Summary of Conference Call Notes Industry Overview - The focus has shifted back to company fundamentals in the China Pharma and Biotech sector, moving away from last year's emphasis on sector beta. [1] - Key companies discussed include BeOne, Kelun-Biotech, and Innovent, which have garnered significant investor attention. [1] BeOne - **Market Cap and Sales Potential**: BeOne's current market cap is $41 billion, with investors optimistic about Brukinsa's potential, expecting peak sales of $5 billion, which some consider conservative. [2] - **IRA Price Cut Exemption**: Brukinsa was not included in the recent IRA price cut announcement, leading to an expected sales upside of 10%-20%, potentially increasing peak sales to $6 billion by 2033. [2][6] - **Sonro Concerns**: Investors are worried about the lack of detailed data on Sonro's efficacy. However, the company believes these concerns are minor, as Sonro's trial results are comparable to venetoclax, which has a significant market presence. [2][9] Kelun Biotech - **Sales Expectations for sac-TMT**: Expectations for sac-TMT's sales range from $4-5 billion to over $10 billion, with Bernstein estimating $8 billion. [3] - **Phase 3 Data Catalyst**: The first global Phase 3 data release in 2026 is anticipated to be a major catalyst for stock performance. [3] - **Market Positioning**: Kelun's strategy focuses on squamous and PD-L1 high patients, avoiding direct competition with Dato-DXd, which targets non-squamous patients. [3][23] - **Market Size for 2L+ EGFRm**: The market for 2L+ EGFRm NSCLC is expected to be smaller than 1L TKIs, but projections indicate reasonable sales of CNY 4 billion. [3][25] Innovent - **Sales Focus**: Investors are primarily interested in mazdutide and IBI363, with concerns about pricing pressures due to competition from GLP-1 drugs. Sales estimates for mazdutide are expected to drop from CNY 3 billion to 2 billion in 2026. [4] - **Long-term Sales Estimates**: Despite short-term pressures, long-term estimates for mazdutide remain at CNY 5.4 billion and 10 billion at peak. [4] - **New Trials and Data**: Innovent is initiating six non-China Phase 1 trials in 2025, with expected readouts for new drugs, including IBI3003, which has received Fast Track designation from the FDA. [4] Financial Metrics - **Valuation and Performance**: The conference included a detailed ticker table with performance metrics for various companies, indicating significant upside potential for stocks like Kelun-Biotech and Innovent. [5] Additional Insights - **Regulatory and Competitive Landscape**: The discussions highlighted the importance of regulatory developments, such as the IRA price cuts, and competitive dynamics in the oncology market, particularly concerning CLL and AML treatments. [2][12][19] - **Clinical Trial Data**: The efficacy of treatments like Sonro and sac-TMT was compared against existing therapies, emphasizing the need for robust clinical data to support market positioning. [9][25] This summary encapsulates the key points from the conference call, focusing on the companies and industry dynamics discussed.