CICC released a research report stating that due to SKB BIO-B's (06990) strong licensing revenue recognition and effective cost management, the firm maintains its outperform industry rating. Considering the upward revision in earnings forecasts and the materialization of R&D progress catalysts, CICC raised its target price by 57.1% to HK$550 based on DCF model, representing a 20.6% upside from the current stock price. The company announced its 1H25 results with revenue of 950 million yuan, exceeding expectations.

CICC's main viewpoints are as follows:

1H25 TROP2 ADC Sac-TMT Domestic Commercial Launch Outside Medical Insurance Proceeding Smoothly

In 1H25, the company's commercial revenue reached 310 million yuan, with Sac-TMT accounting for 97.6%. According to company announcements, as of the interim report, the marketing team exceeded 350 people, with business coverage across 30 provinces and sales revenue achieved in over 1,000 hospitals. CICC believes that Sac-TMT currently demonstrates clear clinical benefits in approved indications including TNBC and 3L NSCLC. With potential domestic approval for 2L NSCLC in the second half of the year and active promotion of medical insurance access in 2026, future volume growth is expected.

Intensive R&D Catalysts Within One Year, Recent Focus on 2L NSCLC Review Progress and Data Readouts

According to company announcements, sac-TMT's domestic 2L NSCLC application has been submitted for marketing approval, with the company expecting potential approval in 2H25, and plans to present relevant data at the ESMO conference in October. Additionally, the 1L NSCLC (PD-L1 TPS≥1%) indication is in the registration clinical phase, with CICC expecting a potential marketing application submission in 2H25. The 2L HR+/HER2- BC indication was submitted for marketing approval in May 2025, with CICC expecting potential approval in 1H26. The company also announced plans to submit A400 (RET inhibitor) marketing application within 2025.

Early-Stage Pipeline Continues to Bring New Highlights

According to company announcements, SKB315 (CLDN18.2 ADC) Phase 1 clinical data will be presented at the ESMO conference; SKB410 (Nectin-4 ADC) global Phase 1/2 trials have been initiated by Merck; bispecific ADC SKB571 is about to start Phase 2 clinical trials in China; and radioisotope conjugate drug SKB107 is undergoing Phase 1 clinical studies.