On the afternoon of September 16 (Tuesday), the stock price of Hong Kong biopharmaceutical company Pharmaron Health-B (02617.HK) experienced drastic fluctuations. Initially, it surged by 63% to reach a peak of HK$679.5 per share, then plummeted rapidly to close at HK$228 by the afternoon, marking a 45% drop from the opening price on the same day and a nearly 64% decline from the peak. This sudden surge and fall in stock price has drawn market attention. With less than 3 months since its IPO, the stock has surged more than 46 times based on the peak price of HK$679.5.
According to the “Daily Economic News,” Pharmaron Health’s stock price has exhibited extreme performance recently, skyrocketing by 77% on Friday, September 12, and an additional 115.58% on Monday, September 15. By Monday, the company’s market value briefly exceeded HK$120 billion. At midday on September 16, Pharmaron Health reached HK$679.5 per share, with a surge of 63%.
Pharmaron Health made its debut on the Hong Kong Stock Exchange on June 23, with an IPO price of HK$13.15 per share. Calculated based on the midday closing price on September 16, the stock had surged over 46 times in less than three months since being listed. With a market value of nearly HK$260 billion, doubts from the market persisted, leading to a subsequent plunge in stock price.
Pharmaron Health focuses on small molecule innovative therapies for tumors, inflammation, and cardiovascular metabolic diseases. However, the company currently does not have any commercialized products. Its financial data shows continued operating losses in recent years.
In the fiscal years of 2023 and 2024, the company reported losses of 343 million and 275 million yuan, respectively. With zero revenue in the first half of 2025, the company incurred a pre-tax loss of 123 million yuan in the same period. As of June 30, 2025, Pharmaron Health had cash and cash equivalents of 449 million yuan.
According to “Every News,” the drastic fluctuations in Pharmaron Health’s stock price resembling a roller coaster ride can be attributed to three main reasons:
On September 10, Pharmaron Health announced that its core product, Tinengotinib (TT-00420) in combination with fluvastatin, had received the National Medical Products Administration’s clinical implicit approval for phase II clinical trials in the treatment of hormone receptor-positive (HR+) and human epidermal growth factor receptor 2-negative or low-expressed (HER2-) recurrent or metastatic breast cancer.
In accordance with this regulation, after the submission of a clinical trial application, if no negative or challenging opinions are received within 60 days of public notice, it is deemed to have obtained implicit approval, and the company can initiate the corresponding clinical trial based on the submitted trial plan.
On Monday, September 8, Pharmaron Health was added to the list of Hong Kong Stock Connect targets, allowing southbound funds to purchase through the Hong Kong Stock Connect channel, which may have fueled the recent surge.
Industry experts informed “Every News” that while Tinengotinib is innovative, the surge in stock price is “exaggerated,” emphasizing that the potential of large molecule drugs is usually greater than that of small molecule drugs.
Out of a total of 397 million shares of Pharmaron Health, only 15.281 million shares are available for secondary market trading, indicating limited liquidity.
According to the company’s prospectus, founder and chairman Wu Yongqian holds a 32.98% stake, along with holdings by other institutions, leading to limited liquidity. For example, on September 12, the stock price fluctuated by 131.09%, with a turnover rate of only 4.74%, which is related to the small float.
The company’s pipeline includes six clinical stage and one pre-clinical stage candidate products. It struggled during three attempts to list on the Hong Kong Stock Exchange in August 2021, June 2022, and June 2024.