Akeso: Seizing a Trillion-Dollar Track in the $145.8 Billion Global Oncology Market with Bispecific Technology

Company Overview

Akeso, Inc. (9926.HK), founded in 2012, is dedicated to the research, development, production, and commercialization of first-in-class or best-in-class innovative biologic therapeutics. The company focuses on pioneering innovation in major disease areas such as oncology, autoimmunity, inflammation, and metabolism. Akeso has developed a pipeline of over 50 innovative drug candidates with global independent intellectual property rights, including 15 bispecific/multispecific antibodies/bispecific ADCs, with 24 drugs in clinical development stages. The company listed on the Main Board of The Stock Exchange of Hong Kong Limited on April 24, 2020.

Stable and Experienced Management Team

The management team is stable and deeply experienced, with R&D personnel comprising 34% of the workforce. Founder and CEO Dr. Xia Yu earned a Ph.D. in Molecular Biology and Microbiology and accumulated substantial industry experience at pharmaceutical companies in Europe and the US (e.g., Bayer AG, PDL BioPharma). As of year-end 2024, the company had 3,035 total employees, including an R&D team of 1,029 (34%). Akeso collaborates with leading international and domestic pharma companies including Summit Therapeutics, Sino Biopharmaceutical, and Pfizer.

Strong Backing from International Capital

In August 2025, the company successfully completed a new top-up placement, issuing 23.55 million new shares and raising approximately HKD 3.5 billion. Combined with the previous two fundraising rounds, Akeso has raised over HKD 6.5 billion within a short period, demonstrating strong recognition from the capital markets. In the May 2025 equity incentive plan, the board of directors was granted 57.3% of the share options and 79.4% of the Restricted Share Units (RSUs).

Financial Performance Analysis

2022-2023: Breakthrough to First Profit. Akeso out-licensed the rights for its core product, Ivonescimab (a PD-1/VEGF bispecific antibody), in certain overseas markets to US-based Summit Therapeutics. The total potential deal value reached USD 5 billion. Akeso received a USD 500 million upfront payment in 2023, directly driving the company into profitability. Sales of its first self-developed bispecific product, Cadonilimab, reached RMB 1.36 billion in 2023, surging 149% year-over-year.

2024: Return to Normalized Operations. As the majority of the USD 500 million upfront payment was recognized in 2023, commercial licensing revenue from Summit fell significantly to approximately RMB 122 million in 2024. However, commercial sales revenue after deducting distribution costs reached RMB 2.002 billion, up 24.88% year-over-year, primarily driven by Cadonilimab and Ivonescimab.

Robust Financial Position

Cash and cash equivalents stood at a robust RMB 6.918 billion as of year-end 2024, placing Akeso in the top tier among Hong Kong-listed biotech companies in terms of cash reserves. Based on Akeso's total R&D/clinical and sales expenditures in 2024 (RMB 2.1 billion), the cash on hand is estimated to fund operations for at least the next three years.

Core Product Strength & Clinical Value

Akeso is globally unique in having two commercially launched immuno-oncology bispecific antibodies: Cadonilimab (IO) and Ivonescimab (IO + anti-angiogenesis). Global Phase 3 clinical trial data for the core product Ivonescimab directly outperformed the global 'blockbuster drug' Pembrolizumab (Keytruda): the primary endpoint of median Progression-Free Survival (mPFS) was 11.14 months for Ivonescimab versus only 5.82 months for Keytruda — nearly double the efficacy. The Hazard Ratio of 0.51 indicates a 49% reduction in the risk of disease progression or death.

Commercial Execution & Internationalization

Product sales revenue for H1 2025 reached RMB 1.401 billion, a sharp increase of 49.20% year-over-year. Penpulimab (anti-PD-1) independently gained FDA approval for US marketing in April 2025. This marks the first innovative biologic drug entirely independently led by a Chinese company to successfully receive FDA approval, demonstrating Akeso's comprehensive capability to independently meet international regulatory standards.

Technology Platform & Pipeline

Akeso has independently developed the Tetrabody platform, a core proprietary technology for producing tetravalent bispecific antibodies. The Tetrabody platform successfully addresses key Chemistry, Manufacturing, and Controls hurdles, enabling efficient and stable production of antibody drugs. It is this platform that allows Akeso to continuously develop first-in-class bispecific drugs like Cadonilimab and Ivonescimab.

Market Opportunity

According to BZResearch, the 2024 oncology drug market size was approximately USD 145.8 billion, expected to grow at a CAGR of 13%-16%. QYResearch expects the bispecific segment to grow from USD 4.16 billion in 2024 to USD 18.06 billion by 2031, at a high CAGR of 23.4%. BOCOM International projected in late August 2025 that Ivonescimab's overseas sales peak could reach USD 16.5 billion.

Investment Risks

Top-Line Growth Without Profitability: H1 2025 saw a net loss of RMB 588 million, widening over 136% year-over-year. Akeso has not yet established a self-sustaining business model and remains heavily reliant on external financing. Internationalization Capabilities: Akeso's market is primarily concentrated in China, with overseas revenue contribution at only 11%, significantly lower than peers like BeiGene (63%).

Market Performance & Institutional Valuation

The company's stock price has risen 141% year-to-date, reaching HKD 141 at the time of this report's writing. Huayuan Securities (Buy, target ~HKD 203.6, ~44% upside), CMB International (Buy, target HKD 182.12, ~29% upside), and CLSA (Outperform, target HKD 177, ~25% upside) all expressed bullish views on Akeso's prospects.