SPDB International·2025-11-11 05:59Investment Rating - The report maintains a "Buy" rating for the company and recommends it as a top pick in the biotechnology sub-sector [1][12]. Core Insights - The company reported strong performance in Q3 2025, with revenues exceeding expectations due to robust sales of Zepzelca, leading to a slight upward revision of the 2025 revenue guidance and a downward adjustment of operating expenses [1][2]. - Zepzelca achieved over $1 billion in sales for the first time in a single quarter, demonstrating strong growth resilience [3]. - The company has a rich pipeline of catalysts expected in the next 12 months, particularly focusing on two hematology products with data readouts anticipated at the ASH conference [4][11]. Financial Performance - Q3 2025 total revenue reached $1.412 billion, representing a 41.0% year-over-year increase and a 7.4% quarter-over-quarter increase, with product revenue at $1.395 billion [2]. - GAAP operating profit was $163 million, up 85.6% quarter-over-quarter, while adjusted operating profit was $341 million [2]. - The gross margin for products improved to 85.9%, reflecting a 3.7 percentage point year-over-year increase [2]. Revenue Guidance - The company slightly raised its 2025 total revenue guidance from $5.0-5.3 billion to $5.1-5.3 billion, while lowering the GAAP operating expense guidance from $4.1-4.4 billion to $4.1-4.3 billion [4][12]. Target Prices - The target price for the US stock is set at $390, representing a potential upside of 17% from the current price of $332.4 [5]. - The target price for the Hong Kong stock is set at HKD 236, indicating a potential upside of 24% from the current price of HKD 190.4 [6]. - The target price for the A-share is set at RMB 326, reflecting a potential upside of 17% from the current price of RMB 279.0 [7].