The Zhitong Finance App learned that Jefferies released a research report saying that the management of Insilis (03696) reiterated at the bank's Asia Pacific Healthcare Conference that the company is shifting from platform verification to assets and recurring milestones. The bank maintains the stock's “buy” rating and target price of HK$100.
The bank pointed out that business development momentum is still strong. The AI-driven Chinese phase III clinical trial of Rentosertib, a candidate innovative drug, is the next major clinical verification point, and the partnership is expected to be a key catalyst until data is read out in 2029.
The bank pointed out that the total potential transaction value of Intosilicon Intelligence is about 11 billion US dollars, including the 7.3 billion US dollars signed so far this year, accounting for about 7% of all business development transactions in China. In addition to new upfront payments, existing partners are also increasingly contributing milestone payments to support a more recurring revenue base. The company has produced 33 pre-clinical candidate compounds (PCC), 8 of which have been authorized externally, and 6 have entered Phase I. Phase III administration of Rentosertib to 320 patients in China began in September (the first 2 patients were given on September 9). The top-line data is expected to be released in 2029. The total cost of the trial and CMC is estimated to be about 200 million yuan. Management explained that US Phase II was terminated due to slow recruitment rather than disclosed clinical issues, and plans to use Chinese Phase III data to support external licensing or subsequent US Phase IIb/III pathways.
The bank believes that the company expects basic model capabilities to converge in the next three to five years and is open to adopting better third-party models; long-term investment arguments increasingly depend on transforming time advantages into clinically proven drugs, milestones, and authorized transactions rather than maintaining permanent model advantages.