Since the beginning of March, CF PharmTech (02652.HK) has seen its share price undergo a continuous slump, recording a cumulative decline of approximately 40% prior to the major surge on March 16.

Recently, the company's shares reversed their previous downtrend following the announcement of a new drug entering the clinical trial application stage. On March 16, 2026, the company’s stock rebounded sharply, with intraday gains reaching 40% at one point. The shares eventually closed at HK$27.92, up 21.39%, bringing its market capitalization back to HK$11.49 billion.

Continuous R&D and Listing Activity; ICF001 Clinical Application Accepted

NewTimeSpace has learned that on March 13, 2026, CF PharmTech announced that the Investigational New Drug (IND) application for ICF001—a self-developed inhalation dry powder inhaler (DPI) for the treatment of pulmonary arterial hypertension (PAH) and interstitial lung disease-associated pulmonary hypertension (PH-ILD)—has been officially accepted by the National Medical Products Administration (NMPA).

ICF001 is an innovative inhalation dry powder inhaler based on a prodrug mechanism to achieve long-acting efficacy. This class of medication has established clear clinical value and validated "blockbuster" potential in treating rare and severe lung diseases. This marks another modified innovative inhalation drug application accepted after ICF004, signifying that CF PharmTech’s innovation pipeline in the field of high-end respiratory preparations is accelerating into a "harvest period."

Furthermore, there is currently no specific medication approved for PH-ILD in China. The rapid advancement of ICF001 is expected to make it the first inhaled drug approved for PH-ILD treatment in the country, filling a significant market gap.

Prior to the ICF001 clinical application, CF PharmTech’s new drug R&D and market launches have been progressing steadily throughout 2026. The IND application for ICF004 was accepted in early February.

In early March 2026, the company’s self-developed Olopatadine Mometasone Nasal Spray officially received clinical trial approval from the NMPA, making it the first domestic enterprise to submit and receive approval for a clinical application of this compound inhalation preparation.

In terms of commercial layout, CF PharmTech announced in early January 2026 that the Marketing Authorization Application (MAA) for its Budesonide Nasal Spray had been accepted by the NMPA.

 6 Products Marketed; Single Product Accounted for Over 90% Revenue

Public information shows that CF PharmTech is an international high-tech pharmaceutical company focused on the R&D, production, and sales of high-end inhalation preparations for respiratory diseases. Its main R&D products target treatments with high clinical demand, such as rhinitis, asthma, chronic obstructive pulmonary disease (COPD), pulmonary fibrosis, and pulmonary arterial hypertension.

Prior to its listing, the company had already laid out a pipeline of innovative drugs and medical devices. This innovation pipeline is gradually yielding results, with 6 products currently marketed, including Azelastine Fluticasone Compound Nasal Spray and Budesonide Inhalation Suspension. Additionally, it has over 30 products under development, with more than 10 already in the clinical stage.

It is understood that CF PharmTech’s first approved product, CF017 (Budesonide Inhalation Suspension for bronchial asthma), was quickly included in China’s Volume-Based Procurement (VBP) program after its approval in May 2021, successfully covering over 10,000 medical institutions in China.

According to data from Frost & Sullivan, by sales volume in 2024, CF017 accounted for approximately 16% of China's budesonide inhalation drug market for the year 2023.

Driven by CF017, CF PharmTech achieved revenues of RMB 349 million, RMB 556 million, and RMB 608 million from 2022 to 2024, respectively, representing a compound annual growth rate (CAGR) of 31.9%. Regarding profit performance, the company was still in a loss-making state in 2022 with a net loss of RMB 49.399 million, before turning a profit in 2023. Profits for 2023 and 2024 were RMB 31.726 million and RMB 21.088 million, respectively.

In the first quarter of 2025, CF PharmTech recorded revenue of RMB 136 million and a profit of RMB 12.815 million. It is worth noting that the company is heavily dependent on the sales of CF017; from 2022 to the first quarter of 2025, this product accounted for 96.2%, 98.4%, 94.5%, and 91.6% of the total revenue for each respective period.

NewTimeSpace has learned that CF PharmTech filed for a Hong Kong IPO in November 2024 and again in June 2025. It successfully listed on the Hong Kong Stock Exchange in October 2025 at an offer price of HK$14.75 per share. The public offering was oversubscribed by 6,696.8 times, and the share price surged over 220% intraday on its debut, eventually closing up 161.02%.

Since the beginning of March 2026, the company's share price had been consistently weak, hitting a low of HK$20.30 on March 13. Following the announcement of the pulmonary arterial hypertension drug, the stock surged 21.39% in a single day on March 16, sweeping away the previous bearish sentiment.

Industry Shifting to "Red Ocean"; TTM P/E Nears 400x

Inhalation preparations are regarded as "innovative drugs among generics." Respiratory diseases represent the second largest disease category in China, primarily due to the extremely high technical barriers of "drug-device combination." This involves the synergy between drug formulation and delivery devices, making R&D, production, and regulatory review far more difficult than for ordinary preparations.

In terms of market size, the global respiratory inhalation preparation market reached $26.8 billion in 2024 and is expected to grow to $46.2 billion by 2033, with a CAGR of 6.2%. The Chinese market was valued at RMB 23.2 billion in 2024 and is projected to reach RMB 35.1 billion by 2033, a CAGR of 4.7%, indicating significant room for growth.

The inhalation preparation field has long been "monopolized" by multinational corporations such as GlaxoSmithKline (GSK), AstraZeneca, and Boehringer Ingelheim, presenting a massive opportunity for domestic substitution.

However, this former "Blue Ocean" is shifting into a highly competitive "Red Ocean" at an unexpected pace. Following domestic technical breakthroughs and the release of policy dividends, Chinese pharmaceutical companies have flocked to the sector, sharply increasing market congestion.

The "high barriers" that once served as a moat have now become the starting line that many pharmaceutical companies must cross. Currently, in fields such as bronchodilators and compound preparations, companies like Sino Biopharm (CTTQ), Joincare, and Hengrui have already established layouts.

Although CF PharmTech recently made progress in the PAH and PH-ILD sectors with the NMPA acceptance of the ICF001 IND, this track also faces potential competitors. Globally, companies like United Therapeutics (UHTR) and Insmed have established positions, and domestic firms are following suit.

If the subsequent clinical trials for ICF004 are successful, it may tap into this unmet market demand and open new growth space for the company. However, innovative drug R&D is characterized by high investment, long cycles, and high risks. There are inherent uncertainties in the clinical research, regulatory approval, and commercialization of ICF004. In the short term, this layout is unlikely to change the company’s current performance structure.

Following the surge on March 16, CF PharmTech’s Trailing Twelve Months (TTM) P/E ratio reached 384.57x, indicating a significantly high valuation. For a company reliant on a single product for revenue, such a high valuation means the market has priced in extreme expectations for future growth. These expectations face multiple challenges and the risk of a valuation correction.

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