HK Stock Market Move | UNITED LAB (03933) surged over 7% again, UBS believes the market is undervaluing UBT251's sales potential.

UNITED LAB (03933) rose more than 7%, up 6.1% as of the time of publication, to HK$13.39, with a turnover of HK$80.98 million. In terms of news, recently, UNITED LAB announced that its wholly-owned subsidiary, Federal Biotechnology (Zhuhai Hengqin) Co., Ltd. ('Federal Biotechnology'), has obtained the clinical trial implied approval of the National Medical Products Administration of China for UBT251 injection, a type 1 innovative drug independently developed by Federal Biotechnology, for the indication of moderate to severe obstructive sleep apnea (OSA) combined with obesity. As the first chemical synthetic GLP-1/GIP/GCG triple receptor agonist in China, UBT251 helps UNITED LAB to occupy an important position in the field of this type of drug research. UBS Group AG released a research report stating that UNITED LAB is a leading pharmaceutical manufacturer in China with an integrated business line covering intermediate products, raw materials, and formulation products. With decades of expertise in metabolic disease research and strong early clinical results, the company licensed the rights to UBT251 outside of China to Novo Nordisk A/S Sponsored ADR Class B (NVO.US) in March last year, with an agreement including a $200 million upfront payment, up to $1.8 billion in milestone payments, and tiered royalties. The bank believes that the market underestimates the sales potential of UBT251 and the company's broader innovative research pipeline.