3SBio, the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Alexis Yan from Morgan Stanley maintained a Buy rating on the stock and has a HK$38.00 price target.
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Alexis Yan has given his Buy rating due to a combination of factors that highlight 3SBio’s promising growth potential. The recent surge in the company’s share price, significantly outperforming the Hang Seng Healthcare Index, can be attributed to market anticipation of Pfizer’s upcoming global clinical trials for SSSG-707, a promising PD-1/VEGF candidate. This development is expected to expand 3SBio’s reach in various cancer treatments, including NSCLC, CRC, and potentially other cancer types.
Furthermore, 3SBio’s strategic alliance with Pfizer is seen as a game-changer, providing opportunities for exploratory Phase 2 trials, including combination therapies with Pfizer’s ADC portfolio. Alexis Yan projects conservative peak sales for SSGJ-707 at $4.4 billion, with a more optimistic scenario reaching $8.9 billion, translating into a significant increase in the company’s valuation. This potential for substantial growth, coupled with the strategic partnership with Pfizer, underpins the Buy rating for 3SBio.
In another report released on September 2, CLSA also maintained a Buy rating on the stock with a HK$37.10 price target.