Investment Rating - The report assigns a "Buy" rating to Shanghai Baoji Pharmaceutical with a target price of HK$ 111.30 [2][6]. Core Insights - Shanghai Baoji Pharmaceutical (02659.HK) is a biotechnology company focused on developing and providing recombinant biopharmaceuticals using synthetic biology technology, targeting complex diseases with limited treatment options [3][12]. - The company has established a product pipeline consisting of one approved drug and seven candidates in clinical stages, along with four preclinical assets [3][12]. - The company aims to address the pain points of traditional pharmaceuticals by producing biopharmaceuticals that can replace biochemical extraction products derived from animal organs, blood, or urine [5][12]. Business Overview - The company is currently focused on four strategic therapeutic areas: i) large-volume subcutaneous administration, ii) antibody-mediated autoimmune diseases, iii) assisted reproductive drugs, and iv) other recombinant bioproducts [3][12]. - The company has a clear commercialization model and timeline, expecting significant revenue contributions starting in 2026 from its core products KJ017 and SJ02, with KJ103 anticipated to contribute from 2027 [4][12]. Product Development - KJ017, a key product, is a highly glycosylated recombinant hyaluronidase designed for subcutaneous drug delivery, expected to receive NDA approval in Q1 2026 [8][22]. - KJ103, a recombinant IgG degrading enzyme, is the only product of its kind expected to be launched in China, targeting autoimmune diseases and transplant desensitization [8][31]. - SJ02, a long-acting recombinant FSH product, has been approved for marketing and is expected to significantly improve patient outcomes in assisted reproduction [39][40]. Financial Projections - The company forecasts revenues of HK$ 6.9 million in 2024, increasing to HK$ 530 million by 2027, with a gross margin projected to decline from 97.8% in 2024 to 82.7% in 2027 [6][10]. - The company is expected to incur net losses in the coming years, with projected losses of HK$ 160.4 million in 2024 and HK$ 30.8 million in 2027 [6][10]. Market Position - The company has a first-mover advantage in China for its core products, which have already been commercialized in some foreign markets, indicating a strong market demand [4][12]. - The company has established partnerships with other pharmaceutical and biotechnology firms to develop subcutaneous drug delivery solutions, enhancing its market presence [26][29].
宝济药业-B：步入商业化初期的生物技术公司-20260123