CICC: Maintaining BeiGene's (06160) “Outperform the Industry” rating target price of HK$198

The Zhitong Finance App learned that CICC released a research report stating that it will keep BaiGene (06160)'s profit forecast unchanged for 2025 and 2026. The bank maintained an outperforming industry rating. Based on the DCF model, the bank maintained a target price of 280 yuan/198 HKD/332 dollars for A/H/US shares (18.6%/34.3%/37.6% upside). On June 26, the company showcased its unique R&D strategy, leading hematoma layout, and extensive solid tumor pipeline at the Investor R&D Day event.

CICC's main views are as follows:

R&D strategy: global operation, rapid development of new molecular entities

In 2024, the company promoted 10 self-developed new molecular entities to the clinical stage. Compared with 3/5 in 2022/2023, the company involved various cutting-edge technology platforms such as small molecules/CDAC/bi (III) anti/ADC. The company continues to use Baiyueze's successful development experience, innovating in multiple pipelines in parallel, and promoting only high-quality molecules to the clinic. This is one of the reasons why these new molecules showed the potential of BIC before clinical trials. Over the next 3-6 years, the company plans to continue to advance 8-10 highly differentiated new molecules in the field of hematoma and solid tumors to the clinical stage. With the help of the company's global clinical development capabilities, the bank believes that the company's series of innovative strategies of “rapid proof of concept”, “decrotization”, and “proprietary combination therapy” will soon be realized.

Hematoma: a unique slow leaching layout, industry standard setter

The company's three core products — BaizeYue (BTKi), Bcl2i (BCL2i), and BTK CDAC — have accumulated a large amount of clinical evidence. Baizeyue's market share among new CLL patients in the US is already over half. The bank expects Sotocra and BTK CDAC to also likely become BICs in their respective fields. Furthermore, the company plans to continue to dig deeper into the field of B-cell malignancies. The two TCE drugs, CD19/CD20/CD3 triple antibody and CD20/CD28 double antibody, will enter the clinical phase in 26/27, respectively. The company's first cell product, CD19-CAR iγdelta, is expected to solve persistent problems associated with allogeneic CAR-T cells, and the company is expected to enter clinical trials in 2026.

Solid tumors: focus on the three major types of cancer, CDKi is beginning to shine

1) Breast cancer/gynaecological cancer: The ORR for advanced breast cancer was 11% (2/19). Due to poor patient baselines, the follow-up time was only 3.0 months (CDKI response required 3-5 months), and the dosage was not optimized. The bank expects ORR to improve significantly as subsequent data matures. The company expects to launch phase III clinical trials in the next 6-12 months; B7H4 ADC treats subsequent breast/gynecological tumors with 43%; the company expects to start phase III clinical trials next year;

2) Lung cancer: Early PRMT5i data is positive. The company plans to continue exploring PRMT5i combined with Mat2ai in the future; the EGFR CDAC early PK data is good. The company plans to launch EGFR CDAC in combination with 3G EGFR TKI in 2H25; preclinical data of EGFR/MET/MET triantibody may be superior to eventumab;

3) Gastrointestinal cancer: Pan Krasi, KRAS CDAC, RAS (ON) i and other rich RAS target layouts; fgfr2b ADC preclinical data is superior to Bemarituzumab. In addition, IRAK4 has an excellent CDAC half-life, and it is planned to start phase II in 2H25.