CICC Maintains Outperform Rating on SKB BIO-B (06990) with Target Price of HK$550

Stock News12-12

CICC has issued a research report maintaining its Outperform rating on SKB BIO-B (06990), with a target price of HK$550, implying a 33.4% upside from the current share price. The firm kept its 2026 net profit forecast largely unchanged, factoring in upfront licensing revenue. Key highlights from CICC's analysis include:

**Recent Developments** 1. SKB BIO-B announced that its TROP2 ADC, SKB264 (Lusutrombopag), combined with pembrolizumab (Keytruda), met the primary endpoint in the Phase III OptiTROP-Lung05 trial for first-line (1L) PD-L1-positive non-small cell lung cancer (NSCLC) in China. 2. The company entered a collaboration with Crescent Biopharma, granting overseas rights for ITGB6 ADC SKB105 in exchange for an $80 million upfront payment and up to $1.25 billion in milestones. SKB BIO-B also secured Chinese rights to Crescent’s PD-1 x VEGF bispecific antibody CR-001 for a $20 million upfront and up to $30 million in milestones.

**SKB264 + Keytruda: First ADC+IO Combo to Hit Phase III Primary Endpoint in 1L NSCLC** Interim analysis of OptiTROP-Lung05 showed statistically significant and clinically meaningful progression-free survival (PFS) improvement for SKB264 + Keytruda versus Keytruda alone, with a trend toward overall survival (OS) benefit. The company plans to submit a new indication application in China based on these results. CICC highlights 1L NSCLC as a key indication for SKB264, advising close monitoring of potential 2026 regulatory milestones and detailed data readouts.

**Bidirectional Licensing with Crescent: Expanding ADC Pipeline and Adding Bispecific Antibody** Under the agreement, both drugs are expected to initiate Phase I/II monotherapy trials by Q1 2026, with options to explore combination therapies. CICC views SKB105, a preclinical-stage ADC targeting an emerging pathway, as a strategic asset that accelerates clinical development while bolstering cash flow. The addition of PD-1 x VEGF bispecific antibody CR-001 could synergize with SKB BIO-B’s ADC portfolio, unlocking potential for next-gen IO+ADC combinations.

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