Shares of Kelun-Biotech B (06990.HK) climbed beyond 3% during trading, settling at a 2.28% rise to HK$350.60 by press time. Trading volume reached HK$116 million. UBS research indicates the antibody-drug conjugate sac-TMT—developed collaboratively with Merck & Co. to target TROP2—is positioned to become central to Merck's next-generation oncology strategy. The Swiss bank radically upgraded its peak sales projection for the drug outside mainland China from RMB 29.9 billion to RMB 65 billion, substantially exceeding market consensus estimates of RMB 36.7 billion.

UBS emphasized sac-TMT's promising traction in the Chinese market, where its 2025 sales target stands between RMB 800 million and RMB 1 billion. Notably, adoption among lung cancer patients now surpasses breast cancer usage. The institution contends the drug's full potential remains undervalued by investors.

Further optimism surrounds Kelun-Biotech's broader ADC pipeline, including assets like SKB410, SKB571, and SKB535, prompting UBS to elevate its price target from HK$320.10 to HK$452.80. The firm reaffirmed its "Buy" rating, citing long-term growth prospects for these therapeutic candidates.