Group 1 - The core point of the article is that China National Pharmaceutical Group's subsidiary, Lixin Pharmaceutical, has reached a global exclusive licensing agreement with Merck for LM-299, which includes significant financial terms [2] - Under the agreement, Merck will receive exclusive rights for the global development, production, and commercialization of LM-299 [2] - Lixin Pharmaceutical will receive an upfront payment of $588 million, along with potential milestone payments that could total up to $2.7 billion [2]

Group 1 - The core point of the article is that China Biologic Products (01177.HK) is set to receive a milestone payment of $300 million related to the technology transfer of LM-299, a PD-1/VEGF dual antibody, from Merck [1] - The technology transfer for LM-299 was completed in July 2023, and the payment is expected to be confirmed in the third quarter of 2023 [1] - Merck has indicated that the LM-299 project is progressing as planned, as stated during their second-quarter earnings call [1]

Group 1 - The core point of the article is that China Biologic Products Holdings (01177.HK) announced a successful progress in the licensing cooperation with Merck regarding the LM-299/MK-2010 "PD-1/VEGF dual antibody" [1] - The company is expected to receive a milestone payment of $300 million for technology transfer in the near future [1] - Merck disclosed during its Q2 earnings call that the technology transfer for LM-299 was completed in July and the milestone payment will be confirmed in Q3 [1] Group 2 - In 2024, the company reached a global exclusive licensing agreement with Merck for LM-299, where Merck will receive exclusive rights for global development, production, and commercialization [1] - According to the agreement terms, the company will receive an upfront payment of $588 million and up to $2.7 billion in milestone payments [1]

（於開曼群島註冊成立之有限公司） 網站：www.sinobiopharm.com （股份編號：1177） 自願公告 LM-299對外授權合作順利， 3億美元里程碑將於近期收款 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 1 謝其潤 香港，二零二五年七月三十日 於本公告日期，本公司董事會包括六位執行董事，即謝其潤女士、謝炳先生、鄭翔玲女士、謝承潤 先生、謝炘先生及田舟山先生，以及五位獨立非執行董事，即陸正飛先生、李大魁先生、魯紅女 士、張魯夫先生及李國棟醫生。 2 關於LM-299對外授權合作 2024年，禮新醫藥與默沙東就LM-299達成全球獨家授權協議。根據協議條款，默沙東將獲得LM- 299的全球開發、生產和商業化獨家許可。禮新醫藥將獲得5.88億美元的首付款，以及最高27億美元 的里程碑付款。 承董事會命 中國生物製藥有限公司 主席 中國生物製藥有限公司（「本公司」，連同其附屬公司統稱「本集團」）董事會（「董事會」）宣佈，本集團全 資附屬公 ...

Group 1 - The core viewpoint of the news highlights the strong performance of the Hong Kong innovative drug sector, with specific stocks like China Biologic Products leading the gains [1][5] - China Biologic Products' subsidiary, Lixin Pharmaceutical, received FDA approval for its innovative drug LM-350 "CDH17ADC," indicating significant potential for future growth [2][3] - The Hong Kong Stock Connect Innovative Drug ETF (520880) has shown a year-to-date increase of 58.95%, outperforming other indices significantly [5][6] Group 2 - Analysts from Zhongyin International expect China Biologic Products to have 1 to 2 licensing deals become more visible, reflecting the company's growth potential in the global market [3] - Huachuang Securities noted that China Biologic Products is innovating across four major fields: oncology, respiratory diseases, liver diseases, and surgical/pain management, which could lead to a second growth curve starting in 2025 [3] - The Hong Kong Stock Connect Innovative Drug ETF passively tracks the Hang Seng Hong Kong Stock Connect Innovative Drug Select Index, which focuses on the innovative drug industry chain, with the top ten constituent stocks accounting for 75.85% of the index weight [3][4]

Core Viewpoint - China National Pharmaceutical Group is a leading innovative research and R&D-driven pharmaceutical group in China, with a focus on both generic and innovative drug development [1][2][3] Group 1: Financial Performance - Revenue is projected to grow from 23.647 billion yuan in 2020 to 28.866 billion yuan in 2024, while net profit remains stable due to increased investment in innovative drug R&D [1] - The revenue from chemical generics is expected to recover to 16.81 billion yuan in 2024, reflecting a growth of 3.1%, with the tenth batch of centralized procurement products accounting for only 1% of total revenue [1] Group 2: Innovation and Product Pipeline - The company has significantly increased its R&D pipeline, with the number of innovative products launched rising from 3 to 18 since 2022, including 9 innovative drugs [2] - The proportion of revenue from innovative products has increased from 12% in 2018 to 41.8% in 2024, with expectations to exceed 50% in 2025 and reach 60% by 2027 [2] Group 3: Strategic Goals and Market Position - The company aims to establish a strong global competitive position in oncology, respiratory, liver disease, and surgical/pain management, with plans for business development transactions to become a regular source of income starting in 2025 [3] - The projected revenues for 2025, 2026, and 2027 are 34.062 billion yuan, 36.602 billion yuan, and 39.674 billion yuan, respectively, with corresponding net profits of 3.932 billion yuan, 4.288 billion yuan, and 4.743 billion yuan [3]

Investment Rating - The report assigns a "Buy" rating for China Biopharmaceutical (01177.HK) with a target price of HKD 9.35, compared to the current price of HKD 6.71 [3][11]. Core Views - The company is expected to see a continuous increase in the proportion of innovative drugs, leading to a potential revaluation of its value [6][11]. - The company has a robust pipeline with over 90 innovative molecules in development, indicating significant growth potential [40][46]. - The transition from generic to innovative products is anticipated to enhance the company's revenue structure, with innovative product revenue expected to exceed 50% by 2025 and 60% by 2027 [9][11]. Financial Summary - Total revenue projections for 2024A, 2025E, 2026E, and 2027E are HKD 28,866 million, HKD 34,062 million, HKD 36,602 million, and HKD 39,674 million respectively, with year-on-year growth rates of 50.1%, 12.3%, 9.1%, and 10.6% [2]. - Net profit attributable to shareholders is projected to be HKD 3,500 million, HKD 3,932 million, HKD 4,288 million, and HKD 4,743 million for the same years, with corresponding growth rates of 50.1%, 12.3%, 9.1%, and 10.6% [2]. - The company’s earnings per share (EPS) is expected to increase from HKD 0.19 in 2024 to HKD 0.25 in 2027 [2]. Company Overview - China Biopharmaceutical is a leading innovative research and development-driven pharmaceutical group in China, with a history of being recognized among the top 50 global pharmaceutical companies [6][15]. - The company has successfully transitioned to a focus on innovation since 2018, increasing its number of innovative products from 3 to 18, including 9 innovative drugs [23][40]. - The company’s revenue from innovative products has significantly increased, from 12% in 2018 to 41.8% in 2024, with plans to further increase this proportion in the coming years [9][25]. Pipeline and Product Development - The company has a rich pipeline with over 90 innovative molecules, with plans to launch an average of 5 innovative products annually over the next three years [40][41]. - The company’s innovative products are expected to have global competitiveness, with a focus on areas such as oncology, respiratory diseases, liver diseases, and pain management [10][40]. - The company aims to establish out-licensing as a key strategic goal starting in 2025, which is expected to become a recurring source of income and profit [10][46].

Core Viewpoint - The company has received FDA approval for clinical trials of its self-developed anti-tumor drug LM-350 "CDH17ADC," which targets the mechanism of CDH17 in tumors, aiming to provide more effective treatment options for patients [1] Group 1 - The drug LM-350 "CDH17ADC" is designed to address the role of CDH17 in tumors [1] - The FDA's IND approval marks a significant milestone for the company's research and development efforts [1] - The new drug aims to enhance treatment efficacy for patients suffering from cancer [1]

Core Viewpoint - The announcement highlights the progress of China's biopharmaceutical company in the development of innovative drugs, particularly the completion of the first dosing of TQB6411, an EGFR/c-MET dual antibody ADC [1] Group 1: Drug Development Progress - The first subject has been dosed with TQB6411, an innovative drug targeting EGFR and c-MET [1] - In addition to TQB6411, the company has several other ADC projects in various clinical stages: TQB2102 (HER2 dual antibody ADC) is in Phase III, LM-302 (CLDN18.2 ADC) is also in Phase III, and LM-305 (GPRC5D ADC) is in Phase I/II [1] - TQB2101 (ROR1 ADC) is currently in Phase I, and numerous ADC projects are in preclinical development, expected to enter clinical stages in the next 1-2 years [1]

港股药品股集体走强，丽珠医药(01513.HK)涨超9%，联邦制药(03933.HK)涨超7%，翰森制药 (03692.HK)涨超3%，信达生物(01801.HK)、中国生物制药(01177.HK)涨超2%。 ...