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Years of losses, yet executive compensation nearly doubled over two years—Fosun Antgen struggles to stay afloat relying on its rabies vaccine

Produced by | Bullet Finance

Author | Meng Xiangna

Edited by Hu Fangjie

Art Direction by | Qianqian

Reviewed | Songwen

On June 26, Fosun Antgen submitted its initial public offering application to the Hong Kong Stock Exchange.

Just 11 days earlier, this vaccine platform under Fosun Pharma had completed a pre-IPO financing round of RMB 968 million, valuing the company post-money at RMB 7.968 billion. However, its prospectus revealed a less glamorous reality: cumulative net losses of RMB 281 million over three years and a debt-to-asset ratio exceeding 70% by the end of 2025.

From assembling the vaccine platform through acquisitions, securing financing, to filing for listing, Fosun Antgen’s 'triple leap' reflects both Fosun Pharma’s strategic move to spin off assets amid a recovering Hong Kong market and the platform’s own urgent need to ease liquidity pressure.

Tracing back to 2021, Fosun Pharma spent over RMB 4 billion to acquire Antgen and injected it into its subsidiary Dalian Yalifeng, rapidly assembling a vaccine business platform.

From a product perspective, 70% of the company’s revenue relies on its lyophilized rabies vaccine—a segment already locked in a zero-sum competition. Meanwhile, its much-anticipated 13-valent pneumococcal conjugate vaccine remains in Phase III clinical trials, facing an uphill battle against entrenched giants like Pfizer and Walvax Biotech in a largely saturated market.

When pipeline depth fails to translate into profitable prospects, can this externally funded vaccine platform justify its nearly RMB 8 billion valuation?

1. The Capital Chess Game Behind the RMB 4 Billion Acquisition

Fosun Antgen originated as Chengdu Antgen, established in Chengdu in July 2012.

As one of China’s early companies focused on innovative polysaccharide-conjugate vaccines, it was led by co-founder Zhao Guanghui in core technology development, specializing in bacterial vaccines and standing out at the time as a rare domestic player pursuing multivalent pneumococcal vaccines.

The company holds patents for polysaccharide-protein multivalent conjugation technology, which has been applied to its pipeline 13-valent and 24-valent pneumococcal conjugate vaccines.

Due to the high technical barriers of polysaccharide conjugate vaccine development, only a few multinational pharmaceutical companies globally possessed this capability at the turn of the century. To rapidly strengthen its vaccine portfolio, Fosun Pharma turned its attention to Chengdu Antigen, a company with established technical expertise in this field.

In 2021, Fosun Pharma first acquired a 13.01% stake in Chengdu Antigen for RMB 1.108 billion in cash, then contributed its wholly owned subsidiary Dalian Yalifeng—valued at RMB 2.898 billion—as consideration for subscribing to newly issued registered capital of Antigen, resulting in a total transaction value of RMB 4.006 billion.

Following the transaction, Fosun Pharma Industrial Development held a 73.01% stake, the entity was renamed Fosun Antigen, and Fosun veteran executive Wang Kexin was appointed chairman.

Wang Kexin is a seasoned veteran of Fosun Pharma. Born in 1964, he joined Fosun Pharma in 2010 and successively served as Vice President, Senior Vice President, Co-President and Chief Investment Officer. From June 2022 to April 2025, he was Co-Chairman of Fosun Pharma and currently serves as Executive President of Fosun International.

Transitioning from investor to industrial operator, his leadership exemplifies the typical 'Fosun-style' integration approach.—By leveraging Dalian Yalifeng’s stable annual vaccine sales cash flow to substitute for nearly RMB 2.9 billion in cash outlays, Fosun completed a RMB 4.006 billion acquisition using only RMB 1.1 billion in cash, significantly easing funding pressure; meanwhile, it integrated Yalifeng’s viral vaccines with Antigen’s bacterial vaccines into a comprehensive platform.

At that time, Chengdu Antigen’s original shareholders, Zhao Guanghui and Xue Ping, received RMB 186.965 million and RMB 310.6 million respectively through equity transfers, while the vast majority of the remaining cash consideration was paid to institutional investors including CICC Kangrui.

(Image / Fosun Pharma announcement)

However, embedded within this asset-restructuring strategy was a critical contractual constraint.

When Fosun Pharma Industrial acquired Antigen in 2021, it agreed with founding shareholders including Zhao Guanghui on a put option:If the 13-valent pneumococcal vaccine achieves the primary endpoint of its Phase III clinical trial and the 24-valent pneumococcal vaccine successfully completes Phase I, the founding shareholders may require Fosun Pharma Industrial to repurchase up to 18.8% of their equity stake for a maximum consideration of RMB 1.41 billion by the end of 2026.

(Figure / Company Announcement)

In 2026, as Fosun Antigen prepared for a Hong Kong IPO, this repurchase-related earn-out clause was deemed inconsistent with the Hong Kong Stock Exchange’s requirements regarding equity stability for listing applicants. Consequently, both parties signed a 'Supplementary Letter of Undertaking' on June 15, 2026, agreeing to temporarily suspend the aforementioned put option effective immediately to clear the path for the IPO.

However, a fallback provision was also included: if Fosun Antigen’s current listing plan is substantively terminated, the equity repurchase put option originally agreed upon in 2021 will automatically be reinstated.

For Fosun Antigen, a swift listing would help permanently eliminate the equity uncertainty arising from the repurchase earn-out clause, stabilize its corporate governance structure, and alleviate the company's debt burden.

2. Persistent losses and rising executive compensation amid rabies vaccine revenue accounting for over 70%

Beyond its clever capital maneuvers, Fosun Antigen has yet to escape its operating and financial losses.

At the outset of the integration, Chengdu Antigen had no commercialized products, with its core pipeline focused on the 13-valent pneumococcal conjugate vaccine; meanwhile, Dalian Yalifeng already marketed a trivalent split-virion influenza vaccine and a human rabies vaccine.

Following the merger of the two companies, Chengdu Antigen’s technology platform and pipeline potential provided room for valuation upside, while Dalian Yalifeng contributed stable operating cash flows.The two have established a dual-track vaccine industry structure in their business operations, combining 'viral and bacterial' vaccines.

However, in terms of actual profitability, the gross profit generated by Dalian Yalifeng's marketed products has still been insufficient to cover the group’s fixed operating expenses—including sales and R&D costs—keeping the company’s consolidated net profit attributable to shareholders under persistent pressure and unable to turn positive.

From 2023 to 2025, the company’s revenues were RMB 325 million, RMB 81.287 million, and RMB 525 million, respectively, while net losses amounted to RMB 35.91 million, RMB 174 million, and RMB 71.267 million, respectively.

(Source: Company prospectus)

Although the company remains in a loss-making position, executive compensation has continued to rise year after year.

From 2023 to 2025, total director compensation was RMB 19.949 million, RMB 22.372 million, and RMB 37.062 million, respectively. The sustained increase was primarily driven by expansion of the executive team, higher base salaries, and a shift in incentive structures from cash bonuses to large-scale equity-based incentives.

Zhang Yuhui, the company’s core executive director and president, received the highest compensation. From 2023 to 2025, her annual compensation totaled RMB 15.754 million, RMB 14.99 million, and RMB 17.429 million, respectively, primarily consisting of substantial base salary and performance bonuses, with equity incentives playing a relatively minor role.

(Source: Company prospectus)

In comparison, Chengda Bio—a listed peer in the same rabies vaccine segment—reported total director and executive compensation of just RMB 13.4696 million in 2025. Fosun Antigen’s total director compensation in 2025 was 2.75 times that of Chengda Bio.

In 2025, Chengda Bio’s highest-paid executive was General Manager Mao Yu, whose compensation was only RMB 2.2029 million—making Zhang Yuhui’s annual pay approximately 7 to 8 times higher, a significant gap.

Comparing further with Aim Vaccine and Olymvax—both Hong Kong-listed 18A biotech vaccine firms—Aim Vaccine’s core executive president, Jia Shaojun, earned approximately RMB 2.12 million annually, while Olymvax’s chairman received only RMB 1.13 million for the full year. Both companies’ executives received substantially lower cash compensation than Zhang Yuhui.

Fosun Antigen’s revenue structure is highly concentrated, posing underlying risks. A single product category—rabies vaccine—accounts for over 70% of the company’s total revenue, meaning any disruption to this product line would cause significant volatility in overall income.

(Source: Company prospectus)

In 2024, the company's revenue plummeted from RMB 325 million to RMB 81 million, a decline of 75.1%. The primary cause was the transition of its rabies vaccine product line: the older liquid-formulation vaccine was voluntarily discontinued, while the new lyophilized version only began production in March 2024 and did not commence commercial sales until October, resulting in a significant revenue gap during the transition period.

The two vaccines share identical upstream manufacturing processes; the difference lies in their final dosage forms.—The lyophilized version includes an additional drying step, offering better stability for storage and lower cold-chain logistics costs, making it the company’s flagship upgraded product.

The product transition led to substantial fluctuations in sales volume.

Sales of the liquid formulation dropped from 4.1 million doses in 2023 to just 0.2 million doses in 2024 (a 95.1% decline), with corresponding revenue falling from RMB 290 million to RMB 15.63 million. Meanwhile, the new lyophilized product generated only RMB 20.35 million in sales in 2024, failing to achieve scale, which caused total rabies vaccine revenue to shrink from RMB 290 million to RMB 36 million. Revenue rebounded significantly in 2025 following full commercialization of the lyophilized product, though competitive pressures have intensified.

The domestic rabies vaccine market is currently highly saturated. Vero cell-based vaccines dominate the market due to mature manufacturing processes and low costs. By batch release volume, in China’s human-use Vero cell-derived rabies vaccine market, Chengda Bio holds the leading position with a 42.9% market share, while Fosun Antigene ranks third with 7.351 million doses released (approximately 9.3% market share).

Even industry leaders are facing significant operational pressure.

Chengda Bio’s attributable net profit in 2025 plunged 61.56% year-over-year, driven both by internal operational challenges and intensifying industry-wide competition.

Currently, more than ten domestic companies have obtained batch release approval for rabies vaccines. Channel inventories remain elevated, and local CDC procurement agencies are widely implementing inventory reduction strategies, significantly slowing purchasing activity.

Amid fierce market competition, price wars continue to escalate. Even leading players are under strain, making operational difficulties inevitable for manufacturers ranked third or lower.

Currently, human diploid cell vaccines are seen as the upgrade direction, priced at approximately RMB 300 per dose, with a five-dose regimen exceeding RMB 1,500, targeting the premium self-pay market.

Human diploid cell vaccines use a cell substrate homologous to humans, containing no monkey-derived xenoproteins or residual animal DNA, fundamentally reducing the risk of adverse reactions such as redness, swelling, fever, and allergies after vaccination, as well as potential risks from exogenous viruses. Consequently, this vaccine’s safety has been endorsed by the WHO, offering more stable immune responses—particularly suitable for infants, elderly individuals, and those with allergic constitutions.

Human diploid cell vaccines from Kanghua Bio, Minhai Bio, and Chengda Bio have already been commercialized, while Fosun Antgen’s similar product remains in Phase III clinical trials, lagging behind in development progress.

3. Its innovative pipeline operates in a fiercely competitive red ocean, with 80% of bank credit lines guaranteed by Fosun Pharma.

Beyond rabies vaccines, Fosun Antgen has also developed a portfolio including influenza, pneumonia, and meningitis vaccines, but its pipeline candidates are unlikely to generate stable revenue in the near term.

Influenza vaccines represent the company’s only other product category besides rabies vaccines that has achieved scale-driven revenue.

The company currently markets two products: trivalent influenza virus split vaccine and quadrivalent influenza virus split vaccine. The trivalent influenza vaccine generated RMB 115 million in revenue in 2025, accounting for 21.9% of total revenue. In terms of batch release volume, the company ranked second in China’s细分 market for trivalent influenza vaccines in 2025, with 3.973 million doses released.

The quadrivalent influenza virus split vaccine was approved for marketing in June 2025 for individuals aged three years and older, using WHO-recommended seasonal strains and the internationally established egg-based production process. However, in 2025, this product contributed only 3.5% of total revenue, indicating it is still in the market introduction phase.

The therapeutic areas covered by its innovative pipeline are already crowded red oceans.

Fosun Antgen’s core blockbuster candidate, PCV13 (13-valent pneumococcal conjugate vaccine), is currently in Phase III clinical trials. However, China’s PCV13 market already features four established players: Pfizer’s Prevnar 13, which has dominated for years; Walvax Biotech’s Wovanxin 13, launched in December 2019; Minhai Bio’s Vemneffo, launched in September 2021, both achieving scale sales; and CanSino’s Youpeixin, which received approval in June 2025.

The company's current revenue is heavily reliant on its single rabies vaccine product line, and other pipelines are unlikely to generate meaningful revenue contributions in the near term, resulting in a clear structural weakness in overall earnings growth.Compounded by substantial ongoing clinical expenditures across multiple vaccine candidates in development, the company is likely to remain under pressure with continued losses until its high-potential innovative products receive approval and achieve significant scale.

This has also placed strain on the company's cash flow. As of the end of 2025, the company had only RMB 110 million in cash and cash equivalents, far below its RMB 710 million in short-term bank borrowings, revealing a significant debt repayment shortfall. Additionally, the company carries long-term borrowings amounting to RMB 770 million.

Notably, the company’s total bank credit facility of RMB 885 million is fully guaranteed by its controlling shareholder, Fosun Pharma, of which RMB 707.5 million has already been drawn, representing a utilization rate of approximately 80%.

(Source: Company prospectus)

However, just prior to filing for listing, strategic investors entered at the last minute, injecting strong momentum into the company’s cash position. The company completed a RMB 968 million capital increase before its IPO submission, valuing it at RMB 7.968 billion post-investment.

This investment round saw participation from multiple parties: controlling shareholder Fosun Pharma contributed an additional RMB 550 million to maintain its controlling stake; China Resources (Chengdu) Pharmaceutical Industry Equity Investment Fund, part of the China Resources ecosystem, invested RMB 150 million as a new investor, potentially enabling commercial synergies through China Resources’ pharmaceutical distribution channels; Chengdu State-owned Capital Fund, Chengdu Guosheng Ceyuan, invested RMB 250 million; and Fosun-affiliated venture capital firm Shanghai Jingxu Rongxi followed with an investment of RMB 18 million.

(Source: Company prospectus)

The proceeds from this fundraising will be allocated to vaccine pipeline development, capacity expansion at facilities in Chengdu and Dalian, and market promotion of mature products. The entry of China Resources and local state-owned capital has bolstered the company’s cash reserves and brought valuable industry resources, which could help alleviate the operational pressures stemming from its high debt burden and tight cash flow.

This follows Fosun Pharma’s established strategy of 'acquisition—integration—spin-off listing': it previously spun off Sisram Medical and Henlius to list on the Hong Kong Stock Exchange and took Gland Pharma public in India.

However, the post-investment valuation of RMB 7.968 billion implies a price-to-sales ratio exceeding 15x based on projected 2025 revenue of RMB 526 million—significantly higher than many other unprofitable vaccine companies.Yet financial backing from investors is only the starting point; ultimately, what sustains valuation is the ability to deliver commercial success for its products.

The pipeline has yet to become profitable, while competition is intensifying. With the narrative of external 'blood transfusions' becoming unsustainable, Fosun Antigen’s ability to launch a genuine blockbuster product in this red ocean market is key to justifying its $8 billion valuation. Until then, all valuation narratives will inevitably seem thin.

*The featured image in this article is sourced from SheTu.com under the VRF license.

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