Citi Research reported that Sino Biopharm's (01177.HK) acquisition of Lixun Pharmaceutical will significantly expand its innovative product pipeline.

The note highlights Lixun's valuable assets, including: - LM-299 (PD-1/VEGF) licensed to Merck - LM-305 (GPRC5D ADC) licensed to AstraZeneca - LM-108 (CCR8 monoclonal antibody) - LM-302 (CLDN18.2 ADC)

This transaction represents a landmark in China's pharmaceutical sector as the industry's first major China-to-China acquisition. Citi maintains its "Buy" rating on Sino Biopharm with a HK$6.20 target price.

The research further notes significant progress in Sino Biopharm's innovative drug development: - TQC3721, the world's second-leading PDE3/4 inhibitor, initiated Phase III trials for COPD in June, demonstrating strong out-licensing potential - Pipeline assets including TQB6411 (EGFR/cMet ADC) and TQB3003 (fourth-generation EGFR TKI) have advanced to clinical stages

China's broader pharmaceutical and biotech industry continues to benefit from accelerating innovation and growing licensing trends.