NewTimeSpace | First Product Approved for Commercialization as VISEN Pharmaceuticals (02561.HK) Plummets Nearly 50% Below IPO Price

Despite the long-awaited commercialization milestone for **VISEN Pharmaceuticals (02561.HK)**, the company’s stock price has retreated significantly, erasing nearly all gains following a brief two-day rally.

Since its listing, VISEN—once hailed as the "First Growth and Development Stock" on the Hong Kong Stock Exchange (HKEX)—has faced a lukewarm reception from the capital markets. The stock broke below its offer price on its first day of trading and has remained in a protracted slump ever since.

First Commercial Product Approved Amidst a 50% Price Collapse

Founded in 2018, VISEN Pharmaceuticals is a late-stage biopharmaceutical company focused on developing therapies for specific endocrine diseases in China. Its portfolio includes its core product, **lonapegsomatropin**, and two other drug candidates: **navepegritide** and **palopegteriparatide**.

On **January 26, 2026**, the National Medical Products Administration (NMPA) official website announced the approval of VISEN’s **lonapegsomatropin** for the treatment of **Pediatric Growth Hormone Deficiency (PGHD)**. This approval marks the official commercial debut of VISEN’s first innovative product.

Anticipating this news, VISEN’s stock climbed nearly 15% between January 23 and January 26. However, on January 27, the stock opened high but trended downward; despite an intraday gain of over 7%, it closed the day down 6.32%. On January 28, the downward trend continued as market enthusiasm for the product launch cooled rapidly.

**NewTimeSpace** has learned that VISEN Pharmaceuticals went public in **March 2025**, becoming the first innovative drug company to list on the HKEX that year. The IPO was priced at **HK$68.80 per share**, with net proceeds of **HK$672 million**. According to the allotment results, the public offering was oversubscribed 72.64 times, while the international tranche was oversubscribed 1.65 times. The IPO also attracted five cornerstone investors who collectively subscribed to 7.40 million shares, representing approximately 65.0% of the total offering.

Since its debut, the stock has been sluggish. While the "green shoe" mechanism helped maintain the offer price on day one, the price eventually spiraled downward, at one point falling below HK35.20**, down 5.83% for the day and nearly 12% over the last two sessions. The stock has now fallen **48.84%** from its IPO price, effectively halving its market value since listing.

Persistent Losses: 1H 2025 Deficit Exceeds RMB 100 Million

While the approval of lonapegsomatropin is a milestone, it is already the **fourth long-acting growth hormone** to be approved in China.

**NewTimeSpace** has learned that lonapegsomatropin is not an in-house developed product; it was in-licensed from **Ascendis Pharma**, a partner and one of VISEN’s controlling shareholders. The drug is already approved in the U.S. and EU. According to Ascendis Pharma’s financial reports, overseas sales of lonapegsomatropin reached **€202 million** in 2024.

Regarding its commercial strategy, VISEN’s prospectus stated that the company has targeted approximately **1,000 public hospitals**, including all major children’s hospitals, key Class III hospitals, and select Class II hospitals with significant pediatric departments. As a seven-year-old pharmaceutical firm, VISEN will only see its first product hit the market in 2026. Without prior commercial revenue, the company has operated at a continuous loss.

Prospectus data shows its only current income is "other income" (primarily government grants and bank interest), which amounted to RMB 5.76 million, RMB 11.36 million, and RMB 8.65 million in 2022, 2023, and the first three quarters of 2024, respectively. Net losses reached **RMB 289 million in 2022**, **RMB 250 million in 2023**, and **RMB 129 million** for the first nine months of 2024.

Post-listing, the **1H 2025 financial report** revealed a **net loss of RMB 118 million**, with R&D costs at RMB 46.62 million and administrative expenses at RMB 60.05 million. As of June 30, 2025, VISEN held **cash and cash equivalents of RMB 806 million**, an increase of RMB 600 million compared to the end of 2024.

VBP Pressures and Industry Giants: A Challenging Path Ahead

According to Frost & Sullivan, China’s human growth hormone market grew from RMB 4 billion in 2018 to RMB 11.6 billion in 2023 (CAGR of 23.9%). The market is projected to reach **RMB 28.6 billion by 2030**. However, the path to commercial success is fraught with competition and regulatory headwinds.

**Volume-Based Procurement (VBP)** has begun to impact the sector. Since 2022, short-acting growth hormones have been included in VBP across multiple provinces, leading to price drops of approximately **37.5%**. While long-acting growth hormones have not yet been included in VBP, they are expected to face similar pricing pressures.

In terms of competition, **Changchun High-Tech**, through its subsidiary **GeneScience**, remains the dominant leader with over **70% market share**, followed by **Anke Bio**. However, the impact of VBP became evident in 2024; GeneScience reported an annual revenue of RMB 13.47 billion (down 7.55% YoY) and a net profit of RMB 2.58 billion (down 43.01% YoY), marking its first revenue decline since 2004.

As new players like **Xiamen Tebao** and **VISEN** enter the market in 2025-2026, competitive pressure will intensify. In a climate where even industry leaders are seeing earnings decline, it remains uncertain how much market share these "disruptors" can actually capture.

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