Innovent reported FY2025 revenue of RMB13.04bn (+38.4% YoY) and achieved its first full-year profitability. Product revenue reached RMB11.9bn (+44.6% YoY), supported by continued expansion of core oncology products and incremental contributions from newly launched assets. At the same time, license income reached RMB0.96bn, with further contribution expected from 2026 onward as collaboration revenue (e.g., Takeda) begins to be recognised. Growth is increasingly diversified across oncology and general biomedicine. Sintilimab and newly listed targeted therapies (e.g., KRAS, RET, EGFR inhibitors) continue to expand, while mazdutide is ramping up from a low penetration base. Additional drivers include PCSK9, IGF-1R, and IL-23p19. Meanwhile, global collaborations with Takeda, Eli Lilly, and Roche support pipeline development and contribute to increasing license income visibility. Near-term developments are likely to be driven by GLP-1 commercialisation and late-stage clinical progress, while medium-term growth will depend on global pipeline execution and international expansion. Maintain BUY.
Key Factors for Rating
Revenue growth: sustained momentum with increasing diversification. Innovent delivered product revenue of RMB11.9bn in FY2025 (+44.6% YoY), supporting total revenue of RMB13.04bn (+38.4% YoY). Management reiterated visibility toward ~RMB20bn revenue by 2027, implying a sustained high-teens growth trajectory supported by both existing products and pipeline expansion. From a product perspective, growth continues to be anchored in oncology while becoming increasingly diversified. Sintilimab (PD-1) remains the backbone of the portfolio, supported by expanding indications and strong market positioning, while newly listed targeted therapies in lung cancer (e.g., KRAS, RET, EGFR) and hematology products—many of which have been included in the NRDL—are contributing incremental volume growth. At the same time, general biomedicine is emerging as a meaningful second engine. Mazdutide (GLP-1/GCG) is ramping up from a low base with penetration still below 1% relative to an estimated ~500m addressable population in China, suggesting significant headroom. In addition, PCSK9 benefits from first-mover advantage in NRDL with broader hospital coverage than domestic peers, while IGF-1R (TED) has shown strong physician demand, with improved affordability supporting longer treatment duration. Newly approved immunology assets such as IL-23p19 further expand the non-oncology portfolio.