NewTimeSpace | Single-Day Drop Over 10%, Ribo Life(06938.HK) Approaches Offer Price within First Month of Listing

Five consecutive days of decline have brought the stock price of Ribo Life(06938.HK), which listed at the beginning of 2026, close to its initial offer price.

NewTimeSpace has noted that Ribo Life, which went public on January 9, 2026, has seen its share price fall continuously of late. On February 2, the single-day decline reached 10.76%, with the closing price at HK$61.40—only a step away from the offer price.

Cornerstones Subscribed to Nearly 50% of Global Offering, Share Price Slips Toward Offer Level

Founded in 2007, the veteran pharmaceutical firm Ribo Life successfully debuted on the Hong Kong market after its 2020 failure to list on the STAR Market. However, compared to the pre-listing capital enthusiasm, its "honeymoon phase" with the secondary market has lasted less than a month.

NewTimeSpace understands that during the offering period from December 31, 2025, to January 6, 2026, Ribo Life garnered significant investor interest. Data indicates the Hong Kong public offering received 42,771 valid applications, resulting in an oversubscription ratio of 101.06 times. Ultimately, the public tranche was reallocated (clawed back) to 2,748,800 shares, representing 8.7% of the total global offering. The international placement was also oversubscribed by 16.7 times.

Additionally, as many as 11 cornerstone investors subscribed to a combined total of US$100 million in shares. Based on the offer price of HK$57.97, this is equivalent to 48.8% of the global offering and 8.3% of the total issued share capital immediately following the global offering. These investors include global strategic partner Erik Selin Fastigheter AB, along with prominent institutions like Himension Capital, IvyRock Asset Management, and China Asset Management (China AMC).

Jointly sponsored by CICC and Citigroup, Ribo Life officially listed on the Hong Kong Stock Exchange on January 9, 2026. Its shares closed up 34.55% at HK$78.00 in the preceding day's dark market trading. On its first day of listing, the stock opened high and trended upward, maintaining investor momentum to close with a 41.62% gain. On the second trading day, the price continued to climb, hitting a peak of HK$95.80 before closing at HK$86.80, up 5.72%.

However, after the two-day surge, Ribo Life began a volatile downward trend. NewTimeSpace observed that since January 27, 2026, the share price has fallen for several consecutive days. On February 2, 2026, the drop reached 10.76%, closing at HK$61.40—the largest single-day decline since listing.

Regarding this sharp sell-off, no negative news has yet emerged in the market. The company announced on January 23, 2026, that its self-developed RBD5044 injection had received Phase II clinical trial approval, which prompted a brief rebound in the stock price.

NewTimeSpace observed that the stock briefly hit an intraday low of HK$58.55, leaving a gap of less than HK$1.00 from its offer price—just one step away from "breaking" its IPO price.

BD Collaborations Provide Capital Support, Cumulative Losses Exceed RMB 800 Million Over Two and a Half Years

Although Ribo Life has been established for 18 years, it currently has no commercialized products. Its revenue primarily stems from upfront and milestone payments from out-licensing (Business Development, or BD) collaborations.

NewTimeSpace understands that Ribo Life is an innovative pharmaceutical enterprise characterized by continuous capital expenditure.

Its 2023 revenue was only RMB 44,000, but it surged to RMB 143 million in 2024, driven by BD collaborations with Qi Lu Pharmaceutical and Boehringer Ingelheim.

In 2023, Ribo Life licensed RBD7022 to Qi Lu Pharmaceutical; in 2024, it partnered with Boehringer Ingelheim for a NASH (non-alcoholic steatohepatitis) therapy, securing nearly RMB 700 million in upfront payments and an expected US$2 billion in milestone payments. However, it is worth noting that this also implies its future returns in core areas like cardiovascular and metabolic diseases are being shared, thus compressing the profit potential for its self-owned products post-launch.

Following these BD transactions, Ribo Life's revenue growth has been significant. Data shows that from 2023 to the first half (H1) of 2025, revenue was RMB 44,000, RMB 143 million, and RMB 104 million, respectively, with H1 2025 growing 56.6% year-on-year.

However, Boehringer Ingelheim alone contributed over 70% of the 2024 revenue, highlighting a clear dependence on major customers. While short-term revenue has grown, Ribo Life remains in the red. Net losses for 2023 and 2024 reached RMB 437 million and RMB 281 million, respectively, while H1 2025 saw a further loss of RMB 97.77 million. Cumulative losses over the past two and a half years exceed RMB 800 million.

Facing persistent cash burn, financing has become a critical source of funds alongside BD revenue. The prospectus reveals that from 2015 to 2025, Ribo Life raised a cumulative RMB 1.829 billion. Following the final funding round in June 2025, its post-money valuation stood at approximately RMB 5.02 billion.

As of H1 2025, the company's operating cash flow was RMB -0.96 billion, with cash and cash equivalents totaling RMB 359 million at the end of the period, a reserve intended to cover short-term R&D and operational needs.

Core Product Progress Slows, Facing Intense Competition from Rivals

NewTimeSpace has learned that Ribo Life has established one of the world's largest siRNA (small interfering RNA) pipelines in the innovative drug sector. It has 7 self-developed assets in clinical trials covering 7 indications in cardiovascular, metabolic, renal, and liver diseases, four of which are in Phase II.

Furthermore, the company maintains over 20 preclinical projects slated for clinical development. However, this broad-front development strategy has put the company to a severe test. It struggles to mask the embarrassment of slow progress for core products, leading to a situation where not a single product has been launched in 18 years.

Its core product, RBD4059 (an siRNA targeting FXI), is the world's first and most advanced siRNA drug in clinical development for thrombotic diseases. Meanwhile, RBD5044 is the world's second APOC3-targeting siRNA to enter clinical development.

On January 23, 2026, Ribo Life announced that its self-developed RBD5044 injection received Phase II clinical trial approval. While this provided temporary support for the share price, it did not stop the subsequent weakening and approach toward a break in the offer price.

According to a Frost & Sullivan report, the global small nucleic acid drug market grew from US$2.7 billion in 2019 to US$4.6 billion in 2023 (a CAGR of 14.3%). With technological advancement and emerging results, the market is expected to reach US$46.7 billion by 2033.

Although siRNA drugs are hailed as the "third wave of pharmaceuticals" after small molecules and antibodies, this "blue ocean" has attracted heavy layouts from multinational giants.

NewTimeSpace understands that the Swiss multinational Novartis has pushed a same-target product to Phase III, holding a significant lead. Domestic competitors are also catching up; Sirnaomics’ STP705 has entered Phase III and attracted BD partners through a dual-filing strategy in China and the US.

Ribo Life now faces a predicament where its own product progress is slow while competitors are overtaking it from behind.

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