Core Viewpoint - The approval of Tafasitamab (brand name: Mingnuokai) in combination with Lenalidomide for the treatment of adult patients with relapsed/refractory diffuse large B-cell lymphoma (r/rDLBCL) marks a significant milestone as it is the first CD19 monoclonal antibody approved for this indication in China [1] Company Summary - The company, Innovent Biologics, has received approval from the National Medical Products Administration (NMPA) for its CD19-targeting product Tafasitamab [1] - This approval highlights the company's commitment to addressing unmet medical needs in oncology [1] Industry Summary - The approval of Tafasitamab represents a breakthrough in the treatment landscape for r/rDLBCL in China, potentially improving outcomes for patients who are not suitable for autologous stem cell transplantation [1] - The introduction of this therapy may enhance competition in the oncology market, particularly in the segment of targeted therapies for hematological malignancies [1]

Core Viewpoint - The ICBC Medical Care Stock Fund (000831) has shown positive performance with a recent net value of 2.5640 yuan, reflecting a growth of 2.07% [1] Performance Summary - The fund's one-month return is 4.48%, ranking 672 out of 1022 in its category - Over the last three months, the return is 7.69%, with a ranking of 96 out of 1009 - Year-to-date, the return stands at 12.51%, ranking 128 out of 999 [1] Holdings Overview - The top ten holdings of the 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 Details - The ICBC Medical Care 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 [1][2]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 27.24 RMB [1][5] Core Insights - The company achieved profitability in Q1 2025, with a revenue of 381 million RMB, representing a year-on-year growth of 129.92%. The core product, Acalabrutinib, generated sales of 311 million RMB, up 89.22% year-on-year [3][4] - The gross margin for Q1 2025 increased to 90.5%, up 5.1 percentage points from the same period last year [3] - The company has a strong cash position with approximately 7.8 billion RMB in cash and cash equivalents as of March 31, 2025 [3] Summary by Sections Financial Performance - Q1 2025 revenue: 381 million RMB, up 129.92% YoY - Q1 2025 net profit: 18 million RMB, with a non-recurring net profit of 1.59 million RMB [3] - R&D expenses in Q1 2025: 208 million RMB, up 16.81% YoY; sales expenses: 114 million RMB, up 27.34% YoY; management expenses: 43 million RMB, up 0.83% YoY [3] Product Pipeline and Clinical Trials - The company is advancing multiple clinical registrations in oncology and autoimmune diseases, with plans to initiate two overseas Phase 3 clinical studies in 2025 [4] - Acalabrutinib received NMPA approval for first-line CLL/SLL treatment, and several other products are in various stages of clinical trials [4][5] Future Catalysts - The report highlights several upcoming catalysts within the next 12 months, particularly focusing on data from SLE and AML studies [5] - The company is expected to release long-term efficacy data for various clinical trials, which could significantly impact its stock performance [5] Valuation - The target market capitalization is estimated at 48 billion RMB, corresponding to a stock price of 27.24 RMB, based on DCF and NPV methods [5]

Group 1 - The pharmaceutical sector is experiencing significant activity, with notable stocks such as Sanofi and Yipinhong reaching their daily limit up of 19.99%, and others like Shutaishen rising over 9% [1] - Major pharmaceutical companies reported impressive Q1 earnings, with BeiGene achieving a revenue of 8.048 billion yuan, a 50.2% increase from the previous year, and a significant reduction in net losses [1] - Innovent Biologics reported a revenue of 381 million yuan for Q1, marking a 129.92% year-on-year growth, and a net profit of 18 million yuan, up 112.62% year-on-year, indicating a turnaround to profitability [1] Group 2 - Wanlian Securities forecasts a performance divergence in the pharmaceutical sub-sectors for Q1 2024 and 2025, with strong revenue and profit growth expected in medical R&D outsourcing, hospitals, and other biological products [2] - The chemical pharmaceutical sector is gaining market attention, focusing on innovation-driven growth, domestic production, and policy immunity [2] - China Galaxy notes that the pharmaceutical sector has undergone a long adjustment period, resulting in low valuations and underweight public holdings, with expectations for policy support and market demand recovery to drive growth [2]

Investment Rating - The report maintains a "Strong Buy" rating for the pharmaceutical sector, indicating a positive outlook for investment opportunities in this industry [2]. Core Insights - The pharmaceutical sector has shown resilience with a weekly increase of 1.27%, outperforming the CSI 300 index by 0.16 percentage points, ranking 11th among 31 sectors [7][26]. - The report highlights the potential recovery of the industry due to favorable policies and the gradual rebound of the hospital market, which was previously impacted by anti-corruption measures and centralized procurement [4][26]. - The focus on innovative therapies is expected to drive significant growth, with an emphasis on domestic BIC/FIC innovative drugs showing steady improvement in both quantity and quality [4][26]. Summary by Sections 1. Pharmaceutical Sector Performance - The pharmaceutical sector's weekly performance was +1.27%, with sub-sectors such as Traditional Chinese Medicine II (+1.73%), Medical Services (+1.45%), and Chemical Pharmaceuticals (+1.44%) showing notable gains [7][26]. 2. Key Company Ratings - Companies such as Aosaikang (002755.SZ) and Cloudtop New Medicine (01952.HK) received "Buy" ratings, while Renfu Pharmaceutical (600079.SH) and Dize Pharmaceutical (688192.SH) were rated as "Hold" [1][4]. 3. Notable Industry News - BeiGene initiated a head-to-head Phase III clinical trial for BGB-16673, a targeted BTK PROTAC drug, which has shown promising results in earlier trials [26][27]. - AbbVie received FDA approval for its c-Met targeted ADC drug, marking a significant milestone in the ADC product line [29][30]. 4. Investment Recommendations - The report recommends focusing on high-quality targets within the formulation sector, particularly companies with efficient management and strong product pipelines, such as Aosaikang and Dize Pharmaceutical [4][26].

Macro Commentary - The US economy shows signs of slowing down, with significant declines in retail and manufacturing output due to tariff impacts, particularly affecting durable goods like automobiles and electronics [2] - Despite the slowdown, unemployment claims remain stable, indicating that the service sector is less affected, and employment in this sector remains robust [2] - Inflation is expected to rebound temporarily from May to August, with the Federal Reserve likely to maintain interest rates until September, when a potential rate cut may occur [2] Industry Commentary - The Chinese pharmaceutical sector is experiencing a strong trend in innovative drug exports, with several significant business development transactions occurring despite recent tariff tensions [5][6] - The MSCI China Healthcare Index has risen by 14.9% since early 2025, although it has underperformed compared to the broader MSCI China Index [5] - The US innovative drug prices are unlikely to decrease in the short term due to recent executive orders, but long-term pressures on healthcare spending are anticipated [7] Company Initiation - The report covers Angelalign Technology (6699 HK), a leading provider of invisible orthodontic solutions in China, which has maintained a market share of 42% in the domestic market [9][10] - The company is expected to achieve a revenue compound annual growth rate (CAGR) of 23.8% from 2019 to 2024, with a projected CAGR of 18.0% from 2024 to 2027 [9] - Angelalign is expanding internationally, with a goal to cover over 50 countries and achieve significant revenue growth from overseas markets, which is expected to account for 30% of total revenue by 2024 [11][12]

A股生物制品板块短线拉升，三生国健涨超10%，诺诚健华、荣昌生物、迈威生物、凯因科技、智翔金 泰等跟涨。 ...

InnoCare Pharma (9969.HK) Earnings Review Summary Company Overview - **Company**: InnoCare Pharma (9969.HK) - **Industry**: Biotechnology Key Financial Highlights - **1Q Sales Performance**: - Orelabrutinib sales reached Rmb312 million, representing an increase of 89% year-over-year and a slight increase of 1.5% quarter-over-quarter, outperforming expectations [1] - Sales growth driven by volume expansion in Marginal Zone Lymphoma (MZL) due to National Reimbursement Drug List (NRDL) coverage and market share gains in relapsed/refractory Chronic Lymphocytic Leukemia (CLL)/Small Lymphocytic Lymphoma (SLL) and Mantle Cell Lymphoma (MCL) [1] - **Profitability**: - The company turned profitable in 1Q with earnings of Rmb18 million compared to a net loss of Rmb165 million in 4Q24 [1] - **Gross Margin**: - Improved to 88.4% from 85.3% in 1Q24 and 86.8% in 4Q24, attributed to product scale-up [1] - **Expenses**: - Selling expenses increased by 27% year-over-year, but selling expenses as a percentage of total sales decreased to 37% from 47% in 4Q24 [1] - R&D expenses rose by 17% year-over-year as more assets progressed to pivotal stages [1] - **Cash Position**: - As of 1Q25, the company holds a cash balance of Rmb7.8 billion, providing flexibility for global development and in-licensing opportunities [1] Sales Guidance and Forecasts - **Revised Sales Guidance**: - Management raised sales guidance for Orelabrutinib to over 35% year-over-year growth in 2025, up from the previous estimate of 30% [1] - **Future Sales Growth**: - Sales growth in 2026 may depend on the magnitude of price cuts for Orelabrutinib in the 2025 NRDL revision [1] Clinical Development Updates - **Global Trial Acceleration**: - The company is accelerating global clinical trials for selected assets, including: - ICP-332 (TYK2-JH1) for prurigo nodularis, with phase 2 studies starting in 1H25 [2] - Orelabrutinib's phase 3 global trials for Primary Progressive Multiple Sclerosis (PPMS) and Secondary Progressive Multiple Sclerosis (SPMS) set to begin in mid-2025 [2] - NDA filing for MCL in regions outside the US, such as Singapore [2] - Focus on Acute Myeloid Leukemia (AML) for mesuloclax (BCL2) global development [2] Potential Catalysts - **Upcoming Data Releases**: - Expected phase 2b data for Orelabrutinib in Systemic Lupus Erythematosus (SLE) by the end of 2025 [3] - Phase 2 data for ICP-332 in vitiligo anticipated by mid-2026 [3] - Preliminary clinical data for the company's first Antibody-Drug Conjugate (ADC), ICP-B794 (B7-H3), expected by the end of 2025 or early 2026 [6] Price Target and Risks - **Price Target**: - 12-month target price set at HK$12.72 for H shares and Rmb23.10 for A shares, reflecting a potential upside of 33.9% and 13.5% respectively [7][9] - **Key Risks**: - R&D risks for key clinical assets, lack of proven commercialization track record, pricing uncertainties, and potential entry of generic ibrutinib in 2027 in China [8] Conclusion InnoCare Pharma shows strong sales growth and improved profitability in 1Q, with a solid cash position to support ongoing clinical development. The revised sales guidance and upcoming clinical data releases present potential catalysts for future growth, although risks remain in R&D and market competition.

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company's core product, Acalabrutinib, has shown strong sales growth, leading to an upward revision of the annual sales guidance to 3.5 billion yuan [6] - In 2024, the company achieved revenue of 1.009 billion yuan, a year-on-year increase of 36.68%, while the net profit attributable to the parent company was -440 million yuan [6] - For Q1 2025, the company reported revenue of 381 million yuan, a year-on-year increase of 129.92% and a quarter-on-quarter increase of 22.32%, marking a return to profitability [6] - The company has adjusted its revenue forecasts for 2025-2027, expecting revenues of 1.47 billion, 1.79 billion, and 2.21 billion yuan respectively, with year-on-year growth rates of 45.7%, 21.7%, and 23.3% [6] Sales Performance - The core product Acalabrutinib achieved sales revenue of approximately 1 billion yuan in 2024, representing a year-on-year growth of 49.14% [6] - In Q1 2025, Acalabrutinib's sales revenue reached 311 million yuan, a year-on-year increase of 89.22% [6] Product Pipeline and Internationalization - The company is focusing on building a product matrix in the hematology field centered around Acalabrutinib, with multiple new indications approved and in clinical trials [7][8] - Acalabrutinib received approval for new indications in April 2025 and is expected to rapidly expand in the market due to its inclusion in medical insurance [7] - The company is actively exploring international collaborations and licensing agreements for its important pipelines, including a dual antibody product developed in collaboration with Connoa [8] Financial Summary and Valuation Metrics - The company’s projected revenues for 2025, 2026, and 2027 are 1.47 billion, 1.79 billion, and 2.21 billion yuan respectively, with corresponding P/S ratios of 25.1, 20.6, and 16.7 [10] - The gross margin is expected to remain high, with projections of 87.3% in 2025 and 87.1% in 2027 [10] - The net profit margin is projected to improve from -23.2% in 2025 to -17.5% in 2027 [10]

Core Viewpoint - The company, Innocare Pharma, is holding an investor briefing on May 26, 2025, to discuss its Q1 2025 financial results and operational performance [1][2]. Group 1: Meeting Details - The investor briefing is scheduled for May 26, 2025, from 9:00 AM to 10:00 AM [2]. - The meeting will take place at the Shanghai Stock Exchange Roadshow Center, accessible via the website: http://roadshow.sseinfo.com/ [2]. - The format of the meeting will be an online interactive session [1][2]. Group 2: Participation Information - Investors can submit questions from May 19, 2025, to May 23, 2025, by visiting the Roadshow Center's website or emailing IR@innocarepharma.com [1][3]. - The company will address commonly asked questions during the briefing [1][3]. Group 3: Attendees - Key attendees include Dr. Jisong Cui (Chairman and CEO), Ms. Hulan (Independent Non-Executive Director), Mr. Fu Xin (CFO), and Ms. Yuan Bei (Domestic Information Disclosure Representative) [2].