CICC has reiterated its forecast for ABBISKO-B's (02256) net profit attributable to shareholders at RMB48 million for 2025 and RMB320 million for 2026. Based on the DCF model, the firm maintains an Outperform rating and a target price of HK$20, implying a 48.8% upside potential from the current share price. Key catalysts for 2026 include the U.S. launch progress of pimitespib, registration clinical progress of epagatinib in second-line treatment, first-line clinical plans, potential data readouts for ABSK061 and ABSK043, and development updates on early-stage molecules such as ABSK131 and ABSK141.

Recent Developments: On December 22, the company announced that its self-developed CSF-1R inhibitor, pimitespib (Beijiemai), received approval in China for the treatment of tenosynovial giant cell tumor (TGCT) in patients unsuitable for surgery. This marks ABBISKO-B's first approved self-developed innovative drug. The approval timeline exceeded expectations, taking just over six months from the acceptance of the application in June 2025. The approval was based on Part 1 results of the global Phase III MANEUVER study, showing a 54% objective response rate (ORR) versus 3.2% for placebo at 25 weeks, along with significant improvements in joint mobility and pain. CICC believes pimitespib has best-in-class potential. Additionally, long-term follow-up data published in November demonstrated an improved ORR of 76.2% at a median follow-up of 14.3 months, highlighting sustained benefits. The firm expects pimitespib’s commercialization to drive new growth momentum.

Pipeline Updates: 1) On December 16, ABBISKO-B announced the first patient dosing in a Phase II trial of FGFR2/3 inhibitor ABSK061 for achondroplasia (ACH). 2) On December 8, the company presented Phase II results of oral PD-L1 inhibitor ABSK043 combined with furmonertinib in non-small cell lung cancer (NSCLC) at ESMO Asia 2025, reporting a disease control rate (DCR) of 71% with no dose-limiting toxicities or interstitial lung disease observed.