Investment Rating - Maintain BUY rating for Innovent Biologics with a target price raised from HK57.67, reflecting a potential upside of 62.4% from the current price of HK80 million and potential milestone payments up to US$1.0 billion, along with tiered royalties on net sales [1]. - The DLL3 ADC is a promising therapy for pre-treated extensive-stage small cell lung cancer (ES-SCLC), with DLL3 being a neuroendocrine-specific antigen expressed in 85% of SCLC cases [1]. - Innovent has a rich pipeline of innovative drug candidates, including IBI115 (DLL3/CD3 bispecific antibody) and IBI363 (PD-1/IL-2), which have shown encouraging clinical results [1]. Financial Summary - Revenue is projected to grow from RMB 6,206 million in FY23A to RMB 10,840 million in FY25E, representing a year-on-year growth of 32.4% and 31.9% respectively [8][19]. - Net profit is expected to improve from a loss of RMB 1,028 million in FY23A to a profit of RMB 281 million in FY25E [19]. - R&D expenses are forecasted to increase from RMB 2,228 million in FY23A to RMB 3,035 million in FY25E, indicating continued investment in innovative drug development [19]. Drug Development and Pipeline - DLL3 ADC represents a significant advancement in the treatment of SCLC, with various strategies targeting DLL3 being explored, including ADCs and bispecific antibodies [1]. - Innovent's next-gen immuno-oncology asset, IBI363, has shown promising results in multiple cancer types, indicating strong potential for future out-licensing opportunities [1]. - The company has multiple ADC assets in clinical stages targeting various antigens, enhancing its global market potential [1].
信达生物：Initial validation of overseas expansion capabilities