China International Capital Corporation (CICC) has released a research report reiterating its Outperform rating on REMEGEN (09995) and increasing its target price by 26.8% to HK$133.7. This new target implies a potential upside of 21.1% from the current share price. The adjustments are based on an updated discounted cash flow (DCF) valuation, reflecting an accelerated international R&D timeline for RC148 and improved company performance.
CICC has revised its net profit forecast for REMEGEN for 2026 upward significantly, from RMB 34 million to RMB 4.235 billion, considering the expected revenue recognition pace from its licensing partnerships. The brokerage has also introduced a net profit forecast of RMB 748 million for 2027.
Key points from the report are as follows:
**2025 Results Exceeded Expectations** REMEGEN reported its 2025 financial results, with revenue reaching RMB 3.242 billion, a year-on-year increase of 89.55%. The company achieved a net profit attributable to shareholders of RMB 710 million, marking a turnaround to profitability. This outperformance relative to CICC's expectations was driven by rapid sales expansion of the company's products and continued progress in its out-licensing collaborations.
**Core Product Sales Growth and Indication Expansion to Drive Commercialization** According to the company's announcement, domestic commercial revenue for 2025 was RMB 2.271 billion, up 34% year-on-year. The gross profit margin for commercialized products was 84.3%, an improvement of 3.7 percentage points. The core product, Telitacicept, received approval for the treatment of myasthenia gravis. Furthermore, marketing applications for Telitacicept in IgA Nephropathy (IgAN) and Sjögren's Syndrome, as well as for Disitamab Vedotin in combination therapy for first-line urothelial carcinoma, have been accepted by the National Medical Products Administration (NMPA). CICC believes that as these new indications gain approval, the sales revenue from REMEGEN's commercial products is expected to see sustained growth.
**Advancing International Collaboration; Rapid Global Development of RC148** The company has entered into a licensing agreement with AbbVie for RC148. A Phase III clinical trial for RC148 in combination with chemotherapy for second-line non-small cell lung cancer and a Phase II trial for second-line treatment of solid tumors have received clearance from the U.S. Food and Drug Administration (FDA). Citing a news release from AbbVie, the report notes that RC148 has the potential to be explored in combination regimens with several ADCs, including Temab-A. Leveraging AbbVie's extensive clinical resources and pipeline, CICC anticipates that the global development of RC148 will accelerate, thereby raising its value potential.
**Continuous Iteration of Innovative Technology Platform; Next-Generation Molecules in Pipeline** In the autoimmune disease area, the company is developing next-generation bispecific/trispecific antibodies and T-cell engager (TCE) molecules. CICC views these novel technological approaches as likely to strengthen REMEGEN's competitive position in this field. In oncology, building on its extensive experience in Antibody-Drug Conjugates (ADCs), the company is making breakthroughs in next-generation toxin payloads and conjugation technologies, and is also developing trispecific TCEs to broaden therapeutic applications. According to company announcements, RC278 has entered dose-escalation and target dose expansion studies, RC288 has received Investigational New Drug (IND) approval, and data from the pioneering PR-ADC payload recycling platform is scheduled for presentation at the 2026 AACR annual meeting. CICC concludes that the company has established a robust pipeline of next-generation molecules, laying a solid foundation for long-term growth.
The report also highlights potential risks, including R&D failures, intensifying competition, and partnerships not meeting expectations.
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