Zhixiang Jintai: Focusing on antibody drug technology research and development, Zhixiang Jintai is an innovative biopharmaceutical company driven by antibody drug discovery technology. The company focuses on the fields of self-immunity, anti-infection and cancer. It has developed a variety of monoclonal and dual antibody drugs. A total of 9 products and 17 indications are in different clinical development stages. The company's IL-17A target drug, Celiciumab, is expected to be approved soon, and future growth can be expected; the core pipeline IL-4R monoclonal antibody and rabies virus double epitope double antibody are progressing ahead, and it is expected that they will be approved for marketing one after another. At the same time, the company continues to promote the construction of production facilities that meet GMP standards in China, the US, and Europe. It is expected to add 20,000 L of biofermentation production capacity in 2024 to provide production capacity support for the commercial release of core pipelines. We are optimistic about the long-term development of the company. We expect the peak sales of Celizumab, GR1802, and GR1801 to be about 26/30/1.2 billion yuan respectively. Based on DCF valuation, the corresponding long-term reasonable valuation of the company is about 155-231 billion yuan, which is covered for the first time, giving it a “buy” rating.

Celizumab: The counterpart scotiumab is expected to be the earliest domestically marketed IL-17A monoclonal antibody. Celizumab is a monoclonal antibody targeting IL-17A. It was declared for NDA in March 2023 and January 2024 for indications of plaque psoriasis and ankylosing spondylitis, respectively. It is expected that 2024H1 will be approved for marketing.

The IL-17A target has excellent overall curative efficacy in the field of psoriasis. The global sales volume of the same target drug scuchiumab in 2023 was about US$4.98 billion, and the domestic market was rapidly expanding. For major single products, celizumab is leading the way in various fields of indication and has excellent curative efficacy. It is expected to become the first IL-17A monoclonal antibody approved for marketing in China.

The core pipeline GR1802 and GR1801 are progressing ahead. GR1802, which has great potential for growth, is a monoclonal antibody targeting IL-4R targets. It entered phase III clinical trials for moderate to severe atopic dermatitis in adults in December 2023. Phase II clinical differentiation lays out indications such as chronic spontaneous urticaria, asthma, and chronic sinusitis with nasal polyps. The overall progress is ahead. The overall competitive pattern of the domestic IL-4R target pipeline is good. Only dupliumab has been approved for marketing, and GR1802 has great potential for development. GR1801 is a rabies virus double epitope double antibody that can provide immediate immune protection before active immunization of the rabies vaccine is fully effective. It is expected to submit an NDA in the second half of 2024. In addition to this, the company has also laid out a variety of early R&D pipelines, including TSLP dual antibodies and IFNAR1 monoclonal antibodies, continuously opening up room for growth.

Risk warning: Drug clinical development failure, drug safety risk, loss of core members, etc.