The analyst rating for INNOVENT BIO (01801.HK) is a Buy, with a target price of HKD137.4, as provided by UBS. The reasons for this rating include:
1. Collaboration with Eli Lilly: UBS views the collaboration as a positive development, marking the seventh partnership between the two companies. This collaboration is seen as a new model of partnership, differing from previous out-licensing deals, as it involves the establishment of a new company and joint development.
2. Potential for New Assets: UBS noted that the collaboration includes potential assets that are new and not previously seen in INNOVENT BIO's R&D pipeline. This could enhance the company's prospects and provide upside potential.
3. Advancement of Candidate Drugs: The collaboration could support INNOVENT BIO's original guidance to advance 8-10 candidate drugs into clinical stages each year, indicating a strong pipeline and growth potential.
Overall, these factors contribute to UBS's positive outlook on INNOVENT BIO, justifying the Buy rating.
