Bank of America Securities raises the target price for SKB BIO to 479 yuan and lowers revenue forecasts

According to a research report by Bank of America Securities, SKB BIO-B (06990.HK) recently received approval from the National Medical Products Administration for its sac-TMT (TROP-2 ADC) to be used in the treatment of second-line and above HR-positive/HER2-negative breast cancer, marking the fourth indication approved for this drug in mainland China.

At the same time, the drug is indicated for third-line triple-negative breast cancer and third-line EGFR mutation non-small cell lung cancer, and has been included in the national medical insurance drug list since January of this year. However, due to price adjustments in the national medical insurance catalog, the bank has lowered its annual treatment cost assumptions for sac-TMT.

The bank has revised its revenue forecasts for 2026 and 2027 down by 5% and 6% respectively, raising the target price from 470 yuan to 479 yuan, and reiterating a "neutral" rating, reflecting that business progress is in line with expectations but is offset by increasingly fierce competition