Shares of SBP GROUP (01177) climbed more than 6% in Hong Kong trading, last up 6.58% to HK$5.83 with turnover reaching HK$192 million.

According to a research note from Daiwa, at a recent healthcare industry conference, SBP GROUP's management reiterated its guidance for double-digit year-on-year revenue growth this year, driven by a combination of licensing income and innovative drug sales. Management expects that innovative drug sales combined with licensing revenue will account for half of the full-year revenue.

Management also indicated that newly approved innovative drugs will be the primary driver of sustained sales growth, while anticipating that the generic drug business will hit bottom this year and potentially resume growth next year from a lower base.

Daiwa noted that SBP GROUP expects full-year licensing revenue of US$355 million this year. After confirming the US$135 million upfront payment from Sanofi for out-licensing, the company anticipates recognizing an additional US$200 million upfront payment from AstraZeneca for TQC3721 (PDE3/4) and US$20 million from Cipla for TQB2102 in the second half, totaling US$220 million.