Incident: Recently, the company released its 2024 semi-annual report. The company achieved operating income of 0.402 billion yuan in the first half of 2024, an increase of 27.85% over the previous year; net profit without return to mother was 0.27 billion yuan, a loss of 0.016 billion yuan compared to the same period last year.

The first innovative drug was successfully approved, and R&D innovation progressed steadily. The company's first innovative drug, betanin, was approved for marketing by the State Drug Administration. It is the first self-developed bifunctional antithrombotic beta3 integrin receptor inhibitor in the country. It is used in patients with acute coronary syndrome undergoing percutaneous coronary artery intervention (including coronary stenting) to reduce the risk of acute occlusion, intrastent thrombosis, no reflux, and slow blood flow. Currently, the company's tocilizumab has received marketing approval from the European EMA; bevacizumab has received marketing approval from the FDA and the European EMA respectively; BAT2206 has submitted marketing applications to the Chinese NMPA, the US FDA, and the European EMA, respectively; BAT2306 has completed the global test group; and BAT5906 has completed the enrollment of wet senile macular degeneration (wAMd) phase III clinical subjects.

The company's innovative folic acid receptor ADCBAT8006 clinical trial is worth looking forward to. The company reported IB/IIIa clinical study results of BAT8006 at the 2024 ASCO annual meeting: The study results showed that BAT8006 showed superior anti-tumor activity in platinum-resistant ovarian cancer patients at all FRα expression levels. BAT8006 is safe and has manageable toxicity. There is currently no interstitial lung disease or significant ocular toxicity. The Phase II clinical trial application (IND) for BAT8006 was approved by the FDA in March to evaluate its efficacy and safety in patients with platinum-resistant ovarian cancer, fallopian tube cancer, or primary peritoneal cancer, and related clinical trial arrangements are currently underway.

Investment advice: The company adheres to an innovation-driven development strategy and is committed to developing a new generation of innovative drugs and biosimilar drugs to treat tumors, autoimmune diseases, cardiovascular diseases and other major diseases that endanger human life or health. We expect the company to achieve revenue of 1,22/16.48/2,060 billion yuan in 2024-2026, maintaining the “gain” rating.

Risk warning: risk of changes in industry policies, risk of new drug development, risk of uncertain marketing of products under development, risk of poor progress in internationalization, risk of market competition, etc.