Investment Rating - The investment rating for the company is "Buy" with a target price of 95.42 HKD, compared to the last closing price of 74.25 HKD [1][10]. Core Views - The report highlights that the clinical data for IBI363, a dual-specific antibody fusion protein, has exceeded expectations in treating advanced non-small cell lung cancer (NSCLC), colorectal cancer (CRC), and melanoma [3][4][5][6]. - The company is expected to see significant revenue growth, with projected revenues of 94.22 billion HKD in 2024, increasing to 207.91 billion HKD by 2027, reflecting a growth rate of 51.82% in 2024 and 31.60% in 2027 [11][15]. Summary by Sections Company Overview - The total share capital is 1.65 billion shares, with a total market capitalization of 1,225 billion HKD [2]. - The company has a strong pipeline with multiple important developments expected in 2025, including approvals for various treatments [9]. Clinical Data - IBI363 showed a median progression-free survival (mPFS) of 9.3 months and a 12-month overall survival (OS) rate of 70.9% in patients with immune-resistant lung squamous cell carcinoma [4]. - In CRC patients, IBI363 demonstrated a median overall survival (mOS) of 16.1 months, indicating a significant improvement over existing treatment options [5]. - For melanoma, IBI363 achieved an mPFS of 5.7 months, with ongoing trials comparing it to pembrolizumab in treatment-naive patients [6]. Financial Projections - The company is projected to achieve a net profit of 6.23 billion HKD in 2025, with a significant increase to 30.77 billion HKD by 2027, reflecting a net profit growth rate of 132.26% in 2027 [11][15]. - The earnings per share (EPS) is expected to rise from -0.06 HKD in 2024 to 1.87 HKD in 2027 [11][15]. Valuation - The valuation methods used include DCF and NPV, resulting in a target market value of 1,574 billion HKD, which corresponds to the target stock price of 95.42 HKD [10].

Core Insights - The National Medical Products Administration (NMPA) has proposed to include Innovent Biologics' IBI363, a PD-1/IL-2 bispecific antibody fusion protein, in its breakthrough therapy designation for treating locally advanced or metastatic squamous non-small cell lung cancer that has failed platinum-based chemotherapy and anti-PD-1/PD-L1 immunotherapy [1][2] Group 1: Product Development - IBI363 is a globally innovative PD-1/IL-2α-bias bispecific fusion protein developed by Innovent Biologics, designed to block the PD-1/PD-L1 pathway while activating the IL-2 pathway [1] - The IL-2 arm of IBI363 has been engineered to retain affinity for IL-2 Rα while reducing binding to IL-2Rβ and IL-2Rγ, thereby lowering toxicity [1] - IBI363 has demonstrated good anti-tumor activity in various tumor-bearing pharmacology models and has shown significant tumor suppression efficacy in PD-1 resistant and metastatic models [1] Group 2: Clinical Research and Regulatory Status - IBI363 has previously been included in the breakthrough therapy drug (BTD) list by CDE, targeting unresectable locally advanced or metastatic acral and mucosal melanoma that has not undergone systemic treatment [2] - Innovent Biologics is conducting clinical studies in China, the United States, and Australia to explore the efficacy and safety of IBI363 against various malignancies [2] - IBI363 has received two Fast Track designations from the U.S. FDA for the treatment of advanced squamous non-small cell lung cancer and melanoma [2]