Innovent Biologics Inc
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
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HK$59.00 | Lppvl | Jzgbvcpm |
Innovant Biologics Establishing a Leadership Position in China’s Biotech Landscape
Business Strategy and Outlook
Innovent is an emerging Chinese biotech company that develops drugs for a wide spectrum of diseases, especially cancers. Its core assets are Tyvyt, a PD-1 drug that was approved in 2018, and biosimilars of Avastin, Humira, and Rituxan, which were approved in 2020. It also has a rich pipeline of in-house and in-licensed drugs at various stages of development. We award it a narrow moat due to its excellent market positioning in PD-1 treatments and our view that the price for this class of drugs will be dovish enough to generate decent returns on equity. Additionally, its strong early stage pipeline justifies a positive moat trend.