CMSC International released a research report noting that while it views the historic transaction announcement between CSPC PHARMA (01093) and AstraZeneca (AZN.US) positively, it awaits further disclosure from either company regarding the global development details of the long-acting GLP-1 drug. The firm reiterated its "Neutral" rating, citing lingering near-term fundamental concerns.
The report stated that, according to CSPC's latest announcement, the key clinical candidate involved in the collaboration with AstraZeneca is SYH2082, a long-acting GLP-1R/GIPR dual agonist which has now entered Phase I clinical trials. The firm currently has limited understanding of this long-acting GLP-1 platform.
SYH2082 has only recently commenced its Phase I study in China. A quantitative valuation assessment will require waiting for management to disclose its design specifics and potential clinical development pathway.
The firm maintains its long-term positive outlook that "Chinese innovative drugs are entering the global pipeline," but advises investors to carefully examine whether asset valuations have already priced in expectations prior to the BD announcement and to conduct a deep quantitative evaluation of the collaboration's progress.
The report suggests that the entry of siRNA therapies into the obesity maintenance market could pose a genuine threat to all peptide-based solutions. siRNA drugs targeting weight loss and muscle preservation may eventually crowd out peptide-based obesity treatments.
After closely tracking the progress of siRNA assets from Arrowhead and Wave, the firm believes the obesity maintenance field is becoming increasingly crowded. It recommends investors monitor the potential impact of future siINHBE and siALK7 targets on the weight loss maintenance market.
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