Summary of the Conference Call for XinNuoWei Company Overview - XinNuoWei has acquired Giant Stone Biotech, gaining an ADC platform with proprietary intellectual property, enhancing its innovation transformation [2][3] - The company was established in 2006, initially focusing on caffeine raw materials, and went public in 2019 [4] Key Products and Developments - **EGFR ADC (SYS6,010)**: - A flagship product targeting third-generation TKI-resistant EGFR mutant non-small cell lung cancer, expected to launch by 2027 [2][11] - Clinical data shows an ORR of 88.9% in second-line mutation patients and 34.2% in third-line patients, with good safety profiles [2][12] - Received multiple FDA fast track designations and breakthrough therapy qualifications [11][12] - **Claudin 18.2 ADC**: - Currently in Phase III clinical trials, showing an ORR of 47.1% in gastric cancer patients, with good safety, aiming for first-line treatment in combination with chemotherapy [2][14][15] - **Nectin-4 ADC**: - Planned to enter Phase III clinical trials in the second half of 2025, focusing on head and neck squamous cell carcinoma [2][15] - **MRNA Platform**: - Achieved breakthroughs with its LNP delivery system, avoiding international patent restrictions and reducing immunogenicity, with multiple MRNA vaccines in clinical development [2][16] Financial Performance and Projections - XinNuoWei's revenue projections are 2.392 billion yuan for 2025 and 2.765 billion yuan for 2026, supported by a strong pipeline and cash flow from existing products [3] - The company has a stable cash flow business, with rapid market entry of biosimilars like PD-1 and others, contributing to financial stability [5][17] Strategic Support and Structure - XinNuoWei is primarily controlled by the publicly listed Shiyao Group, which holds 75% of its shares, providing strong support in production, R&D, and commercialization [7][9] - The management team is experienced, with many members having long tenures at Shiyao Group or its subsidiaries [7] Acquisition and Growth Strategy - The company announced a cash increase of 1.87 billion yuan to acquire 51% of Giant Stone Biotech, expected to complete in January 2024 [6] - Plans to strengthen its innovative drug pipeline through further acquisitions, despite terminating a previous acquisition of Shiyao Baike to protect shareholder interests [6] Market Position and Competitive Advantage - XinNuoWei's ADC platform is characterized by excellent stability and uniformity, utilizing mainstream conjugation technologies and unique enzyme-based conjugation methods [10] - The company’s ADC products are positioned to compete effectively in the market, leveraging the strong sales team from Shiyao Group [15] Overall Assessment - XinNuoWei is positioned for significant growth through its innovative drug pipeline and stable cash flow from existing products, supported by Shiyao Group's resources [18] - The company is recognized as a high-potential enterprise in the biopharmaceutical sector, with a dual-driven development strategy [18]

交银国际研究 | 科伦博泰生物 | | 6990 HK | | --- | --- | --- | | 中国领先的 | ADC 平台，管线价值集中兑现、关键 | 评级: 买入 | | 拐点已至，首予买入 | | | | 收盘价: 港元 321.20 | 目标价: 港元 400.00 | 潜在涨幅: +24.5% | | 丁政宁 | Ethan.Ding@bocomgroup.com | | 中国首屈一指的 ADC 平台和管线：自 2016 年成立后，公司：1）建立了涵 盖 ADC、大分子药物、小分子靶向药的三大技术平台；2）基于三大平台， 打造了一条约 20 个分子的药物管线，包括至少 11 个 ADC 及 I/O + ADC 联用 机会；3）与默沙东就 ADC 资产多次达成合作交易，总交易对价超百亿美元、 目前正合作推进 6 个分子的全球研发。 核心品种芦康沙妥珠差异化优势明显：芦康沙妥珠对比另两款已上市同靶同 机制竞品，在分子设计和临床数据上有明显优势。中国以外，默沙东正快速 推进约 14 项 III 期研究，涵盖多种存在巨大未满足治疗需求的瘤种。我们预 计芦康沙妥珠中国内地和海外销售峰值将分别超过 50 ...

Group 1 - The company has established itself as a leading ADC platform and pipeline in China since its inception in 2016, focusing on enhancing its R&D capabilities and drug pipeline [1] - The company has developed three major technology platforms: ADC, large molecule drugs, and small molecule targeted drugs, with OptiDC being one of the first integrated ADC platforms in mainland China, showcasing significant advantages in core component design [1] - The drug pipeline consists of approximately 20 molecules, including at least 11 ADCs and opportunities for I/O + ADC combination therapies, with collaborations with Merck resulting in total transaction values exceeding $10 billion [1] Group 2 - The core product, Lukanasatuzumab, is the second TROP2 ADC approved globally and the first domestically produced TROP2 ADC, demonstrating clear advantages in molecular design and clinical data compared to two other competing products [1] - Merck is rapidly advancing around 14 Phase III studies for Lukanasatuzumab, targeting cancers with significant unmet medical needs, further validating the global clinical and commercial value of the product [1] - The projected peak sales for Lukanasatuzumab are expected to exceed 5 billion RMB in mainland China and 4 billion USD overseas, serving as a key driver for the company's valuation [1] Group 3 - The company is entering a golden period of value realization, with additional product approvals expected by the end of 2024 and early 2025, including PD-L1 and Cetuximab, while HER2 ADC is under review for market approval [2] - The tumor field is gradually forming a comprehensive treatment matrix of I/O + ADC, while the non-tumor field is targeting large patient populations with limited treatment options [2] - The company is at a critical turning point in evolving from a biotech firm to a comprehensive biopharmaceutical platform, with potential operational breakeven expected in two years [2] Group 4 - The company is expected to see rapid revenue growth post-launch of products like Lukanasatuzumab, with projected revenues reaching 2.04 billion RMB, 3 billion RMB, and 4.3 billion RMB in 2025, 2026, and 2027 respectively, corresponding to a 45% CAGR [2] - The CAGR for product sales revenue is anticipated to reach 82% [2] - A target price of 400 HKD has been established based on a DCF valuation model, corresponding to a 5.0x revenue peak sales multiple and a 25% potential upside, with a buy rating assigned [2]