At 72, Liu Geming has once again stepped into the spotlight—this time with the successful Hong Kong IPO of Kelun Biotech, marking his third publicly listed company and solidifying his status as one of China’s most enduring healthcare entrepreneurs. With a combined market capitalization exceeding 70 billion RMB (over $700 million), Liu’s journey from a state-owned pharmaceutical employee to a serial biotech founder is a masterclass in resilience, strategic reinvention, and long-term vision.
From State Pharmacist to Serial Biotech Founder
Born in Huangpi, Wuhan, Liu Geming began his career in the traditional pharmaceutical sector, working at a state-run drug company before embracing the wave of private enterprise in the early 1990s. In 1992, he joined Sichuan Qili Pharmaceutical as a manager—an experience that would lay the foundation for his entrepreneurial leap.
Just four years later, in 1996, Liu founded Kelun Pharmaceutical with only 1 million RMB in seed capital, operating out of rented facilities. His focus? Intravenous (IV) infusion products. At the time, China’s healthcare system relied heavily on IV therapy, and Liu seized the opportunity. By 1999, he had built what would become the largest IV production base in the country, earning him the nickname “The IV King.”
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After 14 years of steady growth, Kelun Pharmaceutical went public in 2010, when Liu was already 60—a milestone that marked his first IPO. Today, the company maintains a market value well above 40 billion RMB, a testament to its enduring presence in China’s medical landscape.
Navigating Crisis: The "Antibiotic Restriction Order" and Strategic Pivot
Despite early success, challenges emerged. In 2012, China implemented the “Antibiotic Restriction Order,” drastically reducing unnecessary IV antibiotic use. The move hit Kelun’s core business hard. Revenue continued to grow, but profits stagnated—a phenomenon known as “increasing revenue without increasing profit”—that persisted for nearly a decade.
Financial strain followed. Kelun’s total liabilities climbed from 2.53 billion RMB in 2011 to 17.23 billion RMB in 2022. Its debt-to-asset ratio surged from 24.21% to over 56% by 2021, remaining above 50% in 2022.
Faced with this pressure, Liu made a bold decision: pivot along the pharmaceutical value chain. He turned his attention to antibiotic intermediates—key compounds used in drug manufacturing—launching Chuan’ning Biologics as a second major venture.
The transition, which Liu later referred to as the “Chuan’ning Battle,” was grueling. But by 2022, Chuan’ning achieved 3.82 billion RMB in revenue, up 18.21% year-on-year. Its successful listing made Liu one of the rare entrepreneurs to lead two A-share companies each valued over 10 billion RMB.
The Third Act: Kelun Biotech and the Rise of ADC Innovation
In mid-2023, Liu achieved his third IPO with Kelun Biotech’s debut on the Hong Kong Stock Exchange at 60.6 HKD per share. The stock rose 3.14% on its first day, reaching a market cap of nearly 13.5 billion HKD—surpassing its pre-IPO B-round valuation of 10 billion RMB.
Unlike its predecessors, Kelun Biotech is not focused on generics or intermediates but on cutting-edge antibody-drug conjugates (ADCs)—a next-generation cancer therapy that combines monoclonal antibodies with potent cytotoxic drugs to target tumors with precision.
Despite minimal revenue—32.3 million RMB in 2021 and 624 million RMB in the first three quarters of 2022—Kelun Biotech has invested heavily in R&D, spending over 1.4 billion RMB during that period. This aggressive investment strategy paid off when it struck a landmark deal with Merck & Co. in December 2022.
Under the agreement, Kelun Biotech licensed seven preclinical ADC candidates to Merck across global or ex-China territories, covering nine novel drug candidates. The potential deal value reached $1.18 billion, setting a new benchmark for Chinese biotech innovation going global.
The ADC Revolution: From Imitation to Innovation
Kelun Biotech’s success reflects a broader shift in China’s biopharmaceutical industry—from copying foreign drugs to leading global innovation. Over the past decade, ADC research has flourished, driven by returning scientists and robust government support.
Today, Chinese firms are advancing next-generation HER2-targeted ADCs like:
- SHR-A1811 (Hengrui Medicine)
- A166 (Kelun Biotech)
- BAT8010 (Biocytogen)
Notably, Hengrui’s SHR-A1811 has received breakthrough therapy designation from China’s Center for Drug Evaluation (CDE) for three indications. Meanwhile, Kelun Biotech’s A166 received national marketing approval application acceptance in May 2023, signaling strong regulatory momentum.
Beyond HER2, companies are exploring new targets such as Trop2, Nectin-4, and Claudin18.2, leveraging proprietary platforms to differentiate their pipelines.
ADC development is a complex ecosystem requiring expertise in antibody engineering, linker chemistry, payload design, manufacturing, and clinical translation. The influx of skilled scientists returning from abroad has created a talent surplus—fueling rapid experimentation and innovation across China’s biotech hubs.
Kelun Biotech distinguished itself by refining its linker-payload and conjugation technologies, achieving favorable efficacy and safety profiles in early trials.
Ownership Structure and Future Outlook
At IPO, Kelun Pharmaceutical held a controlling stake of 59.75% in Kelun Biotech, with Merck as the second-largest shareholder at 6.95%. Other investors include IDG Capital, Advanced Manufacturing Fund II, and Ningbo Daoyi.
With three listed entities—Kelun Pharmaceutical (IV solutions), Chuan’ning Biologics (intermediates), and Kelun Biotech (ADCs)—Liu Geming has built a vertically integrated healthcare empire spanning raw materials to innovative therapeutics.
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Now valued at over 70 billion RMB collectively, the group stands as a model of sustained innovation and strategic evolution.
Frequently Asked Questions (FAQ)
Q: Who is Liu Geming?
A: Liu Geming is a Chinese entrepreneur and founder of Kelun Pharmaceutical, Chuan’ning Biologics, and Kelun Biotech. At age 72, he successfully led all three companies to IPOs, establishing himself as a key figure in China’s biopharmaceutical industry.
Q: What is an ADC (Antibody-Drug Conjugate)?
A: An ADC is a targeted cancer therapy that combines a monoclonal antibody with a cytotoxic drug via a specialized linker. It delivers potent chemotherapy directly to cancer cells while minimizing damage to healthy tissue.
Q: What was the significance of Kelun Biotech’s deal with Merck?
A: The $1.18 billion collaboration set a record for Chinese biotech licensing deals, validating domestic innovation on the global stage and providing critical funding for further R&D.
Q: How did Kelun Pharmaceutical respond to declining IV demand?
A: Facing headwinds from China’s Antibiotic Restriction Order, the company diversified into antibiotic intermediates through Chuan’ning Biologics—a move that ensured long-term stability and growth.
Q: What are some emerging ADC targets beyond HER2?
A: Promising new targets include Trop2 (linked to lung and breast cancers), Nectin-4 (bladder cancer), and Claudin18.2 (gastric cancer), all being explored by leading Chinese biotechs.
Q: Where is Kelun Biotech listed?
A: Kelun Biotech is listed on the Hong Kong Stock Exchange (HKEX), having gone public in July 2023 with a market capitalization of approximately 13.5 billion HKD.
With financing secured and global partnerships in place, Liu Geming’s next challenge is clear: scale the ADC platform into a sustainable engine of innovation. For this veteran entrepreneur, age is no barrier—only the next chapter in a lifelong mission to advance medicine.
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