Core Viewpoint - Multiple favorable policies have been released, leading to a collective surge in innovative drug stocks, with Kangfang Biotech's market capitalization surpassing HKD 100 billion [9][14]. Market Performance - On July 4, the Hang Seng Index experienced a decline of 0.64%, closing at 23,916.06 points, with a weekly drop of 1.52% [1]. - The Hang Seng Biotechnology Index rose by 1.07%, indicating resilience in the biotech sector despite broader market declines [15]. - The total market turnover was HKD 267.8 billion, with net inflows from southbound funds amounting to HKD 6.68 billion [3]. Stock Performance - Notable gainers included: - Xinyi Solar, up 4.73% [4] - China Biologic Products, up 2.75% [4] - Hansoh Pharmaceutical, up 2.47% [4] - Kangfang Biotech's stock price increased by 9.43% to HKD 116.10, with a total market value reaching HKD 104.2 billion [10][13]. Policy Impact on Innovative Drugs - The National Healthcare Security Administration and the National Health Commission released measures to support the high-quality development of innovative drugs, which positively impacted stock prices in the sector [17]. - The introduction of a commercial insurance directory for innovative drugs is expected to expand market opportunities and encourage pharmaceutical companies to enhance R&D efforts [18]. Company Highlights - Kangfang Biotech's first dual-antibody ADC drug, AK146D1, has entered clinical trials, marking a significant milestone for the company [13]. - The company is recognized as the only global entity with two tumor immunotherapy dual antibodies, establishing a leading advantage in the IO+ADC landscape [13].

Company Overview - Kangfang Biopharma (09926.HK) experienced a significant stock price increase, rising over 14% to a record high of HKD 106.4 per share, with a market capitalization of approximately HKD 95 billion, nearing HKD 100 billion [2] - The company announced the completion of the first patient enrollment in the Phase Ia clinical trial for its first dual-target antibody-drug conjugate (ADC), AK146D1, aimed at treating advanced solid tumors [2] - AK146D1 targets Trop2 and Nectin4, which are promising tumor targets, and is the first dual-target ADC to enter clinical trials, with approvals from the FDA, TGA, and the National Medical Products Administration [2] Product Development - Kangfang Biopharma has developed over 50 innovative drug candidates for major diseases, with 24 candidates in clinical trials, including 15 dual-target/multi-target ADCs [3] - The company is the only one globally with two approved tumor immunotherapy dual antibodies, namely Cardunili (PD-1/CTLA-4 dual antibody) and Yivolisi (PD-1/VEGF dual antibody) [3] Market Outlook - According to a report by Frost & Sullivan, the Chinese anti-tumor drug market is expected to grow significantly, with a projected market size of RMB 398.5 billion from 2023 to 2026, reflecting a compound annual growth rate (CAGR) of 14.0% [4] - By 2030, the market size is anticipated to reach RMB 581.7 billion, with a CAGR of 9.9% from 2026 to 2030 [4]