ArriVent BioPharma Inc. (AVBP.O): Defending Stock. 7 Reasons Why The '217 Selloff Defies Logic.

Citi defends ArriVent BioPharma after the selloff following the ESMO call on ARR-217 (CDH17 ADC), despite an ORR/cORR of ~45%/~38% that beat comps and was called "striking" by the ESMO discussant. Citi maintains Buy/High Risk with a US$20 target price, implying 30.2% expected total return from US$15.36. Seven reasons: (1) ARR-217's ratio of cumulative Gr≥3 TRAEs to cORR was the lowest at 0.5 at 6 mg/kg vs. 1.7-4.6 for competing late-line CRC ADCs; (2) no ILD across all 123 treated patients including 7 and 8 mg/kg, MTD not reached and only one DLT at 8 mg/kg; (3) most TRAEs were Gr1/2, with only 2/49 dose reductions and no discontinuations at 6 mg/kg; (4) the 37.9% cORR monotherapy profile supports a registrational ARR-217+bev vs. Lonsurf+bev strategy, and citing lack of responses at 5 mg/kg carries no weight given only 3 evaluable patients;