Core Viewpoint - The stock of Gilead Sciences-B (01672) has risen over 4%, currently trading at 14.23 HKD, with a transaction volume of 26.83 million HKD, following the acceptance of its new drug application for Denifanstat by the CDE [1] Company Developments - Gilead's new drug Denifanstat (ASC40) is a potential first-in-class oral fatty acid synthase (FASN) inhibitor, aimed at treating moderate to severe acne [1] - The drug was originally developed by Sagimet Biosciences, and Gilead holds exclusive rights for it in Greater China [1] Market Positioning - According to Industrial Securities, Gilead is focusing on the weight loss metabolic field, addressing core pain points with a deep pipeline layout [1] - The company is expected to maintain a differentiated competitive advantage in the weight loss sector, especially with the potential readout of phase II data for small molecule GLP-1R agonists and further progress in the THRβ pipeline [1] - The acne treatment drug ASC40 is anticipated to gradually contribute to the company's revenue [1]

Core Viewpoint - Gilead Sciences-B (01672) shares rose over 4%, reaching HKD 14.23 with a trading volume of HKD 26.8271 million following the acceptance of its new drug application for Denifanstat, a potential treatment for moderate to severe acne [1] Group 1: Company Developments - On December 4, the CDE website indicated that Gilead's application for the first-class new drug Denifanstat has been accepted, targeting moderate to severe acne treatment [1] - Denifanstat (ASC40) is a potential first-in-class oral fatty acid synthase (FASN) inhibitor, originally developed by Sagimet Biosciences, with Gilead holding exclusive rights in Greater China [1] Group 2: Market Position and Future Prospects - Industrial Securities previously noted that Gilead is continuously investing in the weight loss metabolism sector, focusing on core pain points in the weight loss pipeline [1] - With the potential readout of phase II data for small molecule GLP-1R agonists and further progress in the THRβ pipeline, the company is expected to maintain a differentiated competitive advantage in the weight loss field [1] - The acne treatment drug ASC40 is also anticipated to gradually contribute to the company's revenue [1]

Summary of Key Points from Conference Call Records Industry Overview - The conference call discusses the **Chinese innovative drug industry** and its current trends, particularly focusing on the **CRO (Contract Research Organization)** and **CDMO (Contract Development and Manufacturing Organization)** sectors [1][3][13]. Core Insights and Arguments - **Valuation Trends**: The valuation of Chinese innovative drugs is currently lower than historical peaks, with a static PS (Price to Sales) ratio around 7 times, compared to a high of 9.3 times. However, due to global competitiveness, the theoretical static PS is expected to exceed previous levels, driven by significant product cycles [2][4]. - **BD Activity**: There has been a surge in business development (BD) transactions among domestic innovative drug companies, with upfront payments in the first nine months of the year reaching **6.58 billion yuan**, surpassing the total of **6 billion yuan** for the entire previous year. The total transaction amount also exceeded **56.4 billion yuan** compared to **48.9 billion yuan** last year [4]. - **Immunotherapy and ADC Developments**: Chinese companies are showing strong global competitiveness in the dual-antibody sector, with significant clinical advancements. For instance, **AK12** from Kangfang Biotech has multiple ongoing Phase III trials, and **IBI363** from Innovent has received FDA approval for a global Phase III study in lung cancer [5][6]. - **Weight Loss Sector**: The weight loss sector is highlighted as a competitive area, with promising data from Eli Lilly's oral GLP-1 molecule, **ofgliprant**, providing opportunities for Chinese companies to improve their offerings [8][10]. Additional Important Insights - **CRO and CDMO Recovery**: The CRO industry has moved past its most challenging period, with increased investment activity and a recovery in overseas demand for Chinese CDMO companies. Key players such as WuXi AppTec and Tigermed are recommended for attention [3][13]. - **Upstream Pharmaceutical Chain Recovery**: There are signs of recovery in the upstream pharmaceutical supply chain, particularly in R&D, with companies like **BaiPuSiSi** experiencing a resurgence in market demand [14]. - **Global Competitiveness Strategies**: Chinese innovative drug companies are encouraged to enhance their global competitiveness through overseas sales, R&D, and potential licensing opportunities. Companies like BeiGene and Legend Biotech are highlighted for their performance in this regard [12]. Conclusion The conference call provides a comprehensive overview of the current state and future prospects of the Chinese innovative drug industry, emphasizing the importance of global competitiveness, active BD transactions, and the recovery of the CRO and CDMO sectors. The insights presented indicate a positive outlook for the industry, driven by innovation and strategic partnerships.