Bank of America Securities raises target price of CSPC PHARMA (01093) to HK$9.1, reiterates "underperform" rating.

Bank of America Securities released a research report stating that they have raised the target price of CSPC PHARMA (01093) from 8.5 Hong Kong dollars to 9.1 Hong Kong dollars, but reiterated their "underperform" rating. They believe that the group's existing product portfolio is facing sales pressure, and the short-term contribution of the research and development pipeline is limited, with most key assets still in the early stages. The report mentioned that CSPC PHARMA has reached an agreement with AstraZeneca to develop innovative long-acting peptide drugs, with a total agreement value of up to $18.5 billion. According to the agreement, CSPC Pharma will receive an upfront payment of $1.2 billion and may be eligible to receive up to $3.5 billion in potential research milestone payments, as well as up to $13.8 billion in potential sales milestone payments. The bank pointed out that CSPC PHARMA announced three potential licensing transactions last May, and this agreement should be the second transaction to be implemented, but the implementation has been delayed beyond expectations. As the assets in the agreement are in the early stages, the bank has not included the related revenue in the forecast, only including the upfront payment in the forecast, and has revised the revenue and net profit forecast for 2026 by 27.9% and 107.2% respectively.