Jinwu Financial News | Pacific Securities issued a Research Report indicating that Lepu Biopharma (02157) is focusing on precise matching for PD-1 and creating a diverse and comprehensive combination of combination therapies: surrounding the forward-looking layout of "PD-1+ADC," currently the EGFRADC and HER2ADC combined PD-1 treatment regimen is already in the phase two clinical stage; clinical trials for the oncolytic virus CG0070 combined with PD-1 for non-muscle invasive bladder cancer indications are being prepared for the clinical stage.
The firm stated that Lepu Biopharma's Putrelizumab started commercialization in 2022 and continuously expands new indications through combined therapies with ADC, increasing revenue. The company actively seeks business development opportunities to amplify the commercial value of its pipeline. CMG901 has successfully expanded overseas; MRG003 for the treatment of nasopharyngeal carcinoma has obtained FDA orphan drug designation, fast track designation, and breakthrough therapy designation, and is simultaneously undergoing clinical development in China and the US; MRG004A has shown preliminary positive efficacy in pancreatic cancer and has been granted orphan drug designation by the FDA, laying a good foundation for internationalization.
The firm further indicated that multiple FIC potential drugs are under research, and the ADC pipeline is about to enter a harvest period. Based on the competitive landscape and pipeline progress, the firm predicts Lepu Biopharma's revenues for 2024/2025/2026 will be 0.306/0.504/0.87 billion yuan respectively. Using discounted cash flow and pipeline peak sales multiples for valuation, the corresponding Market Caps are 10.08 billion Hong Kong dollars and 11.41 billion Hong Kong dollars. First-time coverage, rated as "Buy."
