Investment Rating - The report maintains a rating of "Buy" for the pharmaceutical and biotechnology sector [5]. Core Insights - The report emphasizes the continuous focus on investment opportunities related to AI in healthcare, driven by the growth of Tencent's AI applications and the need for data-driven solutions in medical settings [2][21]. - The investment logic centers around "data closed-loop" and "scene demand," highlighting AI's role as a core productivity driver in healthcare under the dual pressures of cost control and technological advancements [22]. - The report outlines a three-stage clinical value investment strategy, focusing on innovative drug chains and medical devices, with specific recommendations for companies in these sectors [3][27]. Summary by Sections Market Review - Last week, the A-share pharmaceutical and biotechnology index fell by 3.31%, underperforming the CSI 300 index by 3.39 percentage points and ranking 22nd among 31 sub-industries [1][15]. - The Hong Kong Hang Seng Medical Health Index also declined by 2.98%, lagging behind the Hang Seng Index by 4.69 percentage points [1][15]. R&D Progress - Recent developments include new drug applications from companies such as Hengrui Medicine and Innovent Biologics, with ongoing clinical trials for various products [30]. Key Companies and Valuation - The report provides a detailed earnings forecast and valuation table for key companies, recommending "Buy" for several firms including Innovent Biologics, WuXi AppTec, and Mindray Medical [4][27]. AI Healthcare Investment Focus - The report identifies several core areas for AI in healthcare, including AI drug development, medical imaging, chronic disease management, and surgical robotics, emphasizing the importance of proprietary data and business scenarios for competitive advantage [22][24]. Annual Investment Strategy - The report suggests that the investment focus should increasingly emphasize the clinical value of pharmaceuticals, with a positive outlook on innovative drug chains and high-end medical devices [3][26].

Summary of the Conference Call for 康诺亚 Company Overview - 康诺亚 is a leading company focused on autoimmune diseases, with core products including CM310 (思普曲帕单抗) and the next-generation dual antibody CM512 [2][3]. Key Products and Market Potential - **CM310 (思普曲帕单抗)**: - Recently included in the medical insurance directory, expected to see rapid market growth [2]. - Approved for three indications: adult moderate to severe atopic dermatitis, chronic rhinosinusitis with nasal polyps, and seasonal allergic rhinitis, with plans to expand to adolescents and children [2][3]. - Clinical trial results show a 52-week EASI75 response rate of 92.5% and EASI90 response rate of 77% in adult atopic dermatitis patients [4]. - In chronic rhinosinusitis, 90% of patients showed at least a 50% reduction in nasal polyps after 52 weeks [5]. - For seasonal allergic rhinitis, approximately 84% of patients experienced relief from nasal symptoms, and 94% from ocular symptoms [6]. - **CM512**: - A next-generation dual antibody targeting TSLP and IL-13, with a half-life of 70 days, allowing for dosing every three months [3][7]. - Phase I data shows EASI75 and EASI90 response rates of 58.3% and 41.7% respectively at 12 weeks, indicating competitive advantages over existing therapies [3][8]. - **CMG901 (Claudin 18.2 ADC)**: - Leading in the development for gastric and pancreatic cancer, with a phase III trial expected to complete by October 2026 [3][9]. - Early data shows a PFS of 4.8 months and OS of 11.8 months, indicating promising market potential [9]. Financial Projections - Revenue for CM310 is projected to grow rapidly, from approximately 300 million RMB in 2025 to about 750 million RMB in 2026 [10]. - Overall revenue estimates for 康诺亚 from 2025 to 2027 are 637 million, 764 million, and 480 million RMB, with year-on-year growth rates of 47%, 21%, and 94% respectively [10]. Valuation - Using a DCF model, 康诺亚's valuation is estimated at approximately 24.5 billion RMB, with a target price increase of 82%, leading to a buy rating [11]. Additional Insights - CM310 shows lower relapse rates and better safety and tolerability compared to Sanofi's Dupilumab, with a relapse rate of approximately 0.9% after 52 weeks [4]. - The company is positioned strongly in the market due to its innovative products and competitive advantages over existing therapies [7].

Core Viewpoint - Pacific Securities initiates coverage on Connora-B (02162) with a "Buy" rating and a target price of HKD 82.07, highlighting the rapid growth of the atopic dermatitis drug market in China, driven by core products like Dupilumab and Dupilumab's accelerated market penetration [1] Industry Summary - The atopic dermatitis (AD) drug market in China is expected to grow rapidly, with a compound annual growth rate (CAGR) of approximately 22.6% from 2019 to 2024, and an anticipated CAGR of 18.6% from 2024 to 2030, reaching USD 4.3 billion by 2030 [1] - AD affects up to 20% of children and adolescents and 1-5% of adults globally, with 25% to 30% of patients experiencing moderate to severe symptoms [1] Company Summary - Connora's core product, Dupilumab (Dabizhuo), has become the fourth largest drug globally, with sales in China exceeding CNY 2.5 billion, and projected to grow to over CNY 2.5 billion in 2024, reflecting a growth rate of approximately 33% [1] - The company’s product, Dupilumab (Kangyueda), is in a rapid growth phase, with expected sales of approximately CNY 36 million in 2024 and CNY 170 million in the first half of 2025, driven by increasing medical demand for allergic diseases [2] - CM512, a long-acting TSLP x IL-13 dual antibody developed by Connora, shows promising potential with a half-life of 70 days, allowing for reduced dosing frequency and improved patient compliance [2] Clinical Research Summary - Phase I clinical trials for CM512 in treating adult moderate to severe AD achieved all primary endpoints, with 50% of patients in the 300mg group reaching EASI-75 at week 6, compared to 7% in the placebo group [3] - At week 12, the EASI-75 and EASI-90 response rates for the 300mg dose group were 58.3% and 41.7%, respectively, outperforming existing IL-4Rα monoclonal antibodies and JAK1 inhibitors [3] - Most treatment-emergent adverse events (TEAEs) during the study were mild to moderate, with no reports of serious adverse events leading to treatment delays or study withdrawals [3]

Core Viewpoint - Pacific Securities initiates coverage on Kangnuo Ya-B (02162) with a "Buy" rating and a target price of HKD 82.07, highlighting the rapid growth of the atopic dermatitis drug market in China, driven by core products like Dupilumab and Siplizumab [1] Industry Overview - The atopic dermatitis (AD) market in China is expected to grow significantly, with a compound annual growth rate (CAGR) of approximately 22.6% from 2019 to 2024, and an anticipated CAGR of 18.6% from 2024 to 2030, reaching USD 4.3 billion by 2030 [1] - Globally, AD affects up to 20% of children and adolescents and 1-5% of adults, with 25% to 30% of patients experiencing moderate to severe symptoms [1] Company Insights - Dupilumab (Dabizhuo) is the fourth best-selling drug globally, with sales in China exceeding CNY 2.5 billion, growing at approximately 48% in 2023 and projected to grow by about 33% in 2024 [2] - Siplizumab (Kangyueda) is in a rapid growth phase, with projected sales of approximately CNY 36 million in 2024 and CNY 170 million in the first half of 2025, driven by increasing medical demand for allergic diseases [3] Product Development - CM512, a long-acting TSLP x IL-13 dual antibody developed by Kangnuo Ya, shows promising potential with a half-life of 70 days, allowing for reduced dosing frequency and improved patient compliance [4] - In Phase I clinical trials, CM512 achieved significant efficacy endpoints, with 50% of patients in the 300mg group reaching EASI-75 at week 6, compared to only 7% in the placebo group [4]

Core Viewpoint - 康诺亚-B's CM512, the world's first long-acting TSLP x IL-13 dual blocker for treating moderate to severe atopic dermatitis (AD), has successfully met all endpoints in its Phase I clinical study, indicating strong potential in the market [1] Group 1: Company Developments - 康诺亚-B's stock rose by 4.08% to HKD 59.95, with a trading volume of HKD 31.28 million [1] - The company has reported that CM512's early clinical data shows a significantly better EASI-90 response compared to APOGEE's core asset APG777, while maintaining excellent safety and similar dosing frequency [1] Group 2: Market Context - The long-acting autoimmune treatment sector is currently experiencing significant growth, with APOGEE's market capitalization increasing by over 75% in the last two months, reaching USD 4.3 billion [1] - The commercial sales team for 康诺亚-B is expected to expand to around 400 people by the end of the year, focusing on hospital access and coverage, particularly in key hospitals for AD [1] Group 3: Future Outlook - Sales of 康诺亚-B's drug,司普奇拜单抗, are anticipated to see rapid growth by 2026, as the company prioritizes breakthrough scenarios in core hospitals [1] - The company is also considering the potential for limited price reductions for 司普奇拜单抗 due to high negotiation reductions last year and cost pressures [1]

Group 1: Market Overview - The overall market experienced a pullback last week, but funding pressure is expected to improve marginally due to a rebound in private equity registrations and public fund launches, with private fund registrations rising to 337, exceeding 300 for two consecutive weeks [2][3] - The peak of A-share unlock market value has passed, and the net reduction in industrial capital has shown a marginal decline, indicating a reduction in funding supply pressure [2] Group 2: Fixed Income Analysis - In the construction industry, the supply and demand remain weak, with new home transactions showing a decline while second-hand home transactions have slightly increased [2] - The industrial sector shows strong freight volume performance, but production rates are mixed, with some sectors like coking and independent refineries seeing an increase, while the chemical and automotive sectors remain weak [2] Group 3: Energy Sector Insights - In the global gas turbine market, new orders increased by 95% year-on-year to 24GW in Q3 2025, driven by various factors including energy policy shifts and AI power demand [5] - The high demand for gas turbines is expected to boost exports for domestic component manufacturers, with companies like Yingliu and Haomai Technology positioned to benefit [5] Group 4: Fiscal Policy Outlook - The fiscal policy in 2026 is expected to be more proactive, with a projected fiscal deficit rate of around 4% and an increase in special bond quotas to approximately 5 trillion yuan to support debt resolution and other initiatives [6][7] - The upcoming Central Economic Work Conference will serve as a key observation point for policy reserves and future deployments [6] Group 5: Company-Specific Analysis - Kangnuo Ya-B (2162 HK) is highlighted for its potential in the global autoimmune pipeline, with a market cap increase of over 75% recently, and promising early clinical data for its CM512 product [9] - Black Sesame Intelligence (2533 HK) is recognized for its advancements in the robotics sector with the launch of the SesameX multi-dimensional intelligent computing platform, indicating strong growth potential [10]

Industry Investment Rating - The industry investment rating is "Outperform the Market" and is maintained [1] Core Viewpoints - The report highlights significant clinical advancements in the dual-antibody sector, particularly focusing on the TSLP/IL-13 dual antibody Lunsekimig by Sanofi, which has entered Phase III clinical trials for COPD, with the first patient dosed on September 24 [4][5] - The report emphasizes the potential of dual antibodies in autoimmune diseases, particularly in respiratory conditions like asthma and COPD, indicating a substantial market opportunity [7] Summary by Relevant Sections Industry Basic Situation - The closing index level is 8665.0, with a 52-week high of 9323.49 and a low of 6764.34 [1] Clinical Progress Updates - Sanofi's Lunsekimig is in Phase II/III trials for COPD, aiming to enroll 1884 patients to evaluate its efficacy and safety compared to a placebo [4] - The CM512 dual antibody by Connoa shows promising results in atopic dermatitis, with EASI-75 and EASI-90 response rates of 58.3% and 41.7% respectively, compared to 21.4% and 0% in the placebo group [5] Market Activity and Collaborations - The report notes ongoing collaborations, such as the agreement between Qianxin Biotech and Roche for QX031N, which targets both TSLP and IL-33, with an upfront payment of $75 million and potential milestone payments up to $995 million [6] - The report also mentions the presentation of the CS2015 dual-specific antibody by Basestone Pharmaceuticals at the ACAAI conference, showcasing its therapeutic potential [6] Investment Recommendations - The report suggests focusing on companies like Connoa, Innovent Biologics, Qianxin Biotech, and Basestone Pharmaceuticals, as dual antibodies are expected to reshape treatment paradigms in autoimmune diseases [7][9]

Core Insights - The report from China Post Securities highlights the potential of dual antibodies in the field of autoimmune diseases, particularly in respiratory conditions like asthma and COPD, indicating significant room for improvement in existing therapies. The market potential for TSLP class dual antibodies is viewed positively [1]. Group 1: Clinical Progress of Dual Antibodies - Sanofi's lunsekimig (TSLP/IL-13 dual antibody) has entered Phase III clinical trials, with the first patient dosed on September 24. The trials aim to enroll 1,884 patients to evaluate the efficacy and safety of lunsekimig compared to placebo in adults with eosinophilic phenotype COPD [1]. - The primary endpoint of the studies is the annualized rate of moderate to severe COPD exacerbations from baseline to week 48. The company confirmed the completion of the first patient dosing during the Q3 earnings call on October 24 [1]. Group 2: Efficacy Data and Advantages - The first-phase data for Connoa's CM512 (TSLP x IL-13 dual antibody) in atopic dermatitis (AD) showed promising results, with EASI-75 and EASI-90 response rates of 58.3% and 41.7% respectively at the 300mg dose after 12 weeks, compared to 21.4% and 0% in the placebo group. This indicates a strong potential for deep relief and sustained stability [2]. - CM512's long half-life advantage suggests that it can effectively reduce dosing frequency in clinical use, thereby improving patient compliance [2]. Group 3: Ongoing Transactions and Research Activity - On October 28, Qianxin Biotech entered a global exclusive collaboration and licensing agreement with Roche for QX031N, a long-acting dual antibody targeting TSLP and IL-33, with an upfront payment of $75 million and potential milestone payments up to $995 million. This product is expected to be developed as a new treatment option for COPD and asthma [3]. - BGI Pharma showcased the OX40L/TSLP bispecific antibody CS2015 at the 2025 ACAAI, which demonstrated therapeutic potential in preclinical trials [3].

Keymed Bioscience Conference Call Summary Company Overview - **Company**: Keymed Bioscience (2162.HK) - **Industry**: Immunology Biotech in China Core Insights and Arguments - **Pipeline Potential**: Keymed is recognized for its well-established immunology pipeline, with significant upside potential driven by its product candidates, particularly Stapokibart and CM512 [4][10] - **Stapokibart Validation**: The approval of Stapokibart serves as a validation of the company's R&D and regulatory capabilities, enhancing investor confidence [4][10] - **CM512 Breakthrough Potential**: CM512, a TSLP/IL-13 bispecific antibody, is highlighted for its breakthrough potential, with projected peak sales of approximately US$3.3 billion globally by 2035 [5][10] - **Market Forecasts**: The company anticipates peak sales of Rmb5.2 billion in the Chinese market by 2035, contributing to 50% of its total equity valuation [10] Development Strategy - **Diversified Pipeline**: Keymed is focusing on enriching its immunology pipeline with various modalities, including early-stage development assets [6][10] - **Global Oncology Potential**: The company aims to unlock the global potential of its oncology pipeline through strategic partnerships [6] Financial Projections - **Target Price**: The 12-month forward target price for Keymed is set at HK$92.67, based on a DCF valuation with a discount rate of 12% [11] - **Growth Rate**: A terminal growth rate of 3% is projected, reflecting growth potential from the early-stage pipeline [12] Probability of Success (PoS) - **Success Rates**: The probability of success for Stapokibart is 100%, while CM512 has a PoS of 32% for asthma and 9% for COPD [13] Key Risks - **R&D Risks**: The company faces R&D risks associated with its key pipeline assets, including uncertainties in commercial execution and potential pricing pressures from rising competition [17] - **Development Uncertainties**: There are uncertainties regarding the development of CM512, which could impact its market entry and success [17] Upcoming Catalysts - **Regulatory and Clinical Milestones**: Key upcoming catalysts include regulatory negotiations for CM310 and clinical data releases for CM512 and CMG901, with timelines extending into 2026 [15][16] Conclusion Keymed Bioscience is positioned as a significant player in the immunology sector in China, with a robust pipeline and strategic growth initiatives. However, investors should remain cautious of the inherent risks associated with R&D and market competition.

Core Insights - The article discusses the promising Phase I clinical results of CM512, a dual-target antibody for treating atopic dermatitis (AD), showing significant efficacy compared to placebo [1][2]. Group 1: Clinical Results - After three doses in the first month, the 300mg dose group achieved EAS-75 and EAS-90 rates of 58.3% and 41.7% respectively at 12 weeks, significantly outperforming the placebo group which had rates of 21.4% and 0% [1]. - The drug demonstrated a long half-life of 70 days, indicating potential for extended dosing intervals [1]. - The safety profile was comparable between the treatment and control groups, with similar rates of treatment-emergent adverse events (TEAE) and serious adverse events (SAE) [1]. Group 2: Competitive Advantage - CM512 shows potential as a best-in-class (BIC) treatment, particularly in deep remission metrics, with an adjusted EASI-90 of 41.7% [2]. - Compared to standard therapies, CM512 outperformed Dupilumab and other IL-13 monoclonal antibodies in clinical trials, indicating a competitive edge [2]. - The drug also competes favorably against small molecule drugs like JAK1 inhibitors, demonstrating higher efficacy in achieving EASI-90 [2]. Group 3: Future Development and Valuation - The company is expanding CM512's indications, with ongoing Phase I trials for asthma and Phase II trials for multiple conditions including COPD and chronic spontaneous urticaria [3]. - The long half-life of CM512 (70 days) compared to competitors (10 days for Lunsekimig) enhances its market potential [3]. - The company adjusted its profit forecasts for 2025-2027, reflecting a more optimistic outlook based on CM512's early data, raising the target price to 91.08 HKD [3].