UBS: Maintaining the Target Price of HK$62 for the “Buy” Rating of Pharmacovigilance (02269)

The Zhitong Finance App learned that UBS released a research report saying that Yao Ming Biotech (02269) reached an exclusive cooperation agreement with German medical company Fresenius to obtain developer et rights for 37 biosimilar drugs within the next ten years. This move is seen as an affirmation of the company's R&D strength, maintaining a “buy” rating, and the target price is HK$62.

According to the agreement, Fresenius will pay for each drug candidate according to the “fee-for-service” (fee-for-service) model. The first key drug candidates include Polivy for lymphoma and Tepezza for thyroid eye disease. According to the report's analysis, Fresenius currently has a product line composed of 29 marketed products and molecules under development, which can be expanded to a maximum of 66 items. The corresponding list price sales volume of the original research drug exceeds 370 billion euros, bringing considerable business opportunities to Pharmacomics.

UBS pointed out that Yao Ming Biotech initially operated as a biopharmaceutical contract research organization (CRO) and has now expanded to a one-stop service platform covering R&D and manufacturing. The company has multiple advanced technology platforms, such as the WuxiBody bispecific antibody platform, the WuxIA cell line platform, and the WuxiUP continuous production platform, and has production bases in China, Singapore, Europe and the United States to meet the needs of global customers.