Innovent Establishing a Leadership Position in China’s Biotech Landscape

Innovent is an emerging Chinese biotech company that develops drugs for a wide spectrum of diseases, especially cancers. Its near-term core assets are Tyvyt, a PD-1 drug that was approved in 2018, and biosimilars of Avastin, Humira, and Rituxan, which were approved in 2020. It also has a rich pipeline of novel drug candidates, mostly in early clinical development. We award it a narrow moat due to its excellent market positioning in PD-1 treatments and our view that the price for this class of drugs will be dovish. Additionally, its strong early stage pipeline justifies a positive moat trend.