Citi maintains Buy on Keymed stock citing potential re-rating with commercialization progress

Published 30/12/2024, 12:04
Citi maintains Buy on Keymed stock citing potential re-rating with commercialization progress

On Monday, Citi reaffirmed its Buy rating and HK$60.00 price target for Keymed Biosciences Inc (2162:HK), following a conference call where the company discussed its commercialization strategy for CM310. The treatment, which received approval in September 2024 for atopic dermatitis (AD) and on December 23, 2024, for chronic rhinosinusitis with nasal polyps (CRSwNP), is expected to generate around Rmb40 million in sales for 2024.

The management of Keymed Biosciences addressed the recent drop in stock value, attributing it to the unexpected steep price reduction of Dupixent during the National Reimbursement Drug List (NRDL) negotiations and concerns over the visibility of commercialization efforts. Despite these challenges, the company upheld its sales forecast of Rmb500 million for the fiscal year 2025.

Citi analysts believe that the current market valuation of Keymed does not reflect its true potential. They argue that the successful commercialization of CM310, along with the development of new candidates, should lead to a re-evaluation of the company's stock. The firm's position is supported by the management's confidence in meeting the sales targets for the upcoming year.

Keymed's progress in commercializing CM310 and the potential introduction of new products into the market are seen as key drivers for a positive reassessment of the company's value. With the reaffirmed Buy rating and price target, Citi signals its optimism about Keymed's future performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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