29 January 2026 China Pharma and Biotech China Pharma & Biotech: Top investor questions from marketing meetings answered Rebecca Liang, Ph.D. +852 2123 2656 rebecca.liang@bernsteinsg.com Courtney Breen +1 917 344 8407 courtney.breen@bernsteinsg.com Ellie Li +852 2123 2621 ellie.li@bernsteinsg.com At the marketing meetings we had with investors in HK last week, we noticed a trend of discussions coming back to company fundamentals from last year's focus on sector beta, in line with our expectations. BeOne, Ke ...

Core Insights - BeOne Medicines AG (NASDAQ:ONC) is highlighted as a promising healthcare stock for 2026, showcasing significant advancements in its pipeline development [1] Pipeline Development - The company’s BRUKINSA, a tyrosine kinase inhibitor, has demonstrated a 74% six-year progression-free survival rate in treatment-naïve chronic lymphocytic leukemia (CLL), significantly outperforming the 32% rate of bendamustine plus rituximab [2] - Sonrotoclax, a BCL2 inhibitor, has received regulatory approval with an impressive overall response rate of 86% in heavily pretreated CLL patients [2] - BeOne Medicines is advancing 15 new molecular entities into clinical trials and plans to introduce an additional 8 to 10 candidates [2] Market Performance and Projections - Citizens has reiterated a Market Perform rating for BeOne Medicines with a price target of $396, citing strong efficacy data from a phase 3 trial in gastric cancer patients [3] - The anticipated approval of sonrotoclax is expected to lead to further global approvals, while Brukinsa is projected to generate $3.8 billion in revenue by 2025 [3] Company Overview - BeOne Medicines AG is a biotechnology firm focused on the discovery, development, and commercialization of innovative and affordable oncology treatments, known for products like Brukinsa and Tevimbra [4]

Core Insights - BeOne Medicines Ltd. (NASDAQ:ONC) is recognized as one of the top high-growth European stocks to invest in, with a Market Outperform rating and a price target of $396 set by Citizens due to strong Phase 3 trial results in gastric cancer patients [1] - The HERIZON-GEA-01 trial demonstrated high efficacy in patients with advanced gastric or gastroesophageal adenocarcinoma (GEA), further supporting the company's growth potential [1] - BeOne's Brukinsa is projected to generate approximately $3.8 billion in revenue by 2025, bolstered by a robust development pipeline across various indications [2] - The company has achieved its first clearance for sonrotoclax, a next-generation BCL2 inhibitor, which is expected to lead to further approvals globally [2] - BeOne maintains a strong cash position of $4.1 billion, and the recent decline in share price is viewed as a "unique buying opportunity" in the hematology/oncology sector [3] - BeOne Medicines Ltd. specializes in oncology medicines, focusing on treatments for blood cancers and solid tumors [3]

2026年1月16日，陈影从旧金山飞回上海，飞机上坐满了中国创新药企的创始人、高管、投资者，大部分人看上去心情不错，他们刚参加完全球规模最大的 医疗健康盛会——摩根大通医疗健康大会（下称"JPM"）。 这是陈影第一次参加JPM。2025年10月，她所在的赛默罗生物收到了几家跨国药企的邀请，希望能在JPM期间洽谈合作。赛默罗生物有一款原始创新（first- in-class）药物已进入临床二期试验，并获得美国食品药品监督管理局（FDA）的孤儿药认定，这引起了跨国药企的兴趣。 陈影此行与五六家跨国公司进行了一对一会谈，奔波在会场、各大洽谈室之间，每天睡觉不超过5小时。许多参会者都有类似体验，赫吉亚生物创始人崔坤 元开玩笑说，参会最直接的收获是"比较累"。大家期望在四天的日程里尽可能捕捉最前沿的行业信息、与意向合作方深入沟通。 多位受访者对经济观察报表示，相比前几年，2026年JPM带来的正向预期更明显。尤其是对中国创新药企，几乎每家跨国公司都不掩饰对中国资产的兴趣。 经济观察报 记者 张英 他观察到，尽管FDA官员在JPM期间提及了中美创新药竞争，但并未强调保护主义政策，更多提及的是美国医院、FDA如何优化临床试 ...

Core Insights - The healthcare industry has made significant strides in improving the 5-year survival rates for cancer patients over the past 44 years, showcasing the impact of new therapeutic modalities [3] - Despite advancements, cancer remains a critical global health issue, with 10 million people dying from cancer each year, highlighting the ongoing need for innovation and treatment [4] Company Insights - The company is represented by its Co-Founder, Executive Chairman, and CEO, John Oyler, who emphasizes the importance of the industry in the fight against cancer [2] - The company is optimistic about the potential of emerging therapies, which were previously met with skepticism, to play a crucial role in treating cancer and other diseases [3]

Core Viewpoint - The implementation of the new basic medical insurance directory and the first commercial insurance innovative drug directory starting January 1, 2026, will enhance the accessibility and affordability of innovative treatments like Baihe An (Zanidatamab) for patients with HER2-positive biliary tract cancer (BTC) [1][2]. Group 1: Drug Approval and Clinical Value - Zanidatamab is the first and only dual-specific antibody approved in China for targeting HER2 in high-expressing BTC, highlighting its unique clinical value [1][4]. - The drug has shown a 51.6% objective response rate (ORR) in previously treated, unresectable HER2-positive advanced or metastatic BTC patients, with a median overall survival (mOS) of 18.1 months [4]. Group 2: Insurance Coverage and Patient Access - The drug is covered under various "Hui Min Bao" commercial supplementary medical insurance projects across multiple regions, allowing eligible patients to receive significant reimbursement for treatment costs [2]. - The combination of the commercial insurance innovative drug directory and "Hui Min Bao" is expected to significantly improve the accessibility and affordability of this innovative drug for more patients [2]. Group 3: Broader Implications and Future Developments - The company aims to address the unmet medical needs in advanced BTC treatment, which has limited options and poor prognosis, by providing innovative therapies that enhance patient quality of life [4][8]. - Zanidatamab is also being developed for other gastrointestinal tumors, including HER2-positive metastatic gastric and colorectal cancers, indicating its potential for broader applications in oncology [5][6].

Core Viewpoint - Investors in BeOne Medicines Ltd. should closely monitor the stock due to significant movements in the options market, particularly the high implied volatility of the Feb 20, 2026 $200 Call option [1] Company Analysis - BeOne Medicines is currently rated as a Zacks Rank 4 (Sell) within the Medical – Drugs industry, which ranks in the top 37% of the Zacks Industry Rank [3] - Over the last 60 days, the Zacks Consensus Estimate for the current quarter has increased from $1.30 per share to $1.71 per share [3] Options Market Insights - The high implied volatility suggests that options traders are anticipating a significant price movement for BeOne Medicines shares, indicating potential upcoming events that could lead to a major rally or sell-off [2][3] - Options traders often seek to sell premium on options with high implied volatility, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected [4]

Core Viewpoint - BeiGene's stock price increased nearly 3% in pre-market trading following the announcement of conditional approval for its self-developed BCL2 inhibitor, SOTYKTU (sotatercept), by the National Medical Products Administration (NMPA) for specific cancer treatments [1] Group 1: Drug Approval and Market Impact - BeiGene announced that its BCL2 inhibitor, SOTYKTU, received conditional approval from the NMPA for treating adult patients with chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma (SLL) who have previously received at least one systemic treatment including a BTK inhibitor [1] - The approval also covers adult patients with relapsed or refractory mantle cell lymphoma (MCL) who have undergone at least two systemic treatments, including a BTK inhibitor, making SOTYKTU the first and only BCL2 inhibitor approved for MCL treatment in China [1] - Following the news, BeiGene's stock price rose to $329.5 in pre-market trading, reflecting a 2.86% increase [2] Group 2: Stock Performance Metrics - The closing price of BeiGene's stock was $320.00, with a pre-market price of $329.50, indicating a significant upward movement [2] - The stock's trading volume was 293,100 shares, with a market capitalization of approximately $37.966 billion [2] - The stock has a 52-week high of $385.22 and a low of $174.74, showcasing its volatility in the market [2]

Summary of BeOne Medicines Conference Call Company Overview - **Company**: BeOne Medicines (ONC/688235.SS) - **Industry**: Oncology - **Headquarters**: Switzerland - **Focus**: Discovering and developing innovative cancer treatments, with a portfolio in hematology and solid tumors, including products like Brukinsa and Tevimbra [7][10] Key Points from the Conference Call Approval and Market Entry - **Sonro Approval**: On January 5th, 2025, the China NMPA approved sonrotoclax (BCL2 inhibitor) for relapsed/refractory chronic lymphocytic leukemia (R/R CLL) and mantle cell lymphoma (R/R MCL) [1] - **Approval Timeline**: The NDA review took only eight months, which is considered quick compared to the typical 12-18 months for new drug approvals, indicating a significant unmet need for BCL2 inhibitors in China [1] Market Dynamics - **Sales Ramp-Up**: There is a focus on tracking the sales ramp-up of venetoclax and lisaftoclax, as well as feedback from physicians and patients regarding the new BCL2 inhibitors [2] - **Differentiation Potential**: Sonrotoclax and lisaftoclax are expected to disrupt the market due to: 1. **Better Tolerability**: Both drugs showed lower rates of neutropenia and discontinuation compared to venetoclax, with sonrotoclax showing a lower rate than lisaftoclax [2] 2. **Quicker Dose Ramp-Up**: Lisaftoclax has a 4-6 days daily dose ramp-up scheme, while sonrotoclax and venetoclax follow a weekly ramp-up [2] Financial Projections - **Earnings Adjustments**: FY2025-2027 earnings estimates were adjusted, with EPS revised from US$3.78/US$6.26/US$6.64 to US$3.59/US$4.65/US$4.46 [6] - **Sales Estimates**: Near-term sales estimates for sonro were fine-tuned with increased SG&A investment, and R&D spending was increased due to multiple pipeline assets entering the proof of concept stage [6] - **Target Prices**: The 12-month target prices were updated to US$385.79 for ONC and Rmb345.86 for the A-share [6] Risks and Challenges - **Key Risks**: 1. Uncertainties in R&D and regulatory approvals, especially for the early-stage solid tumor franchise [7][10] 2. Competition from BTK and PD-1 inhibitors [7][10] 3. Development risks for clinical-stage assets [7][10] 4. Market access bottlenecks [7][10] Investment Rating - **Current Rating**: The company maintains a "Buy" rating, with shares trading at a modest discount due to broader macroeconomic factors and concerns around its product pipeline [7][10] Additional Insights - **Clinical Development Team**: BeOne Medicines has a growing internal clinical development team, which may provide cost savings and advantages in product launch times compared to peers [7] - **Market Position**: The company is well-positioned to grow and bring additional therapies to both the local Chinese market and the global pharmaceutical stage [7] This summary encapsulates the critical insights from the conference call regarding BeOne Medicines, its market strategies, financial outlook, and associated risks.

Core Insights - BeOne Medicines Ltd. announced full results from the Phase 3 HERIZON-GEA-01 trial for ZIIHERA® (zanidatamab), a HER2-targeted bispecific antibody, in combination with chemotherapy and PD-1 inhibitor TEVIMBRA® (tislelizumab) for treating HER2-positive locally advanced or metastatic gastroesophageal adenocarcinoma [1] Group 1 - The trial evaluated the efficacy of ZIIHERA® as a first-line treatment option [1] - The study included data on the combination of ZIIHERA® with and without TEVIMBRA® [1] - The focus of the trial was on patients with HER2-positive gastroesophageal adenocarcinoma [1]