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]