Core Viewpoint - Cathay Securities has raised the target price for Immune-Onc Biologics-B (09606) to HKD 455.56, maintaining a buy rating based on the promising progress of its pipeline leading to increased global peak sales expectations for HER2ADC DB1303, B7H3ADC DB1311, and HER3ADC DB1310 [1] Group 1 - The company is expected to have a rich catalyst in 2026, with anticipated data readouts including final results for HER2ADC in EC and BC indications, clinical results for B7H3ADC, HER2ADC, and TROP2ADC combined with PDL1*VEGF dual antibody BNT327, early clinical data updates for B7H4ADCEGFR*HER3ADC, and clinical progress updates for CDH17ADC [2] - Confidence is high for the global registration results and NDA for HER2ADC DB1303 in 2L+EC and 2L HR+/HER2-BC indications in 2026, driven by the smooth progress of two registration clinical trials in 2025 and optimistic attitudes from BNTX's latest R&D day [2] - The company is expected to initiate the first global registration Phase III clinical trial for B7H3ADC DB1311 targeting 2L CRPC (chemo naive) in 2026, based on its demonstrated potential for broad-spectrum solid tumors and notable efficacy in CRPC in 2025 [2] Group 2 - The company anticipates continued global clinical development for DB1310 in the 2L+HR+/HER2-BC indication in 2026, supported by the initiation of MSD's HER3ADC in the same indication and superior clinical performance of DB1310 [3] - The efficacy of TROP2ADC DB1305 is expected to be comparable to DATO, based on data updates for solid tumors and TNBC in 2025 [3] - The company is optimistic about the performance of BNTX's PDL1*VEGF dual antibody BNT327 combined with DB1311 and DB1303DB1305, given the demonstrated effectiveness of various combinations in multiple indications compared to PD(L)1 monoclonal antibody plus chemotherapy [3]

Investment Rating - The report assigns a rating of "Buy" for the company [4]. Core Insights - The report highlights a rich pipeline for the company in 2026, with expectations for significant clinical data readouts, including results for HER2 ADC, B7H3 ADC, and TROP2 ADC [12][19]. - The target price for the company has been raised to HKD 455.56 based on DCF valuation methods, reflecting increased confidence in the potential global sales peak for several ADC products [8][12]. Financial Summary - Total revenue is projected to grow from RMB 1,462 million in 2023 to RMB 2,516 million by 2027, with a notable increase of 23% in 2026 [3]. - Gross profit margin is expected to improve from 34% in 2025 to 51% in 2027, indicating a positive trend in profitability [3]. - Net profit is forecasted to decrease from RMB -757 million in 2025 to RMB -321 million in 2027, showing a gradual reduction in losses [3]. Pipeline Developments - HER2 ADC DB1303 is undergoing global registration clinical trials for multiple indications, with expected results in 2026 [12][11]. - B7H3 ADC DB1311 is anticipated to initiate a global Phase III clinical trial for 2L CRPC in 2026, following promising data from earlier studies [13][12]. - TROP2 ADC DB1305 is expected to demonstrate comparable efficacy to competitors in the market, with a focus on combination therapies [19][21]. Market Position - The company is positioned to compete effectively in the ADC market, with a strong emphasis on innovative therapies and strategic partnerships [12][19]. - The report notes the potential for the company's ADCs to become next-generation standard treatments in oncology, particularly in combination with other therapies [12][19].

Group 1 - In 2025, the IPO activity of biopharmaceutical companies rebounded, with 21 companies successfully going public, including 18 on the Hong Kong Stock Exchange, raising approximately HKD 23.5 billion [2] - The Hong Kong biopharmaceutical sector saw a strong rebound in 2025, contrasting with 2022 when all 21 newly listed companies experienced a decline in share price [2] - In 2025, Heng Rui Medicine raised a record HKD 11.3 billion in a single IPO, showcasing its strong innovative drug development capabilities with 24 approved first-class innovative drugs and over 100 products in clinical development [2] Group 2 - Heng Rui Medicine's revenue for 2022, 2023, and 2024 was CNY 21.275 billion, CNY 22.820 billion, and CNY 27.985 billion respectively, with net profits of CNY 3.906 billion, CNY 4.302 billion, and CNY 6.337 billion, maintaining a gross margin of over 83% [3] - In the first three quarters of 2025, Heng Rui Medicine achieved revenue of CNY 23.188 billion, a year-on-year increase of 14.85%, and a net profit of CNY 5.751 billion, up 24.50% year-on-year, indicating strong performance [3] - Ying En Bio's stock surged over 110% on its first day of trading, focusing on innovative drugs for cancer and autoimmune diseases, with two core products entering the global antibody-drug conjugate (ADC) industry chain [3] Group 3 - In 2025, three companies, including Biobetter and Baiaosaitu, went public on the Sci-Tech Innovation Board and the main board, raising a total of CNY 5.466 billion [4] - Baiaosaitu's successful listing on the Sci-Tech Innovation Board marks a significant step in its capital market strategy, having previously listed on the Hong Kong Stock Exchange [4] - The biopharmaceutical sector is entering a new growth phase since 2020, with a more mature industrial foundation and a longer-lasting trend, as capital is increasingly willing to invest in truly innovative technologies with clinical value [4]

Investment Rating - The report maintains an "Overweight" rating for the innovative pharmaceutical and medical device industry chain [4][8]. Core Viewpoints - The report continues to recommend the innovative pharmaceutical and medical device industry chain, highlighting a selection of A-share and H-share stocks with an "Overweight" rating [2][8][11]. - The performance of the pharmaceutical sector in December 2025 was weaker than the broader market, with the SW Pharmaceutical Biotechnology index declining by 4.1% compared to a 2.1% increase in the Shanghai Composite Index [18][30]. - The report notes that the premium level of the pharmaceutical sector relative to the entire A-share market is currently at a normal level, with a relative premium rate of 63.2% as of December 31, 2025 [29][32]. Summary by Sections A-Share Recommendations - The report lists the following A-share stocks with an "Overweight" rating: - 恒瑞医药 (Hengrui Medicine) - 科伦药业 (Kelun Pharmaceutical) - 华东医药 (East China Pharmaceutical) - 恩华药业 (Enhua Pharmaceutical) - 特宝生物 (Tebao Biological) - 京新药业 (Jingxin Pharmaceutical) - 益方生物 (Yifang Biological) - 药明康德 (WuXi AppTec) - 泰格医药 (Tigermed) - 乐普医疗 (Lepu Medical) - 联影医疗 (United Imaging) - 微电生理 (Microelectrophysiology) [8][9]. H-Share Recommendations - The report maintains an "Overweight" rating for the following H-share stocks: - 翰森制药 (Hansoh Pharmaceutical) - 三生制药 (3SBio) - 科伦博泰生物 (Kelun-Botai Biological) - 康方生物 (CanSino Biologics) - 映恩生物 (InnoCare Pharma) - 百济神州 (BeiGene) [11][12]. Performance Analysis - The report indicates that the 国泰海通医药 monthly portfolio outperformed the pharmaceutical index in December 2025, with an average decline of 1.8% compared to a 3.9% decline in the overall pharmaceutical index [14][15]. - The report highlights the best-performing stocks in December 2025, with 泰格医药 (Tigermed) increasing by 11.2%, 特宝生物 (Tebao Biological) by 7.5%, and 惠泰医疗 (Huitai Medical) by 3.9% [15][18].

Core Insights - The FDA's CDER approved 44 new drugs by 2025, with over half being "first-in-class" drugs, indicating a shift from "incremental" to "disruptive" treatment paradigms in drug development [1][3][24] - The rise of small molecules continues, but their development is evolving from broad inhibition to precision modulation, enhancing efficacy while reducing side effects [6][7][9][10] First-in-Class Drugs - The approval of "first-in-class" drugs is driven by unmet clinical needs, particularly in rare and complex chronic diseases, where existing treatments are inadequate [3][4] - Brinsupri (brensocatib) is a notable example, targeting Dipeptidyl Peptidase 1 (DPP1) to address non-cystic fibrosis bronchiectasis, providing a new mechanism of action that significantly improves patient outcomes [3][20] - Eight drugs received breakthrough therapy designation, reflecting their innovative mechanisms and potential for substantial clinical improvement [5] Small Molecule Innovations - Small molecules accounted for 66% of new drug approvals, maintaining their central role in drug development while shifting towards precision approaches [6][10] - Aficamten (Myqorzo) exemplifies this trend as a selective allosteric modulator for obstructive hypertrophic cardiomyopathy, demonstrating improved safety and efficacy [7] - Covalent drugs, such as Zegfrovy (sunvozertinib), show promise in overcoming resistance issues by forming stable bonds with targets, enhancing therapeutic effectiveness [8] Peptide and Nucleic Acid Therapies - Peptide and nucleic acid therapies are emerging as significant players, with multiple innovative drugs approved in 2025, marking a shift towards RNA-targeted treatments [10][11] - Qfitlia (fitusiran) offers a revolutionary preventive solution for hemophilia by significantly reducing annual bleeding rates [10][12] - Dawnzera (donidalorsen) provides a long-acting preventive treatment for hereditary angioedema, demonstrating substantial reductions in attack frequency [11] Antibody-Drug Conjugates (ADCs) - ADCs are evolving beyond cancer treatment, with Datroway (datopotamab deruxtecan) showcasing innovative mechanisms and expanding indications [14][15] - Datroway's "bystander effect" allows it to target heterogeneous tumor populations effectively, improving treatment outcomes in breast cancer and non-small cell lung cancer [15][16] Future Directions - The landscape of drug development is shifting towards a broader understanding of drug value, emphasizing patient outcomes and treatment paradigms over traditional sales metrics [19][23] - The integration of advanced technologies like AI and gene editing into drug development processes is expected to yield therapies that fundamentally alter disease progression [24]

Core Insights - The key opportunity for local biotech companies lies in focusing on original innovation from 0 to 1, establishing core technological barriers in unmet clinical needs, and achieving a leap from follower to leader [2][14] - Chinese innovative pharmaceutical companies have entered the global ADC innovation core camp, with over 50% of the global ADC new drug pipeline originating from China [1][14] - The strategic partnership between BaiLi TianHeng and BMS in the ADC field has set a record for the highest single-asset transaction in the global ADC sector, further elevating industry innovation [1][5] Industry Trends - The BD (business development) boom in the ADC sector is expected to continue into 2025, with 14 transactions in the first eight months of 2023, making ADC one of the hottest outbound technology tracks [1][14] - Companies are expanding beyond mature targets like HER2 and TROP2 to explore "blue ocean" targets such as CDH6, CDH17, and DLL3, seeking broader treatment windows and improved competitive landscapes [1][14] Strategic Partnerships - The partnership model of "self-researched core assets + global rights cooperation" and "co-development + co-commercialization" is relatively rare globally, requiring high product strength and a forward-looking strategic vision [7][9] - BaiLi TianHeng's collaboration with BMS is notable for its potential total transaction value of up to $8.4 billion, highlighting the growing trend of significant transactions in the oncology treatment sector [5][9] Challenges and Opportunities - Despite the increasing number of transactions, many Chinese innovative drug assets remain undervalued due to a lack of global clinical trial validation and lower payment prices in the domestic market [9][12] - The development of "super blockbuster" products with strong product power is seen as a key path to overcoming valuation challenges, with the drug iza-bren being recognized as a first-in-class product [9][12] Future Directions - The competition in the "ADC + IO" (immuno-oncology) space is intensifying, with both multinational and domestic companies actively pursuing innovative combinations [10][14] - To achieve comprehensive internationalization, Chinese pharmaceutical companies must overcome four core capability gaps: global leading R&D capabilities, global clinical development capabilities, global supply chain capabilities, and global commercialization capabilities [12][13]

Core Insights - The surge in BD (business development) transactions in China's innovative pharmaceutical sector is a reflection of the industry's maturation and increasing global recognition, with 2025 marking a significant year for License-out agreements [3][4][5] Group 1: BD Transactions Overview - In December 2025, several Chinese pharmaceutical companies, including Ganli Pharmaceutical and Heng Rui Medicine, announced significant BD agreements, indicating a trend towards increased collaboration and innovation in the sector [2] - The total value of BD transactions for Chinese innovative drugs reached $135.655 billion in 2025, with upfront payments totaling $7 billion, marking a historical high in both transaction volume and value [3] - The number of BD transactions involving Chinese companies and top multinational corporations (MNCs) increased from 3 in 2015 to 35 in 2025, highlighting the growing interest from global players [3] Group 2: Market Dynamics and Future Outlook - The BD transaction boom is expected to continue into 2026, with industry experts predicting sustained high activity levels, although the focus may shift from quantity to value [5][14] - The NewCo model, which allows for "technology equity + capital cooperation," is emerging as a new pathway for Chinese pharmaceutical companies to engage in international markets, although its prevalence may decrease in 2026 [14][15] - The overall trend indicates a shift from isolated transactions to a more collaborative ecosystem, where companies leverage partnerships to enhance their global market presence [16][20] Group 3: Transaction Structures and Strategies - The structure of BD transactions is evolving, with companies increasingly engaging in co-development and co-commercialization agreements, allowing for shared risks and benefits [10][11] - The pricing of BD transactions is becoming more rational, with companies focusing on the clinical value and market potential of their products, which influences upfront payment amounts [19][18] - Legal and advisory services are becoming integral to BD transactions, reflecting the increasing complexity and importance of these deals in the pharmaceutical landscape [17]

12月29日，来自深圳的港股机器人企业越疆宣布，启动首次公开发行人民币普通股及于深交所上市计 划。 从已经登陆科创板的百奥赛图再到映恩生物、光大环境等港股企业启动A股上市计划，港股近期掀起一 股积极"回A"的浪潮。值得关注的是，光大环境、越疆均为粤港澳大湾区企业，伴随着企业"回A"进程 的推进，"H转深A"有望增添新的示范案例，进一步探索并完善该通道的具体实践路径。 资料显示，越疆是专门从事协作机器人开发、制造及商业化的领先企业之一，是蓬勃发展的具身智能机 器人行业前沿参与者，产品已广泛应用于工业制造、医疗手术等领域，覆盖全球超过100个国家和地 区。记者了解到，目前，越疆已委聘上市前辅导机构，并已提交A股上市前辅导的登记申请。 今年以来，A股公司赴港上市的趋势仍在延续，与此同时，港股企业回归A股市场也在不断升温。 南开大学金融发展研究院院长田利辉接受证券时报记者采访时表示，港股公司积极回A，核心动力在于 寻求更匹配的估值、更充裕的流动性以及更贴近主要市场与客户的战略布局，特别是此前发布的政策为 粤港澳大湾区企业回A提供了清晰路径。 今年以来，累计已有19家A股上市公司成功登陆港股市场，合计募资金额约1400 ...

12月29日，来自深圳的港股机器人企业越疆宣布，启动首次公开发行人民币普通股及于深 交所上市计划。 从已经登陆科创板的百奥赛图再到映恩生物、光大环境等港股企业启动A股上市计划，港股近 期掀起一股积极"回A"的浪潮。值得关注的是，光大环境、越疆均为粤港澳大湾区企业，伴 随着企业"回A"进程的推进，"H转深A"有望增添新的示范案例，进一步探索并完善该通道的 具体实践路径。 资料显示，越疆是专门从事协作机器人开发、制造及商业化的领先企业之一，是蓬勃发展的 具身智能机器人行业前沿参与者，产品已广泛应用于工业制造、医疗手术等领域，覆盖全球 超过100个国家和地区。记者了解到，目前，越疆已委聘上市前辅导机构，并已提交A股上市 前辅导的登记申请。 安永大中华区审计服务市场联席主管合伙人汤哲辉建议，参考"A股到H股"上市的企业，港交 所对特定市值的企业开启绿色审核通道，深交所也可以对满足一定要求的企业，给予绿色通 道，缩短审核周期；此外，两地市场的信息披露存在差异，可考虑对已有信息的充分利用， 审慎评估减少A股IPO额外程序，加快上市进程。 责编：万健祎 校对： 杨舒欣 版权声明 证券时报各平台所有原创内容，未经书面授权，任 ...

Group 1 - The core point of the article is that Shenzhen Yujiang Technology Co., Ltd. plans to launch an initial public offering (IPO) of its shares on the Shenzhen Stock Exchange after successfully listing on the Hong Kong Stock Exchange in December 2024 [1] - Yujiang Technology, founded in 2015, specializes in the development, manufacturing, and commercialization of collaborative robots, ranking first among Chinese companies and second globally in the collaborative robot industry with a market share of 13.0% as of 2023 [1] - The company has received approval from its board to initiate the A-share listing process to enhance its competitiveness and achieve long-term operational goals [1] Group 2 - The trend of Hong Kong-listed companies returning to the A-share market is increasing, with examples such as Bai'ao Saitou and Ying'en Biotechnology, both of which have initiated processes for dual listings [2] - In addition, Everbright Environment, the world's largest waste-to-energy investment and operation company, has announced plans to issue up to 800 million shares to list on the Shenzhen Stock Exchange [2]