Citi released a research report saying that the valuation of Conoa-B (02162) is undervalued, and further progress in commercialization and the introduction of new drug candidates will cause investors to re-evaluate it, so it maintains a “buy/high risk” rating, with a target price of HK$60. The recent weakness in Connoya's stock price fully reflects the price of Dupirumab (Dupixent) being cut by 40% in the national health insurance catalogue negotiations, exceeding market expectations by 30%, and investors' concerns about commercialization prospects.
Connor's management stated earlier that they are confident in the 2025 sales target of 0.5 billion yuan. In the plan, 60% of sales will come from dermatology and 40% from otolaryngology. Management believes that the achievement of this sales target can be achieved in two ways, including: rapid increase in market penetration due to lower prices; and early approval of CRSwnP drugs, which Dupixent has not yet been approved in China.
Citi said that investors currently do not approve of the new corporate strategy, but believe that the new strategy is appropriate for biotech companies, and that the new strategy can accelerate the global clinical development of early drug candidates. The bank pointed out that when further business cooperation and global clinical progress are announced, and the visibility of commercialization prospects increases, it will drive the stock price recovery.
