Coherus Oncology (NasdaqGM:CHRS) FY Conference January 13, 2026 01:30 PM ET Company ParticipantsTheresa LaVallee - Chief Scientific and Development OfficerDennis Lanfear - CEOConference Call ParticipantsBrian Cheng - Senior Biotech AnalystBrian ChengGood morning, everyone. It's still the morning. Thanks for joining us for another session at the 44th JPMorgan healthcare conference. I'm Brian Cheng. I'm one of the Senior Biotech Analysts here at the firm. On stage, we have the team from Coherus Oncology. I wi ...

Core Viewpoint - The stock price of Paig Bio (02565.HK) has surged nearly 800% from its initial public offering (IPO) price of 15.6 HKD to 66 HKD, despite an initial drop to 8.68 HKD, indicating a significant turnaround in market sentiment and investor confidence [1][10]. Company Analysis - Paig Bio initially faced skepticism due to its lack of products and revenue at the time of its IPO, being labeled a "three-no player" [8]. - The company’s core product, PB-119, is expected to enter the market soon, which has contributed to the recent surge in stock price [10]. - The company has successfully extended the lock-up period for its cornerstone investor, Yizhe Kangrui Pharmaceutical, signaling strong confidence in its future prospects [1][11]. Industry Context - The GLP-1 market is becoming increasingly competitive, with numerous companies vying for market share, raising concerns about potential over-saturation similar to the PD-1 market [5][6]. - Despite the competitive landscape, there are still opportunities for differentiation in the GLP-1 space, particularly in addressing unmet clinical needs and optimizing drug delivery methods [7][14]. - The upcoming expiration of key patents in the GLP-1 sector may lead to a surge in generic competition, further complicating the market dynamics [5]. Future Outlook - The sustainability of Paig Bio's high valuation, currently exceeding 250 billion HKD, will depend on the commercial success of PB-119 and the performance of its pipeline products [12][14]. - The company is also developing next-generation products like PB-718, which may provide additional growth avenues if successful [14][15]. - The market's reaction to the actual performance of PB-119 post-launch will be critical, as high expectations may not align with actual sales figures, potentially leading to volatility in stock price [11][12].

Financial Performance - In the first half of 2025, the company's product revenue reached 17.36 billion yuan, a year-on-year increase of 45.8% [1] - Total operating revenue for the same period was 17.52 billion yuan, reflecting a 46.0% year-on-year growth [1] - The net profit attributable to the parent company was 450 million yuan [1] - As of the end of the reporting period, total assets amounted to 44.87 billion yuan, an increase of 4.8% from the beginning of the period [1] - Equity attributable to the parent company was 26.86 billion yuan, up 11.1% from the beginning of the period [1] Product Sales - Global sales of Baiyueze® (Zebutinib Capsules) totaled 12.53 billion yuan, marking a 56.2% year-on-year increase, solidifying its leadership in the hematologic oncology field [2] - Sales in the United States reached 8.96 billion yuan, a 51.7% increase, driven by strong demand across all indications and favorable net pricing [2] - European sales amounted to 1.92 billion yuan, up 81.4%, attributed to market share gains in major European markets including Germany, Italy, Spain, France, and the UK [2] - In China, sales were 1.19 billion yuan, a 36.5% increase, due to growth in approved indications [2] - Baizean® (Trelatuzumab Injection) generated sales of 2.64 billion yuan, reflecting a 20.6% year-on-year growth, driven by new indications included in medical insurance and increased hospital supply [2] - Baizean® maintains a leading market share in China's PD-1 market [2]

Core Insights - The CD47 target was once highly sought after by global pharmaceutical companies, likened to the next PD-1, but has since faced significant challenges and failures in drug development [1][3][14] - Despite the setbacks, companies like I-Mab and Kangfang Biotech remain optimistic about the potential of CD47-targeted therapies, with ongoing clinical trials [5][9][14] Industry Overview - CD47 is a transmembrane glycoprotein expressed on various cancer cells, which helps tumors evade the immune system by sending a "don't eat me" signal to macrophages [3][5] - Major pharmaceutical companies, including Gilead and Pfizer, have made substantial investments in CD47-targeted therapies, with Gilead acquiring Forty Seven for $4.9 billion, but faced failures in clinical trials [3][5][12] - In China, over 20 clinical approvals for CD47-targeted drugs have been granted, but many companies, including Hengrui and Innovent, have halted their trials due to disappointing results [4][5][12] Company Developments - I-Mab is advancing two Phase III clinical trials for its CD47-targeted therapies, while Kangfang Biotech is conducting multiple trials for its drug, Lefanlimab [5][9] - I-Mab's approach to CD47 is distinct, as it utilizes a non-antibody drug that binds more selectively to cancer cells, potentially reducing toxicity and improving dosing [8][9] - Kangfang Biotech is optimizing its drug structure to minimize red blood cell aggregation, which is a significant issue with CD47 antibodies [9][12] Market Sentiment - The global pharmaceutical industry has invested nearly 100 billion RMB in CD47 research without a successful drug to date, leading to a cautious approach from investors and companies [5][12] - There is a growing sentiment that the investment climate for innovative drugs is improving, with increased activity from investment funds in the sector [11][16]