Jyong Biotech (MENS) Registration Filing summary

Company overview and business model

• Science-driven biotech firm based in Taiwan, focused on developing and commercializing innovative plant-derived drugs for urinary system diseases, targeting the U.S., EU, and Asia markets.

• Core pipeline includes MCS-2 for benign prostate hyperplasia/lower urinary tract symptoms (BPH/LUTS), PCP for prostate cancer prevention, and IC for interstitial cystitis.

• Operations are conducted through five wholly owned subsidiaries in Taiwan, Singapore, Hong Kong, and China; holding company structure based in the Cayman Islands.

• No commercialized products to date; all drug candidates are in clinical or preclinical stages.

Financial performance and metrics

• No revenue generated as of December 31, 2023; net losses of $4.4 million in 2023 and $6.6 million in 2022.

• Net working capital deficit of $12.5 million as of December 31, 2023, including $8.0 million in short- and long-term bank loans due within 12 months.

• Accumulated deficit of $30.1 million as of December 31, 2023.

• Research and development expenses were $1.1 million in 2023 and $1.3 million in 2022.

• Auditors raised substantial doubt about the company’s ability to continue as a going concern.

Use of proceeds and capital allocation

• Proceeds from the IPO will primarily fund Phase III trials for MCS-2 (API-2), Phase II trial for PCP, Phase I trial for IC, manufacturing bases, business development, litigation settlements, and general corporate purposes.

• Approximately 30% allocated to MCS-2 Phase III trials, 10% to PCP Phase II, 5% to IC Phase I, 15% each to manufacturing and business development, 10% to litigation/commitments, and 15% to general corporate purposes.

• Expected net proceeds will not be sufficient to fund all drug candidates through regulatory approval; additional $10 million in capital will be needed.