Core Viewpoint - LZM012, a novel IL-17A/F dual-target inhibitor developed by the company, has successfully completed Phase III clinical trials for the treatment of moderate to severe plaque psoriasis, outperforming the benchmark drug Secukinumab in efficacy [1][8][10]. Company Summary - LZM012 is the first innovative drug in China and the second globally to complete Phase III trials for this indication, setting a high standard for clinical efficacy endpoints [1][3]. - The company has submitted a pre-application for marketing authorization to the National Medical Products Administration, aiming to expedite the drug's market entry [1][3]. - The company has not disclosed its commercialization plans for LZM012 [3]. Industry Summary - The domestic psoriasis market is valued at approximately 700 billion RMB, with a significant unmet need for effective treatments, presenting a growth opportunity for the company [3]. - The psoriasis drug market in China was worth 1.44 billion USD (approximately 10.33 billion RMB) in 2022 and is projected to reach 9.94 billion USD (approximately 71.32 billion RMB) by 2030 [3]. - The current market is primarily divided among TNF-α inhibitors, IL inhibitors, and small molecule inhibitors, with IL inhibitors expected to dominate the future landscape [5][6]. - LZM012 is positioned to capture market share from both TNF-α drugs and existing IL inhibitors due to its superior efficacy and safety profile [5][6][12]. Clinical Data Summary - In the Phase III trial, LZM012 demonstrated a PASI 75 response rate of 65.7% at week 4, compared to 50.3% for Secukinumab [9][10]. - At week 12, the PASI 100 response rate for LZM012 was 49.5%, while Secukinumab achieved 40.2% [11]. - The faster onset of action and sustained efficacy of LZM012 positions it favorably against existing treatments [8][12]. Financial Performance Summary - The company has faced revenue declines in its chemical preparation segment, which is its core business, primarily due to price reductions from national health insurance negotiations [13][15]. - Revenue figures from 2020 to 2024 show fluctuations, with a notable drop in 2024, indicating challenges in maintaining growth [13][15].

Summary of Yifang Biopharma Conference Call Company Overview - Yifang Biopharma is focused on innovative drug development with a strong pipeline of six key drug candidates, showcasing excellent project initiation and clinical advancement capabilities [8][3][4]. Key Drug Candidates and Market Potential - **EGFR TKI (Befotinib)**: Expected to replace Alectinib and expand market share in the rapidly growing EGFR mutation-targeted therapy market [2][3]. - **KRAS G12C Inhibitor**: Launched in 2024, showing strong sales performance and anticipated peak sales [2][3]. - **TYK2 Inhibitor (D2,570)**: Demonstrated global best-in-class (BIC) potential in psoriasis phase II trials, with a PASI 100 response rate of 50% in high-dose groups, outperforming other oral medications [3][19]. - **URAT Inhibitor**: Aimed at addressing safety issues in gout treatment, currently in phase II trials both domestically and internationally [2][4][7]. Development Strategies - Yifang plans to advance its oral SERD inhibitors through differentiated strategies, including combinations with HER2 ADC or CDK4/6 inhibitors, and aims for external licensing to domestic companies [2][6]. - The URAT inhibitor is designed to provide faster onset and better safety compared to allopurinol, addressing long-standing safety concerns in the gout market [7]. Market Trends and Competitive Landscape - The global psoriasis treatment market is projected to reach approximately $34 billion, with the U.S. market nearing $30 billion [9]. - Oral medications are gaining traction due to patient preferences, with 30% of untreated patients reluctant to use injectable biologics due to injection-related issues [10]. - Major pharmaceutical companies, including AbbVie and Johnson & Johnson, are actively developing oral psoriasis treatments, facing patent expiration pressures on existing products [11]. Future Directions - The future of psoriasis treatment is focused on improving drug convenience and efficacy, with a significant shift towards oral formulations [9][20]. - Yifang's innovative oral TGF-β inhibitors are expected to capture market share rapidly, potentially increasing the current less than 5% market penetration of oral medications in psoriasis [19][20]. Additional Insights - The competitive landscape for TYK2 inhibitors is robust, with multiple companies engaged in active development and partnerships, indicating high commercial value in this segment [16]. - Yifang's D2,570 is positioned to become a leading treatment option in the expanding psoriasis market, with significant therapeutic potential compared to existing therapies [19].

Core Viewpoint - The launch of the domestically produced calcipotriene and betamethasone ointment by Chongqing Huabang Pharmaceutical on JD Health marks a significant advancement in psoriasis treatment options for patients in China, providing a more accessible and effective solution [1][2] Group 1: Product Overview - The calcipotriene and betamethasone ointment is the first generic version in China, equivalent to the original product, enhancing treatment options for psoriasis patients [1] - The ointment combines calcipotriene, which inhibits abnormal proliferation of keratinocytes and promotes normal differentiation, with betamethasone, known for its strong anti-inflammatory and immunosuppressive effects [1] Group 2: Market Impact - The product's launch on JD Health signifies an important upgrade in the collaboration between Huabang Pharmaceutical and JD Health, leveraging JD Health's extensive user base and comprehensive healthcare service system [2] - JD Health's capabilities in online consultation, drug delivery, and health management will enhance the market coverage and user reach of the new ointment, benefiting more patients [2]

Core Viewpoint - The recent approval of multiple innovative drugs in China and favorable policies have led to a surge in interest in the Hong Kong innovative drug sector, with several ETFs in the pharmaceutical space seeing gains of over 40% this year [1][2]. Company Overview - He Mei Pharmaceutical Co., Ltd. (referred to as "He Mei Pharmaceutical") has submitted an IPO application to the Hong Kong Stock Exchange, with a post-investment valuation of 3.9 billion RMB after completing six rounds of financing [1][2]. - The company, founded in 2002, focuses on developing small molecule drugs for autoimmune diseases and tumors, with a strong position in the development of treatments for psoriasis, Behçet's disease, and inflammatory bowel disease [1][2]. Financial Performance - As of the latest financial report, He Mei Pharmaceutical has not yet achieved profitability, with projected revenues of approximately 4.05 million RMB and 5.298 million RMB for 2023 and 2024, respectively, primarily from government subsidies [1][2]. - The company is expected to incur losses of approximately 156 million RMB and 123 million RMB for the same periods [1]. Product Pipeline - He Mei Pharmaceutical has developed seven small molecule drug candidates targeting unmet needs in autoimmune and tumor diseases, with four candidates in Phase II, III clinical trials, or NDA stages for 12 indications as of May 21, 2025 [2][3]. - The two core products include Mufemilast, a potential first-in-class treatment for psoriasis, and Hemay022, a dual-target EGFR/HER2 inhibitor for advanced breast cancer [4][8]. Mufemilast Details - Mufemilast is a novel PDE4B inhibitor with a favorable safety profile, showing potential for treating psoriasis patients with latent tuberculosis [4][5]. - The global psoriasis drug market is projected to reach 29.621 billion USD in 2024, with a compound annual growth rate of 9.19% from 2024 to 2029 [5][6]. Competitive Landscape - Despite Mufemilast's advantages, the psoriasis treatment market is highly competitive, with numerous new drugs entering the market, posing challenges for commercial success [8][11]. - Hemay022 is currently undergoing a Phase III clinical trial for advanced ER+/HER2+ breast cancer, facing competition from existing EGFR/HER2 inhibitors [8][9]. Financial Pressure - The company anticipates significant financial pressure due to high R&D expenditures, with projected investments of 123 million RMB and 97 million RMB for 2023 and 2024, respectively [10]. - As of December 31, 2024, the company is expected to hold approximately 150 million RMB in cash and cash equivalents, indicating a tight financial situation [10]. Conclusion - Overall, while He Mei Pharmaceutical's core product for psoriasis shows rapid progress, the intense market competition and ongoing high R&D costs may hinder its ability to attract capital market interest [11].