Core Viewpoint - The article discusses the recent developments of Vili Biotech, a company focused on T-cell engagers (TCE), highlighting its market positioning, clinical advancements, and strategic decisions in the competitive biotech landscape [2][3]. Group 1: Company Overview - Vili Biotech completed its IPO in July 2023, becoming the first TCE-focused company listed in Hong Kong, with a market capitalization of approximately HKD 11.34 billion [2]. - The company has positioned itself in the less mainstream TCE sector, which connects T-cells to cancer cells, despite the associated risks such as cytokine storms and neurotoxicity [2][4]. Group 2: Market Performance - Vili Biotech's stock saw a significant increase of 127% shortly after its IPO, with retail subscriptions reaching a record 3,494.8 times, indicating strong market interest [3]. - The company aims to avoid the "overnight success" narrative, focusing instead on long-term development and the quality of its research pipeline [3]. Group 3: TCE Technology Insights - TCEs are gaining traction in the immunotherapy field, particularly for blood cancers, but are less recognized compared to antibody-drug conjugates (ADCs) [4]. - The first TCE drug to surpass USD 1 billion in sales is Amgen's Blincyto, which targets leukemia, with projected sales exceeding USD 1.2 billion in 2024 [4]. Group 4: Clinical Development - Vili Biotech has six innovative drug candidates in clinical stages, with LBL-024 being the closest to market, targeting advanced neuroendocrine carcinoma [7]. - The company employs a "small to large" clinical strategy, starting with niche indications and expanding to broader cancer types [8]. Group 5: Financial Strategy - The company currently has around RMB 2 billion in funds, sufficient to support its R&D plans for the next 4 to 5 years, with no immediate plans for additional financing [10]. - Vili Biotech emphasizes the importance of financial preparedness in the cyclical biotech industry, having adjusted its fundraising strategy during a downturn in 2021 [10].

Core Insights - The stock price of InnoCare Pharma (映恩生物) reached a historical high of HKD 563.50 per share after being included in the Hang Seng Composite Index and successful Phase III clinical trial results for its core product DB-1303, but has since dropped to HKD 305 per share [2] - The Hong Kong innovative drug index surged from 666.91 to 1660.66 in the first nine months of the year, indicating a potential return to a bubble era for Chinese innovative drugs [2] - The founder and CEO, Zhu Zhongyuan, believes that industry development is akin to wine fermentation, where bubbles are a natural occurrence, and emphasizes that business development (BD) is a means to an end, not the goal [2][11] Company Overview - InnoCare Pharma, known as the "first ADC stock in China," has emerged as a strong player in the ADC (antibody-drug conjugate) sector, with 10 ADC clinical-stage pipelines [3] - The company went public on the Hong Kong Stock Exchange after a significant increase in stock price on its first day, raising the largest financing amount in the Hong Kong biotech sector [3] - The company’s lead product, DB-1303, has shown significant advantages over the established T-DM1 drug in clinical trials, and it is approaching the stage of market application [3][4] Clinical Development - DB-1303 is being developed for endometrial cancer, a condition with limited treatment options, and has received breakthrough therapy designation from both the FDA and CDE [3][4] - Another core product, DB-1311, targets B7-H3 and has entered global I/IIa clinical trials, with the company aiming to catch up with competitors in the ADC space [5][6] - InnoCare Pharma has initiated clinical trials in 20 countries, with over 2,700 patients enrolled, positioning itself among the leaders in the domestic biotech sector [6] Strategic Vision - Zhu Zhongyuan envisions a future where Chinese ADC companies will be globally recognized, focusing on the impact of their drugs on patient lives rather than merely on pipeline sales [7][12] - The company has established a "flywheel model" to leverage its experience in ADC development, aiming for partnerships with multinational pharmaceutical companies to secure funding and expand its network [8][9] - InnoCare Pharma has successfully completed multiple BD transactions with notable partners, including BioNTech and GSK, which has positioned it as a leading player in the domestic biotech landscape [9][10] Market Dynamics - The innovative drug market in Hong Kong has seen significant investment from multinational companies, with over 52.5% of global BD transactions related to Chinese innovative drugs as of August 2023 [10] - The stock price fluctuations in the biotech sector are influenced by market sentiment towards BD activities, with a notable correlation between overseas market rights and stock performance [11] - Despite current losses, the company is optimistic about its future, projecting significant milestone payments from existing BD agreements over the next two years [11][13]