Bank of America Securities has released a research report indicating an increase in CSPC PHARMA's (01093) target price from HK$8.5 to HK$9.1, while simultaneously reiterating an "Underperform" rating. This cautious stance is attributed to perceived sales pressures on the group's existing product portfolio and the belief that its research and development pipeline will offer limited short-term contributions, with most key assets still in early-stage development. The report notes that CSPC PHARMA has entered into an agreement with AstraZeneca to co-develop innovative long-acting peptide drugs, a deal with a potential total value of up to $18.5 billion. Under the terms of the agreement, CSPC will receive an upfront payment of $1.2 billion and is eligible for potential R&D milestone payments of up to $3.5 billion, plus potential sales milestone payments reaching a maximum of $13.8 billion. The report further states that CSPC PHARMA had previously announced in May of last year the possibility of three out-licensing deals, with this agreement representing the second to be finalized, albeit later than initially anticipated. Given that the asset involved in the agreement is in an early stage, the bank has not incorporated the related revenue into its forecasts; it has only accounted for the upfront payment. Consequently, the bank has raised its revenue and net profit forecasts for 2026 by 27.9% and 107.2%, respectively.