Goldman Sachs: Raised target price for China Biopharmaceuticals (01177.HK) to 8.05 Hong Kong dollars, rated "buy", introducing GSK Hepatitis B drug.

According to the Zhidong Finance APP, Goldman Sachs released a research report stating that China Biopharmaceutical (01177.HK) has signed an agreement with GlaxoSmithKline (GSK) to obtain the exclusive commercialization rights of the antisense oligonucleotide (ASO) therapy bepirovirsen, a potential first-in-class functional cure for chronic hepatitis B in China. GSK submitted a new drug application (NDA) in China in March this year, and it is expected to be approved by 2027. Under the agreement, China Biopharmaceutical will utilize its leading hepatitis infrastructure to take full responsibility for importation, distribution, hospital access, and promotion, and will fully record the sales of bepirovirsen in China. The target price for the next 12 months has been raised from HK$7.43 to HK$8.05, maintaining a "buy" rating. The bank expects the group to have resilient profit growth in the next two years, and with a strong cash balance, it may engage in more business development transactions.