According to "The Big Bank," Bank of America Securities raised the target price for CSPC PHARMA to 9.1 yuan, maintaining a "underperform" rating due to sales pressure

Bank of America Securities research report indicates that CSPC PHARMA (01093.HK) has reached an agreement with AstraZeneca to develop innovative long-acting peptide drugs, with a total agreement value of up to $18.5 billion. According to the agreement, CSPC will receive a $1.2 billion upfront payment and is eligible for up to $3.5 billion in potential R&D milestone payments, as well as up to $13.8 billion in potential sales milestone payments.

The firm noted that CSPC announced last May that it would have three potential external licensing transactions, and this agreement should be the second transaction realized, although the realization time was delayed compared to expectations. Due to the assets in the agreement being in the early stages, the firm has not included the related revenue in its forecasts, only accounting for the upfront payment in the projections, and has raised its revenue and net profit forecasts for 2026 by 27.9% and 107.2%, respectively.

As a result, the firm has raised its target price from HKD 8.5 to HKD 9.1, but reiterated a "underperform" rating, as it believes the group's existing product portfolio faces sales pressure, and the R&D pipeline has limited short-term contributions, with most key assets still in the early stages