Events:
On August 4, 2022, INNOVENT BIO Pharmaceutical Group and Sanofi jointly announced that they had reached strategic cooperation in the field of oncology. The two partners will work to accelerate the two clinical drugs of Sanofi:
Core pipeline development and commercialization of SAR408701 (anti-CEACAM5 ADC) + SAR444245 (non-alpha biased IL-2). In addition to product cooperation, Sanofi will also make an initial strategic equity investment of 300 million euros in INNOVENT BIO.
Comments:
Nearly 1 billion yuan authorizes a major tumor pipeline, highlighting the core pipeline development and commercialization capabilities.
Anti-CEACAM5 ADC product SAR408701 is conducting phase Ⅲ clinical studies of second-line non-small cell lung cancer and phase Ⅱ studies of first-line non-small cell lung cancer, gastric cancer and other solid tumors around the world. INNOVENT BIO will be responsible for the clinical development and exclusive commercialization of several tumor indications in China. Sanofi will be entitled to a cumulative potential milestone payment of up to 80 million euros, as well as royalties based on net sales after the product is approved for market in China.
This authorization demonstrates the company's core pipeline development capabilities and is optimistic about the follow-up pipeline promotion and commercialization progress.
Jointly explore the regional development of multiple cancer species of SAR444245, a recombinant IL-2 product, in China, with INNOVENT BIO leading the development of potential FIC. THOR-707 (SAR444245, targeting IL-2) is currently conducting a global clinical phase Ⅱ study on skin cancer, gastrointestinal cancer, non-small cell lung cancer / mesothelioma and other indications.
INNOVENT BIO will be entitled to a cumulative potential milestone payment of up to 60 million euros, as well as royalties based on net sales after the product is approved for listing in China. THOR-707 has previously published good clinical data and controllable safety, so it is expected to become a FIC product in related fields.
Two batches of 600 million euros of equity investment are expected to be completed to demonstrate the backbone of Chinese pharmaceutical companies in multi-dimensional cooperation with multinational pharmaceutical companies. Sanofi will buy 300 million euros worth of common shares in INNOVENT BIO at HK $42.42 a share. In addition, in the future, if INNOVENT BIO and Sanofi reach an independent written share subscription agreement and subject to its terms, Sanofi can invest an additional 300 million euros on the shares under the second batch, realizing a total equity investment of about 4 billion yuan. This multi-dimensional relationship with multinational pharmaceutical companies highlights the value of the company's head Biotech industry, and the follow-up clinical and cooperation progress is worth looking forward to.
Profit forecast: the company's pipeline layout is reasonable, tumor products cover many fields, and the platform technology leads the domestic average level. It is estimated that the company's income from 2022 to 2024 will be 57.39 billion yuan, and its earnings per share will be-1.18 Universe 0.06 yuan per share, giving the company an "overweight" investment rating for the first time.
Risk hints: competition aggravates risks, epidemic expansion, performance forecasts and valuation judgments fall short of expectations