• The company has already licensed out the overseas rights to its drug, with one deal potentially worth more than $2.4 billion

By Molly Wen

In a few short years, weight-loss drugs have taken the world by storm, accounting for nearly 30% of the global biopharmaceutical market by the first half of 2025.

While the treatments were pioneered by Big Pharma multinationals, Chinese biotech companies are keen to tap into the exponential demand by supplying their own versions of GLP-1 drugs, with the help of equity investors.

The latest Chinese drug developer to turn to the capital markets is Hangzhou Sciwind Biosciences Co. Ltd., which is working on a product to challenge semaglutide, the active ingredient in leading anti-obesity therapies.

Sciwind has applied to list on the Hong Kong Stock Exchange to help raise the funds to turn its clinical research into commercial success.

The Chinese biotech has yet to launch any product on the market but is expecting regulatory approval next year for its core candidate drug, an ecnoglutide injection (XW003) that is being reviewed by China’s National Medical Products Administration.

Traditional GLP-1 drugs such as liraglutide and semaglutide are classed as non-biased agonists as they trigger an array of cellular signals to regulate blood sugar and curb the appetite. As a result, proteins known as beta-arrestins are activated and can reduce receptor sensitivity over time. Ecnoglutide is a targeted, or biased, agonist, with the potential to offer durable benefits with fewer side effects.

The clinical results are promising. Phase Three data published in The Lancet Diabetes & Endocrinology journal found that an ecnoglutide Injection was more effective in some respects than non-biased GLP-1 drugs such as semaglutide, while its outcomes were on a par with dual GLP-1/GIP agonists such as tirzepatide at lower doses. If approved, ecnoglutide could become a strong competitor in the weight-loss market as the world’s first GLP-1 drug to focus on cyclic adenosine monophosphate (cAMP), which modulates insulin, without stimulating beta-arrestin.

Sciwind has focused on developing therapies for obesity and related conditions since it was founded in 2017. It has eight drugs in the pipeline targeting weight-management, obesity, diabetes, liver disease and sleep apnea. According to research cited in its prospectus, the global market for weight-loss drugs is set to keep expanding, from $112.8 billion in 2024 to $165.9 billion in 2029, making it one of the fastest-growing areas for new medicines.

However, competition is fierce, with many drug companies piling in. Three GLP-1 drugs have been approved globally for weight-loss purposes and seven more are in Phase Three clinical trials. Several GLP-1 therapies have already been approved for use in China, including benaglutide from RenBio, semaglutide from Novo Nordisk, tirzepatide from Eli Lilly, and mazdutide from Innovent Biologics (1801.HK). Two firms that recently listed in Hong Kong, Innogen Pharma (2592.HK) and PegBio (2565.HK), are both targeting the GLP-1 market.

High-profile backers

To gain an edge, Sciwind is working on an oral version of its targeted GLP-1 technology (XW004), reporting encouraging results in Phase One trials.

The company is also moving ahead of some of its peers with global plans. It licensed development and sales rights for the ecnoglutide injection in Korea to Inno.N, part of the Korean consumer health group Kolmar, in April 2024. In January this year it agreed to license oral ecnoglutide rights outside of China and Korea to UK-based drug discovery firm Verdiva. Under the deal, Sciwind will get about $70 million upfront, followed by up to $2.4 billion in development, regulatory and commercial milestone payments, as well as royalties on future sales.

For now, Sciwind remains stuck in the red. It reported net losses of 620 million yuan ($87 million) in 2023, rising to 486 million yuan a year later, and coming in at 108 million yuan for the first half of 2025, amounting to a cumulative loss over the period of more than 1.2 billion yuan. R&D expenses over the same timeframe were 456 million yuan, 284 million yuan and 65 million yuan. However, the company recorded its first revenue of 91.07 million yuan in its interim results this year, mainly from upfront payments by its drug partners. Cash and cash equivalents stood at 780 million yuan at the mid-year point.

Sciwind boasts an impressive roster of backers, including Tencent Investment, IDG Capital, Meituan, Genesis Capital, and Legend Capital. Tencent and Meituan hold stakes of 12.83% and 9.6% respectively. The drug developer raised 2.2 billion yuan in seven funding rounds before embarking on an IPO bid, reaching a valuation of about 4.87 billion yuan after its Series D financing in 2024. By comparison, recently listedInnogen has a market value of around HK$19 billion ($2.4 billion), indicating there could be significant upside for Sciwind as a listed company.

With its core product nearing approval, Sciwind stands at an inflection point as a developer of novel drugs. It remains to be seen whether its biased GLP-1 technology can take a big bite out of the weight-loss market.

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