Understanding the Market | XTALPI rose nearly 7% in the morning session as the company signed a letter of intent for cooperation with Bio-S to jointly promote AI new drug research and development cooperation
XTALPI rose nearly 7% in early trading, with its stock price doubling since early August, currently reported at HKD 12.37. The company signed a letter of intent for cooperation with Bio-S, and both parties will jointly promote new drug research and development using AI technology, targeting clinical needs in various disease areas. GF Securities pointed out that XTALPI, as a third-party service provider for AI-driven drug development, emphasizes technological neutrality and is expected to become an industry infrastructure in the future, with a sustainable business model and broad market space
According to Zhitong Finance APP, XTALPI (02228) rose nearly 7% in early trading, with its stock price doubling since early August. As of the time of writing, it has increased by 5.55%, trading at HKD 12.37, with a transaction volume of HKD 448 million.
In terms of news, XTALPI and Bio-S (301096.SZ) announced the signing of a letter of intent for cooperation. According to the letter of intent, Bio-S will entrust XTALPI to utilize its "AI + Robotics" platform to carry out new drug research and development; XTALPI will entrust Bio-S to conduct pharmaceutical research and other R&D work. The two parties also plan to jointly promote the research and incubation of innovative drug pipelines targeting unmet clinical needs in multiple disease areas, including pain, hypersomnia, tumors, autoimmune diseases, and ophthalmology, leveraging XTALPI's AI drug development platform, and will consider establishing a joint venture to explore broader commercial cooperation.
Guangfa Securities stated that XTALPI is positioned as a third-party service provider for AI-driven drug development, serving both pharmaceutical companies and biotech firms. Its pipeline is primarily based on collaboration, emphasizing technological neutrality rather than locking clients into the ecosystem of a large pharmaceutical company, making it more like a technology supplier for clients. Due to data security and ecological considerations, pharmaceutical companies and biotech firms are more inclined to collaborate with independent third-party vendors. Therefore, third-party AI pharmaceutical platforms like XTALPI are expected to become the infrastructure of the industry. As AI's penetration in the drug discovery process deepens, the value of third-party platforms will continue to amplify, and in the long run, their business model will be more sustainable, with greater potential market space
