Sichuan Kelun Pharmaceutical Co Ltd: Key takeaways from partner MRK's earnings briefing on sac-TMT global development strategy

Research evidence excerpt

M

Update

August 5, 2026 02:46 AM GMT

Sichuan Kelun Pharmaceutical Co Ltd | Asia Pacific

Morgan Stanley Asia Limited+

Alexis Yan, CFA

Equity Analyst

Key takeaways from partner

MRK's earnings briefing on sacTMT global development

strategy

Kelun's partner MRK (covered by Terence Flynn) shared more thoughts on sac-TMT's

global development strategy at its earnings briefing. For early-to-market indications,

MRK plans to apply the National Priority Review Voucher to 2L+ endometrial cancer,

and will also present TroFuse-005 full data in the next six months. We estimate

~US$100-150mn "first commercial milestone" attributable to Kelun to be triggered

upon the first indication approval, likely in 2027.

In lung cancer, MRK commented that it has seen very detailed data of OptiTROPLung06 and is comfortable with the data set, including control arm performance.

Specifically, Lung06's success gives MRK confidence in the target and "full

spectrum," and it is being thoughtful about which I/O agent (Keytruda vs MK-2010

(PD-1/VEGF licensed from Sino Biopharma)) to use for combos in NSCLC. MRK

recently posted a Ph2 study to explore the sac-TMT and MK-2010 combo, and

indicated plans to advance a program that could transition seamlessly from Ph2 to

Ph3. This would make make sac-TMT a leading contender in the ADC+I/O combo

regimen for LC treatment, in our view.

Sichuan Kelun Pharmaceutical Co Ltd (002422.SZ,

002422 CS)

China Healthcare | China

Stock Rating

Industry View

Price target

Up/downside to price target (%)

Shr price, close (Aug 4, 2026)

52-Week Range

Sh out, dil, curr (mn)

Mkt cap, curr (mn)

EV, curr (mn)

Avg daily trading value (mn)

Underweight

Attractive

Rmb29.00

(31)

Rmb42.29

Rmb52.78-28.14

1,598

Rmb67,582

Rmb67,327

Rmb684

Fiscal Year Ending

12/24 12/25e 12/26e 12/27e

EPS (Rmb)**

EPS (Rmb)§

Revenue, net (Rmb mn)

ModelWare net inc

(Rmb mn)

P/E

P/BV

ROE (%)

EV/EBITDA

1.83

1.01

1.19

1.48

1.91

1.19

1.22

1.53

21,812 17,831 18,242 19,460

2,936

1,610

1,904

2,365

16.3

2.1

14.9

9.3

29.1

2.0

7.2

16.2

35.5

2.7

8.1

19.6

28.6

2.6

9.6

16.0

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

** = Based on consensus methodology

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