Core Insights - Pfizer is a leading player in the oncology market with a diverse portfolio of approved cancer medicines and a strong pipeline focused on various modalities [1][9] Oncology Sales Performance - Oncology sales account for approximately 27% of Pfizer's total revenues, with an 8% growth in 2025 driven by key drugs such as Xtandi, Lorbrena, Braftovi-Mektovi combination, and Padcev [2][11] - Xtandi generated alliance revenues of $2.19 billion in 2025, up 8% year over year, while Lorbrena sales increased by 40% to $1.02 billion [3] - Padcev sales rose 22% to $1.94 billion, supported by strong demand trends, while Ibrance revenues declined by 6% to $4.1 billion [4][11] Pipeline and Future Growth - Pfizer is investing in Padcev, which has received FDA approval for a combination treatment with Merck's Keytruda for muscle-invasive bladder cancer, potentially expanding its patient population [5][9] - The oncology biosimilars segment contributed $1.3 billion in sales, reflecting a 26% year-over-year increase [6] - Pfizer's late-stage pipeline includes candidates like atirmociclib and sigvotatug vedotin, with expectations of having eight or more blockbuster oncology medicines by 2030 [7][11] Competitive Landscape - Pfizer competes with major players in the oncology space, including AstraZeneca, Merck, Johnson & Johnson, and Bristol-Myers [10] - AstraZeneca's oncology sales rose 14% in 2025, while Merck's Keytruda accounted for over 50% of its pharmaceutical sales, reaching $31.7 billion [12][13] Stock Performance and Valuation - Pfizer's stock has increased by 5.7% over the past year, compared to a 17.3% rise in the industry [18] - The company's shares are trading at a forward price/earnings ratio of 9.28, lower than the industry average of 18.86 and its own 5-year mean of 10.22 [20]

Group 1: Core Insights - UBS's in-depth research in China identifies two main industry themes for 2026: self-sufficiency and overseas expansion [1] - The research covered various sectors including technology, industrial, healthcare, consumer, and utilities, visiting over 100 companies and industry experts [1] - The report highlights a shift in investor interest, with capital goods, media entertainment, and real estate development seeing increased research focus, while semiconductor and automotive parts sectors experienced a decline [1] Group 2: Technology Sector Insights - The technology sector is a key focus, with advancements in self-sufficiency moving from isolated breakthroughs to industry-wide collaboration [2] - AI capital expenditure is expected to grow steadily in 2026, driven by strong demand for AI applications and local semiconductor production [3] - Despite uncertainties regarding H200 GPU imports, domestic supply chains are adapting through technology substitution and demand upgrades [3] Group 3: Semiconductor Developments - The localization of China's semiconductor industry is accelerating, with significant progress in advanced etching/ deposition equipment, advanced packaging, and high-end analog chips [4] - Capital expenditure for wafer fabrication equipment (WFE) is projected to grow by 10-15% annually, driven by capacity expansion in advanced logic and memory wafer fabs [4] - Domestic manufacturers anticipate a substantial increase in storage capital expenditure in 2026, aligning with a global upcycle in the storage industry [4] Group 4: Overseas Expansion Trends - Multiple industries, including industrial, biopharmaceuticals, and consumer goods, are focusing on overseas expansion as a key growth strategy [6] - In the industrial sector, overseas orders for AIDC and renewable energy storage equipment are increasing significantly [7] - The healthcare sector is also prioritizing global expansion, with biopharmaceutical companies actively pursuing international collaborations and local sales team development [9] Group 5: Key Recommendations - UBS recommends several core stocks in the technology and semiconductor sectors, including Northern Huachuang (advanced etching/ deposition), Changdian Technology (advanced packaging), and Horizon Robotics (edge AI) [5][12] - In the healthcare sector, companies like WuXi AppTec (CRO/CDMO) and 3SBio (biopharmaceuticals) are highlighted as key beneficiaries of global expansion [12] - The consumer sector sees recommendations for Jason Furniture (overseas expansion) and Leap Motor (new energy vehicles), while Gree Electric Appliances is advised to sell due to margin pressures [12] Group 6: Overall Industry Outlook - The report concludes that China's industrial development in 2026 will be characterized by a dual focus on self-sufficiency in technology and overseas expansion in various sectors [13] - The integration of these two themes is expected to enhance China's economic globalization, with technology supporting overseas expansion and vice versa [13] - Investment opportunities are identified in sectors with low crowding and improving fundamentals, as well as in high-growth areas like AI and semiconductors [13]

Francesca DeMartino Chief Investor Relations Officer, Senior Vice President Fourth Quarter 2025 Earnings 2 Fourth Quarter 2025 Earnings Teleconference February 3, 2026 1 Introduction Forward-Looking Statements and Non-GAAP Financial Information Fourth Quarter 2025 Earnings 3 • Our discussions during this conference call will include forward-looking statements that are subject to substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such s ...

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the **China Healthcare** sector, specifically the **pharmaceutical industry** in China, with insights into various companies and their performance outlooks for 2025 and 2026 [1][2][6]. Core Companies Discussed 1. **Jiangsu Hengrui Pharmaceuticals (600276.SS)** - Expected product sales growth of **12% YoY** in 2025, driven by **~25% growth** in innovative drug sales [10]. - Anticipated net profit growth faster than revenue due to higher contributions from business development (BD) income and lower operating expenses [10]. - Projected to achieve **25%+ growth** in innovative drug sales in 2026, supported by **10 new NRDL entries** [36]. 2. **Hansoh Pharmaceutical Group Co Ltd (3692.HK)** - Total revenue growth forecasted at **20%** in 2025, with **17%** growth in product sales [10]. - Net profit expected to grow at a slower pace due to high base effects and ongoing R&D investments [10]. 3. **3SBio (1530.HK)** - Revenue projected at **Rmb19bn** in 2025, with a slight decline in product sales [10]. - Anticipated modest growth in 2026, with new products ramping up [10]. 4. **CSPC Pharmaceutical Group (1093.HK)** - Projected total revenue decline of **7% YoY** in 2025, with a **10% drop** in finished drug sales [10]. - Expected net profit growth of **17%** due to BD income [10]. 5. **Sino Biopharmaceutical (1177.HK)** - Forecasted total revenue growth of **15%** in 2025, driven by biosimilar growth [11]. - Projected net profit growth of **73%**, largely due to higher dividend payments from Sinovac [12]. 6. **Fosun Pharmaceutical (2196.HK)** - Expected flat total revenue in 2025, with a projected **20% growth** in net profit due to operational savings [12]. 7. **China Medical System (0867.HK)** - Revenue growth of **10%** expected in 2025, with a focus on innovative drugs [12]. - Plans to spin off its dermatology subsidiary, Dermavon, to unlock equity value [49]. Key Insights and Trends - **Globalization** remains a significant theme, with companies focusing on pipeline advancements and out-licensing deals to enhance revenue streams [2][8]. - The **China pharma sector** is experiencing a shift towards innovative drug development, with many companies investing heavily in R&D to mitigate the impact of pricing pressures and regulatory changes [49][67]. - **Out-licensing deal momentum** for China-originated assets is robust, indicating a healthy market for collaboration and partnerships [8]. Financial Projections - **Hengrui**: Projected **Rmb31.4bn** in revenue for 2025, with a **12.3% YoY** increase [16]. - **Hansoh**: Expected revenue of **Rmb14.7bn** in 2025, with a **20.1%** growth rate [16]. - **3SBio**: Revenue forecasted at **Rmb19bn** in 2025, with a significant increase in net profit [16]. - **CSPC**: Anticipated revenue of **Rmb26.997bn**, reflecting a **-6.9%** change [16]. - **Sino Biopharma**: Expected revenue of **Rmb33.333bn**, with a **15.5%** growth [16]. Risks and Considerations - Companies face **regulatory pressures** and pricing challenges, particularly from the **Volume-Based Procurement (VBP)** policies [49][63]. - The potential for **pipeline setbacks** and delays in new product launches could impact growth trajectories [63][67]. - The **spinoff of Dermavon** may be perceived negatively by some investors, but it is expected to enhance the financial flexibility of China Medical System [50]. Conclusion The conference call highlighted a positive outlook for the China pharmaceutical industry, driven by innovative drug sales and strategic partnerships. However, companies must navigate regulatory challenges and market pressures to sustain growth.

Core Viewpoint - Pfizer is facing challenges but has made strategic moves that could lead to a turnaround by 2026, particularly in oncology and weight management markets [1] Group 1: Progress in Oncology - Pfizer has a strong historical presence in oncology and has made significant investments, including the $43 billion acquisition of Seagen, to enhance its pipeline of cancer therapies [2] - The company has licensed a promising cancer medicine, PF-08634404, from 3SBio and is accelerating its development with multiple studies, including late-stage clinical trials [3] - Positive developments in oncology could significantly impact Pfizer's stock, especially if PF-4404 competes effectively against leading cancer drugs like Keytruda [5] Group 2: Weight Management Market - The weight management market is gaining attention and is expected to grow significantly, with Pfizer developing several anti-obesity candidates [6] - One candidate, PF-07976016, is an oral GLP-1 medicine currently in phase 2 studies, while MET-097i has recently completed phase 2 trials successfully [8] - Pfizer's efforts in the weight-loss market may take longer to materialize, but they are indicative of the company's recovery strategy [7]

Core Viewpoint - The Chinese stock market is on track for its best performance since 2017, driven by a broad rally across various sectors, particularly technology, materials, and healthcare [3][4][7]. Group 1: Market Performance - The MSCI China Index has risen approximately 28% this year, indicating a potential consecutive annual increase [4][7]. - The materials sector, led by gold mining companies, has seen the most significant gains, with the MSCI China Materials Index up about 108%, marking its best annual performance since 2003 [7][8]. - The healthcare sector has rebounded, with the MSCI China Healthcare Sub-Index rising around 50%, expected to achieve its best performance since 2020 [11]. Group 2: Sector Analysis - The technology sector has been a primary driver of the market rally, with significant contributions from artificial intelligence and popular commodities [4][7]. - The entertainment sector has also thrived, with the MSCI China Communication Services Index increasing over 40%, benefiting from a shift in consumer spending towards home entertainment [14]. - In contrast, the utilities and real estate sectors have lagged, with the MSCI China Utilities Sub-Index showing little change and the real estate sector only increasing by 1.4% [17][18]. Group 3: Key Drivers and Challenges - The rally is supported by global themes such as artificial intelligence and rising commodity prices, while a potential stimulus measure addressing housing issues could further enhance market performance [4][7]. - The ongoing housing crisis and deflationary pressures in China remain significant challenges, as evidenced by the poor performance of major real estate developers like Vanke Group, which has seen a 36% decline in stock price this year [17][18].

Key Takeaways from China Biopharma Trip Industry Overview - The trip focused on the Chinese biopharmaceutical industry, highlighting the rapid development of local biotech companies and their competitive landscape in drug discovery and clinical R&D [3][5][9]. Core Insights 1. **Rapid Development of Biotech Companies**: Local Chinese biotech firms have shown a remarkable pace of development, with examples like Pyrotech achieving clinical proof-of-concept in 4 years and Hengrui progressing from preclinical studies to IND acceptance in 6 months [3]. 2. **Factors Driving Speed**: Key factors contributing to this accelerated development include streamlined decision-making, a concentrated ecosystem of contract research organizations (CROs), strong fundamental research, and experienced clinical investigators [3]. 3. **Licensing and Partnerships**: Chinese biotech companies generally prefer licensing out their products, but more mature firms are increasingly seeking co-development and co-commercialization agreements, as seen with Innovent's partnership with Takeda [4]. 4. **Pipeline Diversity**: Companies visited exhibited broad pipelines across multiple disease areas, with a notable focus on antibody-drug conjugates (ADCs) and a competitive landscape characterized by intense pressure [5]. 5. **Obesity Market Developments**: Eccogene is optimistic about its obesity drug ECC5004, while Innovent noted rapid uptake of mazdutide, indicating strong competition in the obesity segment [7]. 6. **Vaccine Market Challenges**: Zhifei highlighted ongoing challenges in the vaccine market due to vaccine hesitancy and pricing pressures, complicating commercialization efforts [8]. Competitive Landscape 1. **ADC Focus**: Nearly half of the companies visited are engaged in ADC research, particularly in oncology, indicating China's emergence as an ADC hub [5]. 2. **Emerging Therapies**: Companies are exploring bispecific/trispecific antibodies and new-generation cell therapies, with a focus on innovative approaches to cancer treatment [5][31]. 3. **Market Dynamics**: The Chinese pharmaceutical market is valued at $160-180 billion, with the innovative market growing at 20-30% annually, expected to reach $50-60 billion in five years [23]. Company-Specific Highlights 1. **3SBio and Pfizer**: 3SBio expressed optimism regarding its PD-1xVEGF bispecific antibody program, with plans for multiple trials to establish the compound as a backbone therapy [9]. 2. **Kelun Biotech**: Kelun is advancing its TROP2 targeting ADC, sac-TMT, with expectations of significant peak sales based on recent clinical data [10]. 3. **Hengrui's Lp(a) Program**: Hengrui is encouraged by Phase 2 data for its Lp(a) targeted oral small molecule drug, which could transform cardiovascular disease treatment [10]. 4. **Zhifei's Gardasil Challenges**: Zhifei reported difficulties in the vaccine market, particularly with Gardasil, due to pricing pressures and vaccine hesitancy [10]. Additional Observations - **Regulatory Environment**: Sanofi noted that early-stage R&D in China is 50% cheaper and 60% faster than in the US, with plans to invest more in local partnerships [23]. - **Pricing Dynamics**: The conversation with obesity experts revealed insights into pricing dynamics and the competitive landscape for obesity treatments [7]. Conclusion The trip underscored the dynamic nature of the Chinese biopharma industry, characterized by rapid innovation, strategic partnerships, and a competitive landscape that poses both opportunities and challenges for local and multinational companies [3][5][23].

Core Viewpoint - Mandi, a consumer healthcare arm backed by Alibaba Health, is spinning off from 3SBio and has filed for an IPO in Hong Kong, focusing on its leading minoxidil hair-loss products to attract investors [1]. Group 1: IPO Details - Mandi has not disclosed its fundraising target or listing timeline, and has appointed Huatai International as the sole sponsor for its listing [2]. - The capital raised from the IPO is expected to fund product expansion, refine the digital operating model, strengthen marketing, and support early-stage research and development [3]. Group 2: Ownership Structure - 3SBio currently holds an 87.16% stake in Mandi, while Alibaba Health owns 2.65% [3]. - The spin-off will allow 3SBio to completely exit its stake in Mandi through an in-specie distribution to existing shareholders, while Mandi will raise capital through a global offering of new shares [4]. Group 3: Financial Background - In November, Mandi closed a Series A financing round worth approximately US$50 million, led by Alibaba Health and other investors [5]. Group 4: Market Position - Mandi's flagship products, based on minoxidil, target Chinese consumers under 35 and have been the top seller in China's hair-loss drug market for 10 consecutive years, capturing a 57% market share in 2024 [6]. - Mandi is also developing clascoterone cream, an innovative acne treatment described as the world's first topical androgen receptor inhibitor for acne vulgaris [7].

Summary of Pfizer's 2025 Conference Call Company Overview - **Company**: Pfizer Inc. (NYSE:PFE) - **Event**: 2025 Conference Call - **Date**: November 19, 2025 Key Points Industry Context - Pfizer is navigating a period of significant change with a focus on returning to growth by 2029 and 2030, amidst a wave of loss of exclusivity (LOE) for several products [2][22] Financial Performance and Cost Management - Pfizer has identified approximately **$7.7 billion** in cost improvements to be implemented over the next several years to enhance its cost structure [3] - By the end of 2025, Pfizer expects to achieve **$4.5 billion** of the targeted savings, with further opportunities for operational efficiencies in manufacturing and commercial operations [39][40] Research and Development (R&D) Strategy - Pfizer has restructured its R&D focus, promoting Chris Boshoff to lead the R&D organization, emphasizing oncology, vaccines, internal medicine, and inflammation & immunology (I&I) [3] - The company is actively pursuing business development transactions, including a partnership with **3SBio** to enhance its oncology portfolio and a recent acquisition of **Metsera** to enter the obesity treatment market [3][4] Obesity Market Entry - Pfizer's acquisition of Metsera is seen as a strategic move to compete in the obesity market, leveraging its strong commercial engine and manufacturing capabilities [6][8] - The Metsera platform offers a differentiated approach with a potential monthly dosage, which is critical for market competitiveness [9][11] - Pfizer anticipates that the recent Medicare coverage for obesity treatments could positively impact market dynamics [13] Future Growth and Product Pipeline - Pfizer is preparing for a significant LOE period, with **$17 billion** of products losing patent protection by the end of the decade, primarily between 2026 and 2028 [22][23] - The company aims to ensure that investments are appropriately allocated to support growth aspirations for 2029 and 2030 [24] Capital Allocation and M&A Strategy - Pfizer has set a **$15 billion** external capital commitment for acquisitions, with approximately **$5 billion** remaining after the Metsera deal [32] - The company is focused on enhancing its oncology and I&I portfolios, with a particular interest in identifying additional molecules or projects in I&I [33][34] Operational Efficiencies and Cash Flow Management - Pfizer has improved its working capital, achieving a free cash flow increase of **$3-$4 billion** in 2025 through better inventory management across its global operations [41][42] - The company expects to see a reduction in cash outflows related to cost-saving measures, which will enhance future cash flow [43][44] Conclusion - Pfizer is strategically positioning itself for future growth by managing costs, enhancing its R&D capabilities, and entering new markets such as obesity treatment, while navigating the challenges posed by upcoming LOEs. The focus remains on operational efficiencies and prudent capital allocation to support long-term growth objectives [2][24][32]

Summary of Key Points from the Greater China Healthcare Corporate Day Industry Overview - **Industry**: Healthcare in Greater China, including biopharma, CROs, medtech, services, pharmacies, and vaccines - **Sentiment**: Positive sentiment observed in biopharma and CRO sectors, with a focus on undervalued assets following recent market pullbacks [1][1] - **Key Companies**: Wuxi Apptec, Duality, Hansoh, 3SBio, and Tigermed highlighted as companies of interest due to their overseas businesses and partnered assets [1][1] Biopharma Insights - **R&D and Commercialization**: Most biopharma companies are on track with R&D and commercialization efforts. Innovative drug sales and milestone payments are expected to drive near-term revenues [2][2] - **Revenue Projections**: - Huadong Medicine: Rmb2 billion in 2025F and Rmb3 billion in 2026F [2][2] - Sino Biopharm: Projected organic profit growth of over 20% in 2025F and double-digit growth in 2026F [2][2] - **Pricing Pressure**: Volume-based procurement (VBP) continues to impact the generics segment, although biosimilar VBP may remain limited to provincial levels [2][2] CRO and CDMO Performance - **CDMO Orders**: Strong orders and backlog reported for CDMO companies, outperforming CROs due to robust overseas demand [3][3] - **CRO Recovery**: Mild recovery signals noted for domestic CRO demand, despite lagging booking income [3][3] Medtech Sector - **Investor Sentiment**: Generally muted, with some positive indicators in segments like in-vitro diagnosis (IVD) [4][4] - **Company Guidance**: - New Industries: Expected 10% revenue growth in 2026F [4][4] - Yuyue Medical: Anticipates 10% revenue growth for 2025F and higher growth in 2026F [4][4] - **Pharmacies and TCM**: Positive feedback received, with expectations for M&A to drive growth in 2026E [4][4] Company-Specific Updates - **Kelun Biotech**: Maintained sales target of Rmb800 million to Rmb1 billion for sac-TMT (TROP2 ADC) in 2025, with potential for significant milestone payments from 2027F [7][7] - **Abbisko**: R&D progressing well, with potential NDA submission in the US for Pimicotinib expected in Q425 [8][8] - **Hutchmed**: Maintained 2025 oncology revenue guidance of US$270-350 million, with expectations for better performance in 2026 [11][11] - **Zai Lab**: Revised down 2025 revenue guidance to over US$460 million, but noted good growth trends for Zejula [14][14] - **3SBio**: Pfizer planning multiple clinical trials for SSGJ-707, with significant near-term milestone payments expected [24][24] Vaccines and Pharmacies - **CanSino**: Highlighted a diverse product portfolio, including COVID-19 vaccines and other candidates, with healthy inventory levels [39][39] - **Gushengtang**: Targeting 10-15% organic revenue growth in 2026, with notable progress in overseas business [44][44] Risks and Challenges - **Market Risks**: Potential risks include worse-than-expected price cuts from GPO programs, intensified competition, and regulatory challenges [50][50] This summary encapsulates the key insights and projections from the Greater China Healthcare Corporate Day, highlighting the positive sentiment in the biopharma and CRO sectors, along with specific company updates and potential risks in the healthcare industry.