Zhitong Finance and Economics APP learned that GTJA has released a research report, covering Coronbio-B (06990) for the first time, giving it a “shareholding” rating, and expecting income of 1.181/1.574/2.361 billion yuan from 2024 to 2026 with a target price of HKD 198.43. The company has a leading drug development technology platform, especially ADC, which has built a rich pipeline of innovative drug research and development. Its core products have accelerated into the harvest period. The company is the leader of domestic ADC drugs, and its core varieties have successively entered the harvest period. TROP2ADC SKB264 has the best global potential of its kind, backed by Merck, with huge market potential.

GTJA's main opinions include:

ADC is an industry hotspot in the field of tumors, and SKB264 shows the best potential in its category.

ADC drugs have precise therapeutic characteristics and are expected to lead the clinical upgrade iteration against traditional chemotherapy. This has become an industry hotspot for new anti-tumor drugs. TROP2ADC has both broad-spectrum anti-tumor potential and excellent ADC drug adaptability, and has become a new star in the field of new broad-spectrum anti-tumor drugs. SKB264 of the company is the fastest-developing domestic TROP2ADC, and has differentiated advantages compared to foreign counterparts in drug structure design and clinical data. It is a potential global best product of the same kind.

Backed by Merck, it spans the two major markets of breast cancer and lung cancer.

The company has close cooperation with global pharmaceutical giant Merck in multiple ADC pipelines, of which SKB264 has become a key asset of Merck in the field of tumors and has successively launched 10 key clinical trials. The overseas and domestic clinical layout of SKB264 focuses on the two core fields of breast cancer (including TNBC, HR+HER2-BC) and non-small cell lung cancer (including EGFR-TKI resistance and wild-type frontline treatment), as well as stomach cancer, urinary tract epithelial cancer, endometrial cancer, etc. It is expected to become a new generation of "heavy bombs" for the treatment of broad-spectrum tumors. The bank predicts that the domestic sales of SKB264 are expected to exceed 4 billion yuan, and the sales share from overseas markets is expected to exceed 2 billion yuan.

Core varieties have successively entered the harvest period, and there is sufficient potential catalyst.

(1) SKB264's first indication 3L+TNBC is expected to be approved for listing in China in 2024H2, and the first indication EGFR-TKI-resistant NSCLC in the lung cancer field is expected to be approved for listing in China in 2025; (2) The indication of PD-L1 monoclonal antibody for nasopharyngeal carcinoma is expected to be approved for listing in China in 2024H2; (3) HER2ADC A166's first indication 3L+HER2+BC is expected to be approved for listing in China in 2025; (4) The biosimilar A140 of cetuximab is expected to be approved for listing in China in 2025; (5) RET inhibitor A400 is expected to apply for NDA in 2024 and be approved for listing in 2025.

Risk reminder: the risk that the progress of clinical trials is not as expected; the risk of new drug development failure; the risk that market promotion and sales are not as expected.