Summary of b one Company Conference Call Company Overview - **Company**: b one Company - **Industry**: Biotechnology Key Points and Arguments 1. **Global R&D Network**: b one Company has established a global R&D network and independent clinical trials, significantly reducing drug development costs and improving efficiency, particularly in areas that other companies are not interested in or unable to enter [2][4][6] 2. **Leadership in Protein Degradation**: The company is a leader in the protein degradation field with multiple projects in clinical stages and has built manufacturing capabilities for bioproducts, enhancing cost-effectiveness and time advantages in R&D and commercialization [2][6] 3. **Revenue Growth**: In Q3 2025, over 50% of b one Company's business came from the U.S., with European business growing by 71% year-over-year, accounting for 12% of total sales. Other markets, such as Japan, saw rapid growth of 133% year-over-year [2][7] 4. **CLL Drug Development**: b one Company is focused on developing high-quality drugs in the Chronic Lymphocytic Leukemia (CLL) field, including approved BTK inhibitor Bruton’s and BCL-2 inhibitors, which show significant efficacy in clinical trials [2][8] 5. **Clinical Trials Strategy**: The company is conducting head-to-head Phase III clinical trials for PCL2 and PDK to validate the superiority of its drugs, a strategy that has been historically employed and will continue in the future [2][8] 6. **R&D Capabilities**: b one Company has a diverse R&D portfolio, including small molecules and ADCs, and is recognized as one of the most accomplished R&D companies in protein degradation, with three projects in clinical stages and 20 in preclinical stages [6][12] 7. **Financial Performance**: In 2025, b one Company achieved operational profitability with a net profit of $125 million and free cash flow of $354 million, indicating strong financial health [14][15] 8. **AI in Drug Discovery**: The company is leveraging artificial intelligence in drug discovery and development, particularly in protein structure folding and manufacturing process optimization, with a focus on improving data quality and real-world data acquisition [16] Additional Important Information 1. **Upcoming Approvals**: b one Company anticipates that surrender clocks will receive preliminary approval in the U.S. and globally in 2026, while the BTK degrader is expected to achieve market approval in 2027 [9][10] 2. **Fixed Duration Treatment Data**: Recent data on fixed-duration treatment in CLL shows significant effectiveness, with a combination therapy achieving a milestone of progression-free survival at three years with only 15 months of treatment [9] 3. **Expansion in Solid Tumors**: The company has introduced 16 new molecular entities into clinical trials, focusing on solid tumors, with CDK4 inhibitors showing higher-than-expected response rates in first and second-line treatment settings [10][11] 4. **Balance of Investments**: b one Company aims to balance internal R&D investments with external asset acquisitions, focusing on sustainable growth while maintaining high standards in project selection [14][15]

Investment Rating - The report maintains an "Outperform" rating for BeiGene with a target price of HKD 213.10, reflecting a positive outlook on the company's performance [2][17]. Core Insights - In Q3 2025, BeiGene reported revenue of USD 1.41 billion, representing a year-on-year increase of 41% and a quarter-on-quarter increase of 7.7%. The gross profit margin was 86.1%, up by 3.1 percentage points year-on-year. The company achieved a net profit of USD 120 million for the quarter [3][13]. - Management has raised the full-year 2025 revenue guidance to USD 5.1–5.3 billion, slightly lowering the operating expenses guidance to USD 4.1–4.3 billion [3][13]. Revenue and Profit Forecasts - Revenue projections for FY25, FY26, and FY27 have been increased to USD 5.3 billion, USD 6.4 billion, and USD 7.1 billion, respectively, indicating a three-year compound annual growth rate (CAGR) of 23% [16][17]. - Net profit attributable to shareholders is forecasted to be USD 360 million, USD 660 million, and USD 1.05 billion for FY25, FY26, and FY27, respectively [16][17]. Product Performance - Zanubrutinib (BRUKINSA) generated global revenue of USD 1.04 billion in Q3 2025, with significant contributions from the U.S. (USD 740 million), Europe (USD 160 million), and China (USD 90 million). The global revenue for Zanubrutinib is expected to exceed USD 3.9 billion in 2025 [4][15]. - Tislelizumab (PD-1) reported global revenue of USD 190 million, reflecting a year-on-year increase of 16.7% [15]. Clinical Development Focus - The report highlights the importance of clinical progress in the hematologic oncology portfolio, particularly the BCL-2 inhibitor and BTK CDAC. Management plans to submit a new drug application for the R/R MCL indication and initiate a head-to-head trial in treatment-naïve chronic lymphocytic leukemia patients [14][15]. - In the solid tumor space, the focus is on the CDK4 inhibitor and B7-H4 ADC, with ongoing clinical trials and dose optimization efforts [15][16]. Valuation Methodology - The company is valued using a Discounted Cash Flow (DCF) model, with a WACC of 9% and a perpetual growth rate of 4%. The target price of HKD 213.10 reflects the company's growth potential and market position [17].

Investment Rating - The report assigns a "Buy-A" investment rating to the company, with a 6-month target price of 297.74 CNY [4][3]. Core Insights - The company's product revenue for the first half of 2025 reached 17.36 billion CNY, a year-on-year increase of 45.8%, while total revenue was 17.52 billion CNY, up 46.0% from the previous year [1]. - The net profit attributable to the parent company for the same period was 450 million CNY [1]. - The overseas market for the drug Zebutinib continues to expand, with Q2 2025 product revenue of 1.3 billion USD, a 42% year-on-year increase, driven primarily by sales growth in the US and Europe [1]. - Zebutinib sales in the US for Q2 were 684 million USD, up 43% year-on-year, while in Europe, sales reached 150 million USD, reflecting an 85% increase, attributed to market share gains across major European markets [1]. Financial Projections - Revenue projections for the company are estimated at 36.15 billion CNY, 45.94 billion CNY, and 55.64 billion CNY for 2025, 2026, and 2027 respectively, with net profits expected to be 1.20 billion CNY, 4.69 billion CNY, and 8.17 billion CNY for the same years [3][10]. - The report anticipates significant growth in the company's product pipeline, including the Bcl2 inhibitor Sotorasib and the BTK CDAC BGB-16673, with multiple key milestones expected in the second half of 2025 [2][3]. Market Performance - As of August 22, 2025, the company's stock price was 247.25 CNY, with a market capitalization of approximately 353.66 billion CNY [4]. - The stock has shown a 62% absolute return over the past 12 months, despite a relative decline of 1.8% over the past month [5].

Summary of BeiGene Conference Call Company Overview - **Company**: BeiGene - **Industry**: Biotechnology and Pharmaceuticals Key Points and Arguments 1. **Financial Performance**: BeiGene achieved its first NON-GAAP profit in Q2 2024, with an expected GAAP operating profit of $100 million to $150 million for the full year of 2025. If Q2 performance is strong, full-year profit expectations may be revised upwards [2][3]. 2. **Sales Efficiency**: The company has a significant advantage in commercialization and clinical development, with a per capita sales output of 6 million yuan in 2024, and as high as 50 million yuan in the U.S. [2][4]. 3. **Zebutinib Market Position**: Zebutinib's sales accelerated after its approval for CLL in Q1 2023, becoming the market leader in the U.S. by Q1 2025, with a leading pace in acquiring new patients [2][6]. 4. **Comprehensive Oncology Strategy**: BeiGene has a broad layout in hematological malignancies, with the BDK target Phase III clinical trial initiated, and a Phase III trial combining BCL-2 inhibitors with Zebutinib completed enrollment in Q1 2025, showing superior data compared to Venetoclax [2][7]. 5. **Protac Technology**: The data on the Protac technology for the BDK target is considered best in class, showing slightly better depth of response compared to Nurix, with a sample size twice that of Nurix, indicating superior data robustness [2][9]. 6. **Competitive Positioning**: BeiGene is positioned to compete with major international pharmaceutical companies, with peak sales expectations of $7 billion to $8 billion. The stock price is influenced by Zebutinib's trial success, sales growth, and operational leverage improvements [3][10]. 7. **CDK4 Inhibitor Development**: BeiGene's CDK4 inhibitor has completed proof of concept (POC), with nearly 10 molecules expected to undergo POC in the second half of the year. The company plans to initiate a global Phase III trial for breast cancer, potentially becoming the second high-selectivity CDK4 inhibitor to enter registration clinical stages [4][11]. 8. **Market Confidence**: The anticipated entry of CDK4 into Phase III clinical trials and subsequent data disclosures are expected to enhance market confidence, with a projected value increase of $2.5 billion in the solid tumor space [4][13]. 9. **Future Valuation**: With continued strong sales of hematological products and progress in BCL-2 and BDKC-deck products, BeiGene's valuation is expected to rise from $5 billion to a range of $6 billion to $7 billion by 2026 [14][15]. Additional Important Information - **Clinical Team Efficiency**: The company operates a fully internalized clinical team, enhancing efficiency and responsiveness to patient needs [5]. - **Research and Development Capacity**: BeiGene has a substantial molecular reserve with 1,100 scientists globally, indicating strong R&D capabilities [5]. - **CDK4 Inhibitor Data Performance**: Preliminary data shows BeiGene's CDK4 inhibitor has a higher clinical benefit rate (CBR) compared to Pfizer's CDK4 inhibitor, indicating promising therapeutic potential [12].

Summary of the Conference Call for BeiGene Company Overview - **Company**: BeiGene - **Industry**: Biotechnology, specifically focused on innovative drug development Key Points and Arguments 1. **Profitability Outlook**: BeiGene expects to achieve positive operating profit under GAAP by 2025, with a projected net profit margin exceeding 10% in the next 3-5 years, highlighting the importance of sustainable profitability [2][5][8] 2. **Core Product Performance**: The sales of the core product, Zanubrutinib, are anticipated to reach $3.7 billion in 2025, representing a 50% year-over-year growth. The market is particularly focused on the future sales strategy and value changes of this product [2][5][6] 3. **Competitive Landscape**: The impact of Pirtobrutinib on Zanubrutinib is considered limited, with new patient share exceeding 50%. Future expectations suggest that the market share could reach $7.5 billion [2][5][6] 4. **Pipeline Development**: In the hematology field, BeiGene has multiple products including BCL-2 and BTK inhibitors, with BCL-2 inhibitors rapidly advancing for frontline CLL indications, potentially becoming significant global treatments [2][7] 5. **Solid Tumor Research**: Data on CDK4 inhibitors will be shared on June 26, which may establish their best-in-class potential, showcasing the company's strong early-stage research capabilities [2][7] 6. **Stock Performance**: Since July 2024, BeiGene's stock has performed strongly, with expectations of profitability under Non-GAAP measures in 2025, boosting market confidence [2][8] 7. **Short-term Catalysts**: The upcoming R&D day on June 26 is expected to be a catalyst for short-term performance, with anticipated data on CDK4 inhibitors and possibly other surprise data [3][4][9] Additional Important Insights - **Sales Growth Trends**: Historically, the second quarter has shown the steepest sales growth for Zanubrutinib in the U.S., and this trend is expected to continue in 2025 [4][9] - **Clinical Trials**: The company plans to initiate two Phase III clinical trials, including a head-to-head comparison with a non-covalent BTK inhibitor, indicating strong global clinical operational capabilities [6][7] - **Market Positioning**: BeiGene is positioned as a significant representative in the Chinese innovative drug sector, driven by the rapid growth of Zanubrutinib and advancements in major indications [2][8]