The patent battle between Sunshine Guojian Pharmaceutical (Shanghai) Co., Ltd. and Mabgeek Biotech over IL-4R antibodies has intensified. On November 3, Sunshine Guojian publicly announced it had filed an invalidation request with China's National Intellectual Property Administration targeting Mabgeek's core patent for its flagship product MG-K10. This dispute not only highlights a technology ownership conflict but also exposes Mabgeek's triple challenges—patent risks, financial strain, and market competition—as it prepares for a Hong Kong IPO.
1. Patent Dispute: From Employee Inventions to Core Asset Crisis The feud began with personnel movements. In 2016, former Sunshine Guojian employees Zhang Chenghai and Zhu Lingqiao founded Mabgeek Biotech and filed a patent application for IL-4R antibodies within a year. Sunshine Guojian sued, claiming it was an "employee invention." Courts discovered internal emails from 2015 showing Sunshine Guojian had already developed similar research plans and experimental data. In 2020, the Shanghai Intellectual Property Court ruled the patent rights belonged to Sunshine Guojian.
Although Mabgeek later removed the disputed patent from its portfolio, its core product MG-K10 still relies on related technology. If Sunshine Guojian succeeds in invalidating the patent, Mabgeek could lose its intellectual property shield for MG-K10. Regulators have also demanded Mabgeek clarify whether the dispute poses a material obstacle to its IPO.
2. Financial Struggles: Zero Revenue, High Debt, and Cash-Burning R&D Mabgeek's financials raise concerns. With no commercialized products, revenue plummeted from RMB 8.722 million in 2023 to zero in Q1 2025, while cumulative losses reached RMB 460 million. Its debt-to-asset ratio hit 700% in 2023 and remained at 166.83% by March 2025, with negative net assets persisting.
Despite temporary relief from Pre-IPO funding, Phase III trials for MG-K10 require sustained investment. Without revenue streams, Mabgeek relies heavily on financing. A failed IPO could trigger a liquidity crisis.
3. Market Competition: IL-4Rα Target Turns Red Ocean Even if MG-K10 launches, Mabgeek faces fierce competition. The IL-4Rα field is dominated by giants: Sanofi and Regeneron’s Dupixent boasts over €10 billion in annual sales, while China’s CMAB009 (Spartalizumab) by Keymed Biosciences has three approved indications, and CBP-201 by Connect Biopharma has filed for approval. Over ten rivals, including Sunshine Guojian, Hengrui Pharma, and Zhixiang Jintai, are advancing late-stage candidates.
Industry forecasts suggest the IL-4Rα market will consolidate by 2026–2027. MG-K10, if launched, must navigate price wars, channel competition, and limited indication coverage.
Conclusion Patent disputes, financial pressure, and market competition loom over Mabgeek’s IPO path. Meanwhile, Sunshine Guojian strengthens its position with stable revenue, a major Pfizer licensing deal, and in-house R&D progress. This asymmetric battle reflects the biotech industry’s brutal race from development to commercialization. Unless Mabgeek resolves its core asset risks swiftly, even a successful IPO may not ensure long-term survival in this寒冬.