CICC has released a research report reiterating its HK$8.9 target price and "Outperform" rating for Sino Biopharm (01177). The firm has kept its adjusted net profit forecasts for 2025 and 2026 unchanged at 4.47 billion yuan and 4.921 billion yuan, respectively, while introducing a new forecast of 5.423 billion yuan for 2027. The report notes the company's announcement of a 100% acquisition of Hejiya Biotech for a consideration of 1.2 billion yuan. Hejiya Biotech has a deep focus on the siRNA field, with key strategic layouts in three major chronic disease areas: weight-loss and metabolism, cardiovascular and cerebrovascular diseases, and the nervous system; its core platform possesses a differentiated competitive advantage. The report suggests that existing therapies in the chronic disease sector often face limitations in efficacy, safety risks, and low patient adherence, indicating a vast unmet clinical need. This acquisition is expected to assist Sino Biopharm in building a next-generation innovative pipeline for cardiovascular treatment and enhancing its strategic position in the weight-loss and metabolism field. Furthermore, the company's well-established R&D system and sales channels are anticipated to rapidly advance Hejiya Biotech's clinical progress and subsequent commercialization, creating potential for synergistic benefits for both parties.
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