Morgan Stanley: China Biotech Stocks Fourth-Quarter Catalyst Outlook; Industry Rating "Attractive"

Morgan Stanley released a research report identifying and previewing potential catalysts that may affect the stock prices of China's biotech sector in the fourth quarter of 2026, with an industry rating of "Attractive." For ABBISKO-B (02256), if the annualized height velocity of higher-dose ABSK061 exceeds the preliminary 2.4 cm per year, while phosphate and corneal toxicity remain low, the firm sees upside potential. For INNOVENT BIO (01801), the firm expects mazdutide to be superior to semaglutide in weight loss and liver fat, though the advantage must be sufficient to justify more gastrointestinal discomfort. For KEYMED BIO-B (02162), the firm favors the every-24-week CM512 strategy for nasal polyps; if lung function improvement is sustained across doses, it would reinforce its differentiation in asthma. For InnoCare Pharma (09969), the Phase III success of ICP-332 is already well known; absent longer infection and blood cell count data, the firm remains cautious on the TYK2 safety premium.