UBS initiates coverage on ABBISKO-B with a "Buy" rating and a target price of 25.2 yuan

UBS published a report stating that ABBISKO-B (02256.HK) is an undervalued innovative oncology drug company, with 12 clinical-stage assets and 10 disclosed preclinical candidates in its R&D pipeline. ABBISKO has reached a global licensing agreement for pimicotinib worth $605.5 million with Merck, demonstrating the company's R&D capabilities.

The firm is optimistic about ABBISKO's differentiated pipeline. Robust clinical trial results and the firm's confidence in its R&D capabilities support its risk-adjusted peak sales forecasts for its core assets pimicotinib and irpagratinib at RMB 8.9 billion and RMB 4.8 billion, respectively, exceeding market expectations by 41% and 26%. UBS initiated coverage on the stock with a "Buy" rating and a target price of HKD 25.2