GTHT: Initiates "Accumulate" Rating on LEPU BIO-B (02157) with MRG003 Approval Expected Soon

Stock News
10/17

According to reports from GTHT, the firm has initiated coverage on LEPU BIO-B (02157) with an "Accumulate" rating. Projected revenues for the years 2025-2027 are 853 million, 1.204 billion, and 1.665 billion yuan, respectively. With a reference to comparable companies that have an average PS of 34.1X for 2025, and considering LEPU’s comprehensive product layout and the imminent approval of MRG003, the company is assigned a 23X PS for 2025, leading to a reasonable valuation of 10.87 yuan/11.81 HKD. Additionally, taking into account the average PB of comparable companies at 18.7X and their relatively low net assets, a 25X PB is applied for 2025, yielding a corresponding valuation of 9.55 yuan/10.38 HKD. Based on both PS and PB valuations, a cautious approach results in a target price of 9.55 yuan/10.38 HKD for the company. The report notes that LEPU has established multiple oncology product pipelines, covering three main areas: immunotherapy, ADC targeted therapy, and oncolytic virus drugs. The company’s PD-1 antibody candidate serves as a cornerstone for its immunotherapy approach, leveraging an advanced ADC technology development platform to create innovative ADCs, alongside a differentiated strategy for oncolytic viruses, aiming to develop optimized and innovative drugs to better meet the unmet clinical needs of cancer patients. Furthermore, LEPU is actively exploring combined therapies involving PD-L1 with ADCs. The MRG003 monotherapy for R/MNPC has received priority review qualification from CDE in September 2024, with the NDA review submitted in March 2025, indicating a likely domestic approval soon. In terms of combination therapy, MRG003 combined with the PD-1 antibody Putilizumab HX008 has officially been included by China’s National Medical Products Administration (NMPA) Drug Evaluation Center (CDE) as a breakthrough therapeutic agent, targeting indications for recurrent or metastatic nasopharyngeal carcinoma that have failed at least platinum and PD-1/L1 treatment.

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