Core Viewpoint - Morgan Stanley reports that Rongchang Biopharma has entered into an exclusive licensing agreement with AbbVie for RC148, which includes an upfront payment of $650 million, potential milestone payments of up to $4.95 billion for development, regulatory, and commercialization, and double-digit tiered royalties on net sales outside Greater China [1] Group 1 - The collaboration is seen as a surprise and may boost market confidence in the Chinese biotech and pharmaceutical sectors, as Morgan Stanley previously assessed the likelihood of this event as low and did not factor it into their models [1] - The deal reflects the competitive advantage of RC148, with key data for its use in first-line treatment of non-small cell lung cancer (NSCLC) expected to be announced at the ASCO conference at the end of May [1] - Morgan Stanley has raised the target price for Rongchang Biopharma from HKD 77 to HKD 116 and upgraded its rating from "Neutral" to "Overweight" [1]

Group 1 - The Hong Kong stock market saw a strong performance in the early session on January 14, with the pharmaceutical sector leading the gains. The Hong Kong Innovative Drug ETF (159567) rose by 2.52%, with trading volume quickly surpassing 300 million yuan [1] - The Hong Kong Innovative Drug ETF (159567) has experienced a rebound since the beginning of 2026, with a cumulative increase of over 11% from January 5 to January 13 [1] - The ETF closely tracks the Guozheng Hong Kong Stock Connect Innovative Drug Index (987018), which reflects the performance characteristics of listed companies in the innovative drug sector within the Hong Kong Stock Connect [1] Group 2 - On January 12, the 44th JPMorgan Global Healthcare Conference officially opened in the United States, attracting significant attention from the biopharmaceutical industry. Several domestic innovative drug companies participated, with seven companies presenting at the main venue [2] - Huatai Securities noted that the liquidity in the Hong Kong innovative drug sector has significantly improved since the beginning of 2026, and the JPMorgan conference has provided a platform for domestic pharmaceutical companies to advance overseas business development (BD) collaborations [2] - The ongoing liquidity recovery is expected to lead to a clear innovative drug beta market, with external demand-driven CXO companies likely to achieve performance that exceeds expectations, resonating with innovative drugs [2]

Core Insights - The collaboration between AbbVie and Rongchang Biopharma marks a significant shift in the global oncology treatment landscape, highlighting the trend of "Chinese innovation + global market" in drug development [1][2] Group 1: Collaboration Details - AbbVie and Rongchang Biopharma signed an exclusive licensing agreement for the development, production, and commercialization of RC148, a bispecific antibody targeting PD-1 and VEGF [1] - Rongchang Biopharma will receive an upfront payment of $650 million and is eligible for up to $4.95 billion in milestone payments, along with a tiered royalty on net sales outside Greater China [1][2] Group 2: Market Implications - The deal allows Rongchang Biopharma to accelerate clinical trials for RC148 in China and globally, while also supporting the development of other pipelines [2] - AbbVie aims to enhance its product portfolio in immuno-oncology, particularly in the emerging PD-1/VEGF bispecific antibody space, which could improve its competitiveness in solid tumor treatments [2] Group 3: Industry Trends - The PD-1/VEGF bispecific antibody represents a new class of cancer therapies that may overcome tumor resistance mechanisms by simultaneously blocking PD-1 and VEGF [3][5] - Chinese companies are leading in this field, with significant advancements and approvals, such as the launch of Ak112/Ivonescimab by Kangfang Biopharma, which is the first bispecific antibody combining tumor immunity and anti-angiogenesis mechanisms [3] Group 4: Broader Market Dynamics - The global interest in PD-1/VEGF bispecific antibodies is rising, with several Chinese firms successfully engaging in business development (BD) transactions, reflecting the increasing recognition of Chinese innovative drug assets by multinational pharmaceutical companies [6][7] - In 2025, the total value of Chinese innovative drug licensing transactions exceeded $130 billion, accounting for 49% of the global total, indicating a significant shift in the global pharmaceutical landscape [7][8] Group 5: Future Outlook - The increasing number of approved innovative drugs in China, along with the growing bargaining power of Chinese companies in licensing agreements, suggests a transition from a "follow" to a "lead" position in global pharmaceutical innovation [8][10] - The ability of Chinese companies to negotiate favorable terms in BD transactions is becoming crucial, emphasizing the importance of pipeline strength, data quality, and structured deal design [9][10]

Core Insights - The collaboration between AbbVie and Rongchang Biopharma marks a significant shift in the global oncology treatment landscape, focusing on the development of the bispecific antibody RC148 targeting PD-1 and VEGF [1][2] Group 1: Collaboration Details - AbbVie and Rongchang Biopharma signed an exclusive licensing agreement for RC148, granting AbbVie rights outside Greater China for development, production, and commercialization [1] - Rongchang Biopharma will receive an upfront payment of $650 million and is eligible for up to $4.95 billion in milestone payments, along with a tiered royalty on net sales outside Greater China [1][2] Group 2: Market Implications - This deal exemplifies the "China innovation + global market" model, providing Rongchang Biopharma with substantial cash flow to accelerate clinical trials for RC148 and support other pipeline developments [2] - The partnership with a top-tier oncology company like AbbVie enhances Rongchang Biopharma's brand and bargaining power in international markets, while AbbVie benefits from expanding its immuno-oncology product portfolio [2] Group 3: Bispecific Antibody Landscape - RC148 represents a new class of cancer therapies aimed at simultaneously blocking PD-1 and VEGF, potentially overcoming tumor resistance mechanisms [5] - The PD-1/VEGF bispecific antibody field is gaining traction, with several Chinese companies, including Kangfang Biopharma and Junshi Biosciences, making significant advancements and entering clinical trials [6][7] Group 4: Industry Trends - The Chinese innovative drug sector is experiencing a surge in licensing deals, with over $130 billion in total transaction value in 2025, surpassing the U.S. for the first time [10] - Factors driving this trend include the impending patent cliff for major drugs and declining R&D efficiency among multinational pharmaceutical companies, leading them to seek external innovations [10][11] Group 5: Future Outlook - The Chinese pharmaceutical industry is transitioning from a follower to a leader in innovation, with a clear direction for future development [14] - Companies are focusing on building a comprehensive value creation logic recognized by international partners, enhancing their negotiation power in licensing agreements [12][13]

Core Viewpoint - Rongchang Biologics has signed an exclusive licensing agreement with AbbVie for the dual-specific antibody drug RC148, valued at approximately $5.6 billion (about 39.06 billion RMB), marking a significant milestone in the company's business development efforts [1][3]. Group 1: Business Development Transactions - The agreement with AbbVie includes an upfront payment of $650 million (about 4.53 billion RMB) and potential milestone payments of up to $4.95 billion (about 34.53 billion RMB) based on development, regulatory, and commercialization achievements [3]. - This transaction is noted as the highest upfront payment recorded in the innovative drug sector for business development (BD) transactions at the start of the year [3]. - Since 2025, Rongchang Biologics has completed three BD transactions, including the recent agreement with AbbVie, indicating a strategic push for international expansion [5][6]. Group 2: Financial Performance - For the first three quarters of 2025, Rongchang Biologics reported revenue of approximately 1.72 billion RMB, a year-on-year increase of 42.27%, while the net loss narrowed to 551 million RMB [7]. - The company’s cash reserves reached 1.07 billion RMB by the end of Q3 2025, an increase from 743 million RMB and 763 million RMB at the end of 2023 and 2024, respectively [7]. - Despite the increase in cash reserves, the company still faces a high debt ratio of 61.18% as of Q3 2025, indicating ongoing financial pressure [7]. Group 3: Market Reaction - On January 13, following the announcement of the AbbVie deal, Rongchang Biologics' A-shares hit the daily limit, closing at a 20% increase, with a total trading volume of 2.369 billion RMB [2]. - The H-shares also experienced a significant rise, closing up 7.87% [2]. - The market's positive response reflects investor confidence in the potential of the RC148 drug and the strategic partnership with AbbVie [6][8].

Group 1 - The closing price of Rongchang Biologics (688331) on January 13 was 114.46 yuan, reaching the daily limit with a trading volume of 2.369 billion yuan and a turnover rate of 13.08% [1] - The stock was listed on the daily trading list due to a price increase of 15% at the close [1] - The top five trading departments accounted for a total transaction of 818 million yuan, with a net selling of 5.703 million yuan [1] Group 2 - The main funds for Rongchang Biologics experienced a net outflow of 16.7599 million yuan on the same day [2] - The largest buying department was an institutional special seat with a purchase amount of 174.6668 million yuan, followed by the Shanghai-Hong Kong Stock Connect with 78.6782 million yuan [2] - The largest selling department was the Shanghai-Hong Kong Stock Connect with a selling amount of 145.5486 million yuan, followed by other institutional special seats [2]

Core Viewpoint - Rongchang Biologics has signed a significant exclusive licensing agreement with AbbVie for the dual-specific antibody drug RC148, with an upfront payment of $650 million and potential milestone payments up to $4.95 billion, totaling approximately $5.6 billion. This deal has led to a substantial increase in the company's stock prices, with A-shares hitting the daily limit and H-shares also experiencing significant gains [1][3][4]. Financial Impact - On January 13, Rongchang Biologics' A-shares opened 15.33% higher and closed at the daily limit of 114.46 yuan per share, marking a 20% increase and a total market capitalization of 645.2 billion yuan. The trading volume reached 2.369 billion yuan with a turnover rate of 13.08% [3]. - The H-shares also saw a rise, closing at 100.1 HKD per share, up 7.87% [4]. - The $650 million upfront payment from AbbVie is expected to alleviate the company's short-term cash flow issues, which have been a concern due to a high debt ratio of 61.18% and cash reserves of 1.07 billion yuan as of Q3 2025 [10][13]. Business Development Transactions - Since 2025, Rongchang Biologics has completed three major business development (BD) transactions, including the recent agreement with AbbVie. Previous deals included licensing agreements with Vor Bio and Santen Pharmaceutical, which also involved significant upfront and milestone payments [8][9]. - The RC148 drug targets PD-1 and VEGF pathways, aiming to enhance anti-tumor immune responses while inhibiting tumor-driven angiogenesis. Clinical studies are ongoing in China for various advanced malignancies [6][9]. Market Position and Future Outlook - The dual-target PD-1/VEGF antibody has become a popular target among multinational pharmaceutical companies, indicating a competitive landscape for such innovative therapies [7]. - The company aims to balance external licensing ("authorized blood transfusion") with internal development ("self-blood production") to ensure sustainable growth and enhance long-term value [14][15].

数据宝统计，截至14:22，荣昌生物成交额21.94亿元，创上市以来新高。最新股价上涨19.66%，换手率 12.14%。上一交易日该股全天成交额为6.60亿元。（数据宝） （文章来源：证券时报网） ...

Core Viewpoint - Rongchang Biologics has signed an exclusive licensing agreement with AbbVie for its novel PD-1/VEGF bispecific antibody drug RC148, which is expected to enhance the immune system's anti-tumor activity by targeting both PD-1 and VEGF pathways [1][2] Group 1: Financial Aspects - Rongchang Biologics will receive an upfront payment of $650 million and may earn up to $4.95 billion in milestone payments based on the achievement of development, regulatory, and commercialization milestones [2] - The company will also receive a tiered royalty on net sales achieved by AbbVie outside of Greater China [2] - In the first three quarters of 2025, Rongchang Biologics reported total revenue of 1.72 billion yuan, a year-on-year increase of 42.27% [3] Group 2: Product and Development - RC148 is designed to activate anti-tumor immune responses while inhibiting tumor-driven angiogenesis, and is currently undergoing clinical studies for various advanced malignant solid tumors in China [1][3] - This collaboration marks another significant step in Rongchang Biologics' international strategy, following previous partnerships for its core products [3] Group 3: Strategic Implications - The partnership with AbbVie is seen as a crucial move for Rongchang Biologics to leverage international pharmaceutical resources for global product development [3] - AbbVie’s extensive experience in global clinical development and commercialization in oncology is expected to support the overseas launch of RC148 [3] - The cash flow generated from this deal will further bolster Rongchang Biologics' R&D funding, ensuring the development of its pipeline products [3]

Investment Rating - The investment rating for Rongchang Biologics (688331) is "Buy" (maintained) [2] Core Insights - On January 12, 2026, Rongchang Biologics announced an exclusive licensing agreement with AbbVie for its self-developed PD-1/VEGF bispecific antibody drug RC148. AbbVie will receive exclusive rights for development, production, and commercialization outside Greater China, with an upfront payment of $650 million and potential milestone payments up to $4.95 billion, along with double-digit royalties on net sales outside Greater China [5][11] - The deal is seen as a significant entry into the business development (BD) market for 2026, highlighting the growing trend of large licensing transactions in the PD-1/VEGF space, which is crucial for next-generation cancer immunotherapy [6] - AbbVie, a well-established player in oncology, aims to enhance treatment standards for patients with difficult-to-treat cancers, and the acquisition of RC148 will further strengthen its pipeline in immuno-oncology [7] Financial Projections - Revenue projections for Rongchang Biologics are adjusted to 2.25 billion, 7.42 billion, and 3.98 billion yuan for 2025, 2026, and 2027 respectively, reflecting year-on-year growth rates of 31.1%, 229.6%, and -46.3% [11] - The net profit attributable to the parent company is expected to be -763 million, 3.19 billion, and 220 million yuan for the same years, with growth rates of 48.0%, 517.8%, and -93.1% [11] - The gross margin is projected to remain stable, increasing from 80.4% in 2024 to 82.2% in 2027 [13]