CICC International: Maintains "Outperform" rating on INNOVENT BIO (01801), target price raised to HK$63.

Guotai Junan International released a research report, maintaining a "outperform" rating for INNOVENT BIO (01801) with a target price adjusted from HK$61 to HK$63. Considering the bright sales prospects of the company's products and the receipt of a RMB 557 million down payment from Roche in the first half of this year, the bank has raised the company's revenue forecast for the next two years by 5% and 3% to RMB 12.4 billion and RMB 17 billion respectively. The report stated that INNOVENT BIO recently announced the exclusive global rights to develop, produce, and commercialize IBI3009 (a new generation of antibody-drug conjugate (ADC) targeting DLL3) for the treatment of advanced small cell lung cancer (SCLC) patients. In return, INNOVENT BIO will receive an $80 million down payment from Roche and up to $1 billion in milestone payments. The drug is currently in Phase 1 clinical trials in Australia, China, and the United States. The bank predicts that INNOVENT BIO will have at least four candidate drugs expected to receive approval in China by the end of this year, including Limertinib, Teprotumumab, Picankibart, and Mazdutide. It is also estimated that Limertinib and Mazdutide could achieve peak sales of RMB 2.2 billion and RMB 5.6 billion respectively by the end of 2031.