Summary of Hansoh Pharma (3692.HK) Conference Call Company Overview - **Company**: Hansoh Pharma - **Ticker**: 3692.HK - **Market Cap**: HK$217.9 billion / $28.0 billion Key Industry Insights - **Sales Growth for Ameile**: - On-track sales progress for Ameile with a peak sales guidance of Rmb8 billion as a monotherapy, expected to be driven by adjuvant settings over the next two years [1][2] - Incremental sales contribution from adjuvant settings estimated at Rmb2-3 billion, with gradual sales ramp-up anticipated due to the need for expanded academic marketing and digestion of NRDL price cuts in 2026 [2] - **Overseas Development Progress**: - Smooth progress in overseas development for several assets: - GSK has started patient enrollment for global phase 3 clinical trials for HS-20093 (B7H3 ADC) targeting small cell lung cancer (SCLC) [3] - Merck plans to advance HS-10535 (oral GLP-1) to clinical stage by the end of 2025 [3] - Roche is exploring HS-20110 (CDH17 ADC) for colorectal cancer (CRC) [3] - The company aims to secure at least one out-licensing deal annually to generate sustainable collaboration income from upfront and milestone payments [3] - **Innovative Pipeline Deliveries**: - Targeting 8-10 new INDs (Investigational New Drug applications) each year to enhance the pipeline [4] - Focus on early-stage assets including: - HS-20122 (EGFR/cMet ADC) with patient dosing in 1H25 and phase 1 data readout expected in 2026 [4] - First siRNA program aimed at cardiovascular diseases, with IND filing by the end of 2025 [4] - Oral IL-23 currently in phase 1 [4] Financial Metrics and Valuation - **Price Target**: - Buy rating with a 12-month price target of HK$39.93, representing an upside of 8.4% from the current price of HK$36.82 [8][10] - **Revenue Forecasts**: - Projected revenues for the next few years: - 12/24: Rmb12,260.8 million - 12/25E: Rmb14,746.3 million - 12/26E: Rmb15,839.3 million - 12/27E: Rmb17,202.4 million [10] - **EBITDA Estimates**: - Expected EBITDA figures: - 12/24: Rmb4,315.8 million - 12/25E: Rmb5,027.2 million - 12/26E: Rmb4,959.9 million - 12/27E: Rmb5,197.5 million [10] Risks Identified - **Sales Risks**: - Potential for generics sales post VBP (Volume-Based Procurement) to fall below expectations [9] - **Ramp-Up Risks**: - Slower-than-expected ramp-up of novel drugs [9] - **R&D Risks**: - Risks associated with the innovative drug pipeline [9] - **Collaboration Income Risks**: - Below-expected collaboration income from global expansion of the pipeline [9] Conclusion Hansoh Pharma is positioned for growth with a strong pipeline and overseas development initiatives. However, potential risks related to sales performance, drug ramp-up, and R&D must be monitored closely. The company maintains a positive outlook with a solid financial forecast and strategic plans for innovation and market expansion.

Summary of Kelun Biotech (6990.HK) Conference Call Company Overview - **Company**: Kelun Biotech - **Ticker**: 6990.HK - **Market Cap**: HK$102.6 billion / $13.2 billion - **Industry**: China Pharma, Biotech & Medtech Key Points Industry Insights - The management discussed the MSD/Blackstone deal related to sac-TMT R&D, indicating it as a sign of commitment and acknowledgment within the industry [2][1] - Such funding deals are common in the US, with a reference to a $2 billion deal between ALNY/Blackstone on RNAi medicines in 2020 [2][1] Financial Guidance - FY25 sales guidance remains unchanged at RMB 800 million to 1 billion, with expectations for more significant growth post-NRDL coverage [8][1] - Management anticipates achieving corporate-level break-even within 1-2 years [8][1] Pipeline and Clinical Trials - Data readouts in 2026 are expected to provide deeper insights into the sales potential of sac-TMT, including: - First global phase 3 trial readout in GEA (TroFuse-015 trial) in 4Q26 - Phase 3 overall survival update for HR+/HER2- breast cancer - Additional data from China phase 3 trials in first-line settings [8][1] Deal Analysis - The MSD/Blackstone deal terms include: - Blackstone eligible for sales royalties only after the approval of sac-TMT in first-line triple-negative breast cancer (TNBC) [2][1] - The deal indicates a potential for higher-than-consensus peak sales of sac-TMT, with estimates of US$2.8 billion at peak sales [2][1][5] - The US$700 million funding for sac-TMT suggests increased clinical investment in this asset [2][1] Valuation and Risks - A Buy rating is maintained for Kelun Biotech with a 12-month target price of HK$492.4, reflecting a 12% upside from the current price of HK$439.80 [6][1][7] - Key risks identified include: - R&D risks in developing new indications and future ADCs - Increased competition in the ADC field - Limited commercial manufacturing and sales track record - Challenges in talent competition - Alliance risks in partnerships [6][1] Financial Projections - Revenue projections for the next few years are as follows: - FY24: RMB 1,933 million - FY25: RMB 1,983 million - FY26: RMB 3,696.9 million - FY27: RMB 5,605.3 million [7][1] Conclusion Kelun Biotech is positioned for growth with a strong pipeline and strategic partnerships, although it faces several risks typical of the biotech industry. The management's focus on achieving break-even and expanding its market presence through clinical data in 2026 is crucial for its future performance.

Summary of Sino Biopharmaceutical (1177.HK) Conference Call Company Overview - **Company**: Sino Biopharmaceutical - **Ticker**: 1177.HK - **Industry**: Pharmaceuticals, Biotech, and Medtech Key Points Product Sales Growth - Management reported an encouraging trend in product sales growth in 3Q, showing acceleration compared to 1H25, primarily driven by new products such as gasorasib (KRAS G12C), factor Ⅶa, and meloxicam [2][3] - Earnings growth is expected to outpace topline growth due to investment gains [2] Financial Highlights - A milestone payment of **US$300 million** from Merck to LaNova has been received, which will be recorded in 2H25 after sharing **25%** with Genscript and tax deductions [2] - The company has a cost advantage of **20%-50%** lower than peers due to scale effects of large pharma [2] Regulatory and Market Considerations - For biosimilar VBP, management expressed low expectations for nationwide execution due to potential supply issues and a shift in policymakers' focus towards drug quality [2] - Smooth progress was noted in NRDL renewal negotiations for anlotinib, KRAS G12C, and PD-1 [2] Business Development Goals - The company aims to close a major licensing deal with upfront payments exceeding **US$100 million** by the end of 2025, emphasizing improved experience in business development negotiations [3] - Promising assets in the pipeline include: - **LM-108**: Potential first-in-class CCR8 mAb - **AP025 (FGF21)**: Global rights obtained from Ampsource Bio, potentially better efficacy for MASH, could be developed with GLP-1 - **PD-1/IL2**: Targeting IND in 2026 with a potentially better safety profile - **EGFR/cMET bispecific antibody**: Phase 1 clinical data readout expected in 2026 - **PD-1/CTLA-4 bispecific**: Broader therapeutic window anticipated [3] Price Target and Risks - The 12-month SOTP-based price target is **HK$6.19**, with a current price of **HK$7.12**, indicating a downside of **13.1%** [7][8] - Key downside risks include: - Broader price cuts on the generics portfolio - Delays in regulatory approvals for key products - Low returns on R&D investments due to resource allocation issues - Below-expectation ramp-up of innovative drugs [7] Market Capitalization and Financial Metrics - Market capitalization stands at **HK$134.4 billion** (approximately **US$17.3 billion**) [8] - Revenue projections for the next few years are as follows: - **2024**: **28,866.2 million RMB** - **2025E**: **33,640.4 million RMB** - **2026E**: **35,858.2 million RMB** - **2027E**: **38,682.4 million RMB** [8] Analyst Ratings - The company is rated as a "Buy" by Goldman Sachs, with a focus on its innovative pipeline and growth potential [8] Additional Considerations - The report includes disclosures regarding potential conflicts of interest due to Goldman Sachs' business relationships with the company [4][17] - Analysts emphasize the importance of considering this report as one of several factors in investment decisions [4]

Summary of China Medical System Holdings (0867.HK) Conference Call Company Overview - **Company**: China Medical System Holdings (0867.HK) - **Industry**: Pharmaceuticals, specifically focusing on dermatology and ophthalmology Key Points 1. Sales Growth and Guidance - The company reported smooth commercialization progress in Q3 and maintained its guidance for over 10% sales growth for 2025/2026 driven by: - Further sales ramp-up of new products - Modest growth of Xinhuosu due to limited competition and unmet VBP threshold - Retail sales expansion for consumer-oriented products like Bioflor and Stulln - Stable sales for three key VBPed drugs - Earnings growth is expected to resume next year, targeting a net margin of over 25% in five years through an improved product mix and potential investment gains [2][4][8] 2. Ruxolitinib Cream Approval and Sales Target - Management anticipates that ruxolitinib cream will receive approval in China for vitiligo treatment by the end of 2025, with an unchanged sales target of RMB 500 million to 1 billion for 2026 [3][4] 3. New Ophthalmology Drugs - The company has secured commercial rights in China for two anti-VEGF drugs, Lucentis and Beovu, from Novartis, aiming for combined sales of RMB 500 million despite modest commercial potential due to biosimilar competition [4][7] 4. Financial Projections - The 12-month target price for the stock is set at HK$17.92, representing a 29.4% upside from the current price of HK$13.85. This target is based on a sum-of-the-parts (SOTP) valuation: - DCF-based valuation of RMB 12.0 billion for the dermatology business - DCF-based valuation of RMB 8.8 billion for other new drugs - 2026E P/E based valuation of RMB 20.1 billion for legacy products [8][9] 5. Risks - Potential risks include: - Greater-than-expected sales erosion of core VBP drugs - Softer growth of non-VBP legacy products - Slower ramp-up of new products [8] 6. Market Position and Strategy - The company aims to enhance its competitive position in the ophthalmology market through the introduction of new drugs and expanding sales channels to cover a broader patient base [4][7] 7. Financial Metrics - Market capitalization: HK$33.8 billion (approximately $4.3 billion) - Revenue projections for the next few years: - 2024: RMB 7,469 million - 2025: RMB 8,316 million - 2026: RMB 10,223 million - 2027: RMB 12,401 million - EBITDA and EPS projections also indicate growth [9] Conclusion China Medical System Holdings is on track for significant growth in the coming years, driven by new product launches and strategic partnerships. The company maintains a positive outlook for sales growth and profitability, although it faces certain market risks that could impact its performance.

Investment Rating - The report assigns a "Buy" rating to Ocumension with a 12-month price target of HK$6.93, indicating a potential downside of 36.9% from the current price of HK$10.98 [6][7]. Core Insights - Management expressed confidence in OT-101 (low dose atropine) with ongoing business development negotiations and expects Phase 3 data readout in May 2026, which is crucial for regulatory filings in the US and China [3][5]. - The supply of Yutiq is expected to resume in China starting from July, with FY25 sales guidance reiterated to double to Rmb800 million, approximately 50% of which is anticipated from the Alcon franchise [5][6]. Summary by Sections Business Development Focus - The primary focus is on OT-101, with management anticipating positive Phase 3 data for children and adolescents with myopia, and plans for regulatory filings in both the US and China post-data readout [3][5]. - The ongoing Phase 3 multi-regional clinical trial (MRCT) includes over 700 participants globally, with a design that meets FDA and CDE requirements [3]. - Management is also monitoring SYD-101 for US visibility, especially following its recent EU approval, with the upcoming FDA PDUFA date seen as a significant event [3][5]. - Market penetration remains a key uncertainty, with accessible pricing between US$60-90/month and potential reimbursement, but concerns exist regarding physician willingness to prescribe and competition from compound pharmacies [3][5]. Financial Guidance - Management expects Yutiq supply constraints to ease, projecting flat or slight increases in sales for the full year, estimated at Rmb50-60 million [5]. - The FY25 sales guidance of Rmb800 million reflects a doubling of sales, with a significant contribution from the Alcon franchise [5][6].

Investment Rating - The report assigns a "Buy" rating to Hansoh Pharma with a 12-month price target of HK$22.71, indicating a downside potential of 20.6% from the current price of HK$28.60 [8][9]. Core Insights - Management emphasizes encouraging progress in ex-China development for out-licensed assets, including B7H3 ADC, B7H4 ADC, and oral GLP-1, with a reiterated product sales guidance of double-digit growth in 2025 [1][2]. - The key product Ameile is projected to achieve peak sales of Rmb8 billion, with additional upside potential from combination therapies [1][3]. - The company anticipates deal-making opportunities from early-stage ADCs and next-generation disease modifiers for immunology diseases [1][7]. Summary by Sections Ex-China Development Progress - HS-20093 (B7H3 ADC) has received two breakthrough designations from the FDA for SCLC and osteosarcoma, with GSK planning pivotal studies by Q4 2025 [2]. - HS-20089 (B7H4 ADC) is set to commence pivotal trials in 2026 for gynecological cancers [2]. - HS-10535 (oral GLP-1) is expected to enter phase 1 trials in 2025, targeting multiple cardiovascular and metabolic diseases [2]. - HS-20094 (GLP-1/GIP) will focus on weight reduction strategies in combination with Regeneron's internal pipeline assets [2]. Sales Growth and Commercialization - Management guides for double-digit sales growth in 2025, driven by innovative drugs, particularly Ameile, which has a revised sales target of Rmb6 billion for 2025 [3][6]. - The potential for collaboration income is highlighted as a sustainable revenue driver, supported by a growing R&D pipeline with 8-10 new INDs each year [6]. Licensing and Deal-Making Opportunities - Potential licensing-out opportunities include early-stage pre-clinical assets and several ADCs that have entered clinical stages [7]. - Specific assets with deal-making potential include HS-20122 (EGFR/cMET ADC), HS-10370 (KRAS G12D), and others targeting immunology diseases [7].

Investment Rating - The investment rating for China Medical System Holdings is "Buy" with a 12-month price target of HK$12.57, indicating an upside potential of 2.4% from the current price of HK$12.28 [8][16]. Core Insights - The company anticipates double-digit sales growth for 2025 and positive topline growth for 2026 following the spin-off of its dermatology subsidiary, Dermavon [1][2]. - Key drivers for growth include the expected doubling of new drug sales post NRDL listing, resumption of growth for Xinhuosu, and stable performance of three core drugs [2][6]. - Two potential blockbuster products are highlighted: Y-3 for stroke with peak sales potential exceeding Rmb3 billion and ABP-671 for gout, which is expected to have better safety profiles compared to current standards of care [2][6]. Summary by Sections Sales Growth and Spin-off - The company maintains its guidance for double-digit sales growth in 2025, with positive growth expected in 2026 after the completion of Dermavon's spin-off by the end of 2025 [1][2]. - Growth drivers include new drug sales, diversified hospital coverage for Xinhuosu, and stable performance of core drugs [2][6]. Product Pipeline - The dermatology portfolio has a peak sales potential exceeding Rmb15 billion, with specific products like tildrakizumab targeting Rmb2 billion and ruxolitinib cream targeting at least Rmb6 billion [3][6]. - Other notable products include povorcitinib and comekibart, both with significant sales potential in their respective indications [6]. Financial Projections - Revenue projections for the upcoming years are as follows: Rmb7,469 million for 2024, Rmb8,244 million for 2025, and Rmb9,580 million for 2026 [8]. - The company is expected to maintain a stable EBITDA margin, with projected EBITDA of Rmb2,193 million in 2024 and Rmb2,982 million in 2026 [8].