Recently, Kailera Therapeutics officially filed for an IPO with the U.S. Securities and Exchange Commission (SEC), planning to list on Nasdaq.

Founded in 2024, Kailera was established primarily to acquire three metabolic assets from Hengrui Medicine.

 

In May 2024, Hengrui Medicine granted Hercules (later renamed Kailera) an exclusive license to develop, manufacture, and commercialize three assets globally outside Greater China: the oral small-molecule GLP-1 receptor agonist HRS-7535, the GLP-1/GIP dual agonist HRS-9531, and the next-generation incretin product HRS-4729. Hengrui received an upfront and near-term milestone payment of US$110 million, with a potential total deal value of approximately US$6 billion, and also retained a 19.9% equity stake in Kailera. This deal single-handedly popularized the NewCo model.

 

Unlike traditional license-out transactions, the NewCo model provides licensors not only upfront and milestone payments but also equity, preserving the potential for equity value appreciation through a future IPO or acquisition. This dual-benefit structure is highly attractive. However, the model demands significant differentiation in the product pipeline and strong management expertise, so it remains a non-mainstream transaction structure.

 

According to PharmaCube NextPharma data, nine NewCo model licensing deals involving Chinese innovative drugs were completed in 2025. These NewCos, built on the foundation of domestic innovative assets, have been evolving for one to two years and are now entering a new phase of development, opening a new chapter in the narrative of “Great Power Pharmaceuticals.”

 

01、The Kailera Blueprint

 

Kailera has attracted significant attention since its inception, backed by prominent capital and industry stars. Both its financing speed and clinical progress have been remarkably accelerated.

 

In 2024, Bain Capital, RTW, Atlas Venture, and Lyra Capital jointly invested approximately US$400 million to establish Kailera. Kailera subsequently licensed three core pipelines from Hengrui Medicine. In October of the following year, Bain Capital led a US$600 million Series B round, making Kailera the second-highest-funded biotech company that year.

 

Kailera’s President and CEO, Ron Renaud, was formerly a partner at Bain Capital Life Sciences and brings extensive operational experience. Before joining Kailera, he served as President and CEO of Cerevel Therapeutics, which was acquired by AbbVie for approximately US$8.7 billion in 2024. Earlier, from 2014 to 2021, he led Translate Bio, transforming it from a startup platform into a leading mRNA company, which was eventually acquired by Sanofi for approximately US$3.2 billion.

 

On the clinical front, Kailera’s most advanced pipeline asset is HRS9531, a GLP-1/GIP dual agonist. Phase III clinical trial data released in November 2025 showed an average weight loss of 19.2% in the 6 mg group. Previous Phase II results demonstrated an average weight loss of 23.6% in the 8 mg group.

 

Hengrui Medicine has submitted a New Drug Application (NDA) for HRS9531 in China. Kailera has initiated global Phase III trials to evaluate additional doses, including the 8 mg dose.

 

In February of this year, Hengrui announced positive topline data from a Phase II trial of the oral tablet formulation of HRS9531, showing a maximum average weight loss of 12.1% from baseline after 26 weeks of treatment.

 

Another oral small-molecule drug, HRS7535, has also entered Phase III clinical trials in China, with top-line results expected this year.

 

Financially, as of the end of 2025, Kailera held over US$652 million in cash and cash equivalents. Bain Capital, through its funds, controls approximately 46% of the company’s equity, making it the largest shareholder. Hengrui Medicine holds a 13.6% pre-IPO stake and retains the right to up to US$5.925 billion in future milestone payments. Despite smooth fundraising, innovative drug R&D is expensive. In 2025, Kailera recorded a cumulative loss of US$368.7 million. Kailera has stated that as its pipeline advances through clinical development and ultimately seeks regulatory approval, it expects “to continue to incur significant expenses and operating losses for at least the next several years.”

 

Against this backdrop, Kailera’s decision to pursue an IPO is strategically significant—it will not only provide additional R&D funding and enhance its public market profile but also offer early investors a clear exit path.

 

Competing in the increasingly crowded weight-loss drug arena, an IPO is expected to help Kailera step into the spotlight and expand its business footprint.

 

02、NewCos Enter the “Landing Phase”

 

Nearly two years after the NewCo model gained popularity, the first wave of NewCos is now entering a concentrated “landing phase.”

 

On March 24, KeyMed Biosciences announced that Gilead Sciences would acquire Ouro Medicines for an upfront payment of US$1.675 billion, plus milestone payments not exceeding US$500 million. In November 2024, KeyMed entered into an exclusive license agreement with Ouro, granting Ouro global rights (excluding Greater China) to its BCMA/CD3 bispecific antibody CM336/OM336, receiving approximately US$16 million upfront and a 15% equity stake. Following the Gilead acquisition, KeyMed, as both a partner and shareholder, will receive approximately US$250 million upfront and up to approximately US$70 million in milestone payments. KeyMed stated that subsequent R&D efforts will be undertaken by Gilead. This marks the first wholly owned acquisition of a NewCo established with participation from a Chinese company.

 

Similarly, on March 2, Nasdaq-listed Rallybio announced a merger agreement with Candid Therapeutics. Candid, founded in 2024, derives all of its core assets from Chinese biotech companies. After its establishment, Candid successively acquired two NewCos—Vignette Bio and TRC 2004—gaining CND106 (EMB-06) from Epimab and CND261 (GB261) from Genor Biopharma. Through these transactions, both Epimab and Genor hold equity stakes in Candid.

 

These cases share a common pattern: most of these NewCos were founded around 2024. After Chinese innovative pipelines were licensed out via the NewCo model, they completed next-stage clinical data readouts and new financing rounds within just one to two years. Valuations have risen accordingly, opening exit windows.

 

Some cases have advanced even faster than expected. In December 2025, GenSci (a subsidiary of Changchun High-Tech Industries) licensed overseas rights to its SHR antagonist antibody GenSci098 to Yarrow Bioscience, receiving US$120 million in upfront and near-term milestone payments, with a potential total deal value of up to US$1.365 billion. Just days later, Yarrow went public on Nasdaq through a reverse merger with VYNE Therapeutics.

 

Chinese innovative drugs are now taking center stage on the global platform with unprecedented speed and confidence. The wave of NewCo “landings” shows that Chinese innovative pipelines are no longer “saplings” sold off in one-off deals, but core assets that carry equity value and bargaining power.

 

The narrative of “Great Power Pharmaceuticals” is no longer just about catching up in the lab. It is about taking a seat at the global innovation table and having the right to share in the value. China’s NewCo story has entered a new phase—but this is not the end. It is a new starting point for Chinese innovative drugs to set sail on a global voyage.
 

Reference articles:

• Kailera plots IPO to fund obesity pipeline after one of the biggest raises of 2025; Fierce Pharma

• Obesity drugmaker Kailera plans an IPO; BioPharma Dive

• The First Wave of NewCos Is Delivering Results; Shen Lan Guan (Deep Blue View)

• Raised US$3.475 Billion, NewCo Acquired Chinese Pipelines and Went Public; Arterial NewMed