The domestic "miracle weight-loss drug" is going to conduct an IPO.
A “miracle weight-loss drug” is heading for the Hong Kong stock market.
Under the leadership of Pan Hai, an alumnus of Nanjing University, Synaffix Biotech, with its GLP-1 drug, Enoglutide, which can treat type 2 diabetes and overweight or obesity, started from Hangzhou eight years ago and has recently reached the door of the Hong Kong Stock Exchange.
Semaglutide, a popular “miracle weight-loss drug” around the world in recent years, belongs to the GLP-1 class of drugs. By 2025, with the pursuit of numerous users, Semaglutide successfully claimed the throne of the “drug king.”
Although Synaffix Biotech expects Enoglutide to be officially launched in 2026, it has already reached a cooperation agreement with the UK biopharmaceutical company Verdiva Bio Limited. It has not only received an upfront payment of nearly $70 million but also expects to receive a maximum return of up to $2.4 billion (approximately RMB 17 billion).
Behind this remarkable achievement, in addition to the support of the local government, it also cannot do without the “real money” support from investors such as Tencent, Meituan, Legend Holdings, Junlian Capital, IDG Capital, Zhengxing Valley Capital, Lilly Asia Ventures, Shiyu Capital, Haibang Investment, Amic, and the Yangtze River Delta Investment of the Social Security Fund.
A Nanjing University alumnus builds a star company in Hangzhou
Before founding Synaffix Biotech, Pan Hai already had rich experience in drug development.
After graduating from Nanjing University with a bachelor's degree, he obtained a Ph.D. in chemistry from the University of Nebraska - Lincoln in the United States. In 2003, he joined Amgen, a biopharmaceutical company in the United States, and began to engage in the CMC development of biological agents, eventually becoming a chief scientist.
After nearly nine years of experience at Amgen, Pan Hai later joined Kaineng Pharmaceutical, a biotech company, to be in charge of R & D activities. This valuable experience also laid the foundation for his future entrepreneurial journey.
In August 2017, Pan Hai co - founded Synaffix Biotech with Kaineng Pharmaceutical and finally focused on the GLP - 1 target in the field of weight - loss drug R & D.
However, to make a career in the biopharmaceutical field, funds, talents, and projects are indispensable important links. After inspecting places like Suzhou and Shanghai, they finally decided to locate the company's headquarters in Qiantang, Hangzhou.
“Angel investors and the ‘Jinsha Talents’ project in Qiantang provided us with crucial initial funds,” Pan Hai once said in an interview. He also mentioned that Qiantang not only has a superior geographical location but also has many surrounding universities, which can meet the company's future talent needs.
More importantly, Qiantang District is the only core area in Hangzhou's biopharmaceutical industry layout. As for the Hangzhou Medical Port where Synaffix Biotech is located, it is building a biopharmaceutical industry ecosystem with “the most complete industrial chain, the optimal ecological chain, and the highest degree of agglomeration.” Currently, more than 1,800 biopharmaceutical companies have gathered there.
With the support of the local government, Synaffix Biotech finally achieved rapid development. In November 2020, the company was approved to conduct clinical trials for type 2 diabetes and overweight or obesity in China. Four years later, they submitted a marketing authorization application for Enoglutide injection, which can treat these symptoms, to the National Medical Products Administration of China.
To make the product meet the expectations, the company conducted more than 2,000 clinical trials. “We designed many molecular structures. Some structures have a good weight - loss effect but do not lower blood sugar; some have an obvious blood - sugar - lowering effect but do not achieve the expected weight - loss result,” Pan Hai once revealed. The relevant documents generated during the clinical trial process are enough to fill a 30 - square - meter room.
By deeply exploring weight management therapies for diseases related to overweight or obesity, Synaffix Biotech has gradually grown into a star company in Hangzhou and successfully made a name for itself in the industry.
The “miracle weight - loss drug” is expected to earn $2.4 billion
What enables Synaffix Biotech to support an IPO is mainly the “miracle weight - loss drug” Enoglutide.
To improve the product's effect and user experience, the company is researching ways to change the administration method of this drug for type 2 diabetes and overweight or obesity from once - a - week injection to once - a - week oral administration.
According to public information, their Enoglutide injection achieved an average weight loss of 15.4% at 48 weeks, and 92.8% of the subjects had a weight loss of more than 5%, breaking the Phase III clinical record of similar drugs in a similar population.
Currently, this product has entered the final stage before launch. It is expected to be commercially available in 2026 and is expected to become the world's first approved cAMP (cyclic adenosine monophosphate, a messenger molecule that transmits signals within cells) - biased GLP - 1 receptor agonist.
In the words of Frost & Sullivan, from 2020 to 2024, the global market size of GLP - 1 drugs for overweight or obesity soared from $900 million to $14.7 billion and is expected to reach $38.6 billion in 2029.
Due to the huge potential of the weight - loss market and its unique advantages, Synaffix Biotech has reached cooperation agreements with pharmaceutical companies before the product is officially launched, taking solid steps in commercialization.
In 2024, they reached an agreement with the South Korean pharmaceutical company Hk Inno.N and could accumulate to receive nearly $60 million in payments and double - digit sales royalties. In early 2025, they signed a contract with the UK biopharmaceutical company Verdiva Bio Limited. They have not only received an upfront payment of nearly $70 million but also expect to receive a maximum return of up to $2.4 billion.
These important transactions have enabled Synaffix Biotech to successfully achieve revenues of more than 91 million yuan in the first half of 2025, despite having no revenues for a long time before. However, affected by factors such as R & D, they are still in a loss - making state, and the net loss has narrowed from 620 million yuan in 2023 to 108 million yuan in June 2025.
Since 2023, the company has accumulated to invest more than 800 million yuan in R & D in two and a half years. According to Pan Hai, the cost of Enoglutide in clinical trials alone has reached hundreds of millions of yuan.
Not limited to the research of therapies for type 2 diabetes and overweight or obesity, Synaffix Biotech will continue to deeply explore the R & D of GLP - 1 drugs in the future and explore the application potential of these drugs in indications such as obstructive sleep apnea, knee osteoarthritis, and Alzheimer's disease.
Tencent and Meituan's bets accelerate the start of a wealth feast
Substantial funds have become an important driving force for the rapid development of Synaffix Biotech.
When the company was just starting out, Shiyu Capital and Haibang Investment provided 60 million yuan in support. In addition, after being recognized by the “Jinsha Talents” project in Qiantang, Synaffix Biotech has accumulated to receive 15 million yuan. These crucial initial funds laid a good foundation for their early development.
In December 2018, the company completed a Series A financing of 170 million yuan, with investors including Junlian Capital, Legend Holdings, Shiyu Capital, and Kaineng Pharmaceutical. After conducting a comprehensive and in - depth due diligence on Synaffix Biotech's new drug varieties, development capabilities, and patent layout, Junlian Capital believed that the company had great development potential.
After receiving 250 million yuan from Junlian Capital, Haibang Investment, Zhouling Capital, and Amic in 2020, they completed a Series C financing of $68.7 million in the following year, with investors including Zhouling Capital, IDG Capital, and Zhengxing Valley Capital.
At that time, the unique R & D field, rapid project - promotion ability, and experienced management team made Zhouling Capital confident in the future development of Synaffix Biotech. As for Zhengxing Valley Capital, it judged that the company had built a highly competitive R & D pipeline with the potential to be both First - in - Class and Best - in - Class.
In March 2022, Tencent stepped in and invested $60 million in the company along with IDG Capital and others. In less than a year, they received 410 million yuan from Tencent, Lilly Asia Ventures, IDG Capital, Haibang Investment, and others.
Previously, IDG Capital once said bluntly, “Synaffix Biotech has an excellent management team, a great product portfolio, and a clear strategic plan, all of which indicate that the company has a very bright future, which is highly consistent with our investment strategy.”
In November 2024, the company completed a Series D financing, receiving more than 400 million yuan from Meituan Strategic Investment, Tencent Investment, and the Yangtze River Delta Investment of the Social Security Fund managed by IDG Capital, with a valuation of more than 4.8 billion yuan.
Before the listing, Tencent holds 13.85% of the shares, making it the largest external shareholder; IDG Capital holds 9.81%, Meituan holds 9.6%, Zhouling Capital holds 7.9%, Zhengxing Valley Capital holds 6.93%, Junlian Capital holds 6.37%, Shiyu Capital holds 6.14%, and the Yangtze River Delta Investment of the Social Security Fund holds 2.4%.
This wealth feast may be even bigger than expected.
In 2025, “Semaglutide” won the title of “global sales champion” in the first quarter with sales of more than $8 billion and continued to hold the throne of the “drug king” in the second quarter. The crazy pursuit of GLP - 1 weight - loss drugs has also led to varying degrees of growth in the stock prices of listed companies such as Yinuo Pharmaceutical, Pigeon Biotech, and Galenica Pharmaceuticals.
In the words of Lei Haichao, the director of the National Health Commission, “Some comrades have poor weight management, with larger waists and overweight problems, and some have even developed chronic diseases. They need the help of professional doctors and professional medical institutions.”
This also means that players in the GLP - 1 track, such as Synaffix Biotech, are accelerating the start of a grand wealth - creation feast.
References:
1. “An average weight loss of 15.1% in 48 weeks! The world's first ‘biased’ weight - loss drug delivers a Qiantang answer,” Qiantang Release
2. “The world's first ‘biased’ weight - loss drug is made in China. Synaffix Biotech makes its debut on the international stage,” Hangzhou Economic and Information Technology
This article is from the WeChat official account “Dongshisi Tiao Capital” (ID: DsstCapital), written by Lu Zhigao and published by 36Kr with authorization.