UBS: Nochengjianhua (09969) and Lilly (LLY.US) have reached cooperation on innovative target projects. Positive opinions

The Zhitong Finance App learned that UBS released a research report stating that it will maintain Nuochengjianhua's (09969) “buy” rating and target price of HK$21.8. Nuochengjianhua and LLY.US (LLY.US) have reached a cooperation to discover and develop up to 5 innovative target projects. The bank has a positive view on this, believing that it is a recognition of the company's R&D capabilities.

The bank stated that the total amount of advance payments and recent milestone payments was US$100 million, potential R&D and commercial milestone payments reached US$3.25 billion, and tiered royalties per unit of net sales could be obtained. According to management, all projects began during the drug discovery phase. Related payments may provide room for upward growth in 2026 revenue and net profit.