Innovent Biologics (SEHK:1801): Reassessing Valuation After Landmark Nature Phase 3 Mazdutide Publications

Innovent Biologics' recent Phase 3 trials of mazdutide published in Nature enhance its investment appeal. Despite a 7.1% 30-day share price drop, the 1-year return is 136.5%. The stock trades at a 32% discount to analyst targets, with a high P/E ratio of 114.5x, suggesting overvaluation. However, a DCF model indicates shares are undervalued, with a fair value of HK$123.24. Investors are advised to consider both perspectives and potential risks, including regulatory setbacks and market uptake challenges.