【行业研究报告】天境生物-Strategic cooperation with Jumpcan accelerates commercialization for long-acting rhGH

I-MabandJumpcanreachedastrategiccommercialpartnershiponlong-
actingrhGH,EftansomatropinAlfa.Underthepartnershipagreement,
actingrhGH,EftansomatropinAlfa.Underthepartnershipagreement,
JumpcanwillpayupfrontpaymentofRMB224mnandmilestonepaymentsup
toRMB1.792bn,makingthetotalnon-royaltypaymentsuptoRMB2.016bn.
Inaddition,thepartieswillshareprofitsona50/50basis,orI-Mabwillbe
entitledtoreceivetieredlowdouble-digitroyaltiesonnetsales.I-Mabwill
continuetoleadtheongoingregistrationalPh3trial(NCT04633057)of
eftansomatropinalfaonpediatricgrowthhormonedeficiency(PGHD).I-Mab
willalsobethemarketingauthorizationholder(MAH)andsupplytheproduct
toJumpcan.Jumpcanwillberesponsibleforcommercializingtheproductand
developingnewindicationsinmainlandChina.Webelievethedeallaidasolid
foundationforthesuccessfulcommercializationofeftansomatropinalfain
China.
Jumpcanhasastrongsaleschannelinpediatricsdrugs.Withafocusin
pediatricmedicines,Jumpcanhasasizablesalesforceof3,500+employees,
covering23,000+tieredhospitalsinChina.JumpcanrecordedRMB5.4bn
revenuein9M21,withpediatricdrugsaccountingforapproximately60%of
totalrevenue.AlthoughrhGHdrugsrequireslightlydifferentsalesexpertise
withotherpediatricdrugs,Jumpcan’sbroadchannelcoveragewillsignificantly
acceleratethesalesramp-upofeftansomatropinalfa,inourview.
Limitedregulatoryconcernsforlong-actingrhGHdrugs.Off-labeluseof
rhGHiscommonbothinChinaandtheUS.WeexpectrhGHdrugstofurther
expandtheirlabelsinChinatoincludeadditionalindicationsforadultsand
children,leadingtohighermarketpotentialforrhGHdrugs.Meanwhile,on30
th
Sep,Guangdongprovinceannouncedtoalign10provincestoinitiatevolume-
basedprocurementforshort-actingrhGHdrugs.Giventhatthereisonlyone
approvedlong-actingrhGHdruginChinaandseveralcandidatesarein
clinicaldevelopment,webelievelong-actingrhGHproductswillfacemild
competitionsincomingyearsandwillalsobefreefromvolume-based
procurementrisks.Webelievelong-actingrhGHproducts(weeklydosing)will
substituteshort-actingproducts(dailydosing)giventheirconvenienceof
administration.
MaintainBUY.ThepartnershipwithJumpcanwillacceleratethe
commercializationEftansomatropinAlfa.WeslightlyrevisedupourDCF-
basedTPfromUS$101.37toUS$103.60(WACC:9.74%,terminalgrowthrate:
3.0%).