Morgan Stanley: INNOVENT BIO (01801) reported strong product revenue in the first half of the year and raised the target price to HKD 138.5.

Morgan Stanley's research report states that INNOVENT BIO (01801) reported product revenue of 8.2 billion RMB in the first half of the year, raising its product revenue/total revenue forecasts for 2026 to 2028 by 6%/5%/2%. This reflects the strong performance of core products such as GLP-1, PCSK9, and collaborative products, resulting in corresponding changes in the earnings per share forecast of +13.7%/+11.2%/-1.2%. The target price has been raised from HKD 135 to HKD 138.5, with a rating of "Overweight." The report indicates that the group's product revenue exceeded 3.8 billion RMB in the first quarter, a year-on-year increase of over 50%, benefiting from the expansion of the national medical insurance catalog and the sales of products such as Ma Shidu Peptide, Xin Bile, and TKI. The collaboration with Takeda Pharmaceuticals on IBI363/IBI343 aims to translate Chinese innovations into retained global economic rights. Data released at the American Society of Clinical Oncology annual meeting strengthens the potential of IBI363 in second-line non-small cell lung cancer and early first-line treatment. Expected profitability will experience a strategic turning point, with cash flow generation supporting longer-term asset holdings, stronger collaboration terms, and repeatable global conceptual validation.