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Innovent Biologics (HK:1801)
:1801

Innovent Biologics (1801) AI Stock Analysis

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HK

Innovent Biologics

(OTC:1801)

Rating:61Neutral
Price Target:
The overall stock score reflects strong technical indicators suggesting a bullish trend, despite significant valuation concerns due to a high negative P/E ratio. Financial performance shows potential with strong revenue growth and a solid balance sheet, but challenges remain in profitability and cash flow generation.
Positive Factors
Profitability
Innovent achieved profitability ahead of schedule, realizing better-than-expected profitability due to strong product revenue growth and one-off license fee income.
Regulatory Approvals
Innovent announced it had received marketing approval from the National Medical Products Administration for its next-generation ROS1 tyrosine kinase inhibitor, DOVBLERON, for the treatment of patients with 2L ROS1+ non-small cell lung cancer.
Strategic Partnerships
Innovent Biologics has out-licensed the global rights of a novel DLL3 ADC to Roche through a blockbuster deal, receiving an upfront payment and potential milestone payments, along with tiered royalties on net sales.
Negative Factors
Commercial Opportunity
The ROS1 mutation constitutes 2-3% of all Chinese NSCLC patients, representing a substantial commercial opportunity for Innovent.
Market Competition
DLL3-targeted therapy has become increasingly dynamic with significant transactions, highlighting the strategic value of Innovent Biologics' partnerships and assets.
Revenue Forecast
Taletrectinib is forecasted to deliver significant revenue by 2027 across front-line and later line usage.

Innovent Biologics (1801) vs. iShares MSCI Hong Kong ETF (EWH)

Innovent Biologics Business Overview & Revenue Model

Company DescriptionInnovent Biologics, Inc. (1801) is a leading biopharmaceutical company based in China, focused on the development, manufacture, and commercialization of innovative and high-quality biologic therapies. The company primarily operates in the biotechnology and pharmaceutical sectors, with a strong emphasis on oncology, metabolic, autoimmune, and other major disease areas. Innovent's core products include a portfolio of monoclonal antibodies and biologics addressing some of the most challenging health conditions.
How the Company Makes MoneyInnovent Biologics generates revenue through the development and commercialization of its biologic therapies, primarily focusing on monoclonal antibodies. The company's revenue streams include product sales, licensing agreements, and strategic collaborations with global pharmaceutical companies. These partnerships often involve co-development and co-commercialization of therapies, allowing Innovent to leverage its partners' global reach and expertise. Additionally, Innovent may receive milestone and royalty payments as part of its licensing agreements, contributing to its financial performance.

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, challenges persist in achieving profitability and generating positive cash flows, which are vital for long-term sustainability.
Income Statement
65
Positive
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
70
Positive
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
50
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue9.42B6.21B4.56B4.27B3.84B
Gross Profit7.91B4.40B3.63B3.70B3.46B
EBITDA-480.28M-660.68M-1.75B-2.37B-704.74M
Net Income-94.63M-1.03B-2.18B-3.14B-998.42M
Balance Sheet
Total Assets21.60B20.63B17.59B16.24B11.83B
Cash, Cash Equivalents and Short-Term Investments7.88B10.97B8.26B7.94B8.05B
Total Debt2.83B3.62B3.23B2.50B1.21B
Total Liabilities8.48B8.10B6.86B5.91B3.06B
Stockholders Equity13.12B12.53B10.73B10.33B8.78B
Cash Flow
Free Cash Flow-418.39M-1.24B-3.30B-3.87B-1.08B
Operating Cash Flow1.29B147.81M-1.92B-2.02B-307.69M
Investing Cash Flow-1.17B-998.66M-1.44B-2.70B-5.18B
Financing Cash Flow-606.63M2.59B2.89B5.00B4.91B

Innovent Biologics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price77.35
Price Trends
50DMA
63.06
Positive
100DMA
51.85
Positive
200DMA
45.53
Positive
Market Momentum
MACD
5.04
Positive
RSI
60.12
Neutral
STOCH
50.83
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 77.35 is above the 20-day moving average (MA) of 77.04, above the 50-day MA of 63.06, and above the 200-day MA of 45.53, indicating a bullish trend. The MACD of 5.04 indicates Positive momentum. The RSI at 60.12 is Neutral, neither overbought nor oversold. The STOCH value of 50.83 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
HK$27.31B30.7031.65%4.23%47.71%
74
Outperform
$102.33B28.378.17%7.52%-1.92%
69
Neutral
$94.79B49.956.14%11.85%7.63%-24.23%
61
Neutral
$127.75B-0.72%49.33%90.96%
60
Neutral
HK$15.14B5.55-7.43%4.78%11.72%-20.69%
55
Neutral
HK$83.03B-8.98%-54.66%-123.11%
51
Neutral
HK$33.78B-19.78%25.96%39.58%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1801
Innovent Biologics
77.35
39.95
106.82%
HK:2696
Shanghai Henlius Biotech, Inc. Class H
50.25
27.35
119.43%
HK:1877
Shanghai Junshi Biosciences Co., Ltd. Class H
20.90
9.42
82.06%
HK:9926
Akeso, Inc.
92.50
55.35
148.99%
HK:1177
Sino Biopharmaceutical
5.30
2.65
99.70%
HK:2269
Wuxi Biologics (Cayman)
25.15
13.97
124.96%

Innovent Biologics Corporate Events

Innovent Biologics’ Mazdutide Approved for Weight Management in China
Jun 27, 2025

Innovent Biologics has announced that its new drug, mazdutide, a first-in-class dual GCG/GLP-1 receptor agonist, has received approval from the National Medical Products Administration of China for chronic weight management in adults with overweight or obesity. This approval marks a significant milestone as mazdutide is the world’s first dual receptor agonist for weight loss, offering enhanced efficacy and metabolic benefits. The approval aligns with China’s national health initiatives to combat the rising prevalence of obesity, which poses a substantial public health challenge. Supported by robust clinical data, mazdutide has demonstrated superior weight loss efficacy and metabolic benefits, making it a promising treatment option in the fight against obesity and its related comorbidities.

The most recent analyst rating on (HK:1801) stock is a Buy with a HK$65.98 price target. To see the full list of analyst forecasts on Innovent Biologics stock, see the HK:1801 Stock Forecast page.

Innovent Biologics Announces New Share Placement
Jun 25, 2025

Innovent Biologics, Inc. announced the placement of 55 million new shares, representing approximately 3.33% of its total shares, under a general mandate. The placement is expected to generate gross proceeds of approximately HK$4,309.8 million, with net proceeds of HK$4,265.4 million, which will be used as detailed in the company’s plans. The shares will be issued at a discount to the current market price, and the transaction is contingent upon certain conditions being met.

The most recent analyst rating on (HK:1801) stock is a Buy with a HK$65.98 price target. To see the full list of analyst forecasts on Innovent Biologics stock, see the HK:1801 Stock Forecast page.

Innovent Biologics Secures Shareholder Approval for Key Resolutions at AGM
Jun 25, 2025

Innovent Biologics, Inc. successfully held its Annual General Meeting on June 25, 2025, where all proposed resolutions were passed by shareholders. Key resolutions included the re-election of directors, authorization of board remuneration, re-appointment of auditors, and granting of mandates for share buybacks and issuances. The approval of these resolutions reflects strong shareholder support and positions the company for continued strategic growth and operational stability.

The most recent analyst rating on (HK:1801) stock is a Buy with a HK$65.98 price target. To see the full list of analyst forecasts on Innovent Biologics stock, see the HK:1801 Stock Forecast page.

Innovent Biologics’ New Drug Application for Advanced Renal Cell Carcinoma Accepted in China
Jun 5, 2025

Innovent Biologics announced that China’s National Medical Products Administration has accepted the New Drug Application for the combination of sintilimab and fruquintinib to treat advanced renal cell carcinoma. This development marks a significant step for Innovent in addressing unmet medical needs in China, further solidifying its position in the immuno-oncology sector and enhancing the clinical value of its product, TYVYT®.

The most recent analyst rating on (HK:1801) stock is a Buy with a HK$65.98 price target. To see the full list of analyst forecasts on Innovent Biologics stock, see the HK:1801 Stock Forecast page.

Innovent Biologics Announces Annual General Meeting and Key Resolutions
Jun 2, 2025

Innovent Biologics, Inc. has announced its upcoming annual general meeting scheduled for June 25, 2025, in Shanghai, China. Key agenda items include the re-election of directors, approval of the company’s financial statements, and authorization for share buybacks, which could impact the company’s market operations and shareholder value.

The most recent analyst rating on (HK:1801) stock is a Buy with a HK$65.98 price target. To see the full list of analyst forecasts on Innovent Biologics stock, see the HK:1801 Stock Forecast page.

Innovent Biologics Reports Over 40% Revenue Growth in Q1 2025
May 1, 2025

Innovent Biologics reported a significant increase in product revenue for the first quarter of 2025, exceeding RMB2.4 billion, marking a growth of over 40% year-on-year. The company launched four new products, including Dovbleron, Limertinib, and Jaypirca in oncology, and SYCUME in general biomedicine, which contributed to the revenue growth. The inclusion of SINTBILO in the National Reimbursement Drug List and the launch of SYCUME for thyroid eye disease are seen as new growth drivers. Innovent’s strategic focus on sustainable growth and global innovation positions it for continued expansion in the biopharmaceutical industry.

Innovent Biologics’ Limertinib Gains Approval for First-Line Lung Cancer Treatment
Apr 25, 2025

Innovent Biologics has announced that its third-generation EGFR TKI, limertinib, has received approval from China’s National Medical Products Administration for first-line treatment of certain types of non-small cell lung cancer (NSCLC). This approval is based on positive results from a Phase 3 clinical trial, which demonstrated that limertinib significantly prolongs progression-free survival compared to gefitinib. The approval is expected to strengthen Innovent’s position in the oncology market and provide a new treatment option for patients with high-unmet needs.

Innovent Biologics Announces Board Changes
Mar 31, 2025

Innovent Biologics, Inc. has announced changes in its board’s nomination committee and the designation of a lead independent non-executive director, effective March 31, 2025. Ms. Joyce I-Yin Hsu has been appointed as a member of the nomination committee, while Mr. Shuyun Chen has been designated as the lead independent non-executive director, reflecting the company’s ongoing efforts to strengthen its governance structure.

Innovent Biologics Announces Board of Directors Composition
Mar 31, 2025

Innovent Biologics, Inc. has announced the composition of its board of directors, highlighting the roles and functions of each member. The board consists of both executive and independent non-executive directors, with Dr. De-Chao Michael Yu serving as the Chairman and CEO. This announcement underscores the company’s commitment to strong governance and strategic oversight, which is crucial for maintaining its competitive edge in the biopharmaceutical sector.

Innovent Biologics Updates Nomination Committee Terms
Mar 31, 2025

Innovent Biologics, Inc. has updated the terms of reference for its Nomination Committee, which was originally established in 2018. The committee’s purpose is to identify and recommend candidates for the board of directors, oversee board performance evaluations, and develop nomination guidelines in line with applicable laws and regulations. This update aims to ensure the committee’s operations align with the latest governance standards, potentially impacting the company’s strategic direction and governance practices.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 24, 2025