20210902-招银国际-Diversified_and_highly-differentiated_pipeline_4页_976kb

I-Mab BioPharma (IMAB US) Summary

Core Content

I-Mab BioPharma (IMAB US) is a biopharmaceutical company with a diversified and highly-differentiated pipeline of therapeutic candidates. The company has reported financial performance for the first half of 2021, with an attributable net loss of RMB1,076.5 million, compared to RMB582.9 million in the same period of 2020. The total revenue for 1H21 was RMB17.8 million, driven by collaboration income from Abbvie.

The company has made notable progress in its R&D efforts, with several promising clinical trial results and significant business development deals. These include the interim analysis of TJM2 in treating CRS in severe COVID-19 patients, positive data from TJ-107 in TNBC and GBM, and the development of Uliledlimab, which showed encouraging preliminary efficacy and tolerability in a US Phase I trial. Additionally, I-Mab has entered into several transformative technology collaborations with companies like Complix, Affinity, Immorna, and neoX to develop next-generation antibodies with intracellular targets.

Main Points

Financial Performance

• Revenue (1H21): RMB17.8 million
• Net Loss (1H21): RMB1,076.5 million
• R&D Expenses (1H21): RMB593.0 million (up 34% YoY)
• Administrative Expenses (1H21): RMB451.5 million (up 63% YoY)
• Target Price: US$101.37
• Current Price: US$71.81
• Upside Potential: +41.16% from current price to target price

R&D Highlights

• TJM2: Interim analysis of Phase 2/3 trial for CRS in severe COVID-19 showed higher MVF rate, lower mortality rate, and higher recovery rate compared to placebo.
• TJ-107: Global first and only long-acting hIL-7 for T lymphocyte boosting in cancer immunotherapy. Positive data in TNBC (ORR 27.8% with Keytruda) and GBM (83.3% 1-yr OS rate).
• Uliledlimab (TJD5): Preliminary data from US Phase I trial (ASCO 2021) showed 1 CR, 2 PR, and 3 SD in 13 patients (ORR = 23%, DCR = 46%). I-Mab plans to cooperate with MNCs for overseas development.

Business Development

• I-Mab has secured several strategic BD deals with companies like Complix, Affinity, Immorna, and neoX for next-generation antibody technologies including mRNA-based antibodies, masked antibodies, cell-penetrating antibodies, and AI-guided cytokine drugs.

Key Information

Financial Projections (FY21E - FY23E)

• Revenue: RMB322 million (FY21E), RMB1,874 million (FY22E), RMB1,518 million (FY23E)
• Net Profit: RMB-1,405 million (FY21E), RMB-515 million (FY22E), RMB-706 million (FY23E)
• EPS (RMB per ADS): RMB-19.70 (FY21E), RMB-6.70 (FY22E), RMB-9.17 (FY23E)

Valuation and DCF

• DCF Valuation: RMB50,133 million (equity value)
• Terminal Value: RMB116,590 million
• WACC: 9.74%
• Terminal Growth Rate: 3.0%
• DCF per share: US$101.37

Sensitivity Analysis

• Terminal Growth Rate Impact:
  • 2.0%: US$113.59
  • 2.5%: US$119.27
  • 3.0%: US$125.95
  • 3.5%: US$133.89
  • 4.0%: US$143.52
• WACC Impact:
  • 8.74%: US$113.59
  • 9.24%: US$119.27
  • 9.74%: US$125.95
  • 10.24%: US$133.89
  • 10.74%: US$143.52

Share Performance

• 1-month return: -8.0%
• 3-month return: -10.2%
• 6-month return: +12.3%
• 12-month return (relative): -19.5%

Shareholding Structure

• Founders: 3%
• Pre-IPO investors: 68%
• Other public shareholders: 29%

Market Capitalization

• Market Cap (US$): 5,527 million
• Average 3-month trading volume (US$): 43.39 million
• 52-week High/Low (US$): 85.40 / 32.62

Analyst Ratings

• CMBIS Rating: BUY
• Outperform: Industry expected to outperform the relevant broad market benchmark over next 12 months
• Market-Perform: Industry expected to perform in-line with the relevant broad market benchmark
• Underperform: Industry expected to underperform the relevant broad market benchmark

Risk and Disclaimer

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• CMBIS does not provide individually tailored investment advice.
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