Core Insights - Argo Biopharma and Novartis have upgraded their collaboration in cardiovascular treatments, granting Novartis rights to two early-stage molecules outside of China for treating severe hypertriglyceridemia and mixed dyslipidemia, along with priority negotiation rights for BW-00112 (ANGPTL3) [1] - The total potential value of the collaboration between Argo Biopharma and Novartis has exceeded $9.3 billion, reflecting a deepening partnership in the siRNA and cardiovascular treatment fields [3] - The global RNAi (RNA interference) market is rapidly expanding, with a projected market size of $25.195 billion by 2030, driven by the increasing application of siRNA therapies in chronic diseases [7] Company Developments - Argo Biopharma, established in April 2021, focuses on siRNA drug development and has previously signed exclusive licensing agreements with Novartis worth up to $4.165 billion [3] - Novartis has been strategically investing in siRNA therapies, including the acquisition of The Medicines Co. for $9.7 billion, which provided access to Inclisiran, a long-acting lipid-lowering drug [4] - Recent collaborations, such as with Arrowhead Pharmaceuticals, highlight Novartis's commitment to expanding its siRNA portfolio, with potential milestone payments reaching $2 billion [5] Industry Trends - The RNAi therapy market has seen significant growth, with a compound annual growth rate (CAGR) of 449.2% from 2018 to 2020, indicating strong future potential [7] - Chinese companies are increasingly participating in the global siRNA market, with notable collaborations and licensing agreements emerging, reflecting a shift in the landscape [8] - Despite the promising advancements in siRNA technology, challenges remain, including delivery mechanisms and potential side effects, necessitating ongoing research and development [8][11]

Investment Rating - The investment rating for the company is "Buy" and the rating has been maintained [4][7]. Core Views - The company's operating performance is recovering positively, with a strong growth in CDMO (Contract Development and Manufacturing Organization) business [2][3]. - The company reported a revenue of 2.871 billion yuan for the first half of 2025, a year-on-year increase of 3.86%, and a net profit attributable to the parent company of 526 million yuan, up 10.70% year-on-year [2]. - The cash flow from operating activities showed significant improvement, reaching 845 million yuan, a year-on-year increase of 164.50% [2]. Summary by Sections Financial Performance - In the first half of 2025, the company achieved a revenue of 2.871 billion yuan, with CDMO business sales revenue at 2.291 billion yuan, growing 16.27% year-on-year [2][3]. - The API (Active Pharmaceutical Ingredient) and intermediate business revenue was 523 million yuan, down 28.48% year-on-year, but the gross margin improved by 2.07 percentage points to 23.26% [2][6]. - The company expects a net profit attributable to the parent company of 933 million yuan in 2025, with an EPS of 0.97 yuan per share [7]. Business Development - The CDMO project pipeline continues to expand, with new customer acquisitions progressing smoothly [3][5]. - As of June 30, 2025, the company has 38 launched projects and 1,086 projects in clinical phases, showing significant growth compared to 2024 [3]. - The TIDES division and related technology platforms are rapidly developing, with plans for capacity expansion to meet increasing demand [5]. Market Outlook - The company is well-positioned to benefit from the growth in the global market for peptides and conjugated drugs, with expectations for continued project acquisition [5]. - The forecast for net profit from 2025 to 2027 is 933 million, 1.076 billion, and 1.156 billion yuan respectively, indicating a positive growth trajectory [7].