XTALPI (02228) surged more than 4% again, bringing its cumulative gain for the month to nearly 50%. As of the time of writing, the stock was up 4.68% to HK$14.08, with a turnover of HK$665 million.

The news driving the movement is that XTALPI announced its incubated company, ReviR, has achieved a milestone with its innovative drug candidate RTX-117, successfully obtaining clinical trial approvals (IND approvals) in both China and the US.

Combined with the successful progress of multiple collaborations, XTALPI is set to receive a milestone payment totaling tens of millions of Hong Kong dollars from ReviR.

ReviR will continue to complete the subsequent clinical development of RTX-117, while XTALPI retains the right to participate in sales sharing and future licensing revenue sharing for this drug candidate.

Guolian Minsheng Securities released a research report stating that XTALPI has built a strong competitive moat through its accumulated software and hardware technology in the AI drug discovery field, its platform-based business model, and its strategic positioning in key sectors.

The report suggests that the clinical approval for RTX-117 signifies that its technology platform is entering a phase of value realization, and with the continuous expansion of its collaborative pipeline, the company possesses significant potential for earnings growth and valuation reassessment.