Southwest Securities has released a research report noting that on May 29, Innovent Biologics (01801) entered into a global strategic collaboration with Pfizer to accelerate the development of innovative oncology drugs. The company possesses strong research, development, and commercialization capabilities. The brokerage forecasts the company's operating revenue for 2026-2028 to be RMB 17.85 billion, RMB 21.18 billion, and RMB 25.17 billion, respectively.

Strategic Alliance for Global Development

Innovent Biologics and Pfizer have formed a global strategic partnership to jointly develop four key programs worldwide, sharing the associated development costs. The two parties will also co-commercialize these assets in the United States and Europe, sharing profits. Innovent Biologics retains the rights for the Greater China region. Under the financial terms of the agreement, Innovent Biologics will receive an upfront payment of $650 million and is eligible for up to $9.85 billion in milestone payments tied to development, regulatory, and commercial achievements, bringing the total potential deal value to $10.5 billion. Furthermore, for each approved product, Innovent Biologics will receive sales royalties of up to a double-digit percentage. For the co-developed and co-commercialized projects, profits in the U.S. and Europe will be shared.

Rapid Progress in IBI363 Phase III Trials

IBI363 (PD-1/IL-2) is undergoing a series of global clinical trials, including a global multi-regional Phase III trial for immune-resistant squamous non-small cell lung cancer and a pivotal Phase II study in China for treatment-naïve acral and mucosal melanoma. Concurrently, several Ib/II phase trials are ongoing, evaluating IBI363 for NSCLC and colorectal cancer (including first-line and later-line therapies) and other tumor types. At the 2026 ASCO meeting, Innovent Biologics presented preliminary results from a Phase I Proof-of-Concept study of IBI363 as a first-line treatment for advanced NSCLC. In the dose optimization phase, the 3→1.5 mg/kg cohort (n=22) demonstrated an objective response rate of 86.4%, with a confirmed ORR of 81.8% and a disease control rate of 100%. This efficacy was consistent across squamous (ORR 85.7%, n=14) and non-squamous (ORR 87.5%, n=8) subgroups.

Global Expansion and Pipeline Validation

The year 2026 is pivotal for the company's global expansion and deepening commercialization efforts. The company plans to systematically advance the development of late-stage assets, focusing on the global development of IBI363, IBI343, and IBI324. Simultaneously, the company will validate high-potential early-stage assets, aiming to deliver Proof-of-Concept and early Phase I clinical data for IBI3003 (GPRC5D/BCMA/CD3), next-generation ADC pipelines, IBI3032 (oral GLP-1), and IBI3002 (TSLP/IL-4Rα), and advance next-generation molecules into the clinical stage.

Investment Considerations and Potential Risks

Potential investment risks include the possibility that research and development progress may not meet expectations, commercialization of core products may fall short of forecasts, overseas collaborations may underperform, and policy-related risks.