Innovent Biologics (1801) AI Stock Analysis

• Market Cap: $148.82B
• Dividend Yield: N/A
• Average Volume (3M): 16.11M
• Price to Earnings (P/E): 116.9
• Beta (1Y): 0.90
• Revenue Growth: 52.78%
• EPS Growth: N/A
• Country: HK
• Employees: 5,659
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.56
• Shares Outstanding: 1,713,520,000
• 10 Day Avg. Volume: 15,175,046
• 30 Day Avg. Volume: 16,110,837
• PEG Ratio: 6.48
• Price to Book (P/B): 4.26
• Price to Sales (P/S): 5.94
• P/FCF Ratio: -133.71
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 11.04
• Enterprise Value/Gross Profit: 14.47
• Enterprise Value/Ebitda: 190.86
• 1Y Price Target: $116.76
• Price Target Upside: 26.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: HK$101.00 ▲(9.78% Upside)

Innovent Biologics' strong revenue growth and solid balance sheet are overshadowed by its high P/E ratio and challenges in achieving profitability and positive cash flow. The technical indicators suggest positive momentum, but potential overvaluation and liquidity issues pose risks.

Positive Factors

Revenue Growth

Strong revenue growth highlights the company's successful market expansion and product adoption, reinforcing its competitive position in the biopharmaceutical sector.

Strategic Partnerships

The strategic partnership with Takeda enhances Innovent's global reach and resource sharing, potentially accelerating drug development and market penetration.

Product Pipeline

The promising Phase 1 results for IBI3016 indicate a robust pipeline, supporting long-term growth through innovative treatments for unmet medical needs.

Negative Factors

Profitability Challenges

Persistent losses and negative profit margins highlight ongoing challenges in achieving profitability, which could impact long-term financial health.

Cash Flow Issues

The negative cash flow trend suggests liquidity challenges, potentially limiting the company's ability to fund operations and growth initiatives.

Operational Challenges

Negative EBIT and EBITDA margins indicate operational inefficiencies, which could hinder sustainable growth and profitability improvements.

Innovent Biologics Business Overview & Revenue Model

Company Description

Innovent Biologics, Inc. operates as a biopharmaceutical company in China. The company operates a platform for the discovery, development, and manufacture of antibody drug candidates in the fields of oncology, ophthalmology, immunology, and metabolic diseases. Its principal drug candidate is Tyvyt (sintilimab), an anti-PD-1 monoclonal antibody for the treatment of cancer, Hodgkin's lymphoma, and esophageal carcinoma. The company also offers Byvasda for the treatment of several malignant tumors; Halpryza for the treatment of non-Hodgkin's lymphoma, chronic lymphocytic leukemia and Wegener's granulomatosis; Pemazyre for the treatment of adults with locally advanced or metastatic cholangiocarcinoma; Olverembatinib for the treatment of adult patients with tyrosine kinase inhibitor; and Cyramza to treat four different types of cancers. In addition, it engages in the development of IBI-301, a rituximab biosimilar for non-Hodgkin's lymphoma; IBI-302, a bispecific antibody fusion protein for ocular fundus disease; IBI-306, a human monoclonal antibody to treat hypercholesterolemia; IBI-310, a recombinant human anti CTLA-4 monoclonal antibody for liver cancer and renal cell carcinoma. Further the company develops IBI-188, an anti-CD47 monoclonal antibody for advanced hematological and solid tumors; IBI-326, a fully human BCMA-CAR T-cell therapy for the treatment of adults with relapsed or refractory multiple myeloma; IBI-376 for the treatment of recurrent or refractory follicular lymphoma; and IBI-112 for the treatment of psoriasis. Additionally, it distributes pharmaceutical products; and provides consultation, and research and development services. The company has strategic collaborations with NeoCura Bio-Medical Technology Co. Ltd.; Roche Group; Ascentage Pharma Group International; Eli Lilly and Company; Roche Group; and Bolt Biotherapeutics, Inc. Innovent Biologics, Inc. was incorporated in 2011 and is headquartered in Suzhou, the People's Republic of China.

How the Company Makes Money

Innovent Biologics generates revenue primarily through the sale of its proprietary biologic products and collaborations with global pharmaceutical companies. Key revenue streams include product sales from its marketed therapies, licensing fees from partnerships, and milestone payments associated with the development of new drugs. The company has established significant partnerships with leading organizations, enabling shared resources and expertise, which further enhances its revenue potential. Additionally, government grants and funding for research and development contribute to its earnings, supporting the advancement of its product pipeline.

Innovent Biologics Financial Statement Overview

Summary

Innovent Biologics shows strong revenue growth and a solid balance sheet with significant cash reserves and low leverage. However, the company faces challenges in achieving profitability and generating positive cash flows, which are critical for long-term sustainability.

Income Statement

Innovent Biologics has demonstrated strong revenue growth with a 51.8% increase from 2023 to 2024. The gross profit margin improved to 74.4% in 2024, indicating efficient cost management. However, the net profit margin remains negative due to continued losses, although net income improved significantly. The EBIT and EBITDA margins are negative, highlighting ongoing operational challenges.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 60.7% in 2024, reflecting financial stability. The debt-to-equity ratio is low at 0.22, indicating conservative leverage. Return on equity remains negative due to persistent losses, but the improving net income trajectory is a positive sign for future profitability.

Cash Flow

Innovent Biologics has faced challenges in generating positive operating cash flow, with a negative free cash flow trend over recent years. The absence of operating cash flow in 2024 indicates potential liquidity issues. However, the company's strong cash reserves provide a buffer against short-term cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.42B	9.42B	6.21B	4.56B	4.27B	3.84B
Gross Profit	8.72B	7.91B	4.40B	3.63B	3.70B	3.46B
EBITDA	660.90M	-480.28M	-660.68M	-1.75B	-2.37B	-704.74M
Net Income	1.13B	-94.63M	-1.03B	-2.18B	-2.73B	-998.42M
Balance Sheet
Total Assets	23.59B	21.60B	20.63B	17.59B	16.24B	11.83B
Cash, Cash Equivalents and Short-Term Investments	9.54B	7.88B	10.97B	9.17B	9.02B	8.12B
Total Debt	3.38B	2.83B	3.62B	3.23B	2.50B	1.21B
Total Liabilities	9.17B	8.48B	8.10B	6.86B	5.91B	3.06B
Stockholders Equity	14.42B	13.12B	12.53B	10.73B	10.33B	8.78B
Cash Flow
Free Cash Flow	1.24B	-418.39M	-1.24B	-3.30B	-3.87B	-1.08B
Operating Cash Flow	1.50B	1.29B	147.81M	-1.92B	-2.02B	-307.69M
Investing Cash Flow	-611.72M	-1.17B	-998.66M	-1.44B	-2.70B	-5.18B
Financing Cash Flow	-345.82M	-606.63M	2.59B	2.89B	5.00B	4.91B

Innovent Biologics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 92.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1801, the sentiment is Positive. The current price of 92 is above the 20-day moving average (MA) of 91.42, above the 50-day MA of 90.71, and above the 200-day MA of 75.06, indicating a bullish trend. The MACD of 1.08 indicates Negative momentum. The RSI at 51.00 is Neutral, neither overbought nor oversold. The STOCH value of 37.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1801.

Innovent Biologics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2696	66 Neutral	HK$34.13B	38.35	27.37%	―	2.57%	18.79%
2269	63 Neutral	$130.61B	28.53	9.79%	―	16.90%	63.11%
1801	61 Neutral	$148.82B	116.92	8.41%	―	52.78%	―
1177	54 Neutral	HK$122.33B	30.65	11.72%	1.32%	13.69%	50.71%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
9926	43 Neutral	HK$102.43B	-109.23	-14.40%	―	33.46%	-7.60%
1877	43 Neutral	HK$36.37B	-23.36	-15.06%	―	39.02%	48.26%

Innovent Biologics Corporate Events

Innovent Biologics’ Seven Drugs Added to China’s National Reimbursement List

Innovent Biologics has announced the inclusion of seven innovative drugs in China’s updated 2025 National Reimbursement Drug List (NRDL), which will be effective from January 1, 2026. This inclusion covers key disease areas such as oncology and cardiovascular diseases, enhancing patient access and affordability. The announcement underscores Innovent’s commitment to providing pioneering treatments and improving healthcare outcomes in China, potentially benefiting a large number of patients and families.

Innovent Biologics Grants Share Options to Boost Employee Engagement

Innovent Biologics announced the grant of 15,000 share options and 148,200 restricted shares to non-connected employees as part of its 2024 Share Scheme. This move is designed to incentivize employees by aligning their interests with company performance, with vesting tied to individual performance targets. The initiative reflects Innovent’s commitment to fostering a motivated workforce, potentially enhancing its operational efficiency and competitive positioning in the biopharmaceutical industry.

Innovent Biologics Closes Strategic Partnership with Takeda

Innovent Biologics, Inc. has successfully closed a global strategic partnership with Takeda, fulfilling all conditions of their License, Option, and Collaboration Agreement, as well as the Share Issuance Agreement. This resulted in the issuance of 6,913,834 shares, raising approximately HK$778 million in gross proceeds. The transaction enhances Innovent’s strategic positioning and financial resources, allowing further development in their biologic medicines portfolio.

Innovent Biologics’ PECONDLE® Approved for Psoriasis Treatment in China

Innovent Biologics has announced that its new drug, PECONDLE® (picankibart injection), has received approval from China’s National Medical Products Administration for treating moderate-to-severe plaque psoriasis. This approval marks the first domestically developed IL-23p19 monoclonal antibody in China, offering significant benefits such as improved skin clearance and quality of life for patients. The drug’s approval is based on positive results from a Phase 3 clinical study, positioning Innovent as a key player in the evolving psoriasis treatment landscape, which is shifting towards precision therapies.

Innovent’s Mazdutide 9mg Application Accepted by China’s NMPA

Innovent Biologics has announced that China’s National Medical Products Administration has accepted the supplementary application for the 9mg dosage of mazdutide, a dual receptor agonist for weight management in adults with moderate to severe obesity. The acceptance is based on successful Phase 3 clinical trial results, demonstrating significant weight loss and improved cardiometabolic health markers. This development positions Innovent to offer a novel, effective treatment alternative to surgery for obesity in China, potentially impacting the company’s market presence and providing a personalized medical solution for patients.

Innovent Biologics Achieves 40% Revenue Growth in Q3 2025

Innovent Biologics reported a 40% year-on-year increase in product revenue for the third quarter of 2025, reaching over RMB3.3 billion. This growth was driven by the expansion of its oncology and general biomedicine product portfolios, including the successful market uptake of products like mazdutide and SINTBILO. The approval of mazdutide for type 2 diabetes by China’s National Medical Products Administration further strengthens Innovent’s market position, aligning with its vision to become a global premier biopharmaceutical company.

Innovent Biologics Partners with Takeda for Global Cancer Therapy Development

Innovent Biologics has entered a global strategic collaboration with Takeda Pharmaceuticals to accelerate the development of its next-generation cancer therapies, including late-stage investigational medicines IBI363 and IBI343, and an early-stage program IBI3001. This collaboration involves co-development and commercialization efforts, with Takeda taking the lead in the U.S. and holding exclusive rights outside of Greater China. Innovent will receive a $1.2 billion upfront payment, with potential milestones totaling up to $11.4 billion. This partnership is expected to enhance Innovent’s global market presence and offer significant financial benefits.

Innovent Biologics’ Mazdutide Approved in China for Type 2 Diabetes

Innovent Biologics has announced that its new drug, mazdutide, has received approval from China’s National Medical Products Administration for glycemic control in adults with type 2 diabetes. This approval marks mazdutide as the first dual glucagon/glucagon-like peptide-1 receptor agonist for this indication, offering comprehensive benefits such as glycemic control, weight reduction, and improvements in hepato-cardio-renal metabolic indicators. The approval is based on successful Phase 3 clinical trials demonstrating its efficacy and safety, positioning Innovent as a key player in addressing the diabetes epidemic in China, which has the largest population of type 2 diabetes patients in the world.