UBS has issued a research report initiating coverage on Insilico (03696) with a "Buy" rating and a target price of HK$77. This valuation implies a forward price-to-sales ratio of 31.3 times for the current year, aligning with global peers. The bank highlighted that Insilico is a leading AI-driven drug discovery (AIDD) company, utilizing its end-to-end proprietary Pharma.AI platform for drug discovery and pipeline development, which is projected to account for 87% of total revenue in 2025. According to the report, Insilico integrates generative AI, deep learning, and automation to reduce the timeline from target identification to preclinical candidate (PCC) confirmation from approximately 4.5 years traditionally to 12–18 months. Currently, its Pharma.AI platform has generated around 30 asset pipelines and secured over 10 licensing or collaboration agreements, with total contract value exceeding US$7 billion as of May 2026. The report noted that the core asset Rentosertib (ISM001-055) is the world's first-in-class (FIC) drug candidate discovered entirely by AI. Phase 2a clinical results in China have demonstrated favorable efficacy and safety, with a Phase 3 trial in China planned to commence in the third quarter of 2026. UBS forecasts that the company will achieve a compound annual growth rate (CAGR) of 36% in revenue from 2025 to 2035 and is optimistic about the potential for out-licensing driven by its expanding pipeline.