股价因两个可能的负面因素下跌

Share price down on two likely negativesQuick Note On 15 May, Innovent's share price declined by around 5% (vs -2% of Hsl) intraday, on two likely negatives: (1) media reports that a prescription (hardcopy) is required toc.1.35mn shares recently. Research AnalystsChina Health Care & PharmaceuticalsJialin Zhang, CFA, CPA- NIHK the Drug Administration Law of the People's Republic of China" that becomes effective 15May2026. jialin.zhang@nomura.com+852 2252 6134 Investors worry that a stricter requirement on usage of GLP-1 drugs would dampenInnovent's mazidutide sales (forexample, somepeoplemight wantto shed somepoundsby taking these drugs, even if their BMI does not meet the criteria and thus do not have aprescription), though we estimate that current sales from offline pharmacies are limited.Note that sales from online e-retailers can still be accessed without a hardcopyprescriptionnow. Impact tobe monitoredWe share investors'concerns over potential tighter regulations and would monitorfuture developments(suchaswhethersimilarrequirementshouldbeexpandedtoonlinesales)not only about Innovent's mazidutide but also the entire GLP-1 category. Nevertheless, we believe the demand for such treatment will remain high, so it onlymatters wherea patient/customerwouldbuyfrom (if not offlinepharmacies then onlinepharmacies or hospitals), in our view. Recall that in early January, Innovent's share price also declined sharply on a significantprice cut from Eli Lilly (LLY US, Not rated) on tirzepatide. However, Innovent reportedstrong 1Q26 sales results in April 2026, reflecting its operational excellence that mightcontinue to help it navigate the uncertainties this time. And for the time being, Innovent iscatching up with two MNC incumbents, suggesting potential pain would most likely beshared equally (if not more for MNCs), which would not necessarily be a bad thing forInnovent, in our view. We maintain our Buy rating with an unchanged TP of HKD114.64. Appendix A-1 See Disclaimers for Nomura Group entity details. Analyst Certification subject securities orissuers referred to in this Research report, (2) no part of my compensation was, is or will be directly or indirectly related tcthe specific recommendations or views expressed in this Research report and (3) no part of my compensation is tied to any specific investmentbanking transactions performed by Nomura Securities International, Inc., Nomura International plc or any other Nomura Group company. IssuerSpecificRegulatoryDisclosures Securities International, Inc. (NSI") and Instinet, LLC (ILLC), U. S. registered broker dealers and members of SIPC. Innovent (1801 HK)Rating and target price chart (three year history) ValuationMethodologyOurtargetpriceof HKD114.64 isbased onDCFmodel (discountback toend-2025),assuming WACCof 10.3% and a terminal growth of 4.0%. The benchmark index for the stock is Hang Seng Index.Risks that may impede the achievement of the target price Downside risks include: (i) intensifying competition for GLP-1drugs, (2) VBP on biosimilars and (3) IBI363 clinical development setback. ImportantDisclosures Onlineavailability of research and conflict-of-interest disclosures Nomura Group research is available on www.nomuranow.com/research, Bloomberg, Capital IQ, Factset, LSEG.Important disclosures may be read at http://go.nomuranow.com/research/m/Disclosures or requested from Nomura Securities International, Inc.If you have any difficulties with the website, please email grpsupport@nomura.com for help. The analysts responsible for preparing this report have received compensation based upon various factors including the firm's total revenues, aportion of which is generated by Investment Banking activities. Unless otherwise noted, the non-US analysts listed at the front of this report arenot registered/qualifiedas research analysts under FINRArules, may not be associated persons of NSl, and may not be subject to FINRA Rule2241 restrictions on communications with covered companies, public appearances,and trading securities held by a research analyst account. the Commodities Futures Trading Commission and the National Futures Association (NFA) as swap dealers. NGFP, NDPI, and Niplc aregenerally engaged in the trading of swaps and other derivative products, any of which may be the subject of this report. The distribution of all ratings published by Nomura Group Global Equity Research is as follows: 57% have been assigned a Buy rating which, for purposes of mandatory disclosures, are classified as a Buy rating; 34% of companies with this rating are investment banking clients of the Nomura Group*. 0% of companies (which are admitted to trading on a regulated market in the EEA)with this rating were supplied material services** by the Nomura Group.41% have been assigned a Neutral rating which, for purposes of mandatory disclosures, is classified as a Hold rating; 57% of companies with this rating are investment banking clients of the Nomura