Company Strategy & R&D Model - BeOne aims to transform cancer care globally by delivering innovative medicines faster, more equitably, and affordably[12, 16] - The company's R&D model leverages a prolific research organization, global manufacturing, efficient clinical development, and global commercial access to achieve superior R&D returns[25] - BeOne focuses on delivering high-quality innovation by designing superior molecules with exceptional profiles and halting programs that don't meet high standards; over 60 preclinical programs have been terminated in the past 3.5 years[30, 32] - The company is building a deep pipeline, aiming to deliver 8-10 highly differentiated new molecular entities (NMEs) into the clinic in each focused disease area in the next 3-6 years[42] Hematology Portfolio & CLL - BeOne is positioned to address unmet needs in CLL with a wholly-owned portfolio including BRUKINSA, sonrotoclax, and BTK CDAC[93] - BRUKINSA is the only BTKi to demonstrate PFS superiority over ibrutinib in a head-to-head Phase 3 R/R CLL trial[100] - In treatment-naive CLL/SLL patients, 60-month PFS with zanubrutinib was 72.2% in patients with del(17p), similar to 75.8% in patients without del(17p)[105] - Sonrotoclax + zanubrutinib achieved fast and deep responses in TN CLL/SLL, with 84% uMRD at week 48 in the 160mg dose group and 92% uMRD in the 320mg dose group[133] Solid Tumor Portfolio - The global CDK4/6i market is large and growing, estimated at approximately $13 billion[244] - BG-C9074 (B7-H4 ADC) demonstrated a confirmed ORR of 24% and an unconfirmed ORR of 29% among 68 efficacy-evaluable patients, with activity at 6mg/kg Q3W showing a confirmed ORR of 43% and an unconfirmed ORR of 48%[296] - BGB-58067 (PRMT5i) showed early responses at the second dose level in a Phase 1 study, with three objective responses observed in histologically distinct tumor types[331]

Group 1 - The Hong Kong innovative drug sector has experienced a decline, with notable drops in stock prices for several companies [1] - Biontech (06955.HK) fell over 6%, while Zai Lab (09688.HK) decreased nearly 4% [1] - Other companies such as CSPC Pharmaceutical (01093.HK), BeiGene (06160.HK), and Hansoh Pharmaceutical (03692.HK) also saw declines, with CSPC dropping over 3% [1]

Core Viewpoint - The innovative pharmaceutical sector is experiencing a resurgence, driven by improved fundamentals, supportive policies, and increased market interest, particularly in the A-share and Hong Kong markets [1][3][12]. Group 1: Market Performance - The pharmaceutical sector has shown strong performance this year, with a notable rebound starting from April 9, despite recent pullbacks [1]. - The innovative drug segment in A-shares and Hong Kong stocks has continued to strengthen, indicating a recovery after four years of adjustment [1][3]. - The total amount of business development (BD) transactions for innovative drugs is projected to rise significantly, from $8.4 billion in 2020 to $51.9 billion in 2024 [4]. Group 2: Policy and Industry Trends - The policy environment has shifted from cost control to encouraging innovation, providing strong support for the development of innovative drugs [3]. - The number and quality of innovative drug products in China have significantly improved, leading to increased interest from foreign pharmaceutical companies [3][5]. - The penetration rate of innovative drugs in China is expected to rise, with current levels at around 20%, compared to 70%-80% in the U.S. [5]. Group 3: Investment Opportunities - Fund managers are optimistic about the future of innovative drugs, emphasizing the importance of technology and growth attributes in the sector [6]. - Investment strategies include focusing on high-quality companies, innovative drug leaders, and traditional pharmaceutical companies transitioning to innovative drugs [7][8][9]. - Investors can consider actively managed pharmaceutical funds or industry-themed ETFs to gain exposure to the innovative drug market [10][12]. Group 4: Fund Performance - Several funds managed by 工银瑞信 have demonstrated strong performance, ranking highly in their respective categories over various time frames [13][15]. - The 工银港股通创新药ETF has seen significant inflows, reflecting market preference for innovative drug companies [11].

Group 1 - The A-share market indices showed positive performance, with the pharmaceutical sector remaining active, particularly the innovative drug ETF Tianhong (517380), which rose by 1.53% [1] - The innovative drug ETF Tianhong is the largest in the market, covering both A-shares and Hong Kong stocks, and has achieved a net value growth rate of 24.96% over the past year, outperforming its benchmark by 5.45% [1] - The Biopharmaceutical ETF (159859) also saw an increase of 0.55%, with a trading volume exceeding 20 million yuan, indicating strong investor interest [1] Group 2 - The article from "Learning Times" emphasizes the strategic importance of accelerating innovative drug research and development, highlighting the need for a sustainable investment and financing system in the pharmaceutical sector [2] - Recommendations include enhancing multi-tiered capital market support for pharmaceutical companies, encouraging long-term funds to invest in biopharmaceuticals, and creating a favorable incubation environment for the industry [2] - The article also suggests improving mechanisms for handling innovation failures and enhancing intellectual property protection to incentivize high-quality research outputs [2] Group 3 - According to Zhongtai Securities, innovative drugs represent a clear industry trend with significant growth potential, and the investment focus on innovative drugs is expected to remain unchanged throughout the year [3] - Guojin Securities expresses strong confidence in the pharmaceutical sector reversing its trend by 2025, with innovative drugs being a key investment opportunity [3] - Xiangcai Securities notes that after a decade of investment in innovative drugs, the sector is entering a phase of results realization, supported by continuous clinical data and accelerated commercialization [3]

Group 1 - The core index, the CESHKB, increased by 2.7% to 7293.11 points with a trading volume of 11.568 billion [1] - The CESHKB has risen by 15.52% in the past month, 19.54% in the past three months, and 58.49% 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] Group 2 - The top ten weighted stocks in the CESHKB include: CanSino Biologics (10.91%), Innovent Biologics (9.99%), BeiGene (9.73%), WuXi Biologics (9.42%), 3SBio (8.11%), Zai Lab (6.05%), WuXi AppTec (5.56%), Kelun-Biotech (5.15%), Kingstar Bio (4.37%), and Ascentage Pharma-B (3.89%) [1] - The CESHKB is entirely composed of stocks listed on the Hong Kong Stock Exchange, with a 100% allocation [2] - The index's holdings are exclusively in the healthcare sector, specifically in pharmaceuticals and biotechnology, also at a 100% allocation [2]

Core Insights - The core viewpoint of the news is the performance and holdings of the Industrial and Commercial Bank of China (ICBC) Healthcare Stock Fund, highlighting its recent net value, returns, and top holdings [1]. Fund Performance - The latest net value of ICBC Healthcare Stock Fund is 2.5760 yuan, reflecting a growth of 1.18% - The fund's return over the past month is -0.46%, ranking 514 out of 1026 in its category - Over the last six months, the fund has achieved a return of 11.85%, ranking 173 out of 993 - Year-to-date, the fund has returned 13.03%, ranking 137 out of 997 [1]. Fund Holdings - The top ten holdings of the ICBC Healthcare Stock Fund account for a total of 39.79%, with the following key positions: - Heng Rui Medicine: 8.90% - WuXi AppTec: 5.12% - Aier Eye Hospital: 4.94% - BeiGene: 3.77% - Zai Lab: 3.52% - New Horizon Health: 3.27% - Mindray Medical: 2.80% - Yuyue Medical: 2.76% - United Imaging Healthcare: 2.47% - Innovent Biologics: 2.24% [1]. Fund Management - The ICBC Healthcare Stock Fund was established on November 18, 2014, and as of March 31, 2025, it has a total scale of 2.724 billion yuan - The fund is managed by Zhao Bei and Ding Yang, with Zhao having extensive experience in healthcare research and fund management [2].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HK$195.16, representing a potential upside of 32% from the current price of HK$147.70 [2][10][17]. Core Insights - The company achieved its first GAAP profit in Q1 2025, with revenue growth and pipeline realization creating a positive cycle. The revenue for 2024 was reported at US$3.81 billion, a 55% year-on-year increase, and the company reported a net loss of US$645 million, narrowing by 27% [7][11]. - The main product, Zebutini, saw Q1 2025 sales reach US$792 million, a significant increase of 62.1% year-on-year, indicating a strong commercialization foundation [8]. - The R&D pipeline is progressing well, with several products in critical clinical stages, including the BCL-2 inhibitor Sonrotoclax and BTK CDAC (BGB-16673), which are expected to yield important clinical results soon [9]. Financial Summary - The company’s revenue is projected to grow from US$3.81 billion in 2024 to US$5.39 billion in 2025, with a net profit expected to turn positive at US$93 million in 2025 [12][13]. - The report indicates a decrease in EPS estimates for 2025 and 2026, revised to US$0.06 and US$0.37 respectively, reflecting a 39% and 29% reduction from previous estimates [3][13]. - The financial data shows a significant improvement in operating cash flow, with Q1 2025 cash inflow reaching US$44.08 million, indicating enhanced operational efficiency [7][12]. Product Performance - The core product, Baiyueze, is expected to generate sales of US$3.31 billion in 2025, a 43.3% increase from previous estimates, while other products are projected to contribute US$0.81 billion [14][16]. - The report highlights that the company’s revenue structure is increasingly concentrated on core products, supported by ongoing expansion in overseas markets [14]. Valuation Analysis - The DCF model used for valuation indicates a target price of HK$195.16, based on a WACC of 8.1% and a perpetual growth rate of 4.5% [17][19]. - The company’s projected enterprise value/revenue for 2025 is 5.5 times, which is below the industry average of 8.1 times, suggesting that the market has not fully recognized the company’s strong commercialization capabilities [18].

智通财经6月23日电，香港恒生指数收涨0.67%，恒生科技指数涨1.05%。毛戈平涨超7%，百济神州涨超 6%，理想汽车涨超5%，中芯国际、华虹半导体涨超4%；博雷顿跌超4%，沪上阿姨跌超3%。 香港恒生指数收涨0.67% 恒生科技指数涨1.05% ...

Summary of Conference Call Records Industry Overview - The pharmaceutical sector, particularly the innovative drug segment, remains a core focus despite recent adjustments, which may present entry opportunities [1][2] - The industry is benefiting from overseas expansion and positive data from high-quality drugs, with expectations for continued growth over the next two to three years [1][2] - The Hong Kong innovation index shows significant room for growth compared to its peak in 2021, currently at historical median levels [1][2] Key Catalysts for Future Growth - Upcoming catalysts include: - June: R&D Day for BeiGene and other leading companies - August: Mid-year performance reports - September: World Lung Cancer Conference (WCLC) - October: American Society of Clinical Oncology (ASCO) meeting - December: American Society of Hematology (ASH) annual meeting - Adjustments in the medical insurance catalog and collaboration with commercial insurance are also noteworthy developments [4] Recommended Companies - Top recommendations include BeiGene, which is currently undervalued in the Hong Kong market, and Heng Rui Medicine [5] - Mid-cap companies to watch include Innovent, CSPC, and Kangfang, with potential for over 30% growth [5] - Small-cap companies with pipeline value reassessment logic are also highlighted, including Yifang Bio and Dize Pharmaceutical in A-shares, and Yuanda Pharmaceutical in Hong Kong [6] Performance Expectations - Companies in the innovative drug supply chain, such as WuXi AppTec, Kelun Pharmaceutical, and Kanglong Chemical, are expected to maintain strong performance in their mid-year reports [7] - CXO companies like Tigermed and Zhaoyan New Drug are seeing good order trends, although a rapid recovery in performance may not be immediate [7] Life Sciences Sector - Life sciences upstream companies have seen stock price adjustments but are showing early signs of recovery, with revenue growth guidance generally above 15% for the year [8] - Companies like WuXi AppTec, Haoyuan, and Bide are noted for their strong fundamentals and potential for mergers and acquisitions [8] Potential Recovery Areas - The medical device, OTC, and consumer sectors may show signs of recovery in the second half of the year, with some companies already indicating marginal improvements [9] PROTAC Technology Insights - PROTAC technology is recognized for its potential to address challenges in small molecule drug development, particularly in targeting hard-to-drug proteins [3][10] - The technology has shown promise in treating blood diseases, with BeiGene's BTK PROTAC entering Phase III clinical trials [18] - PROTAC's advantages include the ability to degrade multiple target proteins and improved selectivity, which may reduce toxicity compared to traditional small molecules [12][14] Clinical Research and Development - Clinical studies are demonstrating PROTAC's advantages over traditional small molecules in various therapeutic areas, including oncology and autoimmune diseases [15][24] - Companies like BeiGene are leading in the development of PROTAC platforms, with several products in advanced clinical stages [25] Challenges and Risks - The development of PROTAC technology faces challenges, including the need for sophisticated molecular design capabilities and potential competition among small molecules [17][30] - The market for AR PROTAC in prostate cancer is limited due to existing competition and established treatment standards [22] Conclusion - The innovative drug sector, particularly through the lens of PROTAC technology, presents significant investment opportunities despite current market adjustments. Companies with strong pipelines and upcoming catalysts are positioned for potential growth in the coming years [1][4][5][25]

Investment Rating - The report maintains an "Overweight" rating for the pharmaceutical and biotechnology industry [1] Core Insights - The report highlights that the turning point for research services has arrived, with a focus on companies such as Haoyuan Pharmaceutical, Bidai Pharmaceutical, and Baiaosaitu [1] - The A-share pharmaceutical index has seen a decline of 6.3% this week and an increase of 4.6% year-to-date, underperforming the CSI 300 by 3.9% and outperforming it by 2.3% respectively [4][9] - The report emphasizes the positive impact of recent policies accelerating the development of innovative drugs, which benefits upstream companies involved in research and production [4][18] Summary by Sections Industry Trends - The A-share pharmaceutical index has decreased by 6.3% this week and increased by 4.6% year-to-date, while the H-share biotechnology index has dropped by 8.2% this week but increased by 48% year-to-date [4][9] - The report notes that the pharmaceutical sector has experienced significant declines, particularly in innovative drugs, with H-shares showing more pronounced drops due to previous high gains [4][9] Research and Development Progress - Recent policies have accelerated the approval processes for innovative drugs, with the FDA reducing NDA approval times from 10-12 months to 1-2 months, and China's CDE shortening IND review times from 60 days to 30 days [18][19] - The report indicates that the demand from the industrial sector is recovering, which will benefit early-stage research suppliers [20] Market Insights - The report suggests focusing on companies that are expected to benefit from the early-stage research demand, mergers and acquisitions, and the commercialization of innovative drugs [19] - Specific companies to watch include Haoyuan Pharmaceutical, Bidai Pharmaceutical, Baiaosaitu, and others in the life sciences service sector [4][19] Investment Strategy - The report recommends a ranking of sub-sectors for investment: innovative drugs > CXO > traditional Chinese medicine > medical devices > pharmacies > pharmaceutical commerce [11] - It highlights specific companies for investment based on growth potential, low valuations, and high dividend yields, particularly in the traditional Chinese medicine sector [11][13]