Bank of America Securities Raises Target Price for Innovent Biologics (01801) to HK$113, Collaboration with Takeda Marks Key Step in Becoming a Multinational Pharmaceutical Company

Stock News
Oct 23

According to reports, Bank of America Securities has issued a research note stating that it has raised its revenue forecasts for Innovent Biologics (01801) for 2026 and 2027 by 50% and 3%, respectively. The firm also downgraded the ratio of research and sales management expenses starting in 2027, with earnings per share forecasts for 2026 and 2027 increased by 513% and 9%, respectively. The target price has been raised from HK$106.9 to HK$113, reaffirming a "Buy" rating. Innovent Biologics has announced a strategic collaboration with Japan's Takeda Pharmaceutical, involving three pipeline projects: IBI-363, IBI-343, and IBI-3001. As part of the agreement, Innovent will receive a $1.2 billion upfront payment, which includes Takeda's $100 million equity investment, and could earn up to $10.2 billion in development and sales milestone payments. For IBI-363, both parties will jointly develop the product globally and promote its commercialization in the U.S., with Innovent and Takeda covering 40% and 60% of development and commercialization costs, respectively. Innovent will retain the development rights for IBI-363 in China and will be entitled to receive royalties from sales outside China and the U.S. (potentially reaching high double-digit percentages). The firm believes that this significant transaction confirms Innovent's research capabilities and asset value, marking an important step for the company towards becoming a multinational pharmaceutical enterprise.

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