On March 13, the adjustment of the STAR 50 index constituents will take effect. Junshi Biosciences (688180.SH), once a leading PD-1 developer among the "four small dragons" in the innovative drug sector, has been removed from the index list. This exclusion serves as a clear market reassessment of its value. The removal is not accidental, as the company no longer meets the selection criteria for the STAR 50 index. As of March 11, 2026, Junshi Biosciences' stock closed at 31.32 yuan per share, significantly lower than its historical high of 220.4 yuan on its first trading day in 2020. The prolonged downward trend in its post-IPO stock price is an undeniable reality.

The exclusion from the index reflects Junshi Biosciences' ongoing operational challenges and mounting pressure from capital markets. Although the company has commercialized four products, with core product Tuoyi driving steady revenue growth, it has consistently failed to achieve profitability since listing. Moreover, its operating cash flow has remained negative for an extended period. Concurrently, frequent shareholder减持 and slower-than-expected implementation of controlling shareholder’s share purchase plan have further eroded market confidence, revealing the company’s underlying fundamentals.

The Shanghai Stock Exchange and China Securities Index Co., Ltd. recently announced adjustments to several indices, including the STAR 50, effective after market close on March 13. Three constituents were replaced: Junshi Biosciences, along with Yushi Network and Tianneng Co., Ltd., were removed, while QuantumCTek, ZKFT, and CAS Star were added.

Industry experts note that market capitalization, liquidity, and market representation are key factors in selecting STAR 50 index constituents. Regular index adjustments are standard practice. Such changes help exclude underperforming stocks while including eligible high-quality companies, maintaining the index's vitality and accurately reflecting market trends on the STAR Market.

Junshi Biosciences went public on the STAR Market on July 15, 2020, reaching an intraday high of 220.4 yuan on its first trading day and closing at 151 yuan, a significant increase from its IPO price of 55.5 yuan. However, its stock price has since trended downward. As of March 11, 2026, it closed at 31.32 yuan, with a total market capitalization of 32.16 billion yuan, a sharp decline from its peak.

The weak stock performance is fundamentally linked to unsatisfactory financial results. Junshi Biosciences is an innovation-driven biopharmaceutical company focused on discovering, developing, and commercializing novel therapies. Its R&D pipeline spans monoclonal antibodies, small molecules, ADCs, bispecific antibodies, fusion proteins, nucleic acid-based drugs, and vaccines, targeting areas such as oncology, autoimmune diseases, chronic metabolic disorders, neurological conditions, and infectious diseases.

The company currently has four commercialized products: Tuoyi, Junmaikang, Mindewei, and Junshida. Its core product is toripalimab injection (Tuoyi). Despite its commercial portfolio, revenue has fluctuated, and the company has yet to achieve profitability. In 2021, revenue surged to a record 4.025 billion yuan due to significant technology licensing and royalty income from COVID-19 antibody etesevimab, developed in collaboration with Eli Lilly. However, revenue dropped sharply to 1.453 billion yuan in 2022 as licensing income declined. With enhanced commercialization efforts, revenue gradually recovered to 1.503 billion yuan in 2023 and 1.948 billion yuan in 2024, with an estimated 28.23% increase to 2.498 billion yuan in 2025.

Core product Tuoyi has been the primary driver of revenue growth. In 2024, domestic sales of Tuoyi reached 1.501 billion yuan, up approximately 66% year-on-year, with a further 37.72% increase estimated for 2025. Toripalimab has been approved in over 40 countries and regions, including mainland China, Hong Kong, the U.S., EU, India, U.K., Australia, and Singapore, with additional applications under review globally. In China, all 12 approved indications for Tuoyi are covered by the national reimbursement drug list, making it the only anti-PD-1 monoclonal antibody reimbursed for renal cell carcinoma, triple-negative breast cancer, and melanoma, supporting sales growth.

Despite revenue growth, Junshi Biosciences continues to report losses, though the net loss has narrowed. In 2022, net loss attributable to shareholders reached a record 2.388 billion yuan, followed by losses of 2.283 billion yuan in 2023 and 1.281 billion yuan in 2024. The estimated net loss for 2025 is approximately 874 million yuan. The company attributes the reduction in losses to improved commercialization and stricter cost control.

Persistent losses have weakened the company's ability to generate cash. From 2020 to 2024, net cash flow from operating activities was consistently negative: -1.456 billion yuan, -605 million yuan, -1.776 billion yuan, -2.005 billion yuan, and -1.434 billion yuan, respectively. In the first three quarters of 2025, the figure remained negative, highlighting ongoing operational challenges.

In capital markets, Junshi Biosciences faces additional pressure from shareholder减持 and slow progress in the controlling shareholder’s share purchase plan, further dampening market sentiment. On December 18, 2025, Junshi Biosciences announced that Shanghai Tanying Investment Partnership planned to减持 up to 20.5338 million shares via block trades, representing no more than 2% of total shares, between January 13 and April 10, 2026. Based on the closing price of 35.53 yuan on the announcement date, this could amount to approximately 730 million yuan in proceeds.

Shanghai Tanying, whose executive partner is Shanghai Zhenxingu Investment Management under the control of Lin Lijun, was the third-largest shareholder of Junshi Biosciences as of the end of the third quarter of 2025. This followed a previous减持 of 12 million shares between September 5 and 22, 2025, at prices between 43.13 yuan and 48.46 yuan, totaling about 558 million yuan, due to fund duration and liquidity needs.

Frequent shareholder减持 has increased market uncertainty, while the delayed fulfillment of the controlling shareholder’s purchase commitment has exacerbated concerns. Xiong Jun, Junshi Biosciences' controlling shareholder, chairman, and actual controller, announced a plan on April 12, 2025, to purchase additional A-shares and H-shares worth at least 100 million yuan over 12 months, including at least 50 million yuan in A-shares.

However, by March 10, 2026, Xiong had only purchased 100,000 A-shares, totaling approximately 3.8384 million yuan, leaving a gap of over 46 million yuan to meet the minimum A-share purchase target. The company stated that Xiong would continue to make purchases as planned but noted risks due to potential market changes or unforeseen factors.

With Junshi Biosciences scheduled to release its 2025 annual report on March 13, the window for completing the purchase plan is narrowing. The contrasting dynamics of ongoing shareholder减持 and sluggish progress in the controlling shareholder’s purchase plan underscore the challenges Junshi Biosciences faces in rebuilding market trust.