CMSC released a research report initiating coverage on 3SBIO (01530) with a "Strong Buy" rating, highlighting the PD-(L)1/VEGF bispecific antibody as a cornerstone of next-generation immuno-oncology (IO) therapy. The unique molecular design of SSGJ-707 and its early clinical data demonstrate best-in-class (BIC) potential.

Pfizer secured global rights to SSGJ-707 through a $1.4 billion upfront payment, up to $4.8 billion in milestone payments, and a $100 million equity investment, underscoring confidence in the molecule’s potential and 3SBIO’s R&D capabilities. With Pfizer rapidly advancing global clinical trials and exploring ADC combinations, 3SBIO’s valuation is poised for further upside. The company maintains a stable earnings base, a well-structured pipeline, and robust mid-to-long-term growth drivers.

**Key Investment Highlights:** 1. **Solid Foundation and Accelerated Innovation:** Founded in 1993, 3SBIO is a leading Chinese biopharma firm with extensive expertise in R&D, production, and commercialization. Over three decades, it has built a diversified portfolio in nephrology, hematology/oncology, autoimmune diseases, and dermatology. Core products like TPIAO, EPO, Yisaipu, and Mindy dominate their respective markets, sustaining revenue growth.

2. **Oncology: Next-Gen IO Therapy with Global Potential** - **SSGJ-707:** Positioned as a foundational IO therapy, this bispecific antibody addresses cold tumors and efficacy limitations of PD-(L)1 inhibitors. The molecule’s potential was validated by Pfizer’s record-breaking licensing deal. - **Clinical Expansion:** Pfizer plans to initiate seven global trials, including Phase III studies in 1L NSCLC and 1L mCRC, with potential to address over 350,000 U.S. patients. Future trials may explore 10+ indications and combinations by 2026. - **Early-Stage Pipeline:** FIC candidates like SSS59 (MUC17/CD3/CD28 trispecific) and SPGL008 (B7H3/IL15 fusion protein) have entered Phase I.

3. **Commercial Strength and Growth Levers** - **TPIAO (rhTPO):** The only commercialized rhTPO globally, it holds top-tier guideline recommendations for CTIT. Recent approval for pediatric ITP and stable pricing post-NRDL negotiation support sustained growth. - **EPO Portfolio:** Despite competition, 3SBIO leads China’s rhEPO market (42% share). Next-gen products like SSS06 (long-acting EPO, NDA under review) and SSS17 (HIF inhibitor, Phase II) aim to reinforce dominance.

**Financials & Valuation:** CMSC forecasts 2025–2027 revenue of RMB18.52/11.55/11.78 billion and net profit of RMB9.77/3.72/3.28 billion, implying a P/E of 7x/19x/22x.

**Risks:** Clinical setbacks, technological shifts, policy changes, or model inaccuracies.