HK Stock Market Move | 3SBIO (01530) rose nearly 8% during trading. The clinical data for SSGJ707 is outstanding, and overseas business development is expected to provide significant flexibility.

3SBIO (01530) rose nearly 8% during trading hours and was up 6.34% at the time of reporting, trading at 8.05 Hong Kong dollars with a transaction amount of 4.47 billion Hong Kong dollars. Soochow stated that SGJ-707 is advancing in four Phase II clinical studies including first-line treatment for PD-L1-positive NSCLC, combination therapy for first-line NSCLC, first-line and metastatic mCRC, as well as late-stage gynecological tumors such as endometrial cancer and ovarian cancer. Recent Phase II clinical interim analysis data presented at the JPM conference showed significant anti-tumor activity and good safety profile for 707, indicating its strong potential. It is expected that domestic sales peak of SGJ-707 will reach around 4 billion yuan, with overseas sales peak expected to reach 4.5 billion US dollars. The bank pointed out that 3SBIO's core products Tebipio, erythropoietin, and Mandyi contribute over 8 billion in revenue and more than 2 billion in profit, with a PE ratio of 7 times. It is estimated that the company will have a growth of 5-10% annually, with nearly 6 billion in cash assets fully supporting innovative drug research and development. Over the years, the company has not only incubated the high-quality self-immune innovative drug platform Sunshine Guojian Pharmaceutical, but also developed or collaborated on SSGJ707, self-immune series products, and oral paclitaxel. In particular, SSGJ707 has shown positive Phase II data at J.P.M, demonstrating strong global competitiveness and a potential for significant stock price elasticity from overseas BD expectations.