HK Stock Market Move | ABBISKO-B(02256) rose nearly 9% to a new high, boosted by the exercise fee of pimecrolimus, with the company's net profit for the first half of the year increasing by 59% year-on-year.

ABBISKO-B (02256) rose nearly 9% again, with a post-performance cumulative increase of nearly 40%, reaching a new historical high of 14.65 Hong Kong dollars during trading. As of the time of writing, it rose by 8.27% to 14.53 Hong Kong dollars, with a trading volume of 76.9768 million Hong Kong dollars. On the news front, on August 5th, He Yuyao Medicine released its performance report for the first half of this year, with a revenue of 6.12 billion yuan, a year-on-year increase of 23%, and a profit of 3.28 billion yuan, a year-on-year increase of 59%. Zhongjin stated that the company's performance exceeded expectations, mainly due to the higher-than-expected income from Merck's exercise of commercialization options. It is reported that in April of this year, He Yuyao Medicine announced that Merck exercised the global commercialization option for pemigatinib; in May, He Yuyao Medicine received a fee of 85 million US dollars for exercising the global commercialization option by Merck. Citigroup stated that He Yuyao's current valuation is low, based on the high certainty of its two late-stage candidate drugs, pimicotinib and irpagratinib, and the potential for differentiated innovative pipelines to achieve external licensing. The bank expects a high success rate for the Phase III clinical trial of irpagratinib in second-line hepatocellular carcinoma, and its valuation should be taken into consideration. Citigroup believes that key catalysts for He Yuyao will appear in 2025 and 2026, focusing on the approval and commercialization of pemigatinib, the announcement of Phase III data for irpagratinib, as well as updates on data for multiple candidate drugs such as ABSK043 and ABSK061, and potential commercial partnerships.