Citibank: Maintaining the “Buy” rating of Pharmacovigilus (02359) and the target price of HK$240 included in the 90-day upward catalyst observation

The Zhitong Finance App learned that Citi released a research report stating that it will maintain the “buy” rating of Pharmaceutical Kangde (02359) and a target price of HK$240 and include the company in the 90-day upward catalyst observation. Pharmaceutical Kangde has been removed from the US 1260H list. The bank expects the US Office of Administration and Budget (OMB) to announce the first batch of “Biotech Companies of Concern” (BCC) list in December. It believes that the possibility of Pharmaceutical Kangde being included in the list is low, and geopolitical concerns related to the biosafety law have subsided, which is a positive factor for stock prices.

Citi pointed out that in the CRO/CDMO industry, Pharmacom Kangde has leading advantages in talent, technology and production capacity, which will help attract more customers and further expand the business. The bank believes that cell and gene therapy CDMO services and PROTAC technology are the company's main growth drivers in the future, and the relevant potential is still underestimated by the market. Furthermore, it is expected that China Laboratory Services will achieve strong sales growth with the support of long-tail strategies and innovative platforms.