JPMorgan has adjusted its forecasts for REMEGEN (09995, 688331.SH), lowering product revenue projections for 2025 and 2026 to reflect recent performance while increasing licensing revenue estimates. The bank expects net losses to narrow in 2025 and 2026 due to improved margins and reduced operating expenses. Consequently, it raised the H-share target price from HK$73 to HK$77 and upgraded the rating to "Neutral." The A-share target price was also lifted from RMB 86 to RMB 92, retaining a "Neutral" rating.

The report noted REMEGEN's mixed Q3 results, with product revenue falling short of expectations. However, better-than-expected margin performance and cost controls demonstrated the company's ongoing cost optimization efforts. Notably, after signing the RC18 licensing agreement with VorBio in June, R&D expenses declined 30% year-on-year and 24% quarter-on-quarter. Administrative expenses also dropped by 23%, continuing the positive trend seen in previous quarters.