Goldman Sachs’ latest report on China’s biotechnology sector highlights Everest Medicines (HKG: 1952) as a company on track to achieve EBITDA break-even by the end of 2025. This outlook is driven by the accelerated commercialization of Nefecon®, which was recently included in China’s National Reimbursement Drug List (NRDL). The report underscores that expanded reimbursement coverage is expected to significantly boost market potential in treating IgA Nephropathy (IgAN) and address a substantial unmet medical need. Goldman Sachs notes, “Everest targeted EBITDA break-even by YE25, expecting the NRDL coverage to unleash the significant patient need in IgAN.”
Beyond Nefecon®, Everest’s BTK inhibitor EVER001 is emerging as a promising pipeline asset, with encouraging early clinical data in primary membranous nephropathy (pMN). According to Everest’s Phase 1b/2a trial results, EVER001 demonstrated quick disease remission in pMN patients, with 82% of low-dose and 86% of high-dose patients achieving clinical remission based on 24-hour proteinuria reduction, and 91% and 100% achieving immunological complete remission, respectively, based on anti-PLA2R autoantibody decrease. The data also showed clear dose-dependency across key biomarkers, reinforcing the drug’s mechanism of action. With no major safety concerns reported, EVER001 has the potential to be a best-in-class therapy for pMN.
Goldman Sachs also highlights EVER001’s global development potential, as Everest prepares for multinational clinical trials to evaluate its benefits across different ethnic populations. The report notes that while pMN is a smaller market than IgAN, it shares strong synergies in disease mechanism and treatment approaches, making it a strategically valuable addition to Everest’s renal disease franchise.
The report further emphasizes China’s evolving biotech landscape, where global licensing and partnerships are becoming key drivers of growth. Everest’s consistent execution of its renal and mRNA-focused strategy, combined with its emphasis on global expansion, positions the company well for sustained success.
Reflecting these positive developments, Goldman Sachs has raised its 12-month target price for Everest Medicines to HK$48.32, nearly doubling from the previous HK$24.50. The upgrade factors in stronger commercial visibility, EVER001’s potential in pMN, and an improved financial outlook as Everest advances toward profitability.