Zh Tong Finance and Economics APP learned that First Shanghai released a research report stating that it maintains a "buy" rating for Sino Biopharm (01177) and believes that with the approval and listing of the company's innovative drugs and biosimilars, the company's revenue growth rate will increase. The company's pipeline value that joins the bank's calculation has a target price of HKD 3.25. In February 2024, the company sold 67% of its shares in Zhengda Qingdao for CNY 1.82 billion to further focus on the four major treatment areas: tumors, liver disease, respiration and surgery pain. In 2023, the company's net profit increased by 1.9% year-on-year to CNY 5.10 billion, of which net profit attributable to the parent company decreased by 8.3% to CNY 2.33 billion. Adjusted net profit attributable to the parent company increased by 1.5% to CNY 2.59 billion.

The report states that the proportion of innovative products in Sino Biopharm's pipeline is increasing year by year: the company's innovative products in 2023 include Tianqing Ganmei, Flurbiprofen Gel Patch, Anlotinib, Pyrazine Purine monoclone antibody (PD-1), Adalimumab monoclone antibody, Ebezistat Alpha Injection (third-generation long-acting rhG-CSF), Limaprost tablets, Bevacizumab monoclone antibody, Trastuzumab monoclone antibody, Rituximab monoclone antibody and recombinant human coagulation factor VIIa. The innovative products expected to be listed in 2024 include Bemursub monoclone antibody (PD-L1, combined with Anlotinib to treat first-line small-cell lung cancer, the median progression-free survival time mPFS is 6.9 months, and the median overall survival time mOS is 19.3 months, it is currently the longest treatment plan with the longest mPFS and mOS among the published materials, and has been approved; it has submitted an NDA for the third-line endometrial cancer/first-line renal cell carcinoma), TQ-B3139 (ALK/c-Met, treating ALK-positive non-small cell lung cancer, is expected to become the third domestically approved and marketed domestic ALK inhibitor in China), fumalic acid Anaitinib capsules (ROS1/ALK/c-Met, the first domestically approved targeted drug for the treatment of ROS1-positive non-small cell lung cancer, and the incidence rate of ROS1 gene mutations in non-small cell lung cancer is 1%-2%), and Liraglutide. The innovative products expected to be listed in 2025 include TQB3616 (CDK2/4/6, expected to submit a second-line breast cancer in 2024, submit a first-line breast cancer in 2025, and submit an adjuvant therapy indication for breast cancer in 2026), D-1553 (KRASG12C, the application for listing in the second-line non-small cell lung cancer has been accepted, and pancreatic ductal adenocarcinoma in the second line and colorectal cancer in the third line have been included in breakthrough therapeutic drugs; the number of patients with major KRASG12C mutations in China is 51,000), and Patuzumab (is expected to become the first domestically produced biosimilar to be listed).

The bank said that the proportion of the company's innovative products will increase year by year, and it is expected to account for 47% of the company's revenue in 2025. Invox's FS222 (CD137/PD-L1), a subsidiary of the company, has excellent phase I data and is the best data seen so far for PD-1-treated melanoma, preliminarily demonstrating the platform value of its tetrameric mAb2 bispecific antibody. In addition, its soft mist inhalation platform (the second largest in the world) has characteristics such as efficient pulmonary drug delivery, uniform distribution, and user-friendly use, and has great potential for further development and BD prospects.