Core Viewpoint - 康方生物's new indication for依沃西单抗 has been approved by the National Medical Products Administration (NMPA) for first-line treatment of PD-L1 positive non-small cell lung cancer (NSCLC), based on positive results from the HARMONi-2 clinical trial [1][2]. Group 1: Clinical Trial Results - In the HARMONi-2 trial, the median progression-free survival (PFS) for the依沃西 group was 11.14 months, compared to 5.82 months for the帕博利珠 group, with a hazard ratio (HR) of 0.51, indicating a 49% reduction in the risk of disease progression or death [2]. - The interim analysis for overall survival (OS) showed a HR of 0.777, reflecting a 22.3% reduction in the risk of death for the依沃西 group compared to the帕博利珠 group [2]. Group 2: Market Reaction - Despite the positive clinical data,康方生物's stock fell over 19% on April 28, closing at 87.20 HKD per share, while its partner Summit's stock dropped more than 36% [3]. - Market sentiment suggests that while依沃西 shows clinical benefits compared to帕博利珠, it did not achieve the statistical significance expected by investors, as帕博利珠 has shown greater risk reductions in OS in previous trials [3]. Group 3: Company Perspective - 康方生物's CEO,夏瑜, stated that the market's interpretation of the data is somewhat misaligned, emphasizing that OS was not the primary endpoint of the study and that the low maturity of the OS data (39%) was intended to show a trend of benefit [3][4]. - The company designed the HARMONi-2 trial to focus on PFS as the primary endpoint, with the aim of obtaining approval for the first-line NSCLC indication in China [4].

Innovation and Product Development - Akeso, Inc. has developed over 50 innovative projects in various fields, including oncology, autoimmune, and metabolic diseases, with 71 products approved for market and 1 product under NMPA review[10]. - The company has 12 products in Phase III clinical trials and 12 products in Phase I/II clinical trials, with 15 potential first-in-class or best-in-class bispecific/multispecific antibodies[10]. - The company aims to become a leading global biopharmaceutical enterprise by focusing on innovative R&D, establishing a world-class production system, and continuously expanding its commercial network[10]. - Three new products were approved for market launch, and two new indications were approved for existing products[20]. - A total of 24 products are undergoing global clinical research, with over 25 registration/Phase III clinical studies conducted[20]. - The company has submitted new indication applications for five products, indicating ongoing innovation[20]. - The approval of the self-developed drugs Inusimab (PCSK9) and Yiruoqi (the first self-developed IL-12/IL-23 in China) marks the official launch of the company's non-oncology specialty drug business[21]. - The company is building an international leading advantage in tumor immunotherapy with over 40 indications explored through clinical therapy and Phase III clinical studies[21]. - The company is focused on global market expansion and innovative drug development, enhancing its long-term growth foundation[20]. - The company continues to strengthen its global development momentum through source innovation[20]. - The company aims to continue developing new drugs and integrating global resources, focusing on the global development and commercialization of Kadooni and Yiwosi[24]. - The company is strategically advancing Yidafang in various cancers, with ongoing Phase III trials for colorectal cancer and pancreatic cancer initiated[45]. - The company has multiple IND-stage projects in development, indicating a robust pipeline for future growth[105]. Financial Performance - The total revenue for the year ending December 31, 2024, was RMB 2,123.9 million, a decrease of 53.08% compared to RMB 4,526.3 million for the year ending December 31, 2023[25]. - The commercial sales revenue after deducting distribution costs was RMB 2,002.4 million, an increase of 24.88% from RMB 1,603.5 million in 2023, driven by the continued growth of Kadooni (卡度尼利) and the positive sales contribution from Yiwosi (依沃西) after its approval in May 2024[28]. - The gross profit for the year ending December 31, 2024, was RMB 1,834.9 million, a decrease of 58.23% from RMB 4,393.0 million in the previous year[26]. - The company recorded a loss of RMB 501.1 million for the year ending December 31, 2024, compared to a profit of RMB 1,942.4 million for the year ending December 31, 2023[27]. - The company's research and development expenses for the year ending December 31, 2024, were RMB 1,187.7 million, a decrease of 5.29% from RMB 1,254.0 million in the previous year, due to enhanced internal clinical team capabilities[85]. - The sales and marketing expenses for the year ending December 31, 2024, were RMB 1,001.8 million, reflecting a 12.51% increase from RMB 890.4 million in the previous year, driven by accelerated commercialization efforts[87]. - The financial cost for the year ending December 31, 2024, was RMB 68.3 million, a decrease of 21.53% from RMB 87.0 million in the previous year, primarily due to lower borrowing rates[89]. - The company has short-term and long-term loans totaling RMB 3,941.6 million, with RMB 535.5 million due within the next year[91]. - As of December 31, 2024, the company's current assets totaled RMB 8,691.6 million, with cash and cash equivalents amounting to RMB 7,343.9 million, an increase of RMB 2,449.4 million from RMB 4,894.4 million as of December 31, 2023[90]. Clinical Trials and Approvals - Kadooni has received approval for second-line treatment of cervical cancer and has initiated 28 clinical trials across 20 indications, including gastric, lung, and liver cancers[29]. - Yiwosi has shown significant positive results in three Phase III clinical trials, establishing its clinical and commercial value in the NSCLC field[23]. - Kadooni's sNDA for first-line treatment of unresectable locally advanced, recurrent, or metastatic gastric or gastroesophageal junction adenocarcinoma was approved in September 2024[31]. - The company is advancing over 12 Phase III clinical trials and more than 20 Phase II clinical trials for Yiwosi globally, positioning itself as a leader in the market[23]. - The company is advancing multiple Phase III clinical trials for Cardunili, focusing on major indications such as lung cancer and gastric cancer, with ongoing patient enrollment[36][37]. - The AK117 (CD47) trial for head and neck squamous cell carcinoma is the first Phase III registration trial for a CD47 product in solid tumors, with data presented at the 2024 ESMO[48]. - The Phase III trial (AK112-303/HARMONi-2) for Yidafang against Pembrolizumab in treating PD-L1 positive NSCLC achieved positive results, with data presented at the 2024 WCLC[42]. Market Strategy and Expansion - The commercial development journey will begin in 2025, focusing on the hospital market[21]. - The company is committed to upgrading its commercial system to seize opportunities in the rapidly changing Chinese innovative drug industry[73]. - The company has a strategic focus on expanding its oncology and immunology product lines, with substantial investment in clinical trials[108]. - The company aims to leverage its cornerstone drugs, Kadcyla® and Ivosidenib, to cover a broader market space through extensive combination therapies[64]. - The company has established an exclusive sales agreement for monoclonal antibodies with a projected annual cap of RMB 3,000 million for sales and promotion fees by December 31, 2024, and RMB 6,000 million for sales of monoclonal products[150]. Workforce and Operations - The total number of employees as of December 31, 2024, is 3,035, an increase from 2,778 in 2023, reflecting a growth of approximately 9.3%[70]. - The workforce in clinical research has increased to 700 from 679, showing a focus on enhancing research capabilities[70]. - The production, quality assurance, and quality control department has expanded to 814 employees, up from 687, indicating growth in operational support[70]. - The sales and marketing team has grown to 816 employees, an increase from 788, reflecting an emphasis on market expansion[70]. - The company has maintained stable employee relations without any significant strikes or labor disputes affecting business activities[142]. Governance and Compliance - The company is committed to compliance with relevant laws and regulations, with no significant violations reported for the year ending December 31, 2024[141]. - The company has implemented internal controls to ensure compliance with listing rules regarding related party transactions[157]. - The board of directors includes Dr. Xia Yu as the Chairman, President, and CEO, and Dr. Li Baiyong as the Executive Vice President and Chief Scientific Officer[137]. - The company has undergone changes in its board composition, with several appointments and resignations effective June 30, 2024[137]. - The company has a dedicated company secretary with over 17 years of experience in providing corporate services[134]. Financial Commitments and Investments - The company completed the acquisition of a 35% stake in 康融東方 for RMB 267.4 million on February 8, 2024, making it a wholly-owned subsidiary[95]. - The company's capital commitments as of December 31, 2024, were RMB 734.0 million, down from RMB 770.0 million a year earlier, primarily due to ongoing construction of production facilities[98]. - The net proceeds from the 2024 March placement were utilized according to previously disclosed intentions, ensuring transparency in fund allocation[106]. - The company plans to accelerate clinical trials for multiple products, including PD-1/CTLA-4 and CD47, with significant funding allocated for these initiatives[105]. Community Engagement and Corporate Responsibility - The group made charitable donations of approximately RMB 41.8 million during the year, an increase from RMB 23.6 million in 2023[179]. - The company is committed to environmental sustainability and adheres to relevant environmental protection laws and regulations[140]. - The company has a strong focus on resource efficiency, waste reduction, and energy savings in its operations[140].

Investment Rating - The report maintains a "Buy" rating for 康方生物 (9926 HK) with a target price of HKD 115, indicating a potential upside of 16.3% from the current price of HKD 98.90 [7]. Core Insights - 康方生物's application for the PD-L1 positive NSCLC indication for its drug 依沃西 has been approved in mainland China earlier than expected, just 9 months after submission [1]. - The initial overall survival (OS) interim analysis from the HARMONi-2 study shows a hazard ratio (HR) of 0.777, indicating a 22.3% reduction in the risk of death, although it has not yet reached statistical significance [1]. - The report expresses optimism regarding the overseas development of 依沃西, particularly the ongoing HARMONi-7 study, which is expected to have a higher probability of achieving significant results due to a larger sample size and a focus on patients with higher PD-L1 expression [1]. Summary by Sections Approval and Clinical Data - The approval of 依沃西 for PD-L1 positive NSCLC in mainland China reflects regulatory confidence in the clinical benefits observed [1]. - The interim analysis of the HARMONi-2 study is based on a sample size of 398, with a low alpha allocation value of 0.0001, suggesting that the results may improve as more data matures [1][2]. Market Potential - The report forecasts peak sales of 61 billion RMB in mainland China and 5.7 billion USD overseas for 依沃西, highlighting its significant commercial potential [1]. - The upcoming data readout from the global Phase III HARMONi study for 2L EGFR+ NSCLC is anticipated to be a key event for investors [1]. Pipeline Developments - The report notes that the first clinical-stage antibody-drug conjugate (ADC) targeting HER3 has commenced enrollment in Australia, and a second ADC targeting TROP-2/Nectin-4 has received FDA clinical approval [1].

Core Viewpoint - The communication meeting held by Kangfang Biotech was prompted by a significant stock price drop of its overseas partner Summit Therapeutics, following the release of preliminary overall survival (OS) data for its dual-target antibody Ivosidenib, which led to market volatility and investor concerns about clinical data interpretation [1][4][5]. Group 1: Clinical Data and Market Reaction - The initial OS data for Ivosidenib was based on immature data and should be interpreted cautiously, as it was a mid-term analysis required by the National Medical Products Administration [2][10]. - The market had high expectations for Ivosidenib, especially after its previous clinical data showed significant efficacy compared to Keytruda (K drug), with a median progression-free survival (mPFS) of 11.14 months versus 5.82 months for K drug, and a hazard ratio (HR) of 0.51, indicating a 49% reduction in disease progression or death risk [3][4]. - Following the release of the OS data, Summit Therapeutics' stock fell by 36%, reflecting the market's reaction to the perceived overvaluation based on previous expectations [4][9]. Group 2: Company Strategy and Future Outlook - Kangfang Biotech's chairman emphasized that the OS data was not the primary endpoint of the study, and the focus should remain on the primary endpoint of progression-free survival (PFS) and the trend in OS [6][7]. - The company aims to provide innovative treatment options for lung cancer patients, marking a significant milestone for both Kangfang Biotech and the Chinese innovative drug industry [8][9]. - Kangfang Biotech is committed to advancing its clinical research in alignment with global standards, with confidence in the success of its ongoing studies, including the HARMONi-7 trial in the U.S. [11].

Group 1 - Southbound funds net bought Hong Kong stocks worth 2.03 billion HKD on April 28, with significant purchases in the Tracker Fund (20.43 billion HKD) and China Enterprises (12.51 billion HKD) [1] - Continuous net selling of Xiaomi for 8 days totaling 5.11 billion HKD, and net selling of SMIC for 5 days totaling 1.18 billion HKD [3] - Goldman Sachs raised its forecast for southbound fund inflows to 110 billion USD from 75 billion USD, with 78 billion USD net inflow year-to-date, representing 75% of last year's total inflow [4] Group 2 - Kangfang Biopharma's stock dropped nearly 12% despite receiving approval for its bispecific antibody drug for treating PD-L1 positive non-small cell lung cancer [5] - Alibaba and Tencent experienced slight declines of 0.35% and 0.27% respectively, with Tencent purchasing GPU resources worth approximately 2 billion CNY from ByteDance [5][6]

Core Viewpoint - The approval of the new indication for Ivosidenib (依沃西单抗) by Kangfang Biopharma (康方生物) did not positively impact the company's stock price, which fell by 11.83% on April 28 due to concerns over the overall survival (OS) data, which showed clinical benefits compared to Keytruda (K药) but lacked statistical significance [1][4][6]. Summary by Sections Drug Approval and Clinical Data - Ivosidenib received approval for a second indication as a first-line treatment for locally advanced or metastatic non-small cell lung cancer (NSCLC) with PD-L1 positivity (TPS≥1%) and negative for EGFR and ALK mutations [4]. - The approval was based on positive results from the AK112-303/HARMONi-2 clinical trial, which demonstrated a median progression-free survival (PFS) of 11.14 months for Ivosidenib compared to 5.82 months for Keytruda, with a hazard ratio (HR) of 0.51, indicating a 49% reduction in the risk of disease progression or death [4][5]. Overall Survival Analysis - A mid-term analysis at 39% maturity showed that Ivosidenib reduced the risk of death by 22.3% compared to Keytruda, although this result did not achieve statistical significance [6][8]. - The total survival data is considered the gold standard for evaluating the efficacy of cancer therapies, and there are differing opinions on the interpretation of these results [6][9]. Market Reaction and Future Prospects - The market's reaction to the OS data has been viewed as misaligned with the essence of the clinical findings, according to Kangfang's chairman, Xia Yu [6][8]. - The ongoing competition with Keytruda is significant, as lung cancer remains the most prevalent and deadly cancer type in China, with Ivosidenib's performance in clinical trials being closely monitored [9][10]. Upcoming Research - The HARMONi-7 study, conducted by Summit, will further evaluate Ivosidenib against Keytruda in patients with high PD-L1 expression, with a focus on achieving statistically significant benefits in overall survival [10]. - This study is crucial for determining whether Ivosidenib can genuinely challenge Keytruda's dominant position in the market [10].

Group 1 - Northbound capital recorded a net purchase of 20.3 billion HKD in the Hong Kong stock market on April 28, with the Shanghai-Hong Kong Stock Connect seeing a net purchase of 23.43 billion HKD and the Shenzhen-Hong Kong Stock Connect experiencing a net sale of 3.13 billion HKD [1] - The stocks with the highest net purchases included the Tracker Fund of Hong Kong (02800), Hang Seng China Enterprises (02828), and CanSino Biologics (09926) [1] - The stocks with the highest net sales were Alibaba-W (09988), Tencent (00700), and Xiaomi Group-W (01810) [1] Group 2 - CanSino Biologics (09926) received a net purchase of 7.79 billion HKD, with a report indicating positive results from its clinical trial for the dual-specific antibody AK112 in treating advanced squamous non-small cell lung cancer [5] - Meituan-W (03690) saw a net purchase of 5.56 billion HKD, with analysts noting that the company does not face risks of ADR delisting and has stable revenue sources [5] - China Shenhua (01088) had a net purchase of 5.17 billion HKD, with analysts highlighting its strong cash flow supporting high dividend payouts despite pressure from falling coal prices [6] Group 3 - The Tracker Fund of Hong Kong (02800) and Hang Seng China Enterprises (02828) received net purchases of 20.43 billion HKD and 12.5 billion HKD, respectively, indicating increased investor confidence [4] - Tencent (00700) and Alibaba-W (09988) faced net sales of 5.97 billion HKD and 14.24 billion HKD, respectively, amid concerns regarding the ongoing US-China trade tensions [6] - China Mobile (00941) received a net purchase of 1.13 billion HKD, while Xiaomi Group-W (01810) and SMIC (00981) experienced net sales of 2.56 billion HKD and 1.36 billion HKD, respectively [6]

南向资金今日净买入20.3亿元。港股通（沪）方面，康方生物、盈富基金分别获净买入11.38亿港元、 10.29亿港元；阿里巴巴-W净卖出额居首，金额为8.84亿港元；港股通（深）方面，恒生中国企业、盈 富基金分别获净买入12.51亿港元、10.14亿港元；阿里巴巴-W净卖出额居首，金额为5.41亿港元。 ...

Group 1 - The core viewpoint of the article highlights the performance of the CSI Hong Kong-Shanghai Biotech Theme Index, which reflects the overall performance of listed companies in the biotech sector from mainland China and Hong Kong [1][3] - The CSI Hong Kong-Shanghai Biotech Theme Index has shown an increase of 0.82% over the past month, 12.93% over the past three months, and 12.21% year-to-date [1] - The index consists of 50 sample companies involved in biopharmaceuticals, pharmaceuticals, and biotech services, with a base date of December 28, 2018, set at 1000.0 points [1] Group 2 - The top ten weighted companies in the index include: Heng Rui Medicine (13.16%), BeiGene (10.43%), WuXi AppTec (8.41%), Mindray Medical (7.71%), WuXi Biologics (5.15%), Innovent Biologics (4.82%), CanSino Biologics (3.91%), Shanghai Pharmaceuticals (2.74%), China National Pharmaceutical Group (2.45%), and Shanghai RAAS Blood Products (1.83%) [1] - The market share of the index holdings is distributed as follows: Hong Kong Stock Exchange 41.72%, Shanghai Stock Exchange 35.62%, and Shenzhen Stock Exchange 22.66% [1] Group 3 - In terms of industry composition, biopharmaceuticals account for 43.26%, chemical drugs for 25.78%, pharmaceutical and biotech services for 21.39%, and medical devices for 9.57% [2] - The index samples are adjusted semi-annually, with adjustments occurring on the next trading day after the second Friday of June and December each year [2] - Special circumstances may lead to temporary adjustments to the index, including the removal of samples that are delisted or changes due to mergers, acquisitions, or other corporate actions [2]

Group 1 - Jianyin International raised the target price for Kangfang Biopharma (09926) by 33.3%, from HKD 90 to HKD 120, reflecting improved earnings forecasts and high potential for the company's lung cancer drugs in China and overseas [1] - Kangfang Biopharma's fundamentals are strong, with revenue forecasts for 2025, 2026, and 2027 increased to RMB 3.3 billion, RMB 5.3 billion, and RMB 9.6 billion respectively, and adjusted profit forecasts for 2025, 2026, and 2027 raised to RMB 121 million, RMB 1.2 billion, and RMB 3.9 billion respectively [1] - The approval of Ebdarokimab for moderate to severe plaque psoriasis in China is a significant milestone for Kangfang Biopharma [1] Group 2 - On April 23, Kangfang Biopharma announced that its drug AK112 met the target efficacy in a Phase 3 clinical trial for advanced squamous non-small cell lung cancer, showing superior efficacy compared to Tislelizumab [2] - The independent data monitoring committee confirmed that AK112's efficacy is significantly better than that of Tislelizumab, aligning with previously published Phase 3 clinical data [2] - AK112's performance indicates it outperforms Merck's well-known PD-1 biologic competitor, Keytruda [2]