Push through the old and bring forth the new, specializing in biopharmaceutical companies specializing in tumors and immune diseases. The company is a biopharmaceutical company focusing on innovative drug research and development, commercialization and global operation, focusing on oncology and immune diseases. There are a large number of patients with this kind of disease, and the causes are complex, but the response rate of the existing therapy to the patient group is limited, so there is a huge unmet demand. Based on the needs of such patients, the company makes full use of its strong combination of core technology platforms to quickly create product pipelines with the potential of "pioneering of its kind" or "best of its kind".
Take it by surprise and build a flexible business model around know-how and platforms. Centering on the three core technology platforms of Harbour Mice (whole human antibody drug generation platform, including H2L2, HCAb) and HBICE (immune cell connection double antibody technology platform), on the one hand, through internal research and development, the company has launched a new generation of antibody therapy programs with both effectiveness and safety, such as HBM4003 (new CTLA4 inhibition × regulatory T cell clearance dual mechanism) and HBM7008 (B7H4 × 4-1BB double antibody). On the other hand, through academic cooperation, collaborative discovery, joint venture and external authorization and other ways to actively cooperate with industry partners and academic institutions, the use of their own platform to promote the development of a number of projects, maximize the value of the platform. In April 2022, the company announced a global licensing agreement with AstraZeneca PLC for the development and commercialization of the product under development, HBM7022 (CLDN18.2 × CD3). Based on the agreement, the company will receive an advance payment of US $25 million and a milestone payment of up to US $325 million, as well as royalties based on future HBM7022 sales.
Long night will be bright, the core products Bartoli monoclonal antibody, tenacil will be on the market soon. ① bartolimab is an all-human monoclonal antibody that selectively binds and inhibits FcRn receptors and can treat a variety of autoimmune diseases caused by pathogenic immunoglobulin antibodies. In January 2021, Bartolizumab was qualified for breakthrough treatment of myasthenia gravis and was administered to the first patient in phase III clinical trials completed in September 2021.
② tenercept is a tumor necrosis factor receptor-1 (TNF- α) fragment with a molecular weight of only 19kDa. It has been developed as eye drops for the treatment of dry eyes. Based on the advantages of good eye permeability, strong neutralization activity of TNF- α and high comfort, the product has the potential to become a similar pioneering therapy for dry eyes. The first patient administration in Phase III clinical trials in China has been completed in 2021, and more than half of the patients have been recruited by the end of 2021. Bartoli monoclonal antibody and Tenassip are expected to be approved for listing in 2023, a good start for the commercialization of the company.
Earnings forecast, valuation and rating: we expect the company's overall loss for the year 2022 to 2024 to be-1.25 /-1.29 /-114 million respectively, corresponding to EPS of-0.16 shock /-0.15 U.S. dollars according to the latest equity estimates. Using the absolute valuation of the company's pipelines as the main valuation reference, the overall valuation of the company is 4.9 billion yuan. At the exchange rate of HK $2022.05.18 to RMB = 0.8589, it translates into HK $5.7 billion and the target price of HK $7.41 according to the latest equity of 768 million shares. For the first time, considering the great potential of the company's technology platform and the leading idea of product layout, it is given a "buy" rating.
Risk hint: the risk that the progress of R & D is not up to expectation; the risk of foreign cooperation is not up to expectation; competition aggravates the risk.