Summary of Conference Call Industry Overview - The conference focused on updates and developments in the Chinese biopharmaceutical industry, particularly highlighting companies such as BeiGene, 3SBio, and Kelun-Biotech [1][10]. Key Company Insights BeiGene - BeiGene's BCL-2 inhibitor has been approved for sale in China and is expected to receive accelerated approval in the U.S. within the year [1]. - BCL-2 is viewed as a second growth driver for BeiGene, complementing its existing BTK inhibitors, which have shown rapid sales growth in the U.S. market [2]. - The company has a robust pipeline for solid tumors, with several candidates entering late-stage development, including treatments for breast cancer and other indications [3]. - BeiGene is anticipated to report its first annual profit, with expectations that its annual report may exceed forecasts [3]. 3SBio - Pfizer has outlined a global development plan for its drug 707, with five global Phase III trials expected to start by 2026, targeting various cancers [4]. - The trials include first-line treatments for colorectal cancer and non-small cell lung cancer [4]. Kelun-Biotech - Kelun-Biotech is expected to have a significant year with five products anticipated to be commercialized, three of which have already been included in the national medical insurance [5]. - The company has successfully commercialized its top two ADC products and is expected to see explosive growth following their inclusion in insurance [5]. Innovent Biologics - Innovent's Ivosidenib is expected to receive final approval from the FDA in Q4 of this year, with ongoing clinical trials for various cancers [6][7]. - The company is also preparing for the commercialization of its CAR-T product, which has already been approved domestically [8]. Rongchang - Rongchang has announced plans for three Phase III trials, including one for non-small cell lung cancer, which has received FDA approval [7][8]. Other Notable Mentions - Merck has initiated 16 global Phase III trials for its drug targeting various major indications, with data expected in the second half of the year [5]. - The conference highlighted the importance of clinical trial data releases for several companies, which are crucial for their long-term valuations [3][10]. Market Dynamics - The overall market for innovative drugs is currently experiencing a downturn, primarily due to internal funding shifts within the pharmaceutical sector [10]. - The high percentage of holdings in innovative and traditional pharmaceuticals (around 75%) has led to a reallocation of funds towards other sectors like AI healthcare and CROs [11]. - Despite the market's performance, the fundamental aspects of many companies remain strong, with ongoing clinical advancements and positive earnings expectations [11]. - The total amount of business development (BD) transactions in recent weeks has already reached 25% of last year's total, indicating a robust pace of international expansion [11]. Conclusion - The conference provided a comprehensive overview of the current state of the biopharmaceutical industry in China, highlighting significant advancements and the potential for growth among key players. The market dynamics suggest a temporary disconnect between stock performance and fundamental company health, indicating potential investment opportunities.

Core Viewpoint - CICC maintains the profit forecast for BeiGene (688235.SH, 06160, ONC.US) for 2025 and 2026, keeping the "outperform" rating, with target prices of 280 CNY, 198 HKD, and 332 USD based on DCF model, indicating upside potential of 15.0%, 41.0%, and 43.1% respectively [1] Group 1 - The company's 1Q25 revenue met expectations, reporting 1.117 billion USD, a 49% year-on-year increase, with product revenue at 1.109 billion USD, up 48%, and a GAAP net profit of 1.27 million USD, exceeding expectations due to revenue growth outpacing operating expenses [2] - Sales of Zanubrutinib reached 792 million USD in 1Q25, a 62% year-on-year increase, accounting for 71.4% of product revenue, with US sales at 563 million USD, up 60%, driven by increased demand, particularly in CLL indications [3] - The company achieved its first quarterly profit turnaround, maintaining guidance for 2025 with expected revenue of 4.9 to 5.3 billion USD, a year-on-year growth of 29% to 39%, and GAAP operating expenses of 4.1 to 4.4 billion USD, projecting a positive GAAP operating profit for 2025 [4] Group 2 - The company has several highlights for 2025-2026, including the approval of BCL2 for R/R CLL treatment, with phase II clinical data expected in 2H25, and plans for a global accelerated filing; ongoing phase II trials for BTK CDAC in r/r CLL with data expected in 2026, and a head-to-head trial with Eli Lilly's Pirto starting in 2025 [5] - In the solid tumor field, preliminary data for CDK4i, CDK2i, and B7H4 ADC is expected in 1H25, with PoC validation for several products planned for 2H25, including collaborations with Amgen on Tarlatamab, which recently met primary clinical endpoints in a phase III trial for 2L SCLC [5]