Understanding the Market | 3SBIO rises over 8% as SSGJ707 Phase II data is excellent; institutions indicate its innovative drugs are entering the harvest period
3SBIO's stock price rose by more than 8%, with an increase of 8.22% as of the time of publication, trading at HKD 9.22, with a turnover of HKD 399 million. The company disclosed excellent Phase II clinical data for SSGJ707 at the JP Morgan conference, showing good anti-tumor activity and safety, especially in patients with non-small cell lung cancer and metastatic colorectal cancer. Soochow Securities expects that the domestic sales peak of SSGJ707 could reach 4 billion yuan, while the overseas sales peak could reach 4.5 billion USD, and the company has strong cash assets to support the research and development of innovative drugs
According to Zhitong Finance APP, 3SBIO (01530) rose over 8%, with an increase of 8.22% as of the time of writing, priced at HKD 9.22, with a transaction volume of HKD 399 million.
In terms of news, 3SBIO previously announced that recent phase II clinical interim analysis data disclosed at the JPM conference showed that SSGJ-707 demonstrated excellent objective response rates (ORR) and disease control rates (DCR) in patients with non-small cell lung cancer (NSCLC) and metastatic colorectal cancer (mCRC), especially in the NSCLC indication, where SSGJ-707 exhibited significant anti-tumor activity and good safety, whether used alone or in combination with chemotherapy. According to Soochow Securities, the domestic sales peak of SSGJ-707 is estimated to be around 4 billion yuan, while the overseas (Europe and America) sales peak is expected to reach USD 4.5 billion.
Soochow Securities' research report pointed out that the company's core products, including Teibiao, Erythropoietin, and Mandi, contribute over 8 billion in revenue and over 2 billion in profit, corresponding to a 7x PE ratio, with an estimated annual growth of nearly 5-10%. The company has nearly 6 billion in cash assets fully supporting innovative drug research and development, with annual R&D investment of nearly 1 billion, placing it at the forefront of the industry. Over the years, innovative drugs have not only incubated 3SBIO's high-quality self-immune innovative drug platform but also nurtured or co-developed SSGJ707, self-immune series products, and oral paclitaxel, especially with SSGJ707 showing positive phase II data at JP Morgan, possessing BEST-IN-CLASS global competitiveness, and overseas business development is expected to provide significant elasticity to the stock price
