Chinese biotech company with 'zero' revenue surges 4,500% since stock market debut
Published on 17/09/2025 05:11 AM
Chinese biotech company with 'zero' revenue surges 4,500% since stock market debutSuch moves have increased concerns about investors piling into the Chinese biotech push and also highlights concerns with regards to valuations in a sector that still faces drug development risk.By Hormaz Fatakia September 17, 2025, 5:11:26 AM IST (Published)2 Min ReadIn more signs of emerging froth in the Chinese equity markets, a biotechnology company has surged 4,500% in the three months since making its stock market debut. The only concern? It has no products, no revenue or financials to justify such a move.
TransThera Sciences, the recently listed company, saw its stock soar by another 64% to HK$679.5 on Tuesday, September 16, having priced its IPO at HK$13.15 in late June. The 50-fold jump since then has made it the top performer on the Hang Seng Healthcare Index this year so far.
In an exchange filing, TransThera noted the "unusual move" in its stock price, but maintained that "business operations remain normal." Just a few weeks earlier, another Chinese AI company, Cambricon Technologies had warned investors that the current fundamentals of the company may not match the recent price action, after its stock had jumped 134% in a month.
For the most recent quarter that ended in June 30, TransThera posted zero revenue. The company's drugs are still in clinical testing with none commercialised yet. The company only has 121 employees.
Such moves have increased concerns about investors piling into the Chinese biotech push and also highlights concerns with regards to valuations in a sector that still faces drug development risk.
With this move, TransThera has surpassed the market capitalisation of industry leaders such as Akeso and Innovent Biologics.
Analysts believe that this has got more to do with sentiment instead of fundamentals and investors are chasing anything that could be "the next big breakthrough." The also went on to add that such moves have an equally violent end.Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!Tags