Morgan Stanley: believes that the stock price of INNOVENT BIO (01801) has a 70-80% chance of rising in the next 60 days.

Morgan Stanley's research report states that due to the recent decrease in trading volume of INNOVENT BIO (01801), the short-term valuation is more attractive. Therefore, it is believed that there is a seventy to eighty percent chance that the stock price of INNOVENT BIO will increase in the next 60 days. The bank stated that on the afternoon of January 16th, the stock price of INNOVENT BIO fell by about 10%. Morgan Stanley believes that this may be driven by the news of the Anhui Provincial Department of Health leading the domestic bulk procurement of biosimilar drugs. According to Visible Alpha's estimate, the combined revenue of rituximab, bevacizumab, and adalimumab biosimilars will account for 30-35% of INNOVENT BIO's revenue in 2024-2025. However, Morgan Stanley believes that the price reaction is excessive, as the Anhui province statement only shows its intention to conduct national procurement work, without specifying the form and timing details, and the guidance target of INNOVENT BIO's revenue of 20 billion RMB in 2027 has taken into consideration any potential impact of biosimilar VBP. The group has not developed any biosimilars, so this contribution should be significantly reduced.