Daiwa has released a research report following a recent healthcare industry exchange event, during which management of SBP GROUP (01177) reaffirmed its unchanged guidance for double-digit year-on-year revenue growth this year. The growth is expected to be driven by a combination of licensing income and innovative drug sales, with the company projecting that innovative drug sales combined with licensing revenue will account for half of the full-year revenue.

Daiwa currently maintains a "Buy" rating on SBP Group. The brokerage notes that the company's full-year licensing income is expected to reach $355 million. Beyond the $135 million upfront payment already recognized from the Sanofi out-licensing deal, it anticipates an additional $220 million in upfront payments during the second half of the year, comprising $200 million from AstraZeneca for TQC3721 (PDE3/4) and $20 million from Cipla for TQB2102.

Management also indicated that newly approved innovative drugs will serve as the primary driver of sustained sales growth. Additionally, they expect the generics business to hit its bottom this year, potentially resuming growth next year from a lower comparison base.