Jinwu Financial News | According to the BOC International Development Report, in Corning Jerry Pharmaceuticals (09966) HER2 pipeline product matrix, huge commercial value is yet to be realized: 1) Phase I data of JSKN033 was first announced at the SITC conference and selected for LBA, showing that 80% DCR was achieved in NSCLC patients with HER2 expression (IHC ≥ 1+) or HER2 mutations. 2) Early clinical data on JSKN003 treatment of platinum-resistant ovarian cancer and HER2-positive (IHC 3+) solid tumors (excluding breast cancer) were presented at the ESMO conference. ORR reached 56.8% and 75.0%, respectively, and ORR reached 52.9% in patients with HER2 IHC 0 platinum-resistant ovarian cancer. 3) KN026's 1L breast cancer (+ albumin docetaxel) recently started phase III, and it is expected that the first indication ≥2L GC/GEJ (+ chemotherapy) is expected to submit an NDA in China in 2025. The bank expects KN026 and JSKN003 to collectively generate peak sales of nearly 5 billion yuan in China.
The bank raised its 2024 revenue forecast to 0.657 billion yuan to reflect the down payment related to the JSKN003 authorized cooperation, but considering the impact of industry compliance regulations on Enveda sales and delays in the marketing of individual drugs under development, it lowered its 2025 revenue forecast to 0.45 billion yuan, and lowered the POS adjusted sales peak of Enveda and KN046 to 1.1 billion yuan. At the same time, the bank drastically lowered its 2024-25 R&D and sales expenses forecast. Finally, the bank raised WACC to 12.0% to obtain the latest DCF target price of HK$5.00 (previously HK$7.4), which corresponds to a potential increase of 16% over the next 12 months and maintains a neutral rating.
