Core Insights - Innovent Biologics has successfully closed a global strategic collaboration with Takeda, aimed at accelerating the development and commercialization of next-generation immuno-oncology and antibody-drug conjugate therapies [1][2][3] Financial Details - Takeda will make an upfront payment of US$1.2 billion, which includes a US$100 million equity investment in Innovent at a premium price of HK$112.56 per share [3] - The total deal value could reach up to US$11.4 billion, including potential milestone payments of approximately US$10.2 billion for the development and sales of IBI363, IBI343, and IBI3001 [3] Collaboration Structure - Innovent and Takeda will co-develop IBI363 globally and co-commercialize it in the U.S., with Takeda leading these efforts [7] - Takeda has been granted exclusive commercialization rights for IBI363 outside Greater China and the U.S., along with global manufacturing rights for IBI363 outside Greater China [7] - Takeda also holds exclusive global rights to develop, manufacture, and commercialize IBI343 outside Greater China, and has an option to license global rights for IBI3001 [7] Company Background - Innovent Biologics is a leading biopharmaceutical company founded in 2011, focusing on affordable, high-quality biopharmaceuticals targeting various diseases [5] - The company has launched 17 products and has multiple assets in various stages of clinical trials, partnering with over 30 global healthcare companies [5]

Core Viewpoint - CITIC Securities maintains a "Buy" rating for Innovent Biologics (01801), projecting revenues of 11.806 billion, 15.382 billion, and 21.092 billion CNY for 2025-2027, with a DCF valuation suggesting a fair market value of 221.5 billion HKD and a target price of 129.61 HKD [1] Group 1: Financial Projections - Expected revenues for Innovent Biologics from 2025 to 2027 are 11.806 billion CNY, 15.382 billion CNY, and 21.092 billion CNY respectively [1] - The company's fair market value is estimated at 221.5 billion HKD based on DCF valuation [1] - Target price set at 129.61 HKD [1] Group 2: Strategic Developments - On October 22, Innovent Biologics entered a global strategic partnership with Takeda Pharmaceutical, which includes a 1.2 billion USD upfront payment [1] - The upfront payment consists of a 100 million USD strategic equity investment at a subscription price of 112.56 HKD per share, representing a 20% premium over the weighted average share price of the last 30 trading days [1] - The total value of the collaboration deal is up to 11.4 billion USD [1] Group 3: Product Pipeline and Market Position - Innovent Biologics has established a significant presence in the oncology sector, with high-value clinical products expected to enhance revenue and reduce marginal costs [1] - In non-oncology areas, the company has made extensive advancements in metabolism, autoimmune diseases, and ophthalmology, with competitive and advanced products both in the market and under development [1] - Innovent Biologics grants Takeda exclusive rights for IBI343 (CLDN18.2 ADC) outside Greater China and exclusive options for IBI3001 (EGFR/B7H3 ADC) outside Greater China [1]

Summary of Innovent Biologics and Takeda Pharmaceuticals Collaboration Company and Industry Overview - **Company**: Innovent Biologics (1801.HK) - **Partner**: Takeda Pharmaceuticals - **Industry**: Biopharmaceuticals, specifically focusing on oncology and immuno-oncology Key Points and Arguments 1. **Mega Deal Announcement**: Innovent announced a global strategic collaboration with Takeda on IBI363 (PD-1/IL-2α-bias BsAb), IBI343 (CLDN18.2 ADC), and a license option for IBI3001 (EGFR/B7H3 ADC) with a total deal size of **US$11.4 billion** [1] 2. **Financial Breakdown of the Deal**: - Upfront cash payment of **US$1.1 billion** - Upfront equity investment of **US$100 million** at HK$112.56 per share (20% premium) - Development and commercial milestones up to **US$10.2 billion** - Tiered sales royalties up to high-teens from ex-China sales (excluding IBI363 US sales) [1] 3. **Co-Development Agreement**: The agreement includes a **40/60** cost-sharing model for development and commercialization in the US, indicating a strong partnership dynamic [1][2] 4. **Strategic Importance for Takeda**: This deal is noted as Takeda's largest oncology deal, requiring significant R&D investment, which is crucial for balancing its oncology pipeline, particularly with a focus on solid tumors [3][7] 5. **Clinical Development Plans**: - IBI363 focuses on NSCLC (1L, IO-resistant) and CRC (1L/3L) with global phase 3 trials initiated or planned - IBI343 aims to differentiate with fewer GI toxicity, expanding combo opportunities for PDAC and GC [8][9] 6. **Innovent's Growth Strategy**: Innovent management views Takeda as a model for successful globalization, aiming to grow its global team and capabilities by 2030 through this collaboration [2] 7. **Market Positioning**: Innovent is recognized for its strong pipeline of over 30 assets and commercialization capabilities, particularly with its leading PD-1 inhibitor, sintilimab [13] 8. **Investment Rating**: Innovent is rated as a "Buy" with a 12-month price target of **HK$103.22**, indicating a potential upside of **21.1%** from its current price of **HK$85.20** [15] Additional Important Insights - **Takeda's Revenue Contribution**: Oncology accounts for approximately **12%** of Takeda's sales in FY3/25, with the highest year-over-year growth among its segments [10] - **Risks Identified**: Key risks for Innovent include intensifying competition in the PD-1/L1 market in China, uncertain approval timelines for key candidates, and potential restrictions on off-label use due to safety issues [14] This summary encapsulates the critical aspects of the collaboration between Innovent Biologics and Takeda Pharmaceuticals, highlighting the financial implications, strategic importance, and future growth potential within the biopharmaceutical industry.

Innovent's Strategic Goals - Innovent aims to become a Global Premier Biopharma by 2027 and China's Top Biopharma by 2030[8] - The company plans to have ≥5 pipeline assets in global MRCT Phase 3 by 2030[8, 10] Takeda Collaboration - Innovent and Takeda have a strategic collaboration with a total deal size of up to $114 billion[20] - The collaboration includes $11 billion in cash upfront at a 20% premium and $100 million in equity investment[26] - Milestone payments could reach up to $102 billion[26] Takeda's Global Presence - Takeda has approximately 50000 employees and a presence in approximately 80 countries & regions[28] - Takeda's FY24 revenue was approximately $306 billion, with 44% from the U S, 29% from Europe & Canada, 12% from Japan, and 4% from China[28] Pipeline Development - IBI363 (PD-1/IL-2 α-bias) and IBI343 (CLDN182 ADC) are in global Phase 3 development[11, 40] - IBI3001 (EGFR/B7H3 ADC) is in global Phase 1 development[11, 40] IBI363 Clinical Data - IBI363 has shown promising ORR (Objective Response Rate) and mPFS (median Progression-Free Survival) in IO-resistant sqNSCLC, MSS colorectal cancer, and melanoma[50] - Over 1200 patients have been treated with IBI363 across multiple solid tumors[48] IBI343 Clinical Data - IBI343 has demonstrated clinical benefits in PDAC (Pancreatic Ductal Adenocarcinoma) and GC (Gastric Cancer), with lower GI toxicity AEs[62, 66] - In CLDN182+ GC, IBI343 showed significantly prolonged OS (Overall Survival) benefit compared to SoC (Standard of Care)[66]

Core Insights - The company has entered into a global strategic collaboration with Takeda Pharmaceuticals to accelerate the development of its next-generation IO and ADC therapies, aiming to expand its global market value [1][3] Group 1: Collaboration Details - The collaboration includes two late-stage therapies, IBI363 (PD-1/IL-2α-bias) and IBI343 (CLDN18.2 ADC), as well as an early-stage project, IBI3001 (EGFR/B7H3 ADC) [1] - The company will jointly develop IBI363 with Takeda and will commercialize it in the U.S., while Takeda will lead the development under a collaborative governance structure [1][3] - Takeda has been granted exclusive rights for IBI343 outside Greater China, and an exclusive option for IBI3001 outside Greater China [1] Group 2: Financial Aspects - The company will receive an upfront payment of $1.2 billion, including a strategic equity investment of $100 million at a 20% premium to the weighted average closing price of the shares over the 30 trading days prior to the agreement [2][4] - The total potential milestone payments could reach up to $10.2 billion, making the total transaction value up to $11.4 billion [2] - The net proceeds from the share issuance will be allocated 80% to R&D for various clinical and preclinical projects and 20% for general corporate purposes [3] Group 3: Strategic Importance - The collaboration is viewed as a significant step towards the company's long-term development and aligns with its mission to become a leading global biopharmaceutical enterprise [3] - The partnership combines the company's expertise in IO and ADC fields with Takeda's extensive experience in global oncology drug development and commercialization [3] - This collaboration is expected to enhance the company's global footprint and establish capabilities in R&D and commercialization in key international markets, maximizing sustainable long-term value [3]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 本公告僅供參考之用，並不構成收購、購買或認購本公司任何證券之邀請或要約。 信達生物制藥 本公告由本公司根據香港聯合交易所有限公司證券上市規則第13.09條及第13.28 條以及香港法例第571章證券及期貨條例第XIVA部作出。 與武田製藥達成全球戰略合作，加速本公司新一代IO及ADC療法推向全 球市場 董事會欣然宣佈，於2025年10月22日（香港時間），信達生物與武田製藥（透過 武田製藥全資附屬公司Takeda Pharmaceuticals International AG）達成全球戰略 合作，旨在加速推進信達生物新一代IO及ADC療法開發，拓展全球市場價值。 本次合作包括兩款後期在研療法IBI363 (PD-1/IL-2α-bias)及IBI343 (CLDN18.2 ADC)，以及一款早期研發項目IBI3001 (EGFR/B7H3 ADC)的選擇權。 根據合作，信達生物與武田製藥將在全球範圍內 ...