Summary of Kelun Biotech Conference Call Company Overview - **Company**: Kelun Biotech (6990.HK) - **Industry**: Biotechnology, specifically focusing on antibody-drug conjugates (ADCs) Key Points 1. Strong Sales Growth - Significant sales ramp-up for sac-TMT (TROP2 ADC) observed in Q2, primarily driven by 3L EGFRmut NSCLC following NMPA approval in March - First commercial interim results reported at Rmb302 million for sac-TMT, on track to meet FY25 guidance of Rmb800 million to Rmb1 billion - Achieved commercial profitability in H1 2025, with drug sales surpassing SG&A expenses, and expects firmwide profitability in the near term due to licensing income from MSD partnership, estimated at US$100 million to US$150 million per year [3][4][8] 2. Upcoming Data Presentation at ESMO 2025 - ESMO 2025 (October 17-21) is anticipated to be a data-rich event for Kelun Biotech - Management highlighted three LBA presentations, including: - Clinical readouts from Phase 3 studies of sac-TMT in 2L EGFRmut NSCLC and HR+/HER2- breast cancer - Phase 3 head-to-head study of A166 (HER2 ADC) versus T-DM1 - POC-stage data for various tumor types, including ph2 ORR data of sac-TMT combined with Keytruda in 1L PD-L1+ NSCLC [4][7] 3. Early Pipeline Developments - Kelun Biotech is progressing its early-stage ADC pipeline, including: - SKB410 (Nectin-4 ADC, Phase 2 global study led by MSD) - SKB518 (PTK7 ADC, Phase 1b/2) showing early anti-tumor signals in NSCLC and SCLC - SKB571 (EGFR/c-Met ADC, Phase 1) undergoing dose-escalation trials - Management prefers to release data with certain maturity to provide a comprehensive drug profile [7][8] 4. Investment Rating and Price Target - Goldman Sachs maintains a Buy rating on Kelun Biotech with a 12-month price target of HK$454.04 - Current price is HK$491.40, indicating a downside potential of 7.6% - Key risks include R&D challenges, competition in the ADC field, limited commercial track record, talent competition, and partnership risks [8][9] 5. Financial Projections - Market cap: HK$114.6 billion (approximately US$14.7 billion) - Revenue projections for the next few years: - 2024: Rmb1,933 million - 2025E: Rmb1,950.6 million - 2026E: Rmb3,579.7 million - 2027E: Rmb5,432.9 million - EBITDA projections show a turnaround from negative to positive by 2026 [9] Additional Insights - The company is focusing on achieving greater visibility into the differentiated profiles and treatment potential of its next-generation assets through upcoming data releases [7] - The management's emphasis on commercial profitability and the strategic partnership with MSD indicates a strong outlook for future growth in the ADC market [3][4][8]

Summary of MacroGenics Conference Call Company Overview - **Company**: MacroGenics - **Industry**: Precision Medicines, specifically in oncology and immunotherapy Key Points and Arguments 1. **R&D Focus**: MacroGenics has a strong history of drug discovery and development, currently having four assets in the clinic, all homegrown, leveraging both internal platform technology and licensed drug linker chemistry for their ADC portfolio [3][49] 2. **Lead Asset**: The lead asset is Lorigirilimab, a bispecific molecule targeting PD-1 and CTLA-4, with a randomized phase two study fully enrolled, expecting data later this year [4][50] 3. **ADC Programs**: Two ADC programs utilizing a Topo-1 based drug linker are in phase one dose escalation, with promising prospects anticipated [5][50] 4. **T Cell Engager**: A bispecific molecule targeting CD3 and CD123 is part of an option-based deal with Gilead, also in phase one dose escalation [5][51] 5. **Future Innovations**: Additional molecules are being advanced in research labs, with one ADC program, MGC030, expected to enter the clinic next year [6][52] Bispecific Molecule Insights 1. **Lorigirilimab's Efficacy**: Initial monotherapy data showed a 26% confirmed overall response rate (ORR) in a late-line castrate-resistant prostate cancer population, with significant PSA reductions [11][12] 2. **Durability of Response**: Patients exhibited long durable responses, with some remaining on study for over two years, which is notable compared to previous treatments [12] 3. **Lorikeet Study**: A randomized phase two study combining Lorigirilimab with docetaxel is ongoing, aiming to demonstrate improved progression-free survival (PFS) compared to docetaxel monotherapy [13][18] Ovarian Cancer Study 1. **Lynette Study**: Focuses on ovarian and gynecological cancers, aiming to show meaningful activity and durability in a historically less responsive indication [19][20] 2. **Response Rates**: Traditional PD-1 monotherapy has shown single-digit response rates, while combinations with CTLA-4 have improved this to 25-30% [19][20] B7-H3 Targeting 1. **MGC026 Development**: A next-generation ADC targeting B7-H3 is being developed, leveraging a proprietary platform that enhances potency and reduces toxicity [25][26] 2. **Broad Application**: B7-H3 has a wide expression across various solid tumors, with ongoing studies in small cell lung cancer and other indications [29][30] Financial and Operational Insights 1. **Cash Position**: As of year-end 2024, MacroGenics had $200 million in cash, with a runway extending into the second half of 2026 [34] 2. **Non-Dilutive Capital**: The company has successfully raised approximately $475 million in non-dilutive capital over the past three years, avoiding formal market offerings since February 2019 [35][37] 3. **Gilead Collaboration**: The partnership with Gilead includes an exclusive option for the CD123 CD3 DART molecule, with ongoing phase one trials focusing on hematologic malignancies [38][39] Leadership Transition 1. **CEO Search**: A nationwide search for a new CEO is underway, with Scott Koenig continuing to support the company during the transition [45]