Financial Performance - GenScript Life Science revenue increased by 26.4% year-over-year[20] - Biologics CDMO revenue increased by 33.6% year-over-year, achieving historical breakeven financial goal[20] - Cell Therapy revenue increased by 101.5% year-over-year, with backlog up 108.4% year-over-year[21] - In FY21, external revenue reached $424.7 million, a 30.8% year-over-year increase[23] - Adjusted net loss of Cell Therapy was $(354.6) million in 2021 compared to $(213.3) million in 2020[23] - Adjusted net profit of Non-Cell Therapy was $50.2 million in 2021, an 18.1% year-over-year increase[23] Investments - R&D expenses for Non-Cell Therapy were $36.3 million and for Cell Therapy were $49.9 million in 2021[25], representing a 36.1% year-over-year increase in total R&D investment[24] - Capital expenditure for Cell Therapy was $47.1 million, for Biologics CDMO was $34.5 million, and for Life Science & Other was $55.8 million in 2021[28] Business Segments - Legend Biotech, a cell therapy company, received an upfront payment of $350 million and $300 million in milestone payments from Janssen[61]

Group 1 - Kingsray Biotechnology (01548.HK) announced a revised licensing agreement with Nanjing Pengbo, granting a global transferable license for anti-PD-1 domain antibodies and related proprietary technologies to Lixin, enabling development, production, and commercialization of licensed products for all global uses [1] - By June 27, 2025, Nanjing Pengbo and its subsidiary, Zhenjiang Pengbo Biotechnology Co., Ltd., are expected to receive approximately $213.8 million (after tax deductions) under the revised licensing agreement, which includes an upfront payment, milestone payments, and sublicensing revenue related to the licensed anti-PD-1 domain antibodies [1] - The licensed anti-PD-1 domain antibodies are being utilized in the development of Lixin's investigational PD1/VEGF bispecific antibody LM-299, which has received approval for new drug clinical research [1] Group 2 - The licensed anti-PD-1 domain antibodies demonstrate high efficiency and specificity in binding to human and cynomolgus monkey PD1, effectively blocking PD1/PD-L1 integration and inhibiting tumor growth in rodent efficacy models, showing comparable efficacy to Merck's Keytruda [2] - The anti-PD-1 domain antibodies also exhibit ideal CMC (Chemistry, Manufacturing, and Controls) drug-like properties [2]

Investment Rating - The investment rating for Genscript Biotech Corp. is "Buy" with a 12-month price target of HK$27.34, indicating an upside potential of 84.5% from the current price of HK$14.82 [8]. Core Insights - Management highlighted that ProBio revenues are expected to bottom out, driven by the LaNova deal, with a projected revenue of US$95 million in FY24, reflecting a 13% year-over-year decline [5]. - The protein segment is anticipated to become the second growth engine for the life science group, with a significant increase in revenue contribution from 23% in 2023 to nearly 30% [6]. - The company expects a steadily improving bottom line, with share buybacks and dividends under consideration as profitability improves starting from 2025 [6]. Summary by Sections ProBio Performance - ProBio revenues are projected to recover, with management confident that the revenue is bottoming out due to factors such as improved funding for biotech clients and stabilizing pricing in China [5]. - The LaNova/Merck deal is expected to contribute significantly, with US$235 million booked in the first half and an additional US$75 million milestone expected in 2H25 [5]. Life Science Group Growth - The life science group has shown steady growth of 10-20% over the years, with gene synthesis having a total addressable market (TAM) of US$1-2 billion, while customized protein synthesis is expected to have a TAM 10 times larger [6]. - The company is reallocating resources to enhance growth in the protein synthesis sector, which is expected to be a major growth driver in the coming years [6]. Financial Outlook - Excluding the impact from Legend deconsolidation, the adjusted net profit for the ex-Legend businesses is expected to reach US$60 million in FY24, with consistent profitability anticipated starting in 2025 [6]. - Management expects the EBITDA break-even point for ProBio to be achieved when revenues reach US$150-200 million, with Bestzyme remaining at break-even until 2027 [6].

Core Points - The Hong Kong Biotechnology Index (CESHKB) experienced a decline of 3.05%, closing at 7087.18 points with a trading volume of 11.816 billion [1] - Over the past month, the index has increased by 26.57%, by 25.92% over the last three months, and has risen 63.14% year-to-date [1] - The index is compiled by China Securities Index Co., Ltd. under the commission of China Securities Trading Service Co., Ltd. and aims to reflect the overall performance of biotechnology companies listed in Hong Kong [1] Index Composition - The top ten weighted stocks in the index include: - CanSino Biologics (10.86%) - Innovent Biologics (10.22%) - WuXi Biologics (9.54%) - BeiGene (9.36%) - 3SBio (7.95%) - Zai Lab (6.01%) - WuXi AppTec (5.63%) - Kelun-Biotech (5.20%) - Genscript Biotech (4.44%) - Ascentage Pharma-B (3.91%) [1] Market and Industry Overview - The index's holdings are entirely composed of stocks listed on the Hong Kong Stock Exchange, with a 100% representation in the pharmaceutical and healthcare sector [2]

Group 1 - The core stock price of Kingsray Biotechnology (01548.HK) closed at HKD 16.800 on June 10, down 1.06% from the previous trading day, with an intraday high of HKD 17.280, marking a nearly one-year high [1] - On the same day, the net capital flow showed an inflow of HKD 306.183 million and an outflow of HKD 356.299 million, resulting in a net outflow of HKD 50.115 million [1] - Kingsray Biotechnology is a significant global provider of life science research and production services, established in 2002 and listed on the Hong Kong Stock Exchange in 2015, with operations in over 100 countries and regions [1] Group 2 - The company has over 6,900 employees globally and has been cited in more than 103,600 academic journal articles reviewed by international peers [1] - Kingsray holds over 300 authorized patents and more than 900 patent applications, along with numerous trade secrets [1] - The company's mission is to use biotechnology to enhance the health of people and nature, aiming to become the most trusted biotechnology company globally [2]

Core Viewpoint - The current "medication" market rally is distinct from previous ones, with leading gains concentrated in innovative pharmaceutical companies, particularly strong performance in the Hong Kong stock market [1][2] Group 1: Market Performance - On June 9, both Hong Kong and A-share innovative pharmaceutical sectors saw significant gains, with the Hang Seng Innovative Drug ETF rising by 4.08% and the Hong Kong Stock Connect Medical ETF increasing by 4.25% [3] - Notable individual stock performances included 3SBio (01530.HK) reaching a peak of 22.5 HKD, just shy of its historical high, and a 260% increase in its stock price since February [3] - The A-share innovative drug index rose by 31.5% and the Hong Kong innovative drug index surged by 61.54% since April 9, with several stocks doubling in value [4] Group 2: Catalysts for Growth - The surge in innovative drug stocks is attributed to multiple factors, including recent approvals for 11 innovative drugs from eight companies and promising clinical data for major diseases [5] - The upcoming 2025 ASCO annual meeting will feature 73 research studies from China, a 30% increase from the previous year [5] Group 3: Long-term Positive Factors - Many leading companies are approaching breakeven points, with significant revenue growth reported, particularly for Ascentage Pharma (332.31% growth) [7][8] - The overseas licensing deals have seen substantial increases, with a record-breaking deal of 6.05 billion USD for 3SBio's drug rights to Pfizer [9] - The overall licensing-out transactions in the innovative drug sector have surged, with 41 transactions in Q1 2024 alone, totaling 36.93 billion USD [9] Group 4: Policy Support - Recent policy changes are favorable for innovative drug companies, including optimized centralized procurement policies and increased support for innovative drugs in government reports [10] - The 2024 government work report includes 38 new innovative drugs in the medical insurance catalog, the highest ever, with plans for further optimization in 2025 [10] Group 5: Market Outlook - The valuation of the pharmaceutical sector remains relatively safe compared to other growth industries, with a current TTM P/E ratio of 27.1 times [11] - Some analysts suggest that the innovative drug sector is transitioning from following to leading in the global market, indicating a new era for domestic innovation [11] - However, there are concerns about potential short-term volatility due to rapid price increases and profit-taking by investors [11]

华福证券表示，2020年至2024年，创新药BD交易总金额从92亿美元提高到523亿美元，首付款金额从6 亿美元提升到41亿美元。2025年初至今，创新药出海交易总金额已达455亿美元，首付款已达到22亿美 元，全年有望创新高。 6月9日，创新药概念股持续活跃，相关ETF方面，港股创新药50ETF（513780）早盘涨5.14%，成交额 超3.36亿元。成分股中，金斯瑞生物科技涨超15%，诺诚健华、云顶新耀、信达生物等多股跟涨。资金 流向方面，截至6月6日，该ETF近5个交易日有3个交易日获资金净流入，累计净流入额超6300万元。 资金流向方面，截至6月6日，该ETF5个交易日有3个交易日获资金净流入，累计净流入额超6300万元。 消息面来看，据中证报，今年以来，创新药板块表现十分亮眼，尤其是港股创新药，在近期市场震荡中 走出了独立行情。港股创新药"霸榜"ETF涨幅榜，多只相关ETF今年以来涨幅超过50%。机构认为，港 股作为布局创新药的核心市场，可优先关注具备全球竞争力的前沿领域稀缺标的。 截至6月9日，中证港股通创新药指数前十大成分股累计权重71.5%，包含信达生物、百济神州、药明生 物等A股稀缺优质标的 ...

Group 1 - The company, King’s Ray Biotechnology, announced a share transfer agreement to acquire 300 million shares of Probio Cayman Class A preferred shares for approximately $225 million (around HKD 1.7 billion) [1] - Following the transaction, the company's direct and indirect ownership in Probio Cayman will increase from 71.72% to 85.09% [1] - Probio Cayman will continue to be an indirect non-wholly owned subsidiary of the company after the completion of the transaction [1] Group 2 - Probio Cayman and its subsidiaries provide comprehensive Contract Development and Manufacturing Organization (CDMO) services in the biotechnology and pharmaceutical sectors, including antibody drug discovery and clinical development [2] - The company has established Probio Cayman as a leading CDMO service provider, empowering innovators in antibody development, protein therapy, cell therapy, and gene therapy [2] - Probio Cayman is expected to generate cash inflows from a licensing agreement with Lixin Pharmaceutical Technology Co., Ltd. regarding the PD-1 VHH antibody, which will further enhance its future development prospects [2]

Core Insights - The global and US innovative drug VC&PE financing amounts are expected to grow by 1.93% and 5.29% respectively in 2024, indicating a recovery in the innovative drug financing environment [1] - The demand for research and development in fields such as peptides and ADCs is strong, leading to an increase in outsourcing needs in these areas [1][2] Macro Perspective - The global innovative drug financing environment is recovering, with significant growth in the demand for innovative research in specific fields like peptides and ADCs, which is expected to enhance the CXO industry's outlook [1] - According to Crunchbase, the VC&PE financing for innovative drugs in 2024 shows positive growth, marking an improvement in the financing environment [1] Micro Perspective - CXO listed companies are seeing a recovery in new orders, with many companies like WuXi AppTec, WuXi Biologics, and others reporting a year-on-year increase of over 20% in new orders [3] - The production capacity of domestic CXO companies is mature, ensuring timely delivery of orders, which is expected to lead to double-digit revenue growth for several companies in 2025 [3] Target Companies - Recommended companies to watch include WuXi AppTec (603259.SH, 02359), WuXi Biologics (02269), WuXi AppTec (02268), Kelun Pharmaceutical (002821.SZ, 06821), and others [4]

4月27日，副省长方伟赴镇江检查安全生产工作。省政府副秘书长徐华勤参加检查。市委常委、常 务副市长张克陪同检查。 在江苏金斯瑞生物科技有限公司，方伟深入企业生产和研发一线，详细了解企业安全管理体系建设 和安全生产责任制落实情况。得知企业建立了EHS基本安全准则，成立了安全生产委员会，配备专职安 全管理机构EHS部门，方伟给予肯定。他指出，生物科技行业技术密集、工艺复杂，安全风险点多、管 理要求高，企业必须树牢底线思维，强化安全管理，持续完善安全生产各项制度，提升本质安全水平， 切实将安全责任落实到每一个岗位、每一名员工。 随后，方伟来到镇江信缘康米山颐养院，实地检查消防控制室、消防设施设备运行状况以及疏散通 道设置情况，仔细询问火灾防控、应急预案制定、日常巡查制度和员工安全培训等工作落实情况。在认 真听取养老机构负责人介绍后，方伟指出，养老机构入住人员多为高龄老人，行动不便、应急反应能力 弱，消防安全责任重大。要深刻吸取近期各地火灾事故教训，进一步压实安全管理责任，全面开展风险 隐患排查整治，完善应急处置预案，加强员工技能培训和演练，做到早发现、早处置，确保遇到突发情 况能够及时组织有效应对，切实守护入住老人 ...