This article only represents the author's own views.

Ascletis Pharma Inc. (1672.HK) made history when it became the first listed company under a new Hong Kong Stock Exchange rule waiving a profitability requirement for promising drug startups. But the company’s path since then has been anything smooth, as some of its core products failed in their trial phases and others sputtered, including its Covid drug that rapidly faded with the pandemic’s end. Its financial report for the first half of 2024 showed its three major products approved for sale recorded zero revenue.

In a move to fatten up its top line, Ascletis announced last week it would enter the obesity drug space. Clearly, the company is eyeing the hottest slice of the pie in the weight-loss market, hoping to copy the big success of glucagon-like peptide 1 (GLP-1) analogs like Ozempic.