Summary of the Conference Call for BeiGene Company Overview - **Company**: BeiGene - **Industry**: Innovative Pharmaceuticals - **Date of Call**: August 10, 2025 Key Points Company Strategy and Market Position - BeiGene is a leading innovative pharmaceutical company in China, accelerating its international strategy through independent global clinical development and commercialization [2][4] - The company has a strong pipeline with high clinical enrollment speed and quality, particularly in ADC and CDECK platform development, laying a foundation for future new molecular entities [2][4] Core Products and Financial Performance - **Zebutinib**: The core product has shown strong performance in the U.S. market, with second-quarter results exceeding expectations. Year-over-year and quarter-over-quarter growth is robust, especially in the treatment of chronic lymphocytic leukemia (CLL) [2][3] - Projected revenue for 2025 is expected to reach between $5 billion and $5.3 billion, indicating significant growth [3] - Zebutinib's peak sales potential is anticipated to exceed current levels, with a global sales figure of over $2 billion last year [13] New Product Development - In addition to Zebutinib, BeiGene is developing BCL-2 inhibitor Sotorasib and BTK inhibitor CDECK, which are expected to significantly enhance revenue [2][6] - The company is actively expanding into solid tumor areas with approved products like PD-1 and early-stage products such as CDK4, PAN-KRAS, and EGFR-CDECK, which are expected to enter clinical trials in the coming years [2][6][9] Clinical Development and Regulatory Progress - Sotorasib is expected to be approved by 2026, and the progress of BTK-CDECK in Phase III clinical trials is noteworthy [8] - Multiple catalysts for development are anticipated in the second half of the year, including the approval of Sotorasib and updates on various clinical trials [10] Market Dynamics and Competitive Landscape - BeiGene's unique position as the only domestic company conducting independent global clinical development allows it to maintain a competitive edge [4] - The company is well-positioned to navigate U.S. policy changes, including drug price negotiations and Medicare reforms, with minimal impact on its core products [7][27] Financial Projections and Valuation - Future peak sales projections include $7 to $8 billion for Zebutinib, $2.5 billion for Sotorasib, and $2 billion for BTK CDECK, with a total valuation estimate of 350 billion RMB [29] - The company is rated as a "buy" due to its potential for excess returns as a leader in Chinese innovation [29] Additional Insights - The market for chronic lymphocytic leukemia is evolving, with a shift towards targeted therapies like BTK inhibitors, which have a long treatment duration and high patient numbers [12] - Fixed-duration therapies are raising concerns about market size, but real-world studies suggest that overall healthcare costs may decrease, potentially benefiting BeiGene's sales [21] Conclusion - BeiGene is positioned for significant growth with a strong pipeline and strategic international expansion, while navigating market challenges effectively. The company's innovative approach and robust product development are expected to drive future revenue and valuation increases.

根据市场公开信息及8月8日披露的机构调研信息，知名私募重阳投资近期对2家上市公司进行了调研，相关名单如下： 1）塔牌集团 （上海重阳投资管理股份有限公司参与公司电话会议） 相关ETF 科创100ETF华夏 (产品代码: 588800) 调研纪要：塔牌集团表示，7月进入传统淡季，需求端维持疲软态势，销量环比6月有所下降，9月将进入销售旺季。上半年销量逆市增长，得益于 气候适宜施工和粤东低价水泥减少，填补市场空间。煤炭采购周期1.5个月，成本影响滞后2-3个月，6月初采购的煤炭将在三季度体现，预计对成 本下降有贡献。粤东严格执行全省统一错峰生产政策，未采取更严格地方性措施。现有产能能满足市场需求，除产能置换外暂无补产能计划。金 融资产配置合理，投资风险可控，收益稳定可持续。珠三角水泥价格接近成本线，预计随销售旺季到来将企稳回升。管理费用下降主要因去年同 期辞退福利较大。资本开支主要用于环保改造、固废处置、光伏发电、智能化和绿色矿山等项目。公司建立弹性薪酬机制，员工薪酬与企业效益 挂钩，持续降本增效。受益于政策红利、需求降幅收窄、煤炭价格下降等因素，预计今年效益好于去年。 2）百济神州 （重阳投资参与公司业绩说明会 ...

Core Viewpoint - The Chinese innovative pharmaceutical industry is transitioning from imitation-based innovation to original innovation, and there is a strong emphasis on expanding into emerging overseas markets to achieve high-quality development [1][2]. Group 1: Industry Insights - Since the reform of the drug review and approval system in 2015, China's innovative drugs have entered a rapid development phase [1]. - Experts at the "Future Path of Chinese New Drugs (T20+)" conference suggested that collaboration among various stakeholders is essential to accelerate the internationalization of innovative drugs [1]. - The potential market in developing countries is significant due to their large populations, and China's innovative drugs are seen as high-quality and affordable alternatives [1]. Group 2: Company Initiatives - Companies like BeiGene, China Biologic Products, and CanSino Biologics are taking proactive steps to promote their innovative drugs in developing countries, contributing to global health challenges such as infectious diseases and chronic illnesses [1]. - A new alliance called the "Emerging Market New Drug Product Export Alliance" was established to facilitate experience sharing and collaborative efforts in promoting products to more countries [2].

Investment Rating - The report maintains an investment rating of "Outperform" with a target price set for leading stocks [3][4]. Core Insights - The innovative drug sector is experiencing fluctuations, but several catalysts are anticipated, including academic conferences, business development achievements, and negotiations for medical insurance [2]. - The National Medical Insurance Administration has updated the data on innovative drugs included in the medical insurance directory, showing rapid hospital admissions for several newly included domestic innovative drugs [2][22]. Summary by Sections Weekly New Drug Market Review - From August 4 to August 10, 2025, the top five companies in the new drug sector by stock price increase were: Beihai Kangcheng (+73.1%), Jiahe Biotech (+39.0%), Gilead Sciences (+30.3%), Heyu Biotech (+21.1%), and Hengrui Medicine (+15.3%). The top five companies with the largest declines were: Hutchison China MediTech (-13.8%), Frontier Biotech (-13.4%), Yifang Biotech (-11.7%), Haichuang Pharma (-9.9%), and Maiwei Biotech (-9.2%) [1][16]. Recommended Stocks to Watch - The report suggests focusing on potential overseas licensing opportunities for significant products, including differentiated GLP-1 assets from companies like Zhongsheng Pharma, Kangyuan Pharma, and Gilead Sciences. Additionally, upgraded PD-1 products from Kangfang Biotech and others are highlighted [2][22]. Key Analysis of the New Drug Industry - The report notes that several innovative drugs newly included in the medical insurance directory are rapidly entering hospitals, with notable growth in hospital admissions for drugs such as Zaiqiang Pharma's recombinant thrombin and Hengrui Medicine's Tazemetostat [2][22][23]. New Drug Approval and Acceptance Status - This week, three new drug applications were approved, including Adalimumab injection from Wuhan Biological Products Research Institute, Dulaglutide injection from Shandong Boan Biotech, and Evinacumab injection from Xi'an Janssen [28][29]. Additionally, four new drug applications were accepted, including Trastuzumab injection from Amgen and others [28][30]. Clinical Application Approval and Acceptance Status - A total of 55 new drug clinical applications were approved this week, while 31 new drug clinical applications were accepted [10][31].

Core Insights - The pharmaceutical industry in Beijing is rapidly expanding, with the overall scale expected to exceed 1 trillion yuan by 2024, marking a significant acceleration in development by 2025 [1] - Beijing is becoming a global hub for pharmaceutical innovation, attracting major international companies such as Bayer, Pfizer, and AstraZeneca to establish research and innovation centers [3][4] Group 1: Industry Growth - In the Changping District, pharmaceutical health enterprises achieved revenues of 33.79 billion yuan from January to April 2023, reflecting a year-on-year growth of 15.1% [1] - The total output value of pharmaceutical health enterprises in Changping reached 17.07 billion yuan from January to May 2023, with a year-on-year increase of 8.8% [1] - Over the past three years, the average annual growth rate of the pharmaceutical health industry in Changping has been nearly 10%, forming a 100 billion yuan industry cluster [1] Group 2: Investment and Infrastructure - The newly opened BeiJing Changping R&D Innovation Center of BeiGene has a total construction area of over 47,000 square meters, equipped for early-stage research and development of chemical and biological drugs [2] - AstraZeneca plans to invest 2.5 billion USD in Beijing to establish its sixth global strategic R&D center and high-standard industrialization projects, marking the largest single investment in the biopharmaceutical sector in Beijing in the past three years [3] Group 3: Policy Support - The "Beijing Plan" for innovative pharmaceuticals includes 32 measures to enhance support for the entire chain of research, production, review, and use of innovative drugs and devices [4] - A 50 billion yuan pharmaceutical health industry fund is being established, along with a 10 billion yuan merger and acquisition fund to stimulate investment in the sector [4] - By 2024, the number of pharmaceutical industrial enterprises in Beijing is expected to reach 436, with significant numbers of registered medical devices, leading the nation [4]

Core Viewpoint - The company reported strong Q2 2025 results with total revenue of $1.3 billion, a year-on-year increase of 42%, and a GAAP net profit of $94.32 million, marking a return to profitability [1] Group 1: Financial Performance - In Q2 2025, the company achieved total revenue of $1.3 billion, up 42% year-on-year [1] - The GAAP net profit for Q2 2025 was $94.32 million, indicating a turnaround from previous losses [1] - The updated full-year guidance for 2025 includes projected revenue of $5-5.3 billion and positive GAAP net profit [1] Group 2: Product Performance - Zebutinib sales reached $950 million in Q2 2025, reflecting a 49% year-on-year increase and a 20% quarter-on-quarter increase [1] - The U.S. market contributed $684 million to Zebutinib sales, with a year-on-year growth of 43% and a market share leading position [1] - Sales of Tislelizumab amounted to $194 million in Q2 2025, showing a 22% year-on-year increase [1] Group 3: R&D Pipeline - The company anticipates several key R&D milestones in H2 2025, including the mid-analysis of Zebutinib's TN MCL Phase III trial and the approval of Tislelizumab for NSCLC in Europe [2] - The submission of accelerated approval for Sotigalimab in R/R MCL is expected globally [2] - The initiation of head-to-head trials for BT KCDAC against Ibrutinib in R/R CLL is planned [2] Group 4: Profitability Forecast - The company has raised its net profit forecasts for 2025-2027 to $306 million, $763 million, and $1.186 billion, respectively [2] - The company is positioned as a leading domestic biopharma player with significant international expansion and commercialization efforts [2]

Group 1 - Several innovative pharmaceutical companies reported impressive performance for the first half of 2025, indicating a shift towards original innovation and global registration as core growth strategies [1][3] - Ganli Pharmaceutical achieved revenue of 2.067 billion yuan, a year-on-year increase of 57.18%, and a net profit of 604 million yuan, up 101.96% [1] - BeiGene reported total revenue of 17.518 billion yuan, a 46% increase year-on-year, and a net profit of 450 million yuan, marking its first half-year profit since its A-share listing [2] Group 2 - BeiGene's product revenue growth was driven by its self-developed product, Brukinsa (Zebutinib), and sales of its licensed product, Tislelizumab, which totaled 12.527 billion yuan globally, reflecting a 56.2% increase [2] - The innovative drug industry is benefiting from supportive policies, including measures from the National Healthcare Security Administration to encourage investment in innovative drugs and the exclusion of new drugs from centralized procurement [3] - The industry is expected to enter a rapid development phase due to comprehensive policy support across the entire chain from research and development to payment and insurance [3]

Market Performance - The Hang Seng Index (HSI) closed at 25,082, up 0.7% for the day and 25.0% year-to-date (YTD) [1] - The MSCI Hong Kong index increased by 1.4% for the day and 26.9% YTD [1] - The KOSPI index showed a significant YTD increase of 34.5%, closing at 3,228 [1] Commodity Prices - Brent Crude oil price decreased by 0.9% to US$66 per barrel, down 8.3% YTD [2] - Gold prices rose by 0.8% to US$3,396 per ounce, with a YTD increase of 29.4% [2] - The Baltic Dry Index (BDI) surged by 92.7% YTD, closing at 1,921 [2] Economic Indicators - US consumer credit total was reported at US$5.1 billion, below the consensus of US$7.4 billion [3] - The US CPI for urban consumers increased by 0.3% month-over-month and 2.7% year-over-year [3] - The US PPI Final Demand YoY increased by 2.3%, slightly below the consensus of 2.5% [3] Trade and Exports - China's exports grew by 7.2% YoY in July, surpassing the 5.2% growth in June [5] - Imports into China increased by 4.1% YoY in July, indicating a rebound from previous months [7] - The strong export growth to non-US regions helped offset declines in exports to the US due to increased tariffs [6] Corporate Insights - China Mobile reported a 6% YoY increase in Q2 earnings to RMB53.6 billion, exceeding market expectations [13] - Hua Hong Semiconductor's Q2 results showed a gross profit margin of 10.9%, driven by a 6% QoQ increase in wafer shipments [16] - BeiGene's Q2 revenue reached US$1.32 billion, a 42% YoY increase, with significant contributions from its key products [24]

Group 1: Company Performance - BeiGene reported a total revenue of $1.3 billion for Q2 2025, a 42% increase from $929 million in the same period last year, driven primarily by the sales growth of Brukinsa® in the US and Europe [1] - Hengrui Medicine received orphan drug designation from the FDA for its product, injection of Rukangqumab, which will enjoy 7 years of market exclusivity upon approval [2] - Dizh Pharmaceutical's investigational product DZD8586 received Fast Track Designation from the FDA, potentially accelerating its development and market entry [3] - Novo Nordisk's sales grew by 16% to 154.9 billion Danish Kroner in the first half of 2025, with a notable 56% increase in the obesity treatment segment [4] - Gan Li Pharmaceutical achieved a revenue of 2.067 billion Yuan in the first half of 2025, a 57.18% increase year-on-year, with significant growth in domestic sales [5][6] - Innovent Biologics reported a revenue of over 5.2 billion Yuan in the first half of 2025, reflecting a strong growth of over 35% [7] Group 2: Product and Market Insights - BeiGene's product revenue reached $1.3 billion in Q2 2025, with US sales at $685 million, up from $479 million year-on-year, and European sales of Brukinsa® increased by 85% to $150 million [1] - Hengrui's orphan drug designation will facilitate clinical trials and market registration, providing tax credits for trial costs and waiving new drug application fees [2] - Dizh's Fast Track Designation allows for expedited drug development processes, addressing unmet medical needs in chronic lymphocytic leukemia [3] - Novo Nordisk's GLP-1 diabetes treatment sales increased by 8%, contributing to the overall growth in the diabetes and obesity treatment sectors [4] - Gan Li's self-developed insulin product GZR4 is in global Phase III clinical trials, indicating a strong position in the insulin market [5][6] - Innovent's product lines, including Xinbile® and Xinbimin®, are experiencing significant market growth, driven by effective marketing and channel access [7]

Core Insights - BeiGene has reported a significant turnaround in its financial performance, achieving a total revenue of 17.518 billion yuan in the first half of 2025, a year-on-year increase of 46%, primarily driven by its leading product, Bruton’s tyrosine kinase (BTK) inhibitor, BeiYueZe [2][3] - The company has achieved its first half-year profit with a net profit of 450 million yuan, a substantial improvement from a loss of 2.88 billion yuan in the same period last year, attributed to an increase in gross margin and a decrease in expense ratio [8][9] - Despite the positive earnings report, the stock price of BeiGene fell across multiple markets, influenced by external factors such as potential tariffs on imported drugs proposed by former President Trump and ongoing capital withdrawal by Hillhouse Capital [9][10] Financial Performance - Total product revenue reached 17.36 billion yuan, a 45.8% increase year-on-year, with BeiYueZe contributing over 70% of this revenue [3] - BeiYueZe's global sales amounted to 12.527 billion yuan, reflecting a 56.2% increase, with significant growth in the U.S. market, which saw sales of 8.958 billion yuan, up 51.7% [3][5] - The gross margin improved from 84.2% to 86.3%, while the adjusted sales expense ratio decreased from 48% to 41% year-on-year, indicating a shift from aggressive spending to cost control [8] Product Pipeline and Market Position - BeiGene has over 40 products in clinical development and commercialization, with two blood cancer products in Phase 3 trials expected to release important data soon [12] - BeiYueZe has become a leading player in the global BTK inhibitor market, approved in 75 markets, with recent FDA approval for a new formulation [5][12] - The company plans to initiate Phase 3 trials for its PD-1 inhibitor, BaiZeAn, which saw a sales increase of 20.6% to 2.643 billion yuan, maintaining its position as the top domestic PD-1 product [6] Market Challenges - The stock market reaction to BeiGene's earnings report was negative, with shares dropping significantly due to concerns over potential tariffs on imported drugs and capital withdrawal from major investors [9][10] - Hillhouse Capital has reduced its stake in BeiGene from over 12% to below 5% in less than two years, indicating a lack of confidence in the company's long-term prospects [10]