Layout in Small Nucleic Acid Track, Baiyang Pharmaceutical Plans to Invest 27 Million Yuan in Sihе Gene

Source: Taishan Finance

Taishan Finance Reporter Li Weiqiang

Taishan Finance has learned that recently, Baiyang Pharmaceutical (301015.SZ) announced an external investment and related-party transaction, proposing to invest 27 million yuan in Shihe Gene (Beijing) Biotechnology Co., Ltd. (referred to as “Shihe Gene”) with cash. After this investment, Baiyang Pharmaceutical will hold a 10% stake in Shihe Gene. Notably, the core of this investment is Baiyang Pharmaceutical’s increased focus on the small nucleic acid drug field.

Baiyang Pharmaceutical was established in March 2005 and listed on the Shenzhen Stock Exchange’s ChiNext Board in June 2021. The company focuses on the entire chain of developing, manufacturing, and commercializing medical innovations. It has built a comprehensive platform for drug and medical device R&D and production, forming a diversified product matrix in areas such as bone health, anti-organ fibrosis, and tumor brain metastasis, with multiple innovative products possessing strong innovation and independent intellectual property rights.

According to Baiyang Pharmaceutical, small nucleic acid drugs are regarded as the “third wave of pharmaceutical development” after small molecule drugs and antibody drugs. With breakthroughs in core technologies such as delivery systems and chemical modifications, they have become the golden track for domestic innovative drugs following PD-1 and ADC.

Sullivan data shows that under the triple resonance of AI-assisted sequence design, breakthroughs in GalNAc trivalent conjugation technology, and medical insurance approval, the global small nucleic acid drug market is expected to surpass $20 billion by 2029 and further expand to $60 billion by 2035. Among them, China’s small nucleic acid drug market is projected to grow to $900 million by 2029 and further reach $4.2 billion by 2035.

According to China.com Finance, in recent years, Baiyang Pharmaceutical has been accelerating its transformation into an innovative drug company, deploying multiple innovative fields through a dual-driven model of “investment incubation + commercialization.” The company has invested in Beihai Kangcheng to enter the rare disease drug R&D and commercialization; invested in Jikun Pharmaceutical to build an innovative drug R&D platform for anti-organ fibrosis.

Public information shows that Shihe Gene was founded in November 2021. It is an innovative biotech company focused on the development of next-generation antisense oligonucleotide (ASO) drugs, specializing in new drug development for liver diseases, cardiovascular diseases, central nervous system diseases, and other fields. Its core platform includes China’s first AI algorithm platform for efficient ASO sequence design, an innovative chemical modification platform, and a targeted delivery platform.

Baiyang Pharmaceutical stated that this cooperation can fully leverage its industrialization platform advantages and combine Shihe Gene’s extensive experience in small nucleic acid drug development. The two parties can focus on innovative drug R&D, manufacturing, domestic and global commercialization, and capital operations in fields such as liver, cardiovascular, neurological, and rare diseases. Through resource integration and complementary strengths, they aim to jointly promote the development and listing of small nucleic acid innovative drugs in these areas.

Taishan Finance has found that, in addition to equity holding, the agreement explicitly stipulates that Baiyang Pharmaceutical has the right of first refusal and priority negotiation for commercialization rights of products or technologies in Shihe Gene’s research pipeline on equal terms worldwide.

Financial data shows that in 2025, Shihe Gene’s total revenue is expected to reach 1.3243 million yuan, with a net profit of -23.0875 million yuan; as of December 31, 2025, the company’s total assets are 36.8299 million yuan, total liabilities are 19.1266 million yuan, and net assets are 17.7033 million yuan.

It is worth noting that the specific commercialization cooperation following this investment still requires further negotiation, and there are uncertainties in progress; moreover, Shihe Gene’s core products are still in early development stages, facing common risks in the pharmaceutical industry such as long R&D cycles and high clinical trial failure rates.

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