Goldman Sachs raises Everest Medicines’ target price amid strong growth prospects

CHINA – Goldman Sachs has significantly increased its target price for Everest Medicines (1952.HK) to HK$48.32 (US $6.21), nearly doubling from its previous HK$24.50 (US $3.15).

The investment bank’s latest report on China’s biotechnology sector cites strong commercialization progress and promising research developments as key reasons for the optimistic outlook.

Everest is now on track to achieve EBITDA break-even by the end of 2025, thanks to expanding market access and a robust drug pipeline.

Nefecon gains momentum with NRDL inclusion

One of the major factors driving this growth is Nefecon, a treatment for IgA nephropathy (IgAN), a serious kidney disease with limited treatment options.

Goldman Sachs emphasizes that Nefecon®’s inclusion in China’s National Reimbursement Drug List (NRDL) will significantly increase patient access, allowing more people to afford and benefit from the therapy.

This expanded coverage is expected to unleash significant demand and solidify Everest’s commercial success.

Goldman Sachs notes in its report: “Everest targeted EBITDA break-even by YE25, expecting the NRDL coverage to unleash the significant patient need in IgAN.”

With reimbursement support, Everest is well-positioned to capture a larger share of the growing renal disease market in China.

EVER001 shows promise for membranous nephropathy

In addition to Nefecon, Everest’s pipeline includes EVER001, a BTK inhibitor that has shown encouraging early clinical results for primary membranous nephropathy (pMN).

According to Everest’s Phase 1b/2a trial data, the drug demonstrated rapid disease remission, with over 80% of patients achieving clinical remission based on proteinuria reduction.

Immunological response was even higher, with 91% and 100% of patients showing complete remission in low- and high-dose groups, respectively.

Importantly, the trial results confirmed a clear dose-response relationship, reinforcing EVER001’s mechanism of action.

With no major safety concerns reported, Everest is positioning the drug as a best-in-class therapy for pMN.

Global expansion and market potential

Goldman Sachs also highlights Everest’s plans for multinational clinical trials to evaluate EVER001’s effectiveness across different ethnic populations.

Although pMN is a smaller market than IgAN, it has strong synergies in disease mechanism and treatment approaches, making it a valuable addition to Everest’s renal disease portfolio.

Beyond Everest’s drug pipeline, the report underscores the broader transformation of China’s biotech industry, where global partnerships and licensing agreements are playing an increasing role.