INNOCARE(SH:688428) Great Wall Glory Securities·2024-07-04 01:30Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Views - The company focuses on developing best-in-class or first-in-class drugs in the fields of malignant tumors and autoimmune diseases, leveraging its strong independent research and development capabilities [1][13]. - The commercialization of the core product, Obutinib, is progressing well, with new indications expected to submit NDA within the year [1][5]. - Tafasitamab, in combination with Lenalidomide, has received formal acceptance for its domestic BLA and is expected to contribute to revenue growth next year [2][5]. Summary by Sections 1. Company Overview - The company has established a comprehensive platform from innovation to commercialization, focusing on unmet medical needs in hematological malignancies, autoimmune diseases, and solid tumors [1][13]. - The core product Obutinib has been approved in China and Singapore and included in the national medical insurance directory [1][13]. 2. Product Pipeline - Obutinib has received conditional approvals for three indications, with additional indications in late-stage clinical trials [1][5]. - Tafasitamab has been approved in multiple regions and is recognized as a clinical urgent drug in specific areas [2][5]. - The company is advancing 13 products in clinical stages globally [1][13]. 3. Financial Projections - Revenue projections for 2024, 2025, and 2026 are estimated at 976.23 million, 1,397.76 million, and 1,846.19 million RMB respectively, with net losses expected to decrease over the same period [5][6]. - The total equity value of the company is estimated to be 23.5 billion RMB based on DCF modeling [4][5]. 4. Clinical Development - Obutinib shows potential for treating autoimmune diseases, with promising results in clinical trials for ITP and SLE [3][5]. - Zurletrectinib is in development for treating NTRK fusion-positive tumors, with a focus on pediatric populations [3][5]. 5. Market Position - The company is positioned in a market with significant unmet needs, particularly in hematological malignancies and autoimmune diseases, with a strong pipeline and strategic partnerships enhancing its market presence [1][13].