CICC has released a research report stating that due to the recognition of upfront and milestone payments from the out-licensing of KEYMED BIO-B's (02162) CM313 and CM355, the firm has adjusted its 2025 loss forecast from 837 million yuan to 524 million yuan, while maintaining its 2026 earnings forecast largely unchanged. The firm maintains its outperform rating and, based on DCF valuation and the company's pipeline globalization beginning to materialize, has raised its target price by 54.5% to HK$85.00, representing a 16.8% upside from the current share price.

CICC's key points are as follows:

**1H25 Sales Meet Expectations**

The company announced its 1H25 results: revenue of 499 million yuan, up 812% year-on-year; product sales revenue of 169 million yuan; net loss attributable to parent company of 79 million yuan. Total revenue exceeded the firm's expectations, mainly due to the recognition of upfront and milestone payments from the out-licensing of CM313 and CM355. Excluding these payments, sales revenue aligned with expectations.

**CM310 Receives Three Indication Approvals, 1H25 Sales Performance Meets Expectations**

As of March 2025, the company's core product dupilumab biosimilar (CM310) has received CDE approval for three indications: adult moderate-to-severe atopic dermatitis (AD), seasonal allergic rhinitis (SAR), and chronic rhinosinusitis with nasal polyps (CRSwNP). CM310 contributed revenue of 169 million yuan in 1H25, meeting expectations.

As of June 2025, the company's commercialization team has reached 370 people, with plans for continued expansion. CM310 is currently priced at 1,812 yuan per dose, with a buy-two-get-one-free patient assistance program. The firm suggests monitoring this year's national reimbursement drug list negotiations. CM310 is also simultaneously developing indications for adolescent and pediatric moderate-to-severe atopic dermatitis, prurigo nodularis, asthma, and COPD.

**Actively Pursuing Global Partnerships**

The company has entered into a global exclusive licensing agreement with AstraZeneca for CLDN 18.2 ADC (CMG901). AstraZeneca has initiated a Phase III MRCT study of CM901 monotherapy for second-line and later advanced or metastatic gastric and gastroesophageal junction adenocarcinoma, with enrollment currently over halfway complete.

Additionally, the company is rapidly advancing overseas clinical progress for CM512 (TSLPxIL13), CM536, CM336 (BCMAxCD3), CM313 (CD38), and CM355 (CD20xCD3) through NewCo structures:

1) CM313 and CM355 both entered exclusive licensing agreements with Timberlyne and Prolium respectively in January this year, with a combined 318 million yuan in upfront and milestone payments recognized in 1H25, boosting company revenue;

2) CM512 is exploring extended dosing intervals, with moderate-to-severe atopic dermatitis, chronic rhinosinusitis with nasal polyps, moderate-to-severe asthma, and COPD all in domestic Phase II clinical trials. Belenos has also initiated a US Phase I clinical trial for the asthma indication, with the first patient enrolled in March;

3) Ouro received the first overseas IND approval for CM336, with the first patient enrolled in August.

**Risk Factors:** New product launches, clinical trial data and sales below expectations, intensified competition.