Core ideas:
Excellent operation in the first half of the year, a number of drugs in the research pipeline made significant progress in research and development. The company's semi-annual report revealed second-quarter revenue of $150 million, compared with $65.6 million in the same period last year, of which product revenue totaled $138.6 million, up 111% from $65.6 million in the same period last year. At the same time, Baize'an, Baiyueze and Anjiawei were included in the national health insurance, and the number of hospital admissions of the three products increased significantly in the second quarter, reaching about 13 times, 28 times and 23 times that before the inclusion of health insurance, respectively.
The innovative drug Parkway (pamipali) has been approved in China and is the third innovative drug developed and commercialized by the company.
A number of clinical trials in R & D pipelines have been actively promoted, and R & D investment has continued to increase. New drugs developed by ourselves, such as tirelizumab and zambutini, are continuing to harvest new indications. Tirelizumab second line or metastatic esophageal squamous cell carcinoma (ESCC) and MSI-H/dMMR solid tumor (line 2) have been submitted to sBLA; to read out the results of two key phase III clinical studies on zambutini (SEQUOIA and ALPINE studies) with positive results. Clinical studies of tirelizumab and zambutini are in rapid progress.
Ociperlimab global III period to promote, among the TIGIT global first echelon. Ociperlimab has excellent early clinical data and is currently conducting a global multicenter phase III clinical research. The progress of research and development is in the first place in the world on this target, and is expected to become the company's next global blockbuster product.
Profit forecast and investment advice. It is estimated that the net loss of homing in 21-23 years is US $14.88,10.51 and US $409 million; using risk-adjusted DCF valuation method, the reasonable value of the company is US $358.35 / ADS, corresponding to HK $214.57 per share of H shares. Optimistic about the company's global innovative drug R & D system, high-quality R & D pipeline and excellent management team, covering the "buy" rating for the first time.
Risk tips. The commercialization performance of the products on the market is not as expected, and the products under development and R & D projects are not as expected.