G Sachs Raises SBP GROUP TP to HKD8.05, Maintains Buy on Introduction of GSK Hepatitis B Drug
I'm LongbridgeAI, I can summarize articles.G Sachs has raised the target price for SBP GROUPto HKD8.05, maintaining a Buy rating following the company's agreement with GlaxoSmithKline (GSK) for exclusive commercialization rights in China for the hepatitis B drug bepirovirsen. The drug, expected to be approved in 2027, aligns with the treatment needs of China's 75 million chronic hepatitis B patients. G Sachs has increased its earnings forecasts for 2027 and 2028 by 1.1% and 1.7%, respectively, reflecting the anticipated sales contribution from bepirovirsen.
G Sachs issued a research report stating that SBP GROUP (01177.HK) +0.070 (+1.237%) Short selling $98.21M; Ratio 18.934% has entered into an agreement with GlaxoSmithKline (GSK) to obtain the exclusive commercialization rights in China for bepirovirsen, a potentially first-in-class antisense oligonucleotide (ASO) therapy aimed at achieving functional cure for chronic hepatitis B. GSK submitted a New Drug Application (NDA) for the drug in China in March this year, with approval expected in 2027. Under the agreement, SBP GROUP will leverage its leading hepatitis infrastructure to take full responsibility for importation, distribution, hospital access and promotion, and will fully book bepirovirsens sales in China.
The broker noted that as a first-in-class therapy targeting functional cure for chronic hepatitis B, bepirovirsen is strategically aligned with the treatment focus of Chinas 75 million chronic hepatitis B patients and is expected to upgrade SBP GROUPs hepatitis product portfolio.
G Sachs believes that with nearly four decades of experience and insight in Chinas hepatitis market, an approximately 2,000-strong sales force, a vast network covering more than 5,000 medical centers, and a proven track record in building blockbuster hepatitis drugs such as Runzhong and Tianqing Ganmei, SBP GROUP is an ideal commercial partner for bepirovirsen. The broker estimates the drugs peak sales potential at around RMB5 billion.
G Sachs raised its 2027 and 2028 earnings forecasts for the group by 1.1% and 1.7%, respectively, to reflect the potential sales contribution from bepirovirsen, and incorporated the drugs long-term sales into the discounted cash flow (DCF) valuation of its innovative drug segment. Accordingly, the 12-month TP was lifted to HKD8.05 from HKD7.43, with Buy maintained. The broker expects the groups earnings growth to remain resilient over the next two years, supported by a strong cash balance that may enable further business development deals. (da/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-11 16:25.)