CICC has issued a research report reiterating its "Outperform" rating for Innovent Biologics (01801). Based on a DCF valuation model, the firm maintains its target price of HK$118.3, implying a potential upside of 31.4% from the current share price. CICC largely kept its net profit forecasts for 2026 and 2027 unchanged at RMB 3.37 billion and RMB 4.08 billion, respectively. On April 30, the company announced that its product revenue for the first quarter of 2026 exceeded RMB 3.8 billion, representing year-on-year growth of over 50%, which was in line with the firm's expectations. Additionally, the company indicated that it will present results from multiple clinical studies at the 2026 American Society of Clinical Oncology (ASCO) annual meeting.

Key points from CICC are as follows:

Innovative products continued to drive volume growth in the first quarter, supporting strong revenue expansion. Product revenue surpassed RMB 3.8 billion, increasing by more than 50% year-on-year, reflecting the effective dual-driver strategy of "oncology" plus "comprehensive" therapies. The company's leading position in the oncology field was further strengthened. According to financial reports from its partner Eli Lilly, revenue from sintilimab reached USD 120 million in the first quarter of 2026. Furthermore, following their recent inclusion in the National Reimbursement Drug List, the company's five TKI drugs experienced rapid sales growth. The comprehensive product pipeline has become a new growth engine, with CICC estimating that mazdutide, taletrectinib, and tebotelimab also demonstrated solid market performance.

Accelerating global development of potential innovative blockbusters, with IBI363 leading multiple clinical data readouts at the 2026 ASCO conference. The company is actively advancing the global development of three molecules with high international potential: IBI363 (a PD-1/IL-2α-biased bispecific antibody), IBI343 (a CLDN18.2 ADC), and IBI324 (a VEGF/ANG2 bispecific antibody). Recently, the company previewed that it will present proof-of-concept data for IBI363 in immuno-oncology resistant and first-line non-small cell lung cancer at the 2026 ASCO meeting, along with multiple clinical datasets for sintilimab. CICC recommends monitoring the ASCO data releases and paying attention to subsequent progress in the global registration clinical trials for IBI363 conducted in collaboration with Takeda.

Risks include R&D setbacks, intensifying competition, slower-than-expected commercialization, cost overruns, and delays in external partnership progress.