富瑞金融：看好艾迪康(09860)AI战略布局和Crown Bioscience并购 予以“买入”评级目标价看高至12.6港元

Core Viewpoint - The report from Jefferies gives a "Buy" rating for ADICON Holdings (09860) with a target price of HKD 12.60, highlighting the company's strategic positioning in AI medical diagnostics and the significant acquisition of Crown Bioscience, which will enhance its capabilities in drug development and diagnostics [1][2]. Group 1: AI Strategy - ADICON's AI strategy is built around three main pillars: the AI-assisted pathology reading system, which increases reading efficiency by 6-7 times compared to manual methods and includes quality control features for error correction [1]. - The company has launched generative AI tools for clinical doctors, such as "Aixiaoyi" and a clinical large language model developed in collaboration with Huawei, which are integrated into diagnostic workflows for quality control and patient diagnosis [1]. - ADICON has completed a 20-year integration, governance, and cleansing of precision medicine testing data and is exploring commercialization opportunities in areas like commercial insurance, currently performing approximately 10 million AI-assisted image interpretations annually [1]. Group 2: Acquisition of Crown Bioscience - ADICON announced the acquisition of Crown Bioscience for up to USD 204 million, which includes an initial payment of USD 120 million and deferred payments based on performance targets [2]. - Crown Bioscience specializes in translational oncology and immuno-oncology, possessing the largest commercial PDX model library globally and a strong presence in CDX models and biomarker solutions, serving over 1,100 clients, including the top 20 pharmaceutical companies [2]. - The acquisition is expected to significantly enhance ADICON's capabilities in preclinical and translational research, with Crown's data assets and bioinformatics expertise further solidifying its industry position, and it is anticipated that around 23% of ADICON's revenue will come from international markets post-acquisition [2].