INNOVENT BIO (01801) rose more than 5% again, climbing 5.56% to HK$90.1 by the time of writing, with a turnover of HK$603 million. The increase follows the company's recent announcement of its seventh strategic collaboration with Eli Lilly, focused on jointly advancing the global development of innovative drugs in oncology and immunology. Under the agreement, INNOVENT BIO will receive an upfront payment of $350 million. Additionally, the company is eligible for up to approximately $8.5 billion in milestone payments based on achieving various development, regulatory, and commercial goals, along with tiered royalties on sales of related products outside Greater China. During a business update conference call held yesterday, INNOVENT BIO’s management provided detailed explanations regarding the strategic rationale behind the high-value deal, the use of proceeds, and the company’s global expansion strategy. Management indicated that the $350 million upfront payment is expected to be received shortly and will effectively cover future overseas clinical investments. Haitong International noted that the upfront and milestone payments will strengthen INNOVENT BIO’s financial security, while sales royalties will provide long-term benefits from global market growth. The collaboration, centered on oncology and immunology, is expected to create synergies with INNOVENT BIO’s existing core pipeline, including assets such as IBI363 (PD1/IL2) and IBI343 (CLDN18.2 ADC), enhancing overall competitiveness. Goldman Sachs commented that, considering the current market-implied weighted average cost of capital (12%) is relatively high, the stock appears undervalued at its current price. The firm assigned a "Buy" rating and a target price of HK$102.85 based on a risk-adjusted discounted cash flow analysis.