Goldman Sachs: Pharmaceutical Alliance (02268) commercial production verification has become a key catalyst for long-term visibility

The Zhitong Finance App learned that Goldman Sachs released a research report stating that it gave a “buy” rating to Pharmaceutical Federation (02268), with a target price of HK$97.9, corresponding to predicting a price-earnings ratio of about 35 times for the next 12 months. The bank pointed out that the backlog of orders is strong, and commercialization visibility is improving. It continues to be optimistic about its growth prospects for many years to come. Commercial catalysts are also becoming increasingly clear. The number of process verification (PPQ) projects has reached 21, and it is expected that the number of new drug marketing applications (BLA) submissions will rise.

Goldman Sachs pointed out that Pharmaceutical Federation's production facility in Wuxi may undergo the first FDA inspection in the first quarter of next year. Previously, BLA for some customers was expected to be submitted before the end of 2026, which will be an important milestone in verifying its global commercial production capacity.

The bank quoted the company's management as saying that AI drug discovery (AIDD) can provide important support for upstream target identification and molecular generation, but the direct impact of AI on CDMO order conversion is still limited at this stage, and the key bottleneck is still the execution of wet experiments. Management anticipates that the ability to integrate CDO/CDMO will be critical to turning innovation into business opportunities.