Investment Rating - The report indicates a positive outlook for the atopic dermatitis (AD) market, highlighting significant unmet medical needs and potential for new therapies, particularly in small molecules and biologics [4][10][12]. Core Insights - Atopic dermatitis is a chronic, recurrent inflammatory skin disease characterized by severe itching, affecting approximately 600-700 million patients globally, with around 67 million in China, indicating a substantial unmet demand for effective treatments [1][18][20]. - Recent advancements in small molecules and biologics have marked a new phase in AD treatment, with several new products entering the market, although the number remains limited [1][10][32]. - JAK inhibitors have shown excellent efficacy but come with safety concerns, while TYK2 inhibitors are emerging as a promising new option due to their selective action and potentially better safety profile [2][11][12]. - Biologics targeting IL-4Rα and IL-13 have demonstrated significant efficacy in improving skin lesions, with IL-31 showing strong itch relief capabilities [3][12][13]. - The development of dual/multi-target antibodies is seen as a new strategy to enhance treatment efficacy by combining the advantages of different targets [4][13][21]. Summary by Sections Investment Highlights - The AD market has immense potential, with a pressing need for effective therapies [4][10]. - The patient population is large, with over 600 million affected globally, necessitating urgent treatment options [1][18]. Disease Characteristics - AD is characterized by chronic inflammation and severe itching, significantly impacting patients' daily lives [1][14]. - The disease burden is heavy, with a complex pathogenesis involving multiple factors, primarily driven by Th2-type inflammation [21][24]. Current Treatment Landscape - Traditional therapies have safety concerns, leading to a shift towards biologics and small molecules [32][35]. - JAK inhibitors are the most approved class of drugs for AD, but they carry black box warnings due to safety issues [11][12]. - Emerging therapies, particularly TYK2 inhibitors, show promise for better safety and efficacy [2][11]. Biologics and Emerging Therapies - Currently approved biologics include IL-4Rα, IL-13, TSLP, and IL-31, with ongoing research into additional targets [3][12][13]. - Dual/multi-target antibodies are being explored to improve treatment outcomes and extend dosing intervals [4][13][21]. Market Potential - The report emphasizes the significant market potential for AD treatments, with projected growth driven by increasing patient numbers and the introduction of innovative therapies [4][10][20].

Group 1 - The "AD365 Atopic Dermatitis Education Project" is launched by the China Red Cross Foundation in collaboration with Sanofi, aiming to enhance public awareness of atopic dermatitis and promote standardized diagnosis and treatment [3] - The project will host a special patient education conference on September 1 at Taicang First People's Hospital, focusing on educating patients and their families about atopic dermatitis, its causes, and prevention strategies [1] - The theme of the event is "Building Healthy Skin Together, Embracing an Infinite Life," emphasizing the importance of community engagement and expert interaction for better disease management [1] Group 2 - The project officially started on May 15, 2025, and is part of the broader "Healthy China 2030" strategic goal, which aims to improve public health through systematic education [3] - The initiative involves collaboration with multiple medical institutions and experts to provide comprehensive knowledge about atopic dermatitis and its underlying mechanisms, particularly type 2 inflammation [1][3] - The event encourages participation from atopic dermatitis patients and their families to foster a better understanding of the condition and promote proactive health measures [1]

Core Insights - The article discusses the confusion between atopic dermatitis (AD) and eczema, highlighting that AD is a specific type of eczema with distinct characteristics [1] - It emphasizes the prevalence of AD in China, with over 70 million patients, and the common misconceptions surrounding the disease [1] - The article outlines the importance of proper diagnosis and treatment methods for managing AD effectively [2][4] Group 1: Disease Understanding - Atopic dermatitis is characterized by chronic inflammation, severe itching, and recurrent episodes, with about 60% of patients also suffering from allergic rhinitis or asthma [1] - The disease has a significant familial aggregation, with a 50% chance of children developing AD if one parent is affected [1] - The "Zhang's criteria" for diagnosis requires meeting two out of three conditions: chronic or recurrent symmetrical eczema, personal or family history of allergies, and elevated serum IgE or eosinophils [1] Group 2: Treatment Approaches - The "three-dimensional anti-itch method" includes cold compresses, moisturizing creams, and medication, with innovative topical agents like Zeli Mei showing promising results [2] - Clinical data indicates that 61.5% of patients in an 8-week trial achieved complete clearance of skin lesions, with rapid itch relief observed within 2 hours [2] - The drug is priced significantly lower in China at 360 yuan compared to 1,400 USD in the U.S., easing the financial burden on patients [2] Group 3: Long-term Management - Active maintenance treatment is crucial, with recommendations for preventive use of Zeli Mei even after symptoms disappear, reducing the risk of recurrence by 60% [4] - Keeping a "itch diary" to track triggers such as temperature and diet is advised for better management of the condition [4] - The drug has been approved for use in children over 2 years old, showing over 80% clearance rate in clinical trials with minimal side effects [4]

Core Viewpoint - The article discusses the increasing prevalence and impact of atopic dermatitis (eczema) in China, particularly focusing on its effects on both children and adults, highlighting the challenges in diagnosis, treatment, and the associated emotional and financial burdens on patients. Group 1: Prevalence and Demographics - In 2021, there were approximately 7.627 million children aged 0-14 years in China suffering from atopic dermatitis [9] - The annual prevalence of atopic dermatitis among adults in China is reported to be 6.13%, meaning 6 out of every 100 adults experienced the condition in that year [12] - The incidence of atopic dermatitis has increased from 1,044.1 cases per 100,000 people in 2012 to 1,083.9 cases in 2021, affecting around 15.421 million people in China [14] Group 2: Diagnosis and Misdiagnosis - Atopic dermatitis is often misdiagnosed as eczema, particularly in cases where it appears symmetrically on the body [5] - The condition is closely related to genetic factors, and improper treatment can lead to worsening symptoms [7] - Many patients are unaware that atopic dermatitis requires long-term management, leading to cycles of misdiagnosis and ineffective treatment [49] Group 3: Emotional and Financial Burden - Over 10% of patients have experienced suicidal thoughts due to the distress caused by atopic dermatitis, with nearly 2% having attempted suicide [27] - The average annual medical expenditure for a child with atopic dermatitis is approximately 26,500 yuan, including treatment and travel costs [48] - Atopic dermatitis is referred to as "the most expensive skin disease in the world," highlighting the financial strain on patients [50] Group 4: Comorbidities and Complications - Nearly 40% of atopic dermatitis patients also suffer from at least one comorbidity, with allergic rhinitis being the most common at 68.7% [38] - Severe atopic dermatitis patients have a significantly higher prevalence of hypertension, with rates reaching 6.89%, more than three times that of mild patients [44] - The condition is associated with various other allergic diseases and metabolic disorders, complicating the overall health of affected individuals [36][39]

Investment Rating - The report maintains a "Positive" investment rating for the industry [8]. Core Insights - IL-25 is identified as a novel target in the Type II inflammation pathway, showing upregulation in atopic dermatitis (AD), psoriasis, and contact dermatitis, indicating its involvement in the progression of these skin inflammatory diseases [2][5][27]. - The drug SM17, developed by Chinese Antibody, is a first-in-class (FIC) IL-17RB monoclonal antibody targeting IL-25, demonstrating promising proof-of-concept (PoC) data in Phase Ib trials for atopic dermatitis, with superior itch relief compared to existing therapies [6][35][42]. Summary by Sections IL-25 as a Target - IL-25, a member of the IL-17 cytokine family, plays a crucial role in host defense and inflammatory diseases, inducing the production of IL-4, IL-5, and IL-13, while inhibiting Th17 differentiation [5][17]. - The upregulation of IL-25 in various skin inflammatory diseases suggests its potential for multi-indication exploration [27]. SM17 Clinical Data - In the Phase Ib trial, 75% of patients in the high-dose group achieved at least a 75% improvement in the Eczema Area and Severity Index (EASI-75) by week 12, compared to 0% in the placebo group, indicating a significant difference of 75% [6][35]. - The high-dose group also showed that 91.7% of patients had a significant reduction in the Peak Pruritus Numeric Rating Scale (PP-NRS) score, with no responders in the placebo group [7][38]. - SM17 demonstrated rapid and deep itch relief, outperforming existing AD therapies while maintaining comparable skin lesion improvement [41][43]. Competitive Landscape - Currently, only two IL-25-targeting candidates, SM17 and XKH001, are in clinical development, indicating a relatively early stage of research for this target compared to more established pathways like IL-17 and IL-4 [6][33]. - The competitive landscape for IL-25 and IL-17RB-targeting drugs is evolving, with several candidates in various stages of development [34].