CMSC International: Maintains ABBISKO-B (02256) target price of HK$32.5 and "Overweight" rating, believes the company is significantly undervalued by the market

CMSC International released a research report maintaining the target price of HK$32.5 and "Overweight" rating for ABBISKO-B (02256). The bank believes that due to factors such as insufficient liquidity and not yet being included in the Stock Connect, Abbisko is significantly undervalued by the market. The company's selective oral small molecule FGFR2/3 inhibitor lavengratinib (ABSK061) has obtained positive preliminary efficacy results in the Phase II clinical study for the treatment of pediatric achondroplasia (ACH). The preliminary Phase II results show that compared with other injectable C-type natriuretic peptide (CNP) drugs, such as BioMarin's Voxogo, Ascendis' Uvwell, or BridgeBio's oral FGFR3 small molecule Infigratinib which has completed Phase III clinical trials/is in the marketing approval stage, Abbisko's lavengratinib is currently in a leading position in terms of average AGV. The bank looks forward to the results of ABSK061 in a large sample population in the future, as well as successfully obtaining the optimal RP2D, thereby initiating the Phase III registrational clinical trial. It also looks forward to the company providing data on subjects' quality of life in the future.