Core Insights - The company AK112 is leading globally in the development of second-generation immune-oncology (IO) therapies and is expected to capture the largest market share in this segment [1][2] - The broad-spectrum anti-cancer effects of PD-1 and VEGF targets are promising, with a significant existing market potential of nearly $60 billion, driven by the synergistic mechanisms of dual-target therapies [1] - The company has made substantial progress in clinical trials, with multiple Phase III studies underway and a unique position as the only approved PD-1/VEGF dual antibody globally [2] Market Potential - The global peak sales for VEGF monoclonal antibody Bevacizumab reached approximately $7.1 billion in 2019, while combined global sales for PD-1/PD-L1 monoclonal antibodies are projected to reach $51.6 billion by 2024 [1] - The total upfront payments for PD-1/VEGF or PD-L1/VEGF dual antibody licensing agreements have reached $3.9 billion, with total deal values amounting to $28.8 billion [1] Clinical Development - AK112 has received approval for two indications in China, with one included in the national medical insurance directory, showcasing its leading global progress [2] - The company is advancing multiple Phase III clinical studies for various cancers, including NSCLC, triple-negative breast cancer, and pancreatic cancer, which could potentially replace existing market products [2] - The first international registration trial for the PD-1/CTLA-4 dual-specific antibody, AK104, has been approved, indicating significant clinical and commercial potential [2] Financial Projections - Revenue forecasts for the company are estimated at 3.518 billion, 5.765 billion, and 9.372 billion yuan for 2025-2027, with net profits projected to be -186 million, 803 million, and 2.966 billion yuan respectively [3] - Assuming successful international Phase III trials for AK112, the risk-adjusted peak sales are estimated at approximately $19.7 billion [3] - Based on a DCF valuation with a WACC of 8.06% and a perpetual growth rate of 1%, the reasonable market capitalization is calculated to be 222.8 billion HKD [3]

Group 1 - Akeso, Inc. has successfully enrolled the first patient in its Phase Ia clinical trial for AK146D1, a bispecific Antibody-Drug Conjugate (ADC) targeting Trop2 and Nectin4, marking its first bispecific ADC to enter clinical trials [1] - AK146D1 has received approvals from the U.S. FDA, Australia's TGA, and China's NMPA to begin clinical trials, indicating strong regulatory support for the product [1] - Akeso is the only company globally with two approved cancer immunotherapy bispecific antibodies, cadonilimab and ivonescimab, establishing a strong leadership advantage in the IO+ADC space [2] Group 2 - ADC therapeutics are a key component of Akeso's "IO+ADC" 2.0 strategy, which aims to reshape the global treatment landscape and set new standards for cancer care [3] - The company emphasizes the potential of innovative bispecific ADCs like AK146D1 to unlock global clinical opportunities and enhance cancer therapies [4] - Trop2 and Nectin4 are ideal targets for ADC therapy due to their high expression in various tumor types and low expression in normal tissues, which may improve treatment efficacy [4][5] Group 3 - AK146D1 is the first bispecific ADC targeting both Trop2 and Nectin4, with preclinical studies showing strong anti-tumor activity and favorable safety profiles [5] - The development of AK146D1 holds significant potential for improving treatment outcomes for cancer patients, highlighting Akeso's commitment to advancing cancer therapies [5]