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]

Summary of BeOne Medicines Conference Call Company Overview - **Company**: BeOne Medicines (ONC/688235.SS) - **Industry**: Oncology, specifically focused on hematology and solid tumors - **Key Products**: Sonrotoclax (BCL2 inhibitor), Brukinsa, Tevimbra - **Location**: Domiciled in Switzerland Key Points from the Conference Call Approval and Market Entry - **Sonrotoclax Approval**: Approved in China for late-line Chronic Lymphocytic Leukemia (CLL) and Mantle Cell Lymphoma (MCL) on January 5th, 2025, marking its first approval globally [1] - **NDA Review Duration**: The approval process took only eight months, which is considered quick compared to the typical 12-18 months for new drug approvals [1] - **Unmet Need**: The rapid approval reflects a significant unmet need for BCL2 inhibitors in China, as venetoclax was only approved for Acute Myeloid Leukemia (AML) [1] Market Dynamics and Sales Potential - **Sales Ramp-Up**: Interest in tracking the sales ramp-up of venetoclax and lisaftoclax, along with feedback from physicians and patients regarding the new BCL2 inhibitors [2] - **Differentiation Factors**: - **Tolerability**: Both new drugs showed lower rates of neutropenia and discontinuation compared to venetoclax, with sonrotoclax showing a lower rate than lisaftoclax [2] - **Dose Ramp-Up**: Lisaftoclax employs a 4-6 days daily dose ramp-up, while sonrotoclax and venetoclax use a weekly ramp-up [2] Financial Projections and Valuation - **Earnings Adjustment**: FY2025-2027 earnings per share (EPS) estimates adjusted from US$3.78/US$6.26/US$6.64 to US$3.59/US$4.65/US$4.46 [6] - **Increased Probability of Success (POS)**: Blended POS increased from 76% to 95% due to the approval of sonrotoclax [6] - **Target Prices**: Updated 12-month target prices to US$385.79 for ONC and Rmb345.86 for A-share, down from US$408.79 and Rmb366.48 respectively [6] Company Positioning and Risks - **Growth Potential**: BeOne Medicines is well-positioned for growth with a strong internal clinical development team and a focus on oncology [7] - **Key Risks**: - Uncertainties in R&D and regulatory approvals, especially for early-stage solid tumor products - Competition from BTK and PD-1 inhibitors - Development risks for clinical-stage assets - Market access bottlenecks [7][10] Conclusion - **Investment Rating**: Maintained a Buy rating on BeOne Medicines, indicating confidence in its growth potential and market positioning despite broader macroeconomic concerns [7]

Chautauqua Capital Management, a division of Baird Asset Management, is a boutique investment firm that released its third-quarter 2025 investor letter for the “Baird Chautauqua International and Global Growth Fund”. A copy of the letter can be downloaded here. Global equity markets delivered solid results in the third quarter, driven by the resolution of significant trade conflicts and a shift in U.S. monetary policy toward a more dovish stance. Baird Chautauqua International Growth Fund underperformed the ...

Core Viewpoint - BeOne Medicines Ltd. will participate in the 44th Annual J.P. Morgan Healthcare Conference on January 13, 2026, at 7:30 am PST, highlighting its commitment to oncology and innovative treatments [1]. Company Overview - BeOne Medicines is a global oncology company based in Switzerland, focused on discovering and developing innovative cancer treatments that are more accessible to patients worldwide [3]. - The company has a diverse pipeline that includes therapies for hematology and solid tumors, and it is enhancing development through internal capabilities and collaborations [3]. - BeOne Medicines employs nearly 12,000 colleagues across six continents, emphasizing its commitment to improving access to medicines for a larger patient population [3].

Summary of China Healthcare Global Markets Research Industry Overview - The report focuses on the **China healthcare and pharmaceuticals sector** and discusses the outlook for 2026, emphasizing the importance of innovation for Chinese firms aiming to expand overseas [1][2]. Key Insights - **Sector Performance**: The healthcare sector has underperformed compared to the broader market, with the CSI 300 Health Care index declining by **12%** while the CSI 300 rose by **3%** from early September to early December [1]. - **Profit-Taking and Fund Rotation**: The underperformance is attributed to profit-taking and fund rotation towards AI themes rather than deteriorating fundamentals. The MSCI China Health Care index still shows a **64% YTD rise**, outperforming the **33%** rise of MSCI China [2]. - **Valuation Metrics**: The P/E ratios for the CSI 300 Health Care and MSCI China Health Care indices are at **2.2x** and **1.6x** respectively, indicating a comfortable valuation level at a five-year low [2]. Business Development (BD) Trends - **Continued Growth in BD**: The report predicts sustained growth in business development, particularly in out-licensing of Chinese molecules to overseas buyers, driven by: 1. Increased R&D investment in the pharmaceutical sector, with a **CAGR of 10%** for China, surpassing the global average of **4%** [10]. 2. Cost and efficiency advantages of Chinese firms in drug discovery and patient enrollment, being **2-3x** and **2-5x** faster than their overseas counterparts [11]. 3. Stabilization of geopolitical tensions, particularly between China and the US, which is expected to remain favorable through 2026 [11]. Market Challenges - **Domestic Market Uncertainty**: The report expresses uncertainty regarding a rebound in the domestic market, particularly for medical devices, due to unresolved channel inventory issues and tightening medical insurance expenditures, which account for **30-40%** of hospital and pharmacy revenues [17]. - **Potential Risks**: Key risks include setbacks in business development, an oversupply of IPOs affecting market liquidity, continued tightening of medical insurance, and geopolitical uncertainties [27]. Investment Opportunities - **Promising Companies**: The report identifies several companies likely to excel in 1H26, including: - **Hengrui**: Strong R&D pipeline and business development track record [26]. - **Innovent** and **BeOne**: Expected to achieve positive earnings inflection points [26]. - **Wuxi XDC**: Strong position in the ADC CRO space [26]. - **Mindray**: Anticipated benefits from tender results translating into revenue [26]. Innovations and Future Trends - **Emerging Modalities**: The report highlights the potential of RNAi-related therapies to lead the next wave of out-licensing, alongside the ongoing interest in antibody-drug conjugates and GLP-1s [20]. - **AI in Healthcare**: The potential for generative AI to transform healthcare is acknowledged, particularly in drug R&D, telehealth, and medical imaging analysis [21]. - **Commercial Health Insurance**: The introduction of new commercial health insurance is expected to drive innovative drug growth, contingent on collaboration among stakeholders [22]. Financial Performance - **Healthcare Sector Performance**: In 2025, the healthcare sector outperformed the broader market, with MSCI China Healthcare reporting a **58%** YTD surge compared to **31%** for MSCI China [30]. - **Biotech and CRO Performance**: Biotech and CRO sectors reported stronger financial results, with A-share healthcare companies showing a **2%** decline in revenue but a **2%** increase in net profit in 1H25 [32]. Conclusion - The China healthcare sector is positioned for growth driven by innovation and business development, despite facing challenges in the domestic market and potential geopolitical risks. The focus on R&D and the advantages of Chinese firms in drug development present significant investment opportunities moving forward.

此前数年，吴晓滨一直是百济神州的 核心人物 ，2025年6月 以前，其同时担任总裁、首席运营官兼中国区总经理。目前， 吴晓滨仍担任首席运营官和中国区总经理。 作者：张铃 封图：图虫创意 汪来自2021年4月起担任百济神州全球研发负责人。在此之前，他自 2011 年加入百济神州，担 任过多个研发领导职务，职责逐渐扩大。加入百济神州之前，汪来分别在复旦大学获得理学学士学 位，在德克萨斯大学圣安东尼奥健康科学中心获得博士学位，并于2008年至2011年在位于美国德 克萨斯州达拉斯的生物技术公司Joyant Pharmaceuticals担任研究主管。 据复旦大学校友总会2021年发布的一篇对汪来的专访，汪来从小是个"神童"，14岁就考入复旦， 成为少年大学生，24岁美国博士毕业。博士毕业后，汪来前往美国德州西南医学中心王晓东团队 做博士后。 王晓东是百济神州的创始人之一。2010年，王晓东与汪来讨论，想在中国创建一家生物制药公 司，王晓东非常看好以创新药为方向的中国医药企业的未来。他找到汪来，希望他回国，一起参与 创办百济神州。经过慎重思考，34岁时，汪来决定回国，而且是带着全家一起回国，后来，他成 为百济神州最重 ...

Core Insights - BeOne Medicines Ltd. has received Fast Track Designation from the U.S. FDA for its bispecific antibody BGB-B2033, aimed at treating adult patients with hepatocellular carcinoma (HCC) who have experienced disease progression after prior systemic treatment [1][2]. Industry Overview - Hepatocellular carcinoma (HCC) is the sixth most common cancer globally and the fourth leading cause of cancer-related deaths, accounting for 80% of all primary liver cancers. The incidence of new cases is expected to double from 2022 to 2050, largely due to the prevalence of hepatitis B and C viruses and lifestyle factors such as obesity and alcohol consumption. Approximately 80% of patients are diagnosed at advanced stages, with five-year survival rates below 20%, indicating a significant need for new treatment options beyond current therapies [3]. Company Overview - BeOne Medicines is a global oncology company based in Switzerland, focused on discovering and developing innovative cancer treatments. The company has a diverse pipeline that includes therapies for hematology and solid tumors, and it aims to improve access to medicines for cancer patients worldwide. BeOne has a workforce of nearly 12,000 employees across six continents [5]. Product Details - BGB-B2033 is a bispecific antibody that targets GPC3, a tumor-specific antigen highly expressed in HCC, and 4-1BB, a co-stimulatory receptor that enhances T-cell activation and tumor reactivity. The design of BGB-B2033 includes reduced antibody-dependent cellular cytotoxicity (ADCC) to minimize systemic toxicity [4]. Clinical Development - BeOne is currently conducting a global, multi-center Phase 1 clinical trial (NCT06427941) to evaluate the safety and anti-tumor activity of BGB-B2033, both as a monotherapy and in combination with the PD-1 inhibitor TEVIMBRA (tislelizumab) [2].

Summary of the Conference Call on the Pharmaceutical Industry Industry Overview - **Industry**: Pharmaceutical Industry - **Rating**: Leading - **2026 Outlook**: Value recovery, upward trend continues, selective layout amidst differentiation [1] Core Insights and Arguments - **Industry Trends**: - The industry is expected to maintain a relatively fast growth rate despite tightening drug regulations and increasing challenges in new drug development in the U.S. [2] - The integration trend within the industry is just beginning, with leading players in high-growth segments showing strong long-term certainty [2] - **Private Hospitals**: - High-quality private hospital targets are recommended as cost control pressures ease and outdated capacities are eliminated, allowing for a return to faster growth [3] - Recommended stocks include Gushengtang and Haijia Medical, which are expected to rebound in the short term and have clear long-term expansion paths [3] - **Valuation Summary**: - A detailed table of various pharmaceutical companies with their stock codes, ratings, target prices, closing prices, earnings per share (EPS), price-to-earnings ratios (P/E), and other financial metrics is provided [4] Important but Overlooked Content - **Market Performance**: - The MSCI China Pharmaceutical Index increased by 62.0% year-to-date, outperforming the MSCI China Index by 31.8 percentage points [10] - The pharmaceutical sector has officially entered a rebound phase, with significant performance differentiation among sub-sectors [10] - **Policy Environment**: - The policy environment is improving, with the government supporting innovative drug development and introducing commercial insurance funds to supplement the medical insurance directory [11] - The latest round of medical insurance negotiations has successfully included 127 drugs outside the directory, indicating a shift towards a more balanced pricing strategy [11] - **Innovation and R&D**: - The industry is witnessing a positive cycle of R&D breakthroughs and global licensing, with many companies entering a "R&D investment - clinical breakthrough - global licensing" cycle [11] - As of September 2025, Chinese pharmaceutical companies have completed 103 overseas transactions, exceeding 77% of the total transaction amount for 2024 [11] - **Financial Performance**: - The overall revenue of the A-share pharmaceutical sector showed a marginal recovery in Q3 2025, with a 0.7% year-on-year increase, indicating strong operational resilience [17] - The sector's earnings growth expectations are improving, with leading companies showing rapid recovery in performance [11][20] - **Investment Opportunities**: - The report emphasizes two main investment lines: focusing on innovative companies with strong differentiation and product export potential, and capitalizing on the recovery of valuation multiples and earnings growth [32][34] - Specific recommendations include companies like Sanofi Pharmaceutical, Deqi Pharmaceutical, and Baiji Shenzhou, which have rich catalysts and are still undervalued [35] - **AI in Healthcare**: - The application of AI in healthcare is highlighted as a new theme for industry innovation, with significant market expansion potential [33] - **Future Outlook**: - The pharmaceutical industry is expected to maintain a stable upward trend in 2026, with a focus on fundamental performance and valuation [30] - The introduction of the commercial insurance innovative drug directory and ongoing policy reforms are anticipated to further enhance market sentiment and fundamental expectations [37]

Summary of the Conference Call on China Healthcare and Pharmaceuticals Industry Overview - The conference focused on the **China healthcare and pharmaceuticals** sector, specifically discussing the **2025 National Reimbursement Drug List (NRDL)** and the **Commercial Health Insurance Innovative Drug Directory (CHIIDD)** [1][2]. Key Points NRDL and CHIIDD Updates - Approximately **70 innovative drugs** were included in the NRDL, with a **success rate of 88%** for new drug negotiations, an increase from **76% in 2024** [2]. - A total of **114 new drugs** were added to the NRDL, including **50 type 1 innovative drugs**, while **29 drugs** were removed, bringing the total to **3,253 drugs** [2]. - The CHIIDD features **19 expensive innovative drugs** out of **24 candidates**, covering treatments for oncology, Alzheimer’s disease, and rare diseases [2]. Implementation Timeline - The new NRDL and CHIIDD will be implemented on **January 1, 2026**, with new prices for most newly included drugs to be revealed at that time [3]. Company-Specific Insights 1. **Hengrui (600276 CH/1276 HK)**: - Included **10 new drugs** in the NRDL for the first time, such as trastuzumab rezetecan and ivarmacitinib [4]. 2. **Hansoh (3692 HK)**: - Added two new indications for almonertinib to the NRDL [4]. 3. **Sinobio (1177 HK)**: - Three new drugs added: garsorasib, recombinant human coagulation factor VIIa, and penpulimab [5]. 4. **Innovent (1801 HK)**: - New additions include teprotumumab, limertinib, and fulzerasib among others [5]. 5. **BeOne (6160 HK/ONC US)**: - Newly added dinutuximab and zanidatamab in the CHIIDD [5]. 6. **Kelun Biotech (6990 HK)**: - Included sacituzumab tirumotecan and cetuximab N01 in the NRDL [5]. 7. **Akeso (9926 HK)**: - Added new indications for ivonescimab and cadonilimab, along with ebdarokimab and ebronucimab in the NRDL [6]. 8. **Tirzepatide**: - Included in the NRDL for type 2 diabetes, but not for obesity [6]. Market Outlook - The higher success rate and supportive policy trends suggest a **bright sales outlook** for innovative drugs, which are expected to drive growth for the related companies in **2026** [7]. Additional Insights - The report emphasizes the positive implications of the NRDL updates for the growth of covered companies, indicating a favorable environment for innovative drug sales in the Chinese healthcare market [4][7].