UBS: Reiterates "buy" rating on AKESO (09926) with target price raised to 197.5 Hong Kong dollars.

UBS released a research report stating that AKESO (09926) core product AK112 (ivonescimab) shows huge potential in indications other than non-small cell lung cancer (NSCLC). In addition to the 6 indications for NSCLC, the company has initiated another 6 phase III clinical trials covering first-line treatment areas such as cholangiocarcinoma, triple-negative breast cancer, and pancreatic cancer. The breadth of indications is at the forefront of similar drugs, reiterating a "buy" rating and significantly raising the target price from HK$112.1 to HK$197.5. UBS pointed out that since this drug was included in the national medical insurance catalog in January of this year, sales have grown rapidly. In May, it was approved for a new indication for first-line treatment of NSCLC. It is expected to further contribute incremental revenue through medical insurance negotiations by 2025, raising the peak sales of AK112 in China and globally to $1.2 billion and $14.6 billion, respectively.