Shaanxi Micot Pharmaceutical Technology Co., Ltd. (hereinafter referred to as "Micot") has recently submitted its IPO application to the Hong Kong Stock Exchange, with China International Capital Corporation and招商证券国际 serving as joint sponsors. The prospectus indicates that Micot was established in 2007, focusing on the development of next-generation bispecific/multispecific peptide drugs, primarily targeting metabolic diseases, especially renal-related disorders, as well as cardiovascular and cerebrovascular diseases.
One of the highlights is the impressive background of its founder. Wang Bing, the founder, chairman, and CEO of Micot, holds a Ph.D. in pharmacology from Xi'an Jiaotong University and has dedicated nearly two decades to teaching and research at Xi'an Medical University and Xi'an Jiaotong University. He has also served as an evaluation expert for the national "Major New Drug Creation Program." However, beneath the founder's remarkable achievements and the capital's exuberance lies a multitude of concerns for the company, including significant reliance on a single product, increasing competition within its core product sector, and diminished confidence from investors as evidenced by a decreasing valuation in the D round of funding.
Still Lacking Commercial Products, Financial Strain with Declining Valuation After Clinical Pipeline Approval Financially, due to the absence of commercialized products, the company's revenue primarily derives from government subsidies and bank interest. In 2023, 2024, and the first half of 2025, other revenues were recorded at RMB 6.969 million, RMB 4.002 million, and RMB 1.222 million, respectively. During the same periods, losses reached RMB 195 million, RMB 157 million, and RMB 49.9 million, accumulating a total loss of approximately RMB 400 million over two and a half years, while research and development expenditures totaled over RMB 200 million.
Amidst continuous "bleeding" of funds, the company's financial reserves have become critically low. As of the end of June 2025, cash reserves were just RMB 107 million, while net current liabilities soared to RMB 907 million, mainly due to redemption liabilities arising from pre-IPO financing. Even excluding redemption liabilities, the company's cash reserves are insufficient to cover short-term debts. During the reporting period, trade and other payables amounted to RMB 109 million, and short-term bank loans stood at RMB 48.63 million.
Consequently, the IPO financing has become a crucial step for the company to sustain its research and development as well as its normal operations. In fact, the company just completed a new round of financing in September this year. In September 2025, it secured RMB 236 million in financing for its Hong Kong venture, achieving a post-investment valuation of RMB 2.636 billion. Notably, this valuation represents a decrease compared to the RMB 2.745 billion post-investment valuation from the C round financing conducted in 2023.
Despite this, the progress of the company's clinical pipeline is not nonexistent. Specifically, in 2024, the company received FDA approval for clinical trials for XTL6001 aimed at treating obesity and weight management; in 2025, it obtained approval from the National Medical Products Administration for clinical trials of XTL6001 for treating proteinuric chronic kidney disease.
The decline in valuation despite clinical approval of its pipeline may reflect a lack of confidence in the company's future development among investors. The company stated in its prospectus that the decrease from the C round to the D round financing was primarily due to a decline in financing activities across the overall biopharmaceutical market in China. However, considering the valuation situations of the 18A companies that applied for listing during the same period, Micot's declining valuation appears rather rare, if not an isolated case.
Significant Reliance on a Single Product and Intensifying Market Competition On the product front, Micot focuses on the innovation and development of the next generation of bispecific/multispecific peptide drugs, with its research and development pipeline covering metabolic diseases and cardiovascular and cerebrovascular diseases.
By the number of clinical-stage bispecific/multispecific peptide candidates, Micot ranks first among domestic pharmaceutical companies. Currently, the company has over 30 new drug candidates in its pipeline, with seven original innovative drug pipelines advancing to clinical development, including one in phase III, three in phase II, and three in phase I.
Among these, the core product MT1013 is the world's first dual-target receptor agonist peptide drug, primarily aimed at treating secondary hyperparathyroidism (SHPT). In addition to MT1013, three other key products are noteworthy: XTL6001, the world's first and only GLP-1R/GCGR/MasR triple-target agonist to gain clinical research approval in both China and the U.S., primarily used for chronic weight management in obese or overweight populations; MT1002, addressing clinical needs in the anticoagulant/antithrombotic field; and MT200605, an injectable neuroprotective agent.
In terms of development progress, only the core product MT1013 has successfully navigated the "valley of death" in phase II new drug development, with expectations for commercialization by early 2028. The other products are yet to enter phase III clinical trials, indicating a prolonged timeline before market launch and emphasizes the company's significant dependence on MT1013 for its future performance. It is crucial to note that while MT1013 holds certain theoretical technical advantages, its commercialization path will encounter numerous challenges.
Regarding competitive dynamics, evocalcet is a novel oral calcimimetic primarily used to control SHPT. This medication works by stimulating the calcium-sensing receptor (CaSR) on parathyroid cells, thereby inhibiting cell proliferation and reducing parathyroid hormone (PTH) secretion, effectively lowering calcium, phosphate, and PTH levels in the blood.
Developed initially by Kyowa Kirin from Japan, evocalcet received approval from Japan's Pharmaceuticals and Medical Devices Agency (PMDA) in 2018. It was introduced to the Chinese market in June 2024, with prescriptions initiated at the China-Japan Friendship Hospital in March 2025.
In addition, Nanjing Zhengda Tianqing Pharmaceutical Company has recently submitted a listing application for an evocalcet generic to the Center for Drug Evaluation (CDE) of the National Medical Products Administration, which has been accepted. If approved, Nanjing Zhengda Tianqing could be the first to market a domestic generic version of this drug.
As more pharmaceutical companies enter the fray, the market competition for the generic drug is expected to intensify. According to development forecasts, the first generic drug is anticipated to enter the market between 2025 and 2026. This suggests that before MT1013 reaches the market, generic evocalcet may potentially become available, leading to considerable competition and pricing pressures.
Overall, Micot is currently in a transitional phase from the laboratory to commercialization. Whether its peptide drug technology can translate into competitive market strength depends on overcoming multiple hurdles, including clinical advancements and market acceptance. The upcoming IPO in Hong Kong is not only imperative for funding research and development but also serves as a significant test of the company's technological capabilities.