又一项重大合作协议，重申买入评级

BuyAsia Forecast Change China Pharmaceuticals/BiotechnologyAnother significant collaboration agreement. Reiterate BUY Cyrus Ng, CFA Research Analyst+852-2203-6208 On29May,InnoventannouncedacollaborationagreementwithPfizerfortheR&D of 12oncologyprograms.Thisportfolioencompasses ADCsfeaturingnovel,differentiated payloads and multi-specific antibodies with distinct immune-engagingfeaturesanduniquedesigns.Eightofthese are Innovent-originatedearly-stage assets, with the remaining four being Pfizer-proposed discovery programs.Innoventwill developthesethroughPhaseIclinical studies,afterwhichPfizerwillleadglobal development. This partnership includes licensing,co-development, and co-commercializationopportunities: (1) Both parties willjointly develop four programs globally,sharingdevelopment costs.They will also co-commercialize these programs and shareprofits in the US and Europe. Innovent will retain Greater China rights; (2)Pfizerwillreceive an exclusive license outsideGreater China forfour programs and will bearthemajorityofdevelopmentcosts; (3)Pfizerwill receivean exclusiveglobal licenseforfourprogramsandwill beresponsibleforglobaldevelopmentcosts. Innovent willreceiveanupfrontpaymentofUsD65Omn and iseligibleforuptoUsD9.85bn in development, regulatory, and commercial milestone payments,bringing the total deal value to a potential USD10.5bn.Additionally, Innovent willreceive up to double-digit royalties on sales of each approved product. IMPORTANTRESEARCHDISCLOSURESANDANALYSTCERTIFICATIONSLOCATEDINAPPENDIX1.DeutscheBankdoesand seekstodobusiness withcompanies covered in its research reports.Thus, investors shouldbeawarethatthefirmmayhave a conflict of interest that could affectthe objectivity of this report. Investors should considerthis report as only a singlefactor in making their investment decision. Pharmaceuticals/BiotechnologyInnovent Innovent is actively buildingits overseas capabilities,as evidenced bythis co- developmentand co-commercialization deal,whichfollows a similaragreementwith Takeda.This demonstrates Innovent's clear ambition to expand its globalpresenceandreducerelianceonpartnersforoverseasdevelopment.This strategicdirectionalignswiththecompany's2o30targetofhavingfivepipelineassetsenterPhase3multi-regional clinical trials,ultimatelyaimingfor simultaneous businessgrowth inbothdomestic and international markets. antibodies. The company has previously showcased its expertise in next-IBI363 and IBI343.This recent collaboration further validates Innovent'scapabilities in these areas, as it continues to develop promising pipelines. USD65Omfromthiscollaboration,combinedwiththeUSD1.2bnupfrontpaymentfrom the Takeda collaborationand the USD350mupfrontpaymentfrom the Eli Lillydeal, is expected to result in a substantial inflowof over USD2bn forInnovent in2026.This considerable financial resource will further support the company inexecutingitsstrategicinitiatives. WereiterateourBUYratingandreviseupourPTtoHKs126.Thisupwardrevisionpayments into our financial forecasts.We have also adjusted the potentialmilestonetiming ofotherassets,which hasresulted in a reduction in our netprofitforecastfor2027.Basedonour10-yearDCFmodel (WACC:10%,terminalgrowth:2.5%), weare revising ourPTfrom HK$110 to HK$126. WecontinuetofavorInnoventdueto its strongpotential forglobal expansionandthe demonstrated strength and depth of its pipeline assets and platformcapabilities.Therefore, we reiterate our BUYrecommendation. Risks:(1)delayorfailureinlaunchingnewproductsinChinaandoverseasmarket(2)heavier-than-expectedpricecontrolmeasuresfromtheChinesegovernmentoninnovative products,(3)intense market competitions in China biotech space,(4) Pharmaceuticals / BiotechnologyInnovent Appendix 1 *Other information available upon request informationis sourced from Deutsche Bank,subject companies, and other sources.For disclosures pertaining to recommendations or estimates made on securities other than the primarys.//research.db.com/R ImportantDisclosuresRequiredbyU.S.RegulatorsDisclosuresmarked with anasterisk mayalsobe requiredby at least one jurisdiction in additiontothe UnitedStates.See ImportantDisclosuresRequired byNon-UsRegulatorsand ExplanatoryNotes.8.DeutscheBank and/or its affiliate(s)expects to receive,orintendsto seek,compensationfor investmentbanking services from this company in the next three months.14.DeutscheBank and/orits affiliate(s)has received compensation from this companywithin thepastyearfor non- investmentbanking related services.15.This company hasbeena client of Deutsche Bank Securities Inc.withinthepast yearduring which time itreceivedinvestmentbankingservices. ImportantDisclosuresRequiredbyNon-U.S.RegulatorsDisclosuresmarked with anasteriskmayalsobe requiredby at least one jurisdiction in additiontothe United States.See ImportantDisclosuresRequiredbyNon-USRegulatorsand ExplanatoryNotes.24.Deutsche Bank and/orits affiliate(s) is orhasbeen over theprevious 12monthspartyto an agreementwiththe