Sino Biopharmaceutical's stock surged 5.09% during intraday trading on Wednesday, following positive developments regarding its pipeline drug and analyst optimism.
The company announced that its subsidiary Beijing Tide Pharmaceutical's independently developed Class 1 new drug TRD205 has been granted Breakthrough Therapy Designation by China's Center for Drug Evaluation. This follows the completion of a Phase II clinical trial for chronic post-surgical neuropathic pain (CPSNP), a condition for which there is currently no specifically approved therapy. The drug's mechanism, which acts only on the peripheral nervous system, potentially avoids common adverse effects associated with central nervous system-targeting agents.
Adding to the positive sentiment, Morgan Stanley raised its earnings per share estimates for Sino Biopharmaceutical by 13.6%, 5.5%, and 3.9% for the years 2026 through 2028, respectively. The upgrade factors in expected licensing income from partnerships with Sanofi and GSK. The firm reiterated its Overweight rating on the stock with a target price of HKD 7.8.
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