Summary of the Conference Call on Weight Loss Drug Market in China Industry Overview - The weight loss drug market in China is projected to reach approximately 6 billion RMB in 2025, with significant contributions from major brands such as Novo Nordisk's semaglutide and Eli Lilly's tirzepatide [1][3] - The overall market size, including off-label uses, is expected to approach 6 billion RMB [3] Key Players and Sales Projections - **Novo Nordisk**: - Semaglutide under the "Nuohe Tai" brand is expected to generate around 4.5 billion RMB in total sales, with about half attributed to weight loss [3] - The "Nuohe Ying" brand is projected to achieve sales of 1.2 billion RMB [1] - **Eli Lilly**: - Tirzepatide is anticipated to reach sales of 1.5 billion RMB, primarily through online and pharmacy channels, accounting for 70-80% of sales [1][3] - The entry into the medical insurance system at the end of the year will significantly impact its pricing and competitiveness [1][2] - **Innovent Biologics**: - The sales of mazhutide, which began in July, are expected to reach 700-800 million RMB [1][3] Market Growth Expectations - The weight loss drug market in China is expected to grow rapidly in 2026, with total sales targets for Eli Lilly, Innovent, and Novo Nordisk estimated at around 7 billion RMB [4] - Including off-label uses, the market size could reach 8-10 billion RMB [4] Challenges Faced by Novo Nordisk - Novo Nordisk faces challenges in online sales due to restrictions on GLP-1 drugs for weight loss, while diabetes versions are allowed [5] - Global layoffs affecting 9,000 employees have also impacted the Chinese team, leading to inventory pressure and declining sales [5] Strategic Approaches of Key Players - **Novo Nordisk**: Focuses on hospital and pharmacy channels but struggles with online competition [6] - **Eli Lilly**: Relies on hospital edge stores, online, and pharmacy channels; plans to expand hospital sales after entering the insurance system [6] - **Innovent**: More flexible, focusing on online and pharmacy channels, with rapid growth in retail for tirzepatide and mazhutide [6] Consumer Behavior and Repurchase Trends - Average medication duration is about 3 months, with noticeable rebound effects after discontinuation, indicating a repurchase demand [2][7] - Some users stop after one month, while others may continue for longer periods [7] Key Focus Areas for 2026 - Monitor price changes for tirzepatide after entering the insurance system and its marketing strategies in the weight loss sector [8] - Watch for price competition following the introduction of generic semaglutide and its impact on overall demand [8] - Pay attention to industry penetration rates and the long-term effects of specific price changes [8] - The market potential could reach 30-50 billion RMB based on a monthly expenditure of 3,000 RMB per person [8]

Core Insights - Innovent Biologics and Sanegene Bio USA announced preliminary results from the Phase 1 clinical study of IBI3016, an experimental siRNA medicine targeting angiotensinogen mRNA, presented at the 2025 AHA scientific sessions [1][8] Study Overview - The Phase 1 study (NCT06501586/CTR20242500) was a randomized, double-blind, placebo-controlled trial assessing the safety, tolerability, pharmacokinetics, and pharmacodynamics of IBI3016 in healthy subjects and patients with mild hypertension [2] - As of July 1, 2025, 40 subjects were enrolled, with a median age of 37 years, 30% female, and a mean BMI of 25.2 kg/m² [3] Efficacy Results - IBI3016 achieved a maximum reduction of over 95% in serum AGT levels, with sustained inhibition for up to six months [7] - Blood pressure reductions were observed in all treated cohorts at three months post-administration, with changes in 24-hour mean ambulatory daytime systolic/diastolic BP ranging from 2.1/-5.5 mmHg to 16.7/-14.7 mmHg compared to placebo [7] Safety Profile - The safety profile of IBI3016 was favorable, with no severe or serious adverse events reported, and all adverse events were mild to moderate and reversible [5] - No hypotension events occurred during the study [5] Future Development - The Phase 1 results support the potential for biannual subcutaneous dosing for hypertension treatment, with next-step development scheduled to begin soon [6] - The collaboration between Innovent and SanegeneBio aims to address the unmet clinical need for hypertension therapies, particularly focusing on improving patient adherence and managing aldosterone escape [8][9] Industry Context - Hypertension affects approximately 1.4 billion people globally, with only about 20% effectively controlled through current treatments [9] - The increasing prevalence of hypertension is attributed to factors such as aging populations and lifestyle choices, highlighting the need for innovative treatment options [9] Product Information - IBI3016 is a GalNAc-conjugated RNAi-based medicine targeting AGT, designed to inhibit AGT synthesis in the liver, potentially leading to long-term blood pressure reduction [10] Company Background - Innovent Biologics, founded in 2011, focuses on developing high-quality biopharmaceuticals for various diseases, including oncology and cardiovascular conditions, with 16 products launched and multiple assets in clinical trials [11] - SanegeneBio, established in 2021, specializes in RNAi-based therapeutics and aims to develop innovative treatments for various diseases, including cardiometabolic conditions [13]

Investment Rating - The report maintains an "Accumulate" rating for the pharmaceutical and biotechnology industry [1]. Core Views - The report highlights a positive change in the specialty raw materials sector, recommending companies such as Aorite and Prolo Pharmaceuticals [1]. - The report suggests that the Q3 performance of raw material pharmaceutical companies has reached a bottom, indicating potential recovery in profitability as high-cost inventory is consumed [19][20]. Summary by Sections Investment Highlights - The recommended sub-industry rankings are: Innovative Drugs > Research Services > CXO > Traditional Chinese Medicine > Medical Devices > Pharmacies [3][12]. - Specific stock recommendations include: - From raw materials: Aorite, Qianhong Pharmaceutical - From Traditional Chinese Medicine: Zorui Pharmaceutical, Fangsheng Pharmaceutical, Dong'e Ejiao - From medical devices: United Imaging Healthcare, Yuyue Medical - From AI pharmaceuticals: Jingtai Holdings - From GLP-1 sector: Lianbang Pharmaceutical, Borui Pharmaceutical, Zhongsheng Pharmaceutical, and Innovent Biologics - From PD-1/VEGF dual antibodies: Sanofi Biopharmaceuticals, Kangfang Biologics, and Rongchang Biopharmaceuticals - From innovative drugs: Innovent Biologics, BeiGene, HengRui Medicine, Zai Lab, Baillie Tianheng, Kelun Pharmaceutical, Dize Pharmaceutical, and Haizheng Pharmaceutical [3][15]. Industry Trends - The A-share pharmaceutical index has seen a year-to-date increase of 18.2%, while the Hang Seng Biotechnology Index has increased by 76.6% [6][11]. - The report notes that the raw material pharmaceutical sector is under pressure due to high base effects and declining prices, with significant revenue impacts [19][20]. R&D Progress and Company Dynamics - Recent approvals include Novartis' radioligand therapy drug, which received dual indications for prostate cancer treatment [2]. - The report provides an overview of ongoing clinical trials and drug approvals, emphasizing the importance of innovation in the pharmaceutical sector [30]. Market Performance - The report indicates that the pharmaceutical sector has experienced adjustments, with notable stock performances including significant gains for companies like Hezhong China (+61%) and Wanze Shares (+30%) [11]. - The report also highlights the performance of various pharmaceutical stocks, noting both gains and losses in the market [16][17]. Raw Material Pricing Trends - The price of 6-APA has dropped significantly, from 370 RMB/kg in 2022 to 180 RMB/kg in October 2025, a decrease of 51% [23]. - The price of Amoxicillin has also decreased from 320 RMB/kg in January 2023 to 190 RMB/kg in October 2025, a decline of 41% [23]. Conclusion - The report suggests that as high-cost inventory is depleted, the gross margins for raw material producers are expected to improve, indicating a potential recovery in profitability for companies like Fuxiang Pharmaceutical and Lukang Pharmaceutical [19][23].

Core Insights - The article presents a ranking of 78 unprofitable biotechnology companies listed in Hong Kong, highlighting their market capitalizations and stock prices as of October 31, 2025 [1][2][3]. Market Capitalization Summary - The top three companies by market capitalization are: 1. 名要放田 (Ming Yao Fang Tian) with a market cap of HKD 286.26 billion 2. 信达生物 (Innovent Biologics) with a market cap of HKD 149.08 billion 3. 科伦博泰生物-B (Kintor Pharmaceutical) with a market cap of HKD 104.47 billion [1][2]. Price Performance Summary - The highest price increase for the year is observed in: 1. 北海康成-B (Beihai Kangcheng) with a price increase of 1381.20% 2. 药康安康 - B (Yao Kang An Kang) with a price increase of 1297.72% 3. 三叶草生物-B (San Ye Cao) with a price increase of 812.86% [3][4]. Additional Performance Insights - Other notable performers include: - 德棋医药-B (Deqi Pharmaceutical) with a 696.92% increase - 和铂失药-B (He Bo Shi Yao) with a 624.19% increase - 荣昌生物 (Rongchang Biologics) with a 525.00% increase [3][4]. Overall Trends - The article indicates a significant volatility in the biotechnology sector, with many companies experiencing substantial price fluctuations, reflecting investor sentiment and market dynamics [3][4].

Core Viewpoint - Cinda Biologics reported a year-on-year revenue growth of over 40% in Q3, exceeding expectations and indicating strong performance in the biopharmaceutical sector [1] Group 1: Financial Performance - Total product revenue for Cinda Biologics in Q3 surpassed 3.3 billion, with a quarterly growth of 22%, outpacing last year's 15% growth [1] - The company is expected to achieve an annual revenue of approximately 11.5 billion, primarily driven by the sales of Masituzumab and three recently licensed candidate drugs to Takeda [1] Group 2: Future Projections - The firm has raised its total product revenue forecasts for 2025 to 2027 by 1%, 2%, and 1% respectively, projecting revenues of 11.5 billion, 18.3 billion, and 23.3 billion [1] - Adjusted profit forecasts have also been increased to 1.7 billion, 10.3 billion, and 5.6 billion for the same period [1] Group 3: Market Position and Rating - Cinda Biologics is viewed as a leader in biopharmaceuticals for treating challenging chronic and fatal diseases in China [1] - The target price has been raised from 125 HKD to 128 HKD, corresponding to a projected price-to-sales ratio of 10.6 times for 2026, maintaining an "outperform" rating and listing it as a preferred stock in the industry [1]

Core Viewpoint - Jianyin International has raised the target price for Innovent Biologics (01801) by 2.4% from HKD 125 to HKD 128, maintaining a "Outperform" rating, citing the company's robust fundamentals as a preferred stock choice [1] Financial Performance - Innovent Biologics reported total product revenue exceeding RMB 3.3 billion in Q3, representing an annual increase of over 40%, surpassing the previous forecast of a 37% annual growth for total product revenue in 2025 [1] - The revenue forecasts for 2025, 2026, and 2027 have been adjusted upwards by 1%, 2%, and 1% respectively, reaching RMB 11.5 billion, RMB 18.3 billion, and RMB 23.3 billion [1] Strategic Developments - The company has reached an agreement with Takeda Pharmaceutical regarding an authorization deal, expecting to receive a prepayment of USD 1.1 billion by the end of 2026 [1] - As a result of this agreement, the adjusted profit forecasts for 2025, 2026, and 2027 have been increased to RMB 5.6 billion [1]

Core Viewpoint - Jianyin International has raised the target price for Innovent Biologics (01801) by 2.4% from HKD 125 to HKD 128, maintaining a "Outperform" rating, citing the company's robust fundamentals as a preferred stock choice [1] Financial Performance - Innovent Biologics reported total product revenue exceeding RMB 3.3 billion in Q3, representing an annual increase of over 40%, surpassing the previous forecast of a 37% annual growth for total product revenue in 2025 [1] - The revenue forecasts for 2025, 2026, and 2027 have been adjusted upwards by 1%, 2%, and 1% respectively, reaching RMB 11.5 billion, RMB 18.3 billion, and RMB 23.3 billion [1] Strategic Developments - The company has reached an agreement with Takeda Pharmaceutical regarding an authorization deal, expecting to receive an upfront cash reward of USD 1.1 billion by the end of 2026 [1] - As a result of this agreement, the adjusted profit forecasts for 2025, 2026, and 2027 have been increased to RMB 5.6 billion [1]

Group 1 - The core viewpoint of the news is that the Chongqing government has implemented strong policies to support the high-quality development of the innovative drug industry, aiming to accelerate the approval and commercialization of new drugs by 2027 [1] - The policy includes measures such as R&D subsidies, clinical acceleration, industrial clusters, and international cooperation, covering the entire chain from drug development to market entry [1] - The goal is to approve 1 to 3 innovative drugs annually, reach a total of 10 innovative drugs, cultivate 3 industrial innovation complexes, and establish 3 high-level innovation platforms by 2027 [1] Group 2 - In terms of product layout, the Heng Seng Innovative Drug ETF (520500) has seen continuous net inflows for six consecutive trading days, indicating strong investor interest [2] - As of November 6, 2025, the Heng Seng Innovative Drug ETF has a total scale of 1.872 billion yuan and an average daily trading volume of 1.197 billion yuan over the past five trading days [2] - The ETF tracks companies in the Hong Kong market related to innovative drug research, development, and production, focusing on firms with strong R&D capabilities [2] Group 3 - The innovative drug industry is experiencing positive trends in internationalization and R&D pipeline advancement, which may further enhance the industry's fundamentals [2] - According to Dongwu Securities, the innovative drug sector is expected to remain a key investment theme in 2026 due to its growing international status and market potential [2]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | | | 致：香港交易及結算所有限公司 公司名稱: 信達生物製藥 呈交日期: 2025年11月6日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | 是 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01801 | 說明 | 普通股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 5,000,000,000 | USD | | 0.00001 | USD | | 50,000 | | 增加 / 減少 (-) | | | 0 | | | | USD | | 0 | | 本月底結存 | | | 5,000,000,000 | USD | | 0.00001 | USD | | 50,000 | 本月底法定/註冊股本總額： USD 50,000 F ...

Group 1 - The core viewpoint of the report indicates that Hansoh Pharmaceutical (03692) is expected to have smooth sales of existing products in the second half of the year, with an $80 million upfront payment from Roche expected to be recognized by the end of 2025, which will facilitate the development of HS-20110 [1] - Innovating drugs are making significant progress in international markets, with Hansoh Pharmaceutical granting Roche exclusive global rights for the antibody-drug conjugate HS20110 outside Greater China, and Innovent Biologics (01801) collaborating with Takeda to advance new generation tumor immunotherapy (IO) and antibody-drug conjugates (ADC) [3] - The eleventh batch of centralized procurement in mainland China has included 55 types of drugs, but the impact on major Hong Kong pharmaceutical companies like Hansoh Pharmaceutical, CSPC Pharmaceutical Group (01093), and China National Pharmaceutical Group (01177) is expected to be limited as none of their core products are involved [4] Group 2 - The Hang Seng Healthcare Index underperformed the Hang Seng Index in October, declining by 11.1%, primarily due to concerns over potential impacts from increased drug tariffs in the U.S. and the upcoming expiration of the patent for the weight-loss drug semaglutide in China in 2026 [2] - The collaboration between Innovent Biologics and Takeda is expected to accelerate the development of tumor immunotherapy and ADCs, benefiting both product development and sales [3] - The report highlights that Roche's extensive experience in ADC development is likely to ensure the smooth progress of HS20110's development [3]