Core Insights - On May 20, 2023, 3SBio announced a significant agreement with Pfizer, granting exclusive global rights (excluding mainland China) for the development, production, and commercialization of its innovative PD-1/VEGF bispecific antibody SSGJ-707 [2] - The deal includes an upfront payment of $1.25 billion, setting a record for upfront payments for domestic innovative drugs, and potential milestone payments totaling up to $4.8 billion, bringing the total potential deal value to $6.05 billion (approximately 43 billion RMB) [2] - Following the announcement, 3SBio's stock surged over 35% on May 20 and continued to rise by over 8% the next day [2] Company Developments - SSGJ-707 has shown excellent efficacy in treating non-small cell lung cancer (NSCLC), with promising objective response rates (ORR) and disease control rates (DCR) in clinical trials [3] - The drug has received breakthrough therapy designation from the National Medical Products Administration (NMPA) for first-line treatment of PD-L1 positive locally advanced or metastatic NSCLC, and has also received IND approval from the FDA [3] - Clinical research for SSGJ-707 is also advancing in the treatment of colorectal cancer and gynecological tumors [3] Market Reactions - The capital market reacted strongly to the announcement, with 3SBio's stock price increasing significantly [2] - Other companies in the PD-1/VEGF bispecific antibody space, such as Kangfang Biologics, experienced stock fluctuations following the news, indicating a competitive landscape [5] Strategic Considerations - Pfizer's interest in the PD-1/VEGF bispecific antibody space is part of a broader strategy, as it has previously engaged in collaborations in this area [4] - The oncology segment of Pfizer is facing challenges with its small molecule drugs, prompting a shift towards ADC (antibody-drug conjugate) strategies, which are becoming a research focus [6] - The combination of ADCs with high-quality bispecific antibodies is seen as a potential avenue for enhancing treatment efficacy in oncology [6]

5月21日港股市场，北水成交净买入14.27亿港元，其中港股通(沪)成交净买入27.65亿港元，港股通(深) 成交净卖出13.38亿港元。 港股通(深)活跃成交股 北水净买入最多的个股是建设银行（601939）(00939)、美团-W(03690)、中海油(00883)。北水净卖出最 多的个股是腾讯(00700)、阿里巴巴-W(09988)、盈富基金(02800)。 | 股票名称 | 买入额 | 卖出额 | 买卖总额 | | --- | --- | --- | --- | | | | | 净流入 | | 小米集团-W | 24.00亿 | 26.43亿 | 50.43 乙 | | HK 01810 | | | -2.43 Z | | 腾讯控股 | 12.18亿 | 17.53亿 | 29.70亿 | | HK 00700 | | | -5.35 乙 | | 建设银行 | 13.00 亿 | 6.10 亿 | 19.10亿 | | HK 00939 | | | +6.89亿 | | 阿里巴巴-W | 6.161Z | 11.59 亿 | 17.76亿 | | HK 09988 | | | -5.43 亿 | | ...

Group 1 - The core point of the news is that 3SBio has sold its PD-1/VEGF dual antibody SSGJ-707 to Pfizer for a record upfront payment of $1.25 billion and has initiated a Phase III clinical trial for the drug targeting advanced PD-L1 positive non-small cell lung cancer (NSCLC) [1][2] - The Phase III trial will enroll 420 patients and is expected to start in June 2023, with preliminary results anticipated by July 2026. The primary endpoint is progression-free survival (PFS) and the secondary endpoint is overall survival (OS) [1] - SSGJ-707 has received breakthrough therapy designation from the National Medical Products Administration (NMPA) in China, and its combination therapy indication is still in Phase II [1] Group 2 - The competitive landscape shows that PD-1/VEGF dual antibodies are becoming a popular choice among pharmaceutical companies, with 3SBio's stock price rising over 9% following the announcement of the deal with Pfizer, leading to a market capitalization exceeding HKD 50 billion [2] - The global sales of the leading PD-1 drug, pembrolizumab (K drug), are projected to be around $25 billion in 2023 and $29 billion in 2024, making it a significant competitor for new entrants like SSGJ-707 [3] - The head-to-head clinical trial results of another PD-1/VEGF dual antibody, Ivosidenib, against pembrolizumab have shown a median PFS of 11.14 months compared to 5.82 months for pembrolizumab, indicating potential advantages for dual antibodies [3] Group 3 - The current treatment guidelines recommend pembrolizumab as a first-line therapy for advanced non-squamous NSCLC, particularly for patients with high PD-L1 expression [4] - The approval process for new drugs requires demonstrating superior efficacy compared to existing treatments, which poses a challenge for both 3SBio and other companies developing similar products [4][5] - The financial implications for companies like 3SBio and Akeso are significant, as they invest heavily in R&D, with Akeso's R&D expenses exceeding 1 billion yuan in 2023 and 2024 [5]

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The report highlights a significant overseas licensing deal for the PD1/VEGF dual antibody with Pfizer, exceeding market expectations with a transaction scale of over $1.25 billion upfront payment and potential milestone payments of up to $4.8 billion, along with a double-digit percentage sales share [7] - The company is expected to show substantial revenue growth, with projected revenues reaching RMB 19.1 billion in 2025, representing a year-on-year growth rate of 109.7% [6][8] - The report anticipates a dramatic increase in net profit, forecasting RMB 9.8 billion in 2025, a year-on-year increase of 368.2% [6][8] - The company is expected to maintain a strong market position with core products like Teibiao and Mandi showing robust growth, with Teibiao's sales projected at RMB 5.06 billion in 2024, a 20.4% increase [7] - The report suggests that the company's innovative products and partnerships with various pharmaceutical companies will provide additional revenue growth opportunities [7] Financial Summary - The company's projected operating income for 2025 is RMB 19,102 million, with a gross profit margin of 86.5% [8] - The estimated earnings per share for 2025 is RMB 4.08, with a projected price-to-earnings ratio of 4.37 [6][8] - The report estimates a target market value of approximately RMB 595 billion, equivalent to about HKD 645 billion, based on the company's stable growth and the high elasticity provided by innovative products [7]

点击蓝字，关注我们 今日上午港股 1、美图高开15% ，创近7年新高，与阿里合作并获得2.5亿美元战投； 2、万国数据（09698）绩后高开6% ，一季度营收同比增长12%，净利润实现扭亏为盈； 3、三生制药(01530)高开近3% 近日与辉瑞达成重磅交易 进一步验证707商业化出海潜力； 4、高鑫零售(06808)涨超10% 全年扭亏为盈赚4.05亿元 末期息派17港仙； 5、哔哩哔哩-W(09626)绩后涨超3% 首季度毛利润同比增近六成 效果类广告收入取得强劲增长； 6、黄金股集体走高， 地缘冲突升温避险需求提升 国际金价一度涨穿3300美元。 赤峰黄金(06693)涨 6.43%； 招金矿业(01818)涨 超5%，海域金矿投产在即； 山东黄金(01787) 涨4.03% ； 紫金矿业(0289 9) 涨3.51%。 7、泡泡玛特(09992)涨超5%再创新高 ，大摩称Labubu带动新店开业，越南供应链进展超预期； 8、中通快递跌超6% ，Q1毛利率下滑； 9、康方生物(09926)涨超6% 三生制药PD-1双抗出海刷新纪录 公司依沃西战胜K药； 10、老铺黄金(06181)涨超6% 618开门红首 ...

Core Viewpoint - The A-share and H-share innovative drug/biotechnology sectors continue to rise, driven by significant licensing agreements and strong clinical results from domestic companies [1][3]. Group 1: Market Performance - The Hang Seng Biotechnology ETF (513280) rose over 2%, while the Biopharmaceutical ETF (159839) increased by more than 1% [1]. - The Hang Seng Biotechnology ETF is noted for its low management fee of 0.15%, making it a unique option in the market [1][7]. - The year-to-date performance of the Hang Seng Biotechnology ETF has exceeded 37%, outperforming the Hang Seng Tech Index by over 17 percentage points [7]. Group 2: Licensing Agreement - A significant licensing agreement was established between 3SBio and Pfizer for the PD-1/VEGF bispecific antibody SSGJ-707, with an upfront payment of $1.25 billion and potential milestone payments of up to $4.8 billion [1][3]. - This transaction marks the highest licensing amount recorded for a domestic pharmaceutical company [1]. - The agreement is expected to enhance 3SBio's financial returns and support its research and development capabilities [3][4]. Group 3: Clinical Development - SSGJ-707 has shown promising clinical results, with excellent overall response rates (ORR) and disease control rates (DCR) in non-small cell lung cancer (NSCLC) patients [3][4]. - The drug has received breakthrough therapy designation from the CDE and has FDA IND approval, indicating its potential for first-line treatment in specific cancer types [3][4]. - Ongoing clinical studies are also being conducted for SSGJ-707 in colorectal cancer and gynecological tumors [3]. Group 4: Industry Outlook - The pharmaceutical industry is expected to benefit from policies encouraging innovation, with a focus on globally competitive innovative drug companies [5][6]. - The CXO sector is anticipated to recover in 2025, with a return to positive growth following previous adjustments [6]. - The raw material drug sector is gradually returning to normal supply-demand dynamics, contributing to performance improvements [6].

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [2][4]. Core Viewpoints - The company has signed a significant licensing agreement with Pfizer for its drug 707, granting Pfizer global rights (excluding China) for research, production, and commercialization. The upfront payment is $1.25 billion, with potential total payments up to $4.8 billion, including milestone payments and a double-digit percentage of sales [3][4]. - Drug 707 is a PD-1xVEGF dual antibody that has shown promising early clinical data and is currently in advanced clinical trials for various cancers, including non-small cell lung cancer (NSCLC) and colorectal cancer [4][5]. - The company is expected to maintain steady growth, with projected net profits of 2.39 billion, 2.71 billion, and 3.07 billion yuan for 2025-2027, reflecting year-on-year growth rates of 14.1%, 13.7%, and 13.1% respectively [4][9]. Summary by Sections Licensing Agreement - The licensing agreement with Pfizer for drug 707 includes an upfront payment of $1.25 billion and potential milestone payments totaling $4.8 billion, along with a double-digit percentage of sales [3][4]. Clinical Development - Drug 707 is currently in clinical trials for first-line PD-L1 positive NSCLC and other solid tumors, with over 300 patients enrolled in various studies [5][6]. - The drug has received breakthrough therapy designation from the CDE for its first-line PD-L1 positive NSCLC indication, accelerating its development and commercialization [4][9]. Financial Projections - The company forecasts net profits of 2.39 billion, 2.71 billion, and 3.07 billion yuan for 2025-2027, with growth rates of 14.1%, 13.7%, and 13.1% respectively [4][9]. - The company is expected to maintain a robust growth trajectory, supported by its innovative drug pipeline and successful licensing agreements [4][9].

Group 1 - The pharmaceutical sector in Hong Kong is experiencing a strong rally, with notable gains in stocks such as Kailaiying, which rose over 14%, and Sangfor Pharmaceuticals, which increased by 7.6% [1][2] - Sangfor Pharmaceuticals announced a licensing agreement with Pfizer, receiving an upfront payment of $1.25 billion, which significantly boosted investor confidence [1] - The China National Medical Products Administration has accepted a new drug application for cyclosporine eye gel from Zhaoke Ophthalmology, indicating positive regulatory developments in the industry [1] Group 2 - Longcheng Securities expressed optimism about the pharmaceutical sector, citing frequent favorable policies that are expected to lead to a steady recovery in industry sentiment [1] - Morgan Stanley's research report maintains a positive outlook on the Chinese pharmaceutical industry, highlighting supportive policies for innovation and low dependency on U.S. exports, which mitigates risks from geopolitical tensions and uncertainties in U.S. drug pricing [1]

Group 1: Market Performance - The Hong Kong pharmaceutical and biotechnology sector has shown strong performance, with the Hang Seng Healthcare Index ETF (159557) rising 1.9% as of May 21, aiming for a fourth consecutive increase, with a premium rate of 0.23% [1] - Over the three trading days from May 16 to May 20, the Hang Seng Healthcare Index ETF (159557) accumulated a total increase of approximately 6.4% [1] - Notable individual stock performances include Ascentage Pharma-B rising over 10%, and other companies like CanSino Biologics, Innovent Biologics, and 3SBio increasing by over 6% [1] Group 2: Company Developments - 3SBio announced a significant agreement with Pfizer on May 20, granting exclusive rights for the global development, production, and commercialization of its PD-1/VEGF bispecific antibody SSGJ-707, excluding mainland China [2] - The agreement includes an upfront payment of $1.25 billion and potential milestone payments totaling up to $4.8 billion, leading to a total potential transaction value of $6.05 billion, which exceeds 43 billion RMB at current exchange rates [2] - This transaction sets a new record for the highest upfront payment for a domestic innovative drug license-out deal [2] Group 3: Industry Outlook - The innovative drug sector is expected to maintain its growth trajectory, driven by "innovation + internationalization," supported by policy backing and enhanced global competitiveness [3] - There is an anticipated recovery in demand for domestic healthcare services by 2025, with potential improvements in the medical device sector as well [3] - AI in healthcare is highlighted as a significant technological trend that could bring new changes to the pharmaceutical industry [3] - Long-term prospects suggest that companies with strong innovation capabilities and rich product pipelines will benefit from ongoing procurement initiatives in pharmaceuticals and consumables [3]

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Viewpoints - The company has entered into a licensing agreement with Pfizer for its innovative PD-1/VEGF bispecific antibody SSGJ-707, which is expected to enhance its global presence and financial returns [1][2] - SSGJ-707 has shown promising clinical results, achieving excellent overall response rates (ORR) and disease control rates (DCR) in non-small cell lung cancer (NSCLC) patients, indicating its potential as a best-in-class treatment [2] - The company is expected to see significant revenue growth, with projected revenues of 10.23 billion RMB in 2025, reflecting a year-on-year growth rate of 12.3% [4] Financial Projections - The company’s net profit is projected to reach 2.36 billion RMB in 2025, with a growth rate of 13.0% [4] - The earnings per share (EPS) is expected to increase from 0.65 RMB in 2023 to 0.98 RMB in 2025 [4] - The company’s revenue is forecasted to grow from 7.82 billion RMB in 2023 to 12.65 billion RMB by 2027, with a compound annual growth rate (CAGR) of approximately 10.6% [4] Product Pipeline and Market Strategy - The company is focusing on expanding its product pipeline, with SSGJ-707 being a key driver for growth, alongside other mature products that are expected to continue generating revenue [3] - The company has established a global strategy, with products being sold in 16 countries and ongoing collaborations to expand its PD-1 pipeline [3]