20 November 2025 | 1:03AM EST Equity Research China Healthcare: Pharmaceuticals: Takeaways From Our China Biopharma Trip We hosted an investor trip to China (Nov 10-14) to meet local companies including 3SBio, Akeso (not covered), AbelZeta (private), BeOne, Duality (not covered), Eccogene (private), Everest Medicines, GenFleet (not covered), Grand Pharma (not covered), Hansoh, Hengrui, Henlius, InnoCare, Innovent, Kelun Biotech, Keymed (covered by Honglin Yan), Lepu Biopharma (not covered), Pyrotech (privat ...

Summary of Genmab's Conference Call Company Overview - **Company**: Genmab - **Event**: Jefferies London Healthcare Conference - **Key Speakers**: CEO Jan van de Winkel, CFO Anthony Pagano Key Focus Areas Late-Stage Programs - Genmab is focusing on late-stage programs including: - **Epkinly** - **Rinatabart sesutecan** - **Acasunlimab** - **Patu Centamab** (acquisition of Merus) [2][3][4] Patu Centamab - **Description**: A bispecific antibody targeting EGFR, showing significant tumor shrinkage in clinical trials. - **Clinical Data**: - In frontline head and neck cancer, a **63% overall response rate** when combined with Pembrolizumab, tripling the benchmark response [9]. - In second-line settings, a **36% overall response rate** with impressive median progression-free survival of **11.4 months** [9]. - **Safety Profile**: New dosing schedules have improved infusion-related reactions, and a subcutaneous version is in development to further mitigate these issues [11]. - **Potential**: Beyond head and neck cancer, Patu Centamab is expected to have applications in other EGFR-positive tumors [6][12]. Epkinly - **Launch Performance**: Launched in May 2023, with potential to become a **$3 billion-plus global brand**. - **Recent Developments**: Positive data in second-line follicular lymphoma, with a significant hazard ratio of **0.21**, indicating a **79% risk reduction** for disease progression [21]. - **Commercial Strategy**: Focus on subcutaneous delivery and maintaining a balance of safety and efficacy [20]. Rinatabart sesutecan - **Characteristics**: Combines a good antibody with a hydrophilic linker, allowing for multiple toxin attachments without compromising pharmacodynamics [23]. - **Clinical Data**: Expected to have a clean safety profile with no ocular toxicity or interstitial lung disease observed [24]. - **Market Potential**: Peak year sales guidance upgraded to **$2 billion**, with a launch expected in **2027** [28]. Acasunlimab - **Clinical Development**: Ongoing studies in second-line plus lung cancer, with follow-up data expected to bolster confidence in its efficacy [30]. - **Sales Guidance**: Projected peak sales of around **$1 billion**, reflecting a conservative approach due to competition in the lung cancer market [31]. Financial Considerations - **Investment Strategy**: 2026 is expected to be an investment year, focusing on late-stage pipeline and commercialization capabilities [14][15]. - **EBITDA Growth**: Anticipated meaningful growth in EBITDA by **2027**, with projections of over **$1 billion** in sales for Patu Centamab by **2029** [16][17]. Other Considerations - **Pipeline Focus**: Genmab remains primarily focused on oncology, with over **90%** of activities in this area, while maintaining some preclinical work in immunology and inflammation [34][35]. - **Future Developments**: Plans to advance two bispecifics and one ADC from the organic pipeline by the end of the year [36]. Conclusion - Genmab is strategically positioned with a robust late-stage pipeline and a clear focus on maximizing the potential of its key assets, particularly Patu Centamab, Epkinly, and Rinatabart sesutecan, while managing investments and operational efficiencies to drive future growth.

Core Insights - Defence Therapeutics Inc. is advancing its proprietary Accum® technology to enhance antibody-drug conjugates (ADCs) for cancer treatment, aiming to overcome current limitations in ADC efficacy and toxicity [1][5]. Company Developments - The company has successfully engaged with ADC companies at industry conferences, positioning itself as a supplier of its Accum® platform to improve drug delivery precision and reduce toxicity in cancer therapies [2][5]. - Defence has conducted studies demonstrating that its Accum® technology can significantly enhance the potency of ADCs, with a recent study showing a ~20-fold increase in anti-tumor efficacy in mouse models when comparing Accum®-Kadcyla to Kadcyla® alone [4]. Technology and Innovation - The Accum® technology allows for the precise delivery of ADCs in their intact form to target cells, which is expected to lead to increased efficacy and potency against cancer [6]. - The company aims to transform ADC cancer therapies by applying its Accum® technology across various antibodies and indications, establishing itself as a leader in ADC drug delivery [5].

Core Viewpoint - Day One Biopharmaceuticals has announced a definitive merger agreement to acquire Mersana Therapeutics, which will enhance its oncology portfolio with the addition of Emi-Le, a novel antibody-drug conjugate showing early anti-tumor activity in a Phase 1 study for adenoid cystic carcinoma [1][2][3] Group 1: Acquisition Details - The acquisition will involve a tender offer to acquire Mersana's outstanding shares at a price of $25 per share in cash, plus potential milestone payments totaling up to $30.25 per share, leading to a total consideration of up to $55.25 per share [4] - The total equity value of the deal is approximately $129 million at closing, with a total deal value of up to approximately $285 million [4] - The transaction is expected to close by the end of January 2026, pending regulatory approvals and other customary conditions [8] Group 2: Product and Market Potential - Emi-Le is positioned as a potential first-in-class monotherapy for patients with adenoid cystic carcinoma, a cancer with high unmet medical need, particularly in the salivary gland [2] - The drug targets B7-H4, a well-characterized target in certain cancers, and has shown early anti-tumor activity in its ongoing Phase 1 study [2] - The company believes that Emi-Le's innovative profile and the lack of approved therapies for its target population provide a clear path for rapid development and commercialization [2][3] Group 3: Financial and Strategic Implications - Day One plans to finance the acquisition using existing cash resources, indicating a strong financial position that supports the development of Emi-Le without the need for additional financing [6] - The acquisition is expected to broaden Day One's opportunities for patient impact and growth, leveraging existing research and development expertise [3]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $27.6 million, up from $16 million in Q3 2024, primarily due to a $25 million milestone from Janssen and $1 million in royalties from Jazz Pharmaceuticals and BeiGene [9][10]. - Overall operating expenses decreased slightly to $49.7 million in Q3 2025 from $50.2 million in Q3 2024, a reduction of 1% [10]. - Net loss improved to $19.6 million in Q3 2025 compared to a net loss of $29.9 million in Q3 2024, attributed to increased revenue [10][11]. - Cash, cash equivalents, and marketable securities totaled $299.4 million as of September 30, 2025, down from $324.2 million at the end of 2024 [11]. Business Line Data and Key Metrics Changes - The company recognized a $25 million development milestone from Jazz Pharmaceuticals related to the clinical progress of pacritimab, contributing significantly to revenue [6][9]. - Royalty revenues of $1 million were earned based on Ziihera net product sales by Jazz and BeiGene [8]. Market Data and Key Metrics Changes - The company continues to see strong momentum in its partnered programs, with Jazz presenting positive trial data at ESMO [5][6]. - The first patient has been dosed in the phase one clinical trial of ZW251, targeting GPC3 in hepatocellular carcinoma, indicating ongoing clinical development [4][17]. Company Strategy and Development Direction - The company aims to leverage partnerships to accelerate development and maintain control over R&D innovations while de-risking clinical developments [25][27]. - The focus remains on advancing programs with clear differentiation and strong scientific rationale, utilizing partnerships to offset development risks [27]. - The company is committed to disciplined capital allocation to drive sustainable long-term returns [9][25]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's outlook, citing the strength of the pipeline and the successful execution of clinical trials [8][11]. - The company anticipates that existing cash resources, combined with expected regulatory milestones, will fund operations into the second half of 2027 [11]. Other Important Information - The company completed share repurchases of $22.7 million under its previously authorized program, reflecting confidence in its outlook [8]. - The decision to discontinue the development of ZW171 was made to prioritize programs with clearer paths to patient benefit [20][21]. Q&A Session Summary Question: Thoughts on the update in the PFS analysis for Horizon GEA 01 - Management aligned with Jazz's regulatory strategy regarding the readout of Horizon GEA 01 and did not provide additional comments [30]. Question: Implications of ZW191 data for GPC3 and potential development strategies - Management expressed intrigue regarding the GPC3 construct and emphasized the importance of safety in the hepatocellular carcinoma population [31][33]. Question: Insights on GPC3 payload and preclinical efficacy expectations - Management noted that while topo1 is not standard for liver cancer, there is precedent for its use, and they believe their ADC can deliver effective treatment [38][44]. Question: Confidence in GPC3 activity in the post-IO setting - Management indicated that GPC3 expression levels are not expected to be modulated by IO treatment, supporting their development plan [60][62]. Question: Expectations on durability for ZW191 and potential for partnerships - Management found early data from ZW191 encouraging and indicated ongoing discussions with potential partners [70][71]. Question: Correlation between H-score and PS2 plus scoring methodologies - Management confirmed that H-score is a validated method for evaluating expression levels and correlates well with PS2 plus scores [81][84].

Core Insights - Sutro Biopharma, Inc. has received U.S. FDA clearance for its Investigational New Drug (IND) application for STRO-004, a potential best-in-class Tissue Factor ADC, and plans to dose the first patient before the end of 2025 [1][3] - The company presented new preclinical data at industry conferences, showcasing advancements in dual-payload ADCs aimed at overcoming resistance and delaying progression [1][2] - Sutro's financial position includes cash, cash equivalents, and marketable securities totaling $167.6 million as of September 30, 2025, providing a cash runway into at least mid-2027 [1][10] Company Developments - STRO-004 is on track for its first-in-human trial, with a favorable safety profile observed in preclinical studies [3] - The company is advancing its dual-payload ADC program, with an IND submission targeted for 2027 [4] - Sutro's collaboration with Astellas is progressing, focusing on dual-payload immunostimulatory ADCs, with one program entering IND-enabling toxicology studies [5] Financial Performance - Revenue for Q3 2025 was $9.7 million, an increase from $8.5 million in Q3 2024, primarily driven by the Astellas collaboration [11] - Total R&D and G&A expenses for Q3 2025 were $48.6 million, down from $76.4 million in Q3 2024, reflecting cost reductions from recent restructuring [12] - The company reported a net loss of $56.9 million for Q3 2025, compared to a net loss of $48.8 million in Q3 2024 [18] Upcoming Events - Sutro will host a virtual R&D Day on November 12, 2025, to provide updates on its ADC programs [1][14] - The company will participate in the 37th Annual Piper Sandler Healthcare Conference from December 2-4, 2025 [8]

3Q 2025 Results Conference Call and Webcast November 6, 2025 Nasdaq: ZYME | zymeworks.com Legal Disclaimer This presentation and the accompanying oral commentary include "forward-looking statements" or information within the meaning of the applicable securities legislation, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this presentation and the accompanying oral commentary include, but are no ...

Core Insights - Zymeworks Inc. reported financial results for Q3 and nine months ended September 30, 2025, highlighting progress in clinical trials and financial performance [1][13]. Clinical Highlights - Initial Phase 1 clinical data for ZW191, an antibody-drug conjugate (ADC) targeting folate receptor-α, showed promising results, with objective response rates of 53% overall and 64% for gynecological cancers [3][8]. - The Phase 1 trial for ZW251, targeting GPC3 for hepatocellular carcinoma, has commenced with the first patient dosed [5][7]. - Dose optimization for ZW191 is set to begin in Q4 2025, focusing on safety and efficacy at doses of 6.4 mg/kg and 9.6 mg/kg [4]. Business Updates - The company achieved a $25 million development milestone from Johnson & Johnson in Q3 2025, reflecting ongoing clinical progress [9]. - Zymeworks earned $1 million in royalties from Ziihera® net product sales during Q3 2025 [7][9]. - As of September 30, 2025, Zymeworks had cash resources of $299.4 million, down from $324.2 million at the end of 2024, providing a cash runway into the second half of 2027 [14]. Financial Performance - Total revenue for Q3 2025 was $27.6 million, up from $16 million in Q3 2024, primarily due to higher milestone revenue [13]. - Research and development expenses were $35.6 million in Q3 2025, slightly down from $36.4 million in Q3 2024 [13]. - The net loss for Q3 2025 was $19.6 million, an improvement from a net loss of $29.9 million in Q3 2024 [13][19]. Leadership and Strategic Initiatives - Zymeworks appointed Dr. Adam Schayowitz as Acting Chief Development Officer to enhance R&D and business development efforts [11]. - The company completed $22.7 million in share repurchases as part of its strategic program, aimed at enhancing shareholder value [12][13].

Core Insights - Merck has entered into an agreement with Blackstone Life Sciences for funding to develop sacituzumab tirumotecan (sac-TMT), an investigational antibody-drug conjugate targeting TROP2, a protein associated with various cancer cells [1] Company Summary - Merck, also known as MSD outside the U.S. and Canada, is focusing on the development of sac-TMT, which is currently being evaluated in 15 global clinical trials [1]

Core Insights - Immunome, Inc. is focused on developing innovative targeted cancer therapies, specifically through its proprietary antibody-drug conjugate (ADC) technology [1] - The company recently presented preclinical data indicating that its ADC payload HC74 can overcome various mechanisms of ADC resistance, such as payload efflux and target heterogeneity [1] - HC74 is identified as a novel topoisomerase I inhibitor and is utilized in the ROR1-targeted ADC IM-1021, which is currently undergoing Phase 1 clinical trials [1]