CICC has upheld its profit forecasts for EVEREST MED (01952) for the years 2026 and 2027.

Applying a discounted cash flow model, the firm reiterates an Outperform rating and a target price of HK$41.5, suggesting a potential upside of 48.43% from the current share price.

On June 2nd, the company announced it had entered into an exclusive licensing and collaboration agreement with Travere Therapeutics, granting the latter exclusive development and commercialization rights for EVER001 (xibutinib, civorebrutinib) in all regions except Greater China and certain Southeast Asian countries.

Key Analyst Perspectives

The primary viewpoints from CICC are outlined below.

Successful Out-Licensing of EVER001 to Accelerate Kidney Disease Development

Under the agreement, Travere secures exclusive rights for EVER001 outside Greater China and parts of Southeast Asia.

In return, EVEREST MED will receive an upfront payment of $112.5 million and is eligible for development, registration, and commercial milestone payments of up to $1.03 billion across a maximum of five indications.

The company will also receive tiered royalties ranging from high single-digit to double-digit percentages based on EVER001's future annual net sales.

The analyst believes this partnership will accelerate the global clinical development and commercialization of EVER001, particularly for the treatment of membranous nephropathy.

EVER001 Poised for Rapid Advancement in Membranous Nephropathy

EVER001 is a next-generation covalent BTK inhibitor introduced by EVEREST MED.

Compared to covalent irreversible BTK inhibitors, EVER001 is expected to maintain high selectivity while avoiding toxicities associated with continuous inhibition.

The drug is currently under active development for membranous nephropathy.

The company has previously released Ib/IIa phase clinical data for the drug in treating Chinese patients with membranous nephropathy, demonstrating rapid, deep, and sustained immunological and clinical remission with continued benefit post-treatment discontinuation, alongside a favorable safety and tolerability profile.

The company plans to conduct clinical studies in indications such as primary membranous nephropathy, immune-mediated focal segmental glomerulosclerosis, and minimal change disease, with potential for further expansion into additional therapeutic areas.