Innovent: Updates Its Drug Pipeline; Our Long-Term Outlook Is Unchanged

We take a fresh look at Innovent’s pipelines after several updates in the past few days. Notably, Innovent sold its commercialized BCMA CAR-T product Fucaso to Iaso BioTherapeutics, and in return, Innovent acquired 18% of Iaso Bio’s shares as a strategic investor. We think the move is sensible as it allows Innovent to prioritize its potential new core assets such as Mazdutide and novel therapeutic targets such as CLDN 18.2. We keep our fair value estimate at HKD 50.80 per share as our long-term view on Innovent is unchanged. Our forecast risk-adjusted peak revenue for Mazdutide remains at CNY 7.6 billion, around 40% of Innovent’s total revenue.