Citi lifts Akeso stock target with Buy rating on strong clinical data By Investing.com

Citi has increased its price target for Akeso Inc (9926: HK) shares to HK$70.00, up from the previous HK$64.00, while reiterating a Buy rating on the stock.

The adjustment follows Akeso’s recent presentation of positive HARMONi-2 study results at the World Conference on Lung Cancer (WCLC).

Akeso’s Ivonescimab demonstrated a significant improvement in median progression-free survival (mPFS) in patients with PD-L1 positive (TPS≥1%) non-small cell lung cancer (NSCLC) when compared to pembrolizumab.

The study showed an mPFS of 11.14 months for Ivonescimab versus 5.82 months for pembrolizumab, with a hazard ratio (HR) of 0.51 and a p-value less than 0.0001.

According to the analysis, the progression-free survival benefit was consistent across major clinical subgroups. This included patients with both low and high PD-L1 expression levels, and those with squamous or non-squamous advanced NSCLC.

Furthermore, Ivonescimab was reported to have a manageable safety profile, with no grade 3 or higher hemorrhage observed in patients with squamous NSCLC.

Citi’s report suggests that the compelling data surpasses market expectations and posits that the favorable PFS hazard ratio is likely to translate into a clinically meaningful overall survival (OS) benefit. This optimism is reflected in the firm’s decision to raise the target price for Akeso’s stock.

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