Jacobio’s core investment case continues to strengthen following the latest clinical update for JAB-23E73, its differentiated pan-KRAS small-molecule inhibitor. Updated data further validate the asset’s compelling antitumor activity and favorable tolerability, which we believe distinguishes it from competing pan- RAS approaches. Backed by first-mover positioning, a cleaner intellectual property pathway, and manufacturing advantage as a small molecule, we view JAB-23E73 as a potential blockbuster asset. Meanwhile, Jacobio’s financial position remains solid: the Company reported RMB731mn revenue in 1H26, primarily driven by the AstraZeneca US$1bn upfront payment, and received an additional RMB14.5mn from Allist related to partnership on KRAS G12C and SHP2 inhibitors. As of 1H26, Jacobio held RMB1.68bn in cash with debt below RMB100mn, providing ample support for business operations and underpinning valuation. We maintain BUY with an unchanged target price of HK$10.34.
Promising efficacy signal in PDAC continues to strengthen. With broader patient enrollment, JAB-23E73 has continued to show encouraging activity in PDAC. As of Aug 2026, among the 86 enrolled patients in China, the ORR reached 38.5% (10/26) in second-line PDAC and 23.8% (5/21) in third-line or later patients. We view the 2L efficacy signal as particularly notable as it compares favorably with RMC-6236’s 31.6% ORR in 2L RAS- mutant PDAC in its PhIII RASolute302 trial. Importantly, the consistency versus the Jan 2026 update (n=42) supports the reproducibility of the efficacy signal as dataset maturity improves.
Highly differentiated safety profile supports combination optionality. We believe tolerability remains the most compelling differentiator for JAB- 23E73. In the latest update, the Grade ≥3 TRAE rate was 14.0%, only slightly above the prior 11.9% level and still materially below the 43.6% reported for RMC-6236 in its PhIII trial in 2L PDAC. Notably, no Grade ≥3 gastrointestinal toxicities were reported with JAB-23E73, while RMC-6236 showed single-digit Grade ≥3 diarrhea, nausea, and vomiting. JAB-23E73 demonstrated a clear advantage in rash and mucositis/ stomatitis, with 0% Grade ≥3 incidence in both categories, vs RMC-6236’s 14% and 12%, respectively. With Revolution’s pan-RAS reporting promising clinical data in combo with KRAS G12D inhibitor (link) and PRMT5 inhibitor (link), we expect JAB-23E73’s favorable safety profile to expand its strategic value, especially in combination regimens and potential first-line settings.
Global development moves as expected. In China, Jacobio is advancing a PhIb/III study of JAB-23E73 combined with chemo in 1L PDAC, while mgmt. aims to initiate a pivotal monotherapy trial in 2L PDAC in 2H26. The US PhI study is also ongoing, and we expect AstraZeneca may potentially launch global development in late 2026 or 2027, which could be a strong catalyst for Jacobio, in our view. Beyond JAB-23E73, Jacobio has planned 2H26 IND submissions for its HER2-Sting agonist iADC and EGFR-KRAS G12D tADC, while it is also developing a next-generation pan-RAS molecule glue inhibitor tADC with future potential to combo with JAB-23E73.
Maintain BUY. We believe JAB-23E73 (pan-KRAS) is potentially an underestimated blockbuster asset. We maintain our TP unchanged at HK$10.34 (WACC: 12.58%, terminal growth rate: 2.0%).