Goldman Sachs: Raises InnoCare Pharma's (09969) target price to HK$19.93, stable sales of Orbrientin in the last quarter.

Goldman Sachs released a research report stating that InnoCare Pharma (09969) had a sales revenue of 390 million RMB for Orelabrutinib in the fourth quarter of last year, a year-on-year increase of 27%, with sales revenue in 2025 expected to increase by 41% year-on-year, in line with the company's previous guidance. Due to recording cooperation income of about 837 million RMB in the fourth quarter, the company is expected to be profitable in 2025, two years earlier than forecasted. The bank maintained its "buy" rating on InnoCare Pharma H shares and slightly raised the target price from 19.91 HKD to 19.93 HKD. The report quoted management as saying that even without counting new business development transactions, the company remains confident in maintaining profitability for the 2026 to 2027 fiscal years. It emphasized that after reaching the milestone of reaching a balance between income and expenses in 2025, operational leverage has increased and the profit structure is more robust. Based on InnoCare Pharma's latest performance, the bank lowered its net profit forecasts for the fiscal years 2026 to 2028 by 29 million, 63 million, and 70 million RMB respectively, to reflect an increase in research and development expenses due to expanding the technology platform.