Jinwu Financial News | According to Dongwu Securities Research Report, Corning Jerry Pharmaceuticals (09966) is a leading domestic biopharmaceutical company. The actual controller, Dr. Xu Ting, holds 33.01% of the company's shares. The shareholding structure is stable and the management is experienced. At present, dual-antibody ADC development has been transformed, industry-leading sugar-based fixed-point coupling technology has been built, and the platform patent layout is perfect. The process is simple and the coupling is stable. The platform was approved by the international pharmaceutical company ArriVent, and a cooperation agreement was reached with the company to jointly use the platform to develop subsequent ADC products. The company is developing a variety of new products, involving popular targets such as TROP2, EGFR, and HER3.

The bank said that 1) JSKN003 is the company's first ADC transformation product. The company's latest glycosyl coupling technology was applied, and toxin coupling was completed by clicking chemical reactions. Clinical studies have been carried out in this pipeline in many places, and BC indications with low HER2 expression have entered phase III clinical trials in China. JSKN003 is the target of Daiichi Sankyo's DS-8201. According to public data, its curative efficacy is close to DS-8201, but the safety advantage is obvious. The incidence rate of grade 3 or higher TRAE is only 6.3%. DS-8201, on the other hand, is 75%, and is mainly hematologic toxic. The company has developed a new ADC platform that can simultaneously couple TOP1 inhibitors and microtubule inhibitors.

2) KN026 is a HER2 dual antibody developed based on a mature antibody platform. Domestic rights in this product have been sold to Shiyao Group. The total down payment and milestone amounts to 1 billion yuan, with a double-digit sales share. The indications are HER2-positive BC first-line, new adjuvant/adjuvant treatment, and GC/GEJC second-line treatment and above. The pre-BLA data is expected to be read out in '25, and the domestic market will be launched at the end of '26 and the beginning of '27. Currently, the clinical results are excellent. The PFS for HER2-positive BC in combination with docetaxel was 27.7 months. According to estimates, KN026 is expected to reach a peak sales value of about 3.371 billion yuan in 2032 after the launch of the two indications.

According to the bank, future commercialized core products are KN035, KN026, and JSKN003, which are expected to peak revenue of 1.122 billion yuan in 2031 after risk adjustment. The company's 2024-2026 revenue is expected to be 0.305 billion yuan, 0.414 billion yuan, and 0.471 billion yuan, up 39.41%, 35.74%, and 13.77% year-on-year; net profit to mother is -0.146 billion yuan, 0.014 billion yuan, and 0.063 billion yuan. The company is a leading domestic technology enterprise. The differentiated pipeline layout is gradually entering the harvest period. It is optimistic about the company's long-term development, covered for the first time, and gave it a “buy” rating.