CICC: Raised the target price of China Biotech to 7.6 Hong Kong dollars and maintained an "outperform" rating.

Zhongjin released a research report stating that Chinese biopharmaceutical company announced the acquisition of 95.09% equity of Lixinyi Medicine for 9.5092 billion US dollars. After the acquisition, Lixinyi Medicine will become a wholly-owned subsidiary of Zhongsheng Pharmaceutical. Lixinyi Medicine has global innovative strength, and a sufficient pipeline of first-in-class/best-in-class drugs, which is expected to drive Zhongsheng Pharmaceutical to a new chapter in the innovative drug business. After the acquisition, the addition of multiple high-quality assets is expected to enrich Zhongsheng Pharmaceutical's existing oncology pipeline. The bank maintains a profit forecast for Zhongsheng Pharmaceutical, taking into account the upward trend in sector valuation, and raises the target price by 26.7% to 7.6 Hong Kong dollars, maintaining a "outperform" rating.