China Galaxy Securities: Maintains "Recommend" rating on INNOVENT BIO (01801), breaking through the second growth curve in the comprehensive pipeline field.

China Galaxy Securities released a research report stating that INNOVENT BIO (01801) has become a leading domestic Biopharma company integrating innovation drug research and development, production, and commercialization, with a solid leading position in the field of oncology, continuously leading growth; breakthrough in the comprehensive pipeline area, providing room for imagination for the company's medium to long-term development. The brokerage firm expects the company's operating income to be 11.891 billion, 14.836 billion, and 20.029 billion yuan respectively in 2025-2027; net profit attributable to shareholders to be 824 million, 1.378 billion, and 2.059 billion yuan respectively, maintaining a "recommended" rating. The main points of China Galaxy Securities are as follows: Event On October 22, 2025, INNOVENT BIO reached a global strategic cooperation with Takeda Pharmaceutical to accelerate the global layout of new generation IO and ADC therapies. This cooperation includes the authorization of three products, IBI363 (PD-1/IL-2), IBI343 (CLDN18.2 ADC), and IBI3001 (EGFR/B7H3 ADC) to go abroad. Takeda will receive an initial payment of $1.2 billion (including a $100 million premium strategic equity investment) and potential milestone payments, with a total transaction amount of up to $11.4 billion, and the company will also receive a share of commercial sales after product listing. Joining forces with Takeda to develop IBI363, aiming to become a cornerstone therapy for the next generation IO Takeda will jointly develop IBI363 with Takeda globally, with development costs shared at a ratio of 40/60 (Takeda/Takeda); jointly promote commercialization in the U.S. market, with profits allocated at a ratio of 40/60 (Takeda/Takeda), led by Takeda under a jointly governed and consensually negotiated development plan; the commercialization rights outside the Greater China region and the U.S. market are granted to Takeda, with potential development and sales milestones and a high-gradient sales sharing rate of up to tens of percentage points. IBI363 revealed excellent data at the 2025 ASCO conference, with a cORR of 36.7% at a dose of 3mg for immune-resistant NSCLC squamous cell carcinoma, mPFS of 9.3 months, and 70.9% 12mOS rate; the global phase III clinical trial for this indication will start in the coming months. After this transaction, the two parties will first advance the global development of first-line NSCLC and first-line CRC indications, while also expanding to more indications. Granting Takeda the overseas rights of IBI343 and IBI3001, creating the best ADC in its class Takeda will be granted the exclusive rights of IBI343 outside the Greater China region by Takeda, obtaining potential milestone payments and a high-gradient sales sharing rate of up to tens of percentage points. Takeda will continue to push for the global development of IBI343, focusing on expanding into first-line gastric cancer and first-line pancreatic cancer fields. IBI343 is currently conducting phase III clinical studies for gastric cancer in China and Japan, and has completed global phase I/II clinical studies for PDAC. In addition, Takeda will be granted the option to choose the rights outside the Greater China region for the early pipeline IBI3001, and if Takeda chooses to exercise this right in the future, Takeda will receive an exercise fee, potential milestone payments, and a highest sales sharing rate of up to tens of percentage points.