\u3000\u3000 Shanghai Junshi Biosciences Co.Ltd(688180) (688180)
Event: on January 10, 2022, the company and coherus Biosciences jointly announced that they would expand the cooperation in the field of tumor immunity reached in 2021. Coherus has started the procedure of exercising the licensing option of js006 (anti tigit monoclonal antibody independently developed by the company) in the United States and Canada. Coherus will pay the company a down payment of US $35 million, a milestone payment of up to US $255 million for development, declaration and sales, and a sales share of 18% of the net product sales.
R & D capability has been reaffirmed and overseas cooperation has been deepened. On February 1, 2021, the company signed the exclusive license and commercialization agreement with coherus, granting coherus the exclusive license of treprizumab and two optional projects (if implemented) in the United States and Canada, as well as the priority negotiation right of two early-stage checkpoint inhibitor antibody drugs, and obtaining a total down payment of up to US $1.11 billion, optional project implementation fee and milestone payment. The continued cooperation between the two sides on js006 (tigit monoclonal antibody) once again reflects coherus’s affirmation of the company’s innovation and R & D ability, and further deepens the strategic partnership between the company and coherus in the field of tumor immunotherapy.
Tigit has the potential to combine with PD-1 to strengthen the company’s first mover advantage of tumor immunity. Tigit, as an inhibitory immune checkpoint, is mainly expressed in NK cells and T cells, and down regulates the antitumor immune response through inhibitory motifs. Js006 specifically blocks tigit-pvr inhibitory pathway, activates tumor immune effect, and has synergistic potential with the company’s listed product treprizumab (PD-1). It is expected to expand the range of potential beneficiaries of tumor immunotherapy and consolidate the company’s leading position in the field of tumor immunotherapy. Js006 has been approved by nmpa and FDA respectively. Phase I dose escalation and dose expansion clinical trials of single drug and combined treprizumab in the treatment of advanced tumors have been launched.
The field of tumor immunity continues to be deeply cultivated, and innovation and internationalization will be the next city. The company has taken the lead in the layout of innovative targets such as BTLA and cd112r, and achieved extensive coverage of tumor immune checkpoints based on treprizumab; New molecules such as IL-21 and CD39 monoclonal antibody have deeply explored the mechanism of tumor immunotherapy, and successively consolidated the company’s comprehensive layout in the field of tumor immunity. Js006 went to sea again after treprizumab and etesverizumab, and the company achieved another great achievement in innovating the international development strategy. This expansion of cooperation has broadened the commercial layout of the company’s products in the field of tumor therapy in overseas markets and improved the company’s commercial competitiveness in the global tumor immunization market.
Profit forecast and investment rating. It is estimated that the company’s revenue from 2021 to 2023 will reach 4.147 billion yuan, 3.382 billion yuan and 4.197 billion yuan respectively, with a year-on-year increase of 160%, – 18.4% and 24.1% respectively; The net profit attributable to the parent company is -72 million yuan, – 173 million yuan and 124 million yuan respectively, and the corresponding EPS is -0.08, -0.19 and 0.14 yuan respectively, maintaining the “buy” rating.
Risk tip: risk of R & D failure; Risk that R & D promotion is not as expected.
