UPDATE: China Renaissance Starts Adagene Inc (ADAG) at Buy, 'Emerging leader in global antibody therapeutics'
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China Renaissance analyst Claire Wang initiates coverage on Adagene Inc (NASDAQ: ADAG) with a Buy rating and a price target of $40.57.
The analyst comments "ADG106, for treatment of advanced solid tumors and non-Hodgkin’s lymphoma (NHL), has the potential to become a first-in-class CD137/4-1BB. Clinical data indicate ADG106 could address the
limitations of other clinical stage anti-CD137 therapies in terms of liver toxicity and potency. The global CD137 antibody market is expected to reach US$7.2bn in 2035E, growing at a 2024E-35E revenue CAGR of 25.4% (Frost & Sullivan forecasts) after the first commercial products are expected to launch from 2023. Adagene’s second drug candidate, ADG116, has the potential to become a safer, potent and durable next-generation CTLA-4 therapy, entering a market forecast by Frost & Sullivan to reach US$8.7bn globally in 2035E (86.5% 2024E-35E revenue CAGR). In a head-to-head in vivo efficacy study, ADG116 was observed to have greater anti-tumor activity than the commercially available ipilimumab. Since Adagene’s drugs are expected to commercialize from 2025E, we forecast strong revenue growth over 2025E-29E, and we expect Adagene to break even in 2027E. We forecast 2027E-30E revenue and net profit CAGRs of 18% and 131%, respectively."
Shares of Adagene Inc closed at $13.99 yesterday.
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