Goldman Sachs has released a research report raising its earnings per share forecasts for INNOCARE (09969) for the 2026 to 2028 period, from 0.15, 0.05, and 0.32 yuan to 0.16, 0.08, and 0.37 yuan, respectively. The investment bank has also increased its target price from HK$20.54 to HK$22.71 while maintaining a "Buy" rating on the stock.
The company's second-quarter product sales grew 37% year-over-year, broadly in line with expectations. This growth was driven by the continued strong performance of its core product Orelabrutinib, along with initial contributions from newly launched drugs, including Tafasitamab (CD19) and Zurletrectinib (pan-TRK).
Goldman Sachs believes that INNOCARE's autoimmune product portfolio is progressively establishing itself as a second growth pillar beyond hematologic malignancies. Looking ahead over the next 12 to 18 months, the company has numerous catalysts lined up, including regulatory milestones such as the approval of Orelabrutinib for ITP, the submission of a new drug application for ICP-332 in atopic dermatitis, and the release of pivotal data for mesutoclax.
In response to the recent performance, Goldman Sachs has revised its probability of success assumptions for ICP-332 and ICP-488 upward, from 70% to 100%.
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