CICC has reaffirmed its "Outperform" rating on CMS (00867) and increased its target price by 7% to HK$16.50, citing a sector-wide upward trend in valuation benchmarks. The firm has maintained its 2025 net profit forecast of RMB 1.735 billion for CMS, while raising the 2026 projection by 5% to RMB 1.984 billion, anticipating revenue growth from new product launches; it has also introduced a 2027 net profit estimate of RMB 2.418 billion. The company announced that its subsidiary, Dermira, received NMPA approval on January 30, 2026, for Ruxolitinib Phosphate Cream, indicated for the treatment of non-segmental vitiligo with facial involvement in patients aged 12 and above. CICC's key viewpoints are as follows: As the first and only targeted therapy approved by the NMPA for vitiligo treatment, the drug possesses significant clinical potential. Ruxolitinib cream, a JAK1/JAK2 inhibitor developed by Incyte, is also the first and only FDA-approved repigmentation treatment for non-segmental vitiligo. According to the company's announcement, approximately 10.3 million people in China suffer from vitiligo (8.2 million with the non-segmental type), and existing TCS/TCI treatments have clinical shortcomings, including adverse effects from long-term use or limited efficacy; CICC believes the domestic approval of Ruxolitinib cream is poised to address the unmet need for targeted vitiligo therapy. The clinical efficacy is outstanding, and pilot applications in Hainan have already demonstrated initial commercial potential. In overseas Phase III clinical trials (TRuE-V1 and TRuE-V2), the proportion of Ruxolitinib cream patients achieving F-VASI75 after 24 weeks was 29.9%, significantly higher than the placebo group's 7.5% and 12.9%, with repigmentation effects continuing through 52 weeks of sustained use. Currently, the Boao Super Hospital has prescribed the treatment to over 7,000 non-segmental vitiligo patients, and more than 20 hospitals in cities like Guangzhou and Shenzhen are already offering prescription services for the drug. Dermira's dermatology product portfolio is further enriched, which is expected to contribute greater revenue elasticity. CICC believes Ruxolitinib has the potential to create synergistic effects in dermatology alongside Dermira's commercially available innovative drug Ilumya (Tildrakizumab) and its exclusive product Hirudoid (Mucopolysaccharide Polysulfate Cream); furthermore, the domestic Phase III trial for Ruxolitinib's atopic dermatitis (AD) indication has yielded positive results, and the company is actively advancing the NDA application for this indication. Additionally, Dermira has licensed the company the rights to Ruxolitinib in Hong Kong, Macau, Taiwan, and 11 Southeast Asian countries, with overseas expansion likely to provide further revenue and profit growth. Risks include potential R&D failures, slower-than-expected new product commercialization, and setbacks in internationalization efforts.
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