GLMS SEC issued a research report maintaining a "buy" rating for INNOVENT BIO (01801). As a rare domestic innovative drug leader with global R&D and commercialization capabilities, the company demonstrates clear strategy and efficient execution. With robust revenue growth and significantly improved profitability, the global pipeline is gradually entering registration studies. The firm projects the company's operating revenue for 2025-2027 to be RMB 11.788/15.256/20.516 billion respectively, with year-over-year growth rates of 25.11%/29.43%/34.47%. Net profit attributable to shareholders is expected to reach RMB 0.604/1.396/3.007 billion respectively, representing turnaround to profitability/131.07%/115.45% growth, with EPS of RMB 0.35/0.81/1.76 per share respectively.
Key Points from GLMS SEC:
Event: INNOVENT BIO released H1 2025 interim results, achieving total revenue of RMB 5.953 billion, up 50.6% year-over-year. Profit for the period reached RMB 0.834 billion, representing a significant turnaround from losses. Non-IFRS profit was RMB 1.213 billion, with Non-IFRS EBITDA of RMB 1.413 billion, showing substantial improvement in profitability. The company's product portfolio expanded to 16 marketed products, with oncology and comprehensive pipelines working synergistically. Multiple new drugs achieved successful commercialization, and global expansion continued to advance.
Outstanding Financial Performance with Continued Operational Efficiency Optimization: H1 2025 product revenue reached RMB 5.234 billion (up 37.3% year-over-year), while licensing revenue surged to RMB 0.666 billion (up 474% year-over-year) due to upfront payments from Roche partnership. Gross margin improved to 86.0% (up 3.1 percentage points year-over-year), R&D expenses optimized to RMB 1.009 billion (down 28% year-over-year), and sales expense ratio decreased to 39.9%. As of June 30, 2025, cash reserves stood at approximately RMB 11 billion, providing solid support for global innovation.
IBI363 (PD-1/IL-2α-bias) Global Phase III Clinical Trials Initiated: Core pipeline asset IBI363 presented breakthrough data at ASCO annual meeting, demonstrating superior efficacy in cold tumors and IO-resistant populations. The company has initiated pivotal Phase II studies in melanoma and received U.S. FDA approval to conduct global Phase III clinical trials (MarsLight-11) for squamous NSCLC, planning to enroll patients from multiple countries. Phase Ib/II studies in first-line NSCLC and CRC indications have also been established.
Significant Multi-Pipeline Progress with Deepening Global Expansion: CLDN18.2 ADC (IBI343) initiated Phase III studies in pancreatic cancer, while HER2 ADC (IBI354) advanced Phase III clinical trials in ovarian cancer. Cornerstone metabolic product mazdutide added two Phase III studies. IBI112 (IL23p19) for psoriasis indication is under NDA review, with approval expected by end of 2025. The company reached global partnership with Roche for IBI3009 (DLL3 ADC), currently advancing MRCT clinical studies in Australia, China, and the United States.
Risk Factors: Commercial sales below expectations, clinical progress delays, intensified market competition.