As the enthusiasm for antibody-drug conjugates (ADCs) continues to surge, the global biopharmaceutical industry chain is undergoing a new round of restructuring. Since ADC development spans both large and small molecule fields, encompassing complex conjugation, linker design, and process development, its R&D barriers are far higher than traditional biologics. The industry chain outsourcing rate has exceeded 70%, thus catalyzing the rapid expansion of the CRDMO blue ocean market. According to Frost & Sullivan predictions, the global ADC contract services market will reach $11 billion by 2030, with a compound annual growth rate of 28.4% from 2022 to 2030.

On this high-growth track, domestic biotech companies are gradually stepping onto the global stage. Unlike the traditional model that relied on single pipelines, a group of platform companies are accelerating their emergence through differentiated technology paths, becoming the preferred partners for multinational pharmaceutical companies. BIOCYTOGEN-B (02315.HK) is a representative example.

**Technology Foundation: Fully Human Antibody Platform Builds Industry Barriers**

Founded in 2009, BIOCYTOGEN-B initially entered the biopharmaceutical industry through the model animal business. After more than a decade of accumulation, the company has established over 4,390 gene-edited animal models, with nearly one-third being target-humanized mice used for efficacy and safety evaluation of innovative drugs. This business established the company's technical advantages in the preclinical CRO market and provided a solid foundation for subsequent expansion into antibody drug discovery.

What truly made BIOCYTOGEN-B stand out globally is its self-developed RenMice® series fully human antibody mouse platform. This platform encompasses RenMab, RenLite, RenNano, RenTCR mimic and other sub-platforms, capable of generating high-affinity, low-immunogenic fully human antibodies suitable for various structural types including monoclonal antibodies, bispecific antibodies, ADCs, and nanobodies. Based on this, the company launched the "Thousand Mice, Ten Thousand Antibodies" program in 2020, establishing a library of over one million fully human antibody molecules around more than 1,000 potential targets, forming a highly standardized "antibody shelf." This model not only reduces trial-and-error costs in early drug development but also significantly improves antibody discovery efficiency.

Currently, BIOCYTOGEN-B has established partnerships with seven of the world's top ten pharmaceutical companies, cumulatively signing approximately 280 antibody molecule transfer or development agreements. In the first half of 2025 alone, 80 new partnerships were added, representing a 60% year-over-year increase. Against the backdrop of frequent record-breaking global innovative drug BD activities, the company has become a key partner for domestic and international pharmaceutical companies competing for new targets through its unique "Thousand Mice, Ten Thousand Antibodies" advantage.

**Results Validation: High Revenue Growth, Continuously Strengthening Profitability**

While the capital market generally focuses on biotech "profitability challenges," BIOCYTOGEN-B delivered an impressive performance. According to interim results, the company achieved operating revenue of RMB 621 million in the first half of 2025, up 51.5% year-over-year; net profit of RMB 48 million, successfully turning profitable and exceeding the full-year level of the previous year. Gross margin remained above 74%, with net operating cash flow exceeding RMB 200 million, demonstrating strong self-generating cash flow capability.

The main growth drivers came from two core businesses:

Target-humanized mouse business: Revenue of RMB 274 million in the first half, up 56% year-over-year, with gross margin reaching 79%, continuing to serve as a stable "cash cow";

Antibody molecule transfer and development business: Revenue of RMB 163 million, up 38.1% year-over-year, with gross margin approaching 90%, having grown into the company's most potential core engine.

Notably, while maintaining R&D intensity, the company gradually optimized its investment structure. R&D expenses exceeded RMB 200 million in the first half of 2025, up nearly 30% year-over-year, but more resources were focused on preclinical development of high-potential antibody molecules, significantly improving R&D efficiency.

**Frequent Global Partnerships, ADC Innovation Results Showcased**

In the ADC field, BIOCYTOGEN-B's international partnerships have also delivered continuous success. Entering September, the company announced three major transactions:

Partnership with Tubulis: Licensing antibody sequences based on the RenMice® platform, combined with Tubulis' proprietary linker and payload technology, to jointly develop next-generation ADC therapies;

Deepened partnership with Merck KGaA: Exploring antibody-conjugated LNP delivery systems, marking the third collaboration between the two parties since 2022, with continuously upgrading cooperation levels;

Partnership with IDEAYA Biosciences: Advancing bispecific ADC IDE034, based on the RenLite® platform, with preclinical data showing significant efficacy in multiple solid tumor models, expected to submit IND application this year.

These partnerships not only bring diversified revenue from upfront payments, milestones, and sales royalties but also validate the scarce value of the company's technology platform in the global ADC industry chain.

**Going Global Model: Chinese Innovation's Global Breakthrough**

In recent years, Chinese innovative drug License-out transactions have grown rapidly, with total amounts exceeding $60 billion in the first half of 2025 alone, setting a new record. In this wave of overseas expansion, BIOCYTOGEN-B deeply embeds into the international pharmaceutical ecosystem through its platform model, no longer limited to single-point products but exporting systematic capabilities.

This transformation from "services" to "products" has gradually enabled BIOCYTOGEN-B to possess risk-resistance and cycle-crossing capabilities. Whether it's the stable cash flow from the model animal business or the high-growth antibody transfer business driven by "Thousand Mice, Ten Thousand Antibodies," both have constructed a "dual-wheel drive" development model for the company.

The capital market has also given high recognition to this model. From the end of 2024 to August 2025, the company's stock price once surged over 400%, ranking among the leading gainers in Hong Kong's biotech sector.

**Conclusion**

The ADC wave is sweeping globally, with increasingly refined industry chain division of labor. In this cross-cycle industrial transformation, BIOCYTOGEN-B has completed the leap from "domestic model animal leader" to "global antibody source molecule supplier" through its unique technology platform and business model. With continuous expansion of overseas partnerships and sustained growth of the antibody shelf, the company is becoming a typical example of Chinese biotech going global, also providing an innovation engine from the East for global new drug development.