Summary of Kanghong Pharmaceutical Conference Call Company Overview - **Company**: Kanghong Pharmaceutical - **Date**: October 29, 2025 Key Points Industry and Company Performance - **Biopharmaceutical Segment**: Revenue reached 2.04 billion CNY, a year-on-year increase of 11.36% [2][6] - **Traditional Chinese Medicine Segment**: Revenue was approximately 1.138 billion CNY, up 8.87% year-on-year, mainly driven by products Songling Xuebai Kang and Shugan Jieyu [2][5] - **Chemical Generic Drugs Segment**: Revenue fell to 440 million CNY, a decline of 14.2%, primarily due to the impact of the centralized procurement of Hydrobromide Vortioxetine [2][5][6] - **Overall Revenue**: For the first three quarters of 2025, total revenue was 3.62 billion CNY, reflecting a growth of 6.23% year-on-year [4][17] - **Net Profit**: The net profit attributable to shareholders was 1.033 billion CNY, an increase of 6.08% year-on-year [4] Clinical Trials and Product Development - **Ophthalmology**: - High-concentration Kangbai Xip (KH902/R10) is in Phase II trials for diabetic macular edema and will soon enter Phase III [2][7] - Gene therapy products KA7,631 and KH658 for NAMD are undergoing clinical trials in both China and the US [2][7][25] - **Oncology**: - KH617 for advanced solid tumors and adult diffuse glioma is in Phase II trials, with two subjects enrolled showing promising results [2][8] - The first ADC product KH815 has entered Phase I trials in China and Australia, with 15 subjects enrolled [10][19] - **Neuroscience**: - KH607 for major depressive disorder is in Phase II with over 100 subjects enrolled [11][24] - KH702, a non-addictive pain relief drug, has completed Phase I with 66 subjects [12] Future Outlook - **Revenue and Profit Growth**: The company expects a revenue and profit growth of 5-15% for the full year, although facing pressure in Q4 [5][17] - **Market Positioning**: Kanghong aims to maintain its leadership in the Chinese ophthalmology market, particularly in the anti-VEGF segment, despite increasing competition [18][21] - **R&D Focus**: The company will continue to invest in innovative therapies in ophthalmology, oncology, and neuroscience, with a strong emphasis on gene therapy and ADC technologies [9][14][26] Competitive Landscape - **Ophthalmology Market Trends**: The market is shifting towards anti-VEGFR therapies, with increasing competition from both domestic and international players [13][18] - **Strategic Response**: Kanghong plans to leverage its innovative products and academic promotion teams to navigate market challenges and enhance its competitive edge [18][21] Additional Insights - **Gene Therapy Innovations**: The company is exploring gene therapy for non-ophthalmic indications, focusing on chronic diseases and innovative R&D [14][15] - **Clinical Data Disclosure**: Data for K763 and KH658 is expected to be disclosed in mid-2026, with plans to present findings at major global ophthalmology conferences [25] This summary encapsulates the key insights from the conference call, highlighting Kanghong Pharmaceutical's performance, clinical advancements, future strategies, and market dynamics.