China Merchants Securities International: Maintains "Buy" rating for cornerstone pharmaceutical industry (02616) with a target price of 7.3 Hong Kong dollars.

CMSC International recently released its annual report on the global pharmaceutical and medical industry, stating optimism for the efficient operation of CStone Pharmaceuticals (02616) in clinical trials and its forward-looking layout in the next generation of tumor immunotherapy. The future ROR1 product is expected to bring about an increase in the company's valuation. The firm maintains a "buy" rating for CStone Pharmaceuticals with a target price of 7.3 Hong Kong dollars and lists CStone Pharmaceuticals as a core recommendation for small and medium-sized biotechnology enterprises. China Merchants International mentioned in its research report that it recommends overweighting the Hong Kong stock pharmaceutical industry, as Hong Kong stock pharmaceutical stocks are currently at a four-year low. By 2025, with the gradual clarification of performance and the positive trend of regulatory information, the Hong Kong stock pharmaceutical industry will also have the opportunity for a rebound. In addition, the introduction of the National Healthcare Security Medicare List will lead to a huge reform in the payment end of the Chinese drug market, which will have a positive impact on the valuation of innovative drug companies. It is worth noting that with the healthy and benign development of the innovative drug market, the commercialization and globalization sales of CStone Pharmaceuticals are on the right track, and cash flow is gradually improving. Furthermore, the company's flagship product CS5001 (ROR1 ADC) is currently the first known ROR1 ADC with clinical efficacy observed in both solid tumors and lymphomas, with its clinical development progress among the top globally. The pipeline 2.0 flagship product CS2009 for treating a variety of solid tumors has commenced global multicenter clinical trials and has been the first to submit a clinical trial application in Australia, with plans for expansion to China and the United States in the future.