Morgan Stanley has released a research report identifying and previewing potential catalysts that could affect the stock prices of Chinese biotech companies in the fourth quarter of 2026, assigning the sector an "Attractive" rating.

Regarding Abbisko-B (02256), the bank sees upside potential if the annualized height growth velocity of higher-dose ABSK061 exceeds the initial 2.4 centimeters per year, while phosphate and corneal toxicity remain at low levels.

Regarding Innovent Biologics (01801), the bank expects mazdutide to be superior to semaglutide in terms of weight reduction and liver fat, though the advantage must be sufficient to justify the higher incidence of gastrointestinal discomfort.

Regarding Keymed Biosciences-B (02162), the bank favors the CM512 once-every-24-weeks strategy for nasal polyps; if the improvement in lung function between doses can be sustained, it would strengthen its differentiation in asthma.

Regarding InnoCare Pharma (09969), the Phase III success of ICP-332 is already well known; in the absence of longer infection and blood cell count data, the bank remains cautious on the TYK2 safety premium.