HK Stock Market Move | SBP GROUP (01177) rises over 6%; the company reiterates its full-year revenue guidance; newly approved innovative drugs will be the main driver of continued sales growth.

SBP GROUP (01177) rose over 6%, up 6.58% as of press time, at HK$5.83, with a turnover of HK$192 million. On the news front, Daiwa released a research report stating that at a recent healthcare industry exchange event, SBP GROUP's management reiterated its unchanged guidance of double-digit year-on-year revenue growth for this year, expected to be driven by a combination of licensing revenue and innovative drug sales growth, and anticipated that innovative drug sales plus licensing revenue will contribute half of full-year revenue. Management also revealed that newly approved innovative drugs will be the main driver of continued sales ramp-up, and expected the generic drug business to bottom out this year, potentially resuming growth next year on a lower base. The bank noted that SBP GROUP's full-year licensing revenue is expected to reach US$355 million this year. In addition to the US$135 million upfront payment already recognized from the out-licensing deal with Sanofi, it expects to recognize in the second half another US$200 million upfront payment from AstraZeneca for TQC3721 (PDE3/4), as well as a US$20 million upfront payment from Cipla for TQB2102, totaling US$220 million.