Differentiated product pipeline, outstanding technical platform. And Platinum Medicine is committed to the discovery and development of differentiated antibody therapy in the field of immune and tumor diseases. The company has established an industry-leading universal antibody platform with global patent protection, and has developed a variety of differentiated drug candidates based on innovative platforms, including the next generation of CTLA-4 antibody HBM4003, as well as a number of bispecific antibodies in the early stage of research and development. In addition, the company has further enriched the R & D pipeline to fill disease areas where clinical needs have not been met by jointly authorizing the introduction of two candidate products with short-term revenue potential, Bartoli Monoclonal and Tanercept.
The two products that are about to be commercialized have a large market space. The main results are as follows: 1) Bartoli monoclonal antibody is a monoclonal antibody targeting the new generation of autoimmune target FcRn, and it has a wide application space in a variety of autoimmune diseases. The company's clinical phase of myasthenia gravis II has obtained positive data and has entered the clinical stage of III. There are about 200,000 patients with myasthenia gravis in China, first-line therapy is still steroids, long-term use of serious side effects, bartolizumab is expected to fill the gap. 2) Tenercept is the first globally innovative biological drug in the field of xerophthalmia in China. According to Frost Sullivan, about 86 million people in China suffered from moderate and severe xerophthalmia in 2019. With the aging of the population and the increase in the use of electronic products, the number of patients will increase rapidly to about 106 million by 2030. Domestic treatment of xerophthalmia mainly depends on artificial tears to alleviate the symptoms, the treatment is limited, there is a huge failure to meet the clinical needs. The data of the previous clinical phase II trial conducted by Platinum Pharmaceuticals is positive, and the first interim data analysis of Tenalcip Clinical Phase 3 was completed in January 2022, which is expected to be the first approved innovative treatment for xerophthalmia.
The next generation of innovative products are highly differentiated. The next generation of CTLA-4 antibody HBM4003 developed by the company can specifically remove Treg cells in tumors. It is safe and has great potential for combined therapy. A number of clinical studies on single or combined drugs are under way. The company has also developed FIC products for innovative tumor immune targets CCR8 and B7H7 × 4-1BB, which are not yet ready-made drugs. Anti-TSLP antibody HBM9378 is expected to break through a variety of autoimmune diseases, and the application for clinical trials for the treatment of asthma has been approved in China, the United States and Australia. Using the innovative technology platform HBICE, the company has developed a series of bispecific antibodies against imported cell connectors, of which Claudin18.2 × CD3 double anti-HBM7022 has been authorized to AstraZeneca PLC, demonstrating the strength of innovative research and development.
Investment suggestion: at present, the company has two products with good competition pattern and large market space (Bartolizumab and tenacil), which are in the critical clinical III phase, and the early clinical data have been basically determined. It is expected that clinical trials will be completed and listing applications will be submitted for commercialization from the second half of 2022 to the first half of 2023. A number of products independently developed by the company are in more than 10 clinical trials, which have the potential to make up for the shortcomings of the existing immunotherapy and tumor immunotherapy. once successful, the market potential is huge.
Profit forecast and valuation: we expect the company's operating income from 2022 to 2024 to be $70,82,103 million, respectively, an increase of 1524.9%, 16.6% and 25.6% over the same period last year, and the net profit is-127,115 and-76 million respectively. According to the DCF model, the overall valuation of the company is 803 million US dollars, and the corresponding target price is 8.20 Hong Kong dollars. Cover for the first time and give a "recommended" rating.
Risk hints: the clinical progress is not up to expectations, the commercialization progress is not up to expectations, the competition pattern is changing, and foreign cooperation is not up to expectations.