Events:
INNOVENT BIO issued the 2022 interim results announcement on Aug. 25. During the reporting period, the company achieved a total revenue of 2.24 billion yuan, an increase of 15.3% over 1.94 billion yuan in the same period last year. Among them, product revenue reached 2.04 billion yuan, an increase of 10.0% over the same period last year. The increase in revenue is mainly due to the steady growth of sales revenue after Dabeshu (Xindiumab injection) entered the national health insurance catalogue.
Comments:
The commercial portfolio continues to expand, and new products with small molecules will be approved soon. By the end of the reporting period, the company had approved 5 monoclonal antibodies and 2 small molecular drugs to market, contributing to sales revenue. The RET inhibitor Retsevmo (Septini) is expected to be approved by the end of this year, when the company's commercial product portfolio will increase to eight, covering more than 10 indications in the two major areas of oncology and autoimmunity. The continuous expansion of listed products and the further maturity of the commercial team are expected to promote the sustained growth of the company's product revenue and promote the company's long-term development.
Steady progress in the research pipeline, clinical data signal is good. The company is researching the pipeline, IBI-344 (ROS1/NTRK), IBI-376 (PI3K?) And IBI-310 (CTLA-4) three products have entered a critical late development stage; four potential high-value innovative drug products IBI-362, IBI-110, IBI-351 and IBI-188 are in phase 1 to phase 2 clinical stage, and initially show good clinical benefits and safety signals Targeted Claudin 18.2/CD3 bispecific antibody IBI-389, CART cell product IBI-345 and targeted CD73 monoclonal antibody IBI-325 have been given to patients for the first time, and five innovative molecules have entered the clinic for the first time. The company's research products are constantly enriched and updated, the innovation pipeline continues to advance, and there is more room for growth in the future.
By cooperating with international pharmaceutical companies, the value of the platform can be demonstrated. In March 2022, the company's strategic cooperation with Eli Lilly and Co continued to expand, gaining priority negotiation rights for the first commercialization of Chinese mainland by Xeranche (Ramoxiumab) and Retsevmo (Septinib), as well as the right to commercialize Chinese mainland in the future of Pirtobrutinib (BTK inhibitor). In August 2022, the company launched strategic cooperation with Sanofi, and the two sides reached an in-depth product cooperation and a high equity investment agreement of around 600 million euros. The company's globalization strategy has been further promoted, and its R & D and commercialization capabilities have been recognized.
Profit forecast: the company's performance is growing steadily, and the commercial product portfolio is constantly enriching. during the research product potential period, the company is expected to achieve an income of 57.39 million yuan in 2022-2024, and earnings per share will be-1.14 ppm. 0.05 yuan per share, maintaining the company's "overweight" rating.
Risk hints: the impact of COVID-19 's epidemic situation, intensified competition in the industry, and less-than-expected commercialization of products.