Citigroup: SINO BIOPHARM (01177) acquires siRNA pharmaceutical company to enhance its potential for external licensing. Target price is 10.8 Hong Kong dollars with a rating of "Buy".

Citigroup released a research report stating that SINO BIOPHARM (01177) announced the acquisition of the private biotechnology company Hygieia, which focuses on small interfering nucleic acid drugs (siRNA), with a maximum base price of 1.2 billion RMB. The bank believes that this acquisition will further enhance China Biopharmaceutical's innovation capabilities and external licensing potential, consolidating its position as a leader in Chinese innovative drug companies; now with a target price of 10.8 Hong Kong dollars and a "buy" rating. Hygieia has developed several differentiated delivery platforms, with its research pipeline including candidate drugs Kylo-11, Kylo-12, Kylo-0603, HJY-10, and HJY-02. Through this acquisition, China Biopharmaceutical will establish a new generation cardiovascular innovation pipeline, strengthen its presence in the fields of weight management and metabolic diseases, and expand into the new frontier of chronic disease management market.