Core Insights - Akeso, Inc. has successfully included all five of its self-developed innovative drugs in the updated National Reimbursement Drug List (NRDL) for 2025, effective January 1, 2026, which enhances patient access to these treatments [1][2][3] Group 1: Drug Inclusion Details - All approved indications for Akeso's five independently commercialized drugs are now part of the NRDL, addressing major tumor diseases and autoimmune disorders prevalent in China [1][2] - Ivonescimab, a first-in-class PD-1/VEGF bispecific antibody, has secured inclusion for its new first-line indication for PD-L1-positive non-small cell lung cancer (NSCLC), demonstrating a 49% reduction in disease progression or death compared to pembrolizumab in clinical trials [3][4] - Cadonilimab, another first-in-class bispecific antibody, has successfully negotiated inclusion for first-line indications in gastric and cervical cancers, showing significant clinical benefits across all patient populations [4] - Penpulimab has achieved NRDL inclusion for all four of its approved indications, including treatments for nasopharyngeal carcinoma and classical Hodgkin lymphoma [5] - Ebdarokimab, targeting IL-12/IL-23, has been included for the treatment of moderate-to-severe psoriasis, marking Akeso's first drug in the autoimmune disease sector [7] - Ebronucimab has secured inclusion for both of its approved indications related to hypercholesterolemia, enhancing its market presence [8] Group 2: Strategic Implications - The successful inclusion of these drugs in the NRDL is expected to reduce the financial burden on patients and provide superior treatment alternatives, thereby addressing significant public health challenges in China [2] - The recognition of these drugs in clinical practice prior to NRDL inclusion indicates their breakthrough clinical value and enhances trust among healthcare providers and patients [2] - This achievement lays a solid foundation for accelerating broader clinical adoption and supports Akeso's ongoing commercialization efforts, positioning the company for sustained growth and global expansion [2][3] Group 3: Company Overview - Akeso is a leading biopharmaceutical company focused on the research, development, manufacturing, and commercialization of innovative biological medicines, with a robust pipeline of over 50 assets in various therapeutic areas [12] - The company utilizes an integrated R&D innovation system and has developed a comprehensive drug development platform, which includes bispecific antibody technology [12] - Akeso aims to provide affordable therapeutic antibodies globally while creating significant commercial and social value, striving to become a leading player in the biopharmaceutical industry [12]

Summary of China Biotech Outlook Industry Overview - The report focuses on the **China biotech industry**, particularly the performance of H-share listed companies in this sector, which has seen significant growth year-to-date (YTD) [1][2][3]. Key Performance Metrics - The average H-share EV/2030e sales multiple in the China biotech space has more than **doubled from 2.0x to 4.2x** YTD, surpassing the previous peak of **3.7x** in 2021 [3][21]. - The overall market cap of H-share listed China biotech companies has expanded by **154% YTD**, compared to **34%** for the Hang Seng Index (HSI) [9][19]. Market Drivers - The valuation re-rating is attributed to the **globalization of China biotech**, with increasing recognition of domestic drug developers' innovations [3][20]. - Anticipated **Fed rate cuts** are expected to boost investor risk appetite, particularly towards growth sectors like China biotech [4][9]. Stock Performance Insights - Stock performance will depend on fundamentals such as successful commercial execution and rapid innovation development [5][19]. - Companies with near-term catalysts (e.g., Akeso, InnoCare), proof-of-concept data (e.g., Keymed), and those positioned to leverage innovation trends (e.g., Innovent, Duality) are expected to outperform [5][19]. Risks and Challenges - Potential risks include persistent valuation premiums that may deter overseas investors and geopolitical tensions that could disrupt cross-border innovation flows [6][19]. Future Outlook - The report suggests that the sector will continue to be supported by the long-term thesis of **China drug innovation** becoming increasingly globalized [6][19]. - The expectation of higher valuations based on long-term forecasts (i.e., 2035e) could lead to further re-ratings across the sector [4][19]. Company-Specific Insights - **Abbisko Cayman Ltd**: Price target raised from **HK$8.30 to HK$22.00** [7][17]. - **Akeso, Inc.**: Price target increased from **HK$87.00 to HK$215.00** [7][17]. - **Duality Biotherapeutics Inc**: Price target raised from **HK$244.00 to HK$493.00** [7][17]. - **Everest Medicines Ltd**: Price target increased from **HK$40.00 to HK$55.00** [7][17]. - **HUTCHMED (China) Ltd**: Price target decreased from **US$18.00 to US$13.75** [7][17]. Valuation Trends - The report indicates a widening discount between Chinese biotech companies with in-house drug discovery capabilities and those relying on external sources [22][25]. - The current valuation band for the China biotech sector is approximately **3x-5x EV/sales**, aligning more closely with US biopharma companies [21][25]. Conclusion - The China biotech sector is at a pivotal inflection point, driven by domestic innovation and increasing global recognition. The anticipated Fed rate cuts and ongoing globalization trends are expected to further enhance the sector's attractiveness to investors [4][19][25].

2025.8 Disclaimer This presentation has been delivered to interested parties for information purposes only and upon the express understanding that such parties will use it only for the purposes set forth above, and it is not intended to form the basis of any investment decision or any decision to purchase securities of Akeso, Inc. (the "Company"). This presentation does not constitute or contain an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities in a ...