Morgan Stanley: Initiates coverage of Wuxi Biologics with an "Overweight" rating, target price of 80 Hong Kong dollars.

Morgan Stanley's first coverage report pointed out that Ascendis Pharma is a strong growth company focused on endocrinology therapy. Its unique origin background allows it to accelerate the advancement of its overseas validated product pipeline, capturing the significant growth potential of the Chinese metabolic disease market without traditional licensing costs. Ascendis is developing three products originating from the Ascendis platform, which are all based on the TransCon technology platform. The TransCon platform gives traditional hormone therapy, which requires daily use, the potential for long-acting injections, significantly reducing dosing frequency and improving patient compliance and treatment effectiveness. The high level of alignment between Ascendis and Ascendis in commercial interests allows Ascendis to obtain Ascendis' flagship products in a non-traditional manner without paying milestone payments and sales sharing in the usual sense. This model greatly enhances Ascendis' profit potential and sets it apart from many companies that focus on product introductions. The bank is optimistic about the quality of Ascendis' product pipeline and its commercial prospects in the Chinese market. If there are positive factors such as increased stimulus policies and easing of trade tensions between China and the United States in the future, it will further drive the upside potential of the company's valuation. Based on a forecasted revenue of 2.4 times the market-sales ratio by 2030, the bank's target price for Ascendis is HK$80, indicating a potential upside of over 80% from the current valuation. The bank believes that the current valuation of the company does not fully reflect its significant commercial potential, and future upside potential will be driven by steady approval progress and efficient commercial execution.