The Zhitong Finance App learned that BOC International released a research report stating that it maintains the “buy” rating of China Biopharmaceuticals (01177), with a target price of HK$4.8, which is optimistic about the recovery of performance in 2024 and the continued implementation of the value of the innovation pipeline. The company recently formed a strategic partnership with Boehringer Ingelheim (BI). The bank believes that this cooperation will further consolidate the company's multi-target layout in the field of solid tumors, have strong collaboration with existing products, and increase the company's revenue and profits.

The main views of JBC International are as follows:

Cooperation in the field of major oncology is highly collaborative with existing pipelines:

The company recently established a strategic partnership with Boehringer Ingelheim (BI) to jointly develop and commercialize BI oncology pipelines in mainland China, including three assets in clinical development: brigimadlin, Zongertinib, and BI 764532, as well as several innovative drug candidates in the early stages. Product revenue will be included in China Biopharmaceuticals' consolidated financial statements. The company expects that the total peak sales of the three mid- to late-stage products in mainland China will reach 5 billion yuan (before 2030), and the sales profit margin confirmed by Zhongsheng will reach double digits. In the future, the two sides are expected to further expand their cooperation to other key disease fields.

Brigimadlin (MDM2-p53 antagonist):

The world's first murine bipolar homologous gene 2 (MDM2) -p53 antagonist to enter registered clinical trials, and has the potential to become a global co-target FIC. Currently, 5-7% of cancer patients express MDM2 mutations. Clinical trials on brigimadlin include: 1) first-line treatment of advanced DDLPS (phase II/III) compared with doxorubicin; patients have now been enrolled and NDA is expected to be submitted as soon as possible; in the previous phase IB trial of Brigimadlin for DDLPS, ORR/DCR was 19.0%/84.8%, respectively, and MPFS reached 8.1 months; 2) treatment of BTC and other solid tumors with brigimadlin (phase II); 3) treatment of glioma with brigimadlin in combination with radiotherapy Cell tumor (stage 0/Ia). The company expects the product to be launched in China in 2025.

Zongertinib (selective HER2 inhibitor):

It can target both wild-type and mutant HER2 receptors (including exon 20 mutations). Traditional HER2 targeted therapies have limited efficacy against exon 20 mutations, and ADC has certain safety challenges, so this variety is expected to become a first-line treatment. In the phase Ib trial of zongertinib treated with ≥2LHER2 TKD mutant nsCLC, ORR/DCR reached 73.9%/91.3%; ≥3 grade TREs were 5.3% (120mg QD)/13.0% (240mg QD), which is safer than HER2 ADC. The company expects the product to be launched in China in 2027.

BI 764532 (DLL3/CD3 bispecific T-cell adaptor):

Compared with Amgen and Baekje drug candidates using the BiTE molecular form, BI 764532 uses a traditional IgG molecular structure that has been scientifically proven, and the drug is more definitive. In phase I trials with ≥2L treatment of SCLC, LCNEC, or EPNEC, ORR reached 25% (dose ≥90 μg/kg) and DCR reached 52%. Levels ≥3 TREs are 27%. The company's anlotinib has been approved for 3LSCLC. Combined with PD-L1 treatment, 1LSCLC is expected to be approved in 2Q24. After BI 764532 is approved and marketed, it is expected to form a more complete product matrix with anlotinib for the 1-3 line treatment of SCLC. The company expects the product to be launched in China in 2028.