Core Viewpoint - The company is a leading player in the small nucleic acid field in China, with self-developed technology that possesses global competitiveness, focusing on siRNA drug development for chronic diseases and has established strategic partnerships with major pharmaceutical companies [1] Group 1: Company Overview - The company was founded in 2007 and specializes in the research and development of siRNA drugs, particularly in chronic disease areas with significant patient populations [1] - It is one of the few companies globally with proprietary intellectual property and clinically validated GalNac delivery technology, enhancing its market position [1] - The RiboGalSTAR technology platform has a strategic partnership with Boehringer Ingelheim, potentially leading to milestone payments of up to €2.36 billion [1] Group 2: Market Potential - The global small nucleic acid drug market is projected to grow from $5.7 billion in 2024 to $54.9 billion by 2033, with a CAGR of 21%-29% from 2024 to 2034, indicating a rapid growth trajectory [1] - The company aims to convert its technological barriers into commercial value as a leading player in the domestic small nucleic acid sector [1] Group 3: Product Pipeline and Clinical Trials - The FXI siRNA product has the potential to tap into a market space worth billions, targeting thrombotic diseases affecting approximately 26.7 million people globally, with an anti-thrombotic drug market valued at around $70 billion [2] - The company’s pipeline includes several candidates with first-in-class (FIC) potential, currently in Phase 2 clinical trials, including treatments for coronary artery disease [3] - The APOC3 siRNA has initiated Phase 2 clinical trials in the EU, ranking among the top two globally, addressing a significant patient population of 860 million with high triglycerides [3] - The PCSK9 siRNA has exclusive rights in Greater China, maximizing global value, while the HBV siRNA aims for functional cure and is in Phase 2 global MRCT clinical trials [3] Group 4: Financial Forecast and Investment Rating - The company’s current revenue primarily comes from milestone payments from collaborations, with four candidate drugs in Phase 2 clinical trials [4] - Assuming approval by 2030 and a 50% revenue-sharing model with partners, the company is valued using the FCFF method, with a target price of RMB 114.6 / HKD 128.3, indicating approximately 50% upside from the current stock price of HKD 86.8 [4]

Core Viewpoint - Dongwu Securities initiates coverage on RiboBio (06938) with a "Buy" rating and a target price of HKD 128.3, highlighting its leadership in the domestic small RNA field and the potential of its core product targeting FXI to become a billion-dollar FIC drug [1] Group 1: Company Overview - RiboBio, established in 2007, focuses on siRNA drug development for chronic diseases and possesses globally competitive proprietary GalNac delivery technology [1] - The company has a strategic partnership with Boehringer Ingelheim, potentially earning up to €2.36 billion in milestone payments, enhancing its growth ceiling [1] - RiboBio's RiboGalSTAR technology platform is complemented by RiboOncoSTAR and RiboPepSTAR platforms, positioning the company at the forefront of global small RNA drug development [1] Group 2: Market Potential - The global small RNA drug market is projected to grow from USD 5.7 billion in 2024 to USD 54.9 billion by 2033, with a CAGR of 21%-29% from 2024 to 2034, indicating a rapid growth trajectory [2] - RiboBio, as a leading player in the domestic small RNA sector, is expected to translate its technological barriers into commercial value [2] Group 3: Product Pipeline and Clinical Progress - The FXI siRNA product has the potential to tap into a market space worth billions, addressing the clinical pain points of existing anticoagulant drugs while demonstrating long-lasting effects and safety [3] - The company is advancing its FXI siRNA into Phase 2b clinical trials, following promising Phase 1 results showing strong anticoagulant effects without severe adverse events [3] - RiboBio's pipeline includes several promising candidates targeting various chronic diseases, with significant patient populations and market opportunities [4] - The APOC3 siRNA has entered Phase 2 clinical trials in the EU, while the PCSK9 siRNA has exclusive rights in Greater China, maximizing global value [4] - The HBV siRNA is in Phase 2 global MRCT clinical trials, aiming for functional cure in a market with approximately 280 million infected individuals [4]

Investment Rating - The report assigns a "Buy" rating for the company, with a target price of 114.6 RMB / 128.3 HKD, indicating approximately 50% upside potential from the current stock price of 86.8 HKD [1]. Core Insights - The company is a leader in the siRNA field, focusing on chronic diseases and has developed proprietary delivery technologies with global competitiveness. It has established strategic partnerships, including one with Boehringer Ingelheim, which could yield up to 2.36 billion euros in milestone payments [7][19]. - The global market for small nucleic acid drugs is projected to grow significantly, from 5.7 billion USD in 2024 to 54.9 billion USD by 2033, with a CAGR of 21%-29% [7][43]. - The company's FXI siRNA product has the potential to tap into a market space worth over 10 billion USD, addressing significant clinical needs in the anticoagulant drug market [7][43]. Summary by Sections Company Overview - The company, established in 2007, specializes in siRNA drug development and has built a comprehensive industry chain from drug discovery to commercialization, becoming a global leader in the small nucleic acid drug development field [13][14]. Market Potential - The small nucleic acid drug market is expected to grow rapidly, with siRNA drugs projected to capture a larger market share due to advancements in delivery systems and chemical modifications [43][45]. - The report highlights that the siRNA market is anticipated to grow at a higher rate than ASO drugs, with siRNA drugs expected to account for 44.5% of the market by 2024 [43][45]. Product Pipeline - The company has a robust pipeline with four candidates in Phase 2 clinical trials and over 20 projects in preclinical stages, demonstrating a strong capability to advance multiple assets to clinical development each year [26][24]. - Key products include FXI siRNA, APOC3 siRNA, and HBV siRNA, each targeting significant patient populations and addressing unmet clinical needs [7][29]. Financial Projections - Revenue is expected to grow significantly, with total revenue projected to reach 142.63 million RMB in 2024, reflecting a year-on-year increase of 324,052.27% [1]. - The company anticipates achieving profitability by 2030, with a 50% revenue sharing model with partners [7].