Bocom International released a research report initiating coverage on GENFLEET-B (02595) with a Buy rating and a target price of HK$51. As an innovative pharmaceutical company rooted in mainland China with a global vision, GENFLEET has assembled a core management team averaging over 20 years of industry experience and strong execution capabilities, establishing a drug pipeline that includes six clinical-stage candidate drugs. Bocom International's main points are as follows:
The company's core assets focus on the notoriously difficult-to-drug RAS family members. Leveraging deep understanding of the targets and successful R&D experience, the company has built a RAS candidate matrix covering high-potential segments such as KRAS G12C/G12D and pan-RAS, as well as various differentiated novel molecular mechanisms including non-degrading molecular glues and Functional Antibody Synergistic Conjugates (FAScon). Among these, GFH925 (Fuzereisai) has been approved for launch in mainland China, marking it as the first domestically developed drug for this target.
Beyond the RAS matrix, the company's pipeline portfolio extends to other therapeutic areas with large patient populations and moderate competition, such as oncology, cachexia, autoimmune, and inflammatory diseases. It has strategically targeted promising pathways like RIPK1 and GDF15/IL-6, which offer substantial market potential and favorable competitive landscapes.
The company's competitive edge in RAS-targeted drug development is well demonstrated by GFH925 and GFH375: 1) GFH925 showed outstanding monotherapy efficacy data in 2L+ KRAS G12C mutated non-small cell lung cancer (NSCLC) patients, with non-head-to-head comparisons indicating superiority over overseas competitors and comparability or advantage over domestic peers; its cetuximab combination therapy is differentially positioned for 1L NSCLC, with preliminary data outperforming combinations like adagrasib + Keytruda and sotorasib + chemotherapy. 2) GFH375 is one of the first KRAS G12D targeted drugs globally to enter Phase III clinical trials; its preliminary data in third-line pancreatic cancer (3L PDAC) shows advantages over key competitors like RMC-6236 and RMC-9805, and promising overseas data (including combination therapies) is anticipated. 3) The GDF15/IL-16 bispecific antibody GFS202A represents a mechanistic upgrade over faster-progressing single-target drugs, with preclinical data already showing preliminary advantages in tolerability and activity.
The company has built a core management team with an average of over 20 years of industry experience and strong execution capabilities, setting a record by taking GFH925 from project initiation to market approval in just six years. Concurrently, the company actively pursues diversified global development opportunities, strategically selecting partners to achieve complementary strengths and create synergistic value. Its global partners include multinational corporations and renowned biotech firms such as Innovent Biologics, Merck, and Verastem.
Initiating with a Buy rating, the bank forecasts the company's revenue for 2025-27 to reach RMB 109 million, RMB 85 million, and RMB 118 million, respectively, primarily driven by collaboration revenue from GFH925's sales in mainland China and overseas partnership revenue from GFH375. Based on a DCF valuation model, the bank arrived at a target price of HK$51, corresponding to a price-to-sales ratio of 2.3x at peak revenue and representing a potential upside of 87%. Key near-term catalysts over the next 12 months include the sales trajectory of GFH925 following its inclusion in the National Reimbursement Drug List and the readout of further Proof-of-Concept/Phase I data from the RAS pipeline (including GFH375 overseas data).
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