Citigroup: Reinitiates Coverage on REMEGEN (09995) with a "Buy/High Risk" rating, target price of HKD 105.

Citibank released a research report stating that after a period of suspended rating, they are giving REMEGEN (09995) a "buy/high risk" rating with a target price of 105 Hong Kong dollars. This is because the group has reached a cooperation agreement with AbbVie on the PD-1/VEGF bispecific drug RC148, further expanding the global potential of its pipeline candidates. Citibank believes that after the completion of the cooperation, the market focus should shift to the future global phase III clinical studies and commercial potential based on clinical data and competitive landscape. The top-line data for the phase III clinical study of thymosin for the treatment of generalized myasthenia gravis may be announced in the first half of 2027, while the phase III clinical trials for dry syndrome will start in the first half of this year. Thymosin's sales trend domestically is positive, and the company aims to achieve breakeven in 2026. Overall, Citibank believes that this business expansion cooperation demonstrates REMEGEN's high-quality innovative assets and its business development capabilities. However, considering the fierce competition in the PD-1/VEGF field and generalized myasthenia gravis field, they believe that there is still uncertainty in its global commercialization process. Citibank includes the $650 million upfront payment from the cooperation in this year's revenue for REMEGEN and estimates that the risk-adjusted peak sales of RC148 will be $2.7 billion.