8月26日晚间，君实生物(688180.SH/1877.HK)披露中报，上半年延续向好趋势，经营业绩改善明 显。在经营质量和商业团队效率提升、医保适应症新增以及全球化加速布局等多重因素推动下，2025 年上半年，君实生物实现营业收入11.68亿元，同比增长49%；归母净亏损收窄36%至4.13亿元，可 持续经营能力得到进一步巩固提升。 上半年君实生物实现药品销售收入10.59亿元，同比增长49%，商业化能力持续夯实。这主要得益于商 业化团队的销售效率提高，以及更多适应症获批。 2025年，君实生物核心产品特瑞普利单抗(拓益®)共有10项适应症纳入国家医保目录，并实现了第11 项和第12项新适应症在中国内地获批。中报数据显示，特瑞普利单抗于国内市场实现销售收入9.54亿 元，同比增长约42%，商业化加速放量。全球商业化方面，2025年上半年，特瑞普利单抗先后在澳大 利亚、新加坡、阿联酋和科威特获批上市。目前其成功注册上市的市场已拓展至全球四大洲40个国家 和地区。 在商业化能力提升的同时，君实生物不断提升经营质量，锚定提质、降本、增效等各项战略，将资源聚 焦于更具潜力的研发项目，并通过优化业务结构、提升运营效率 ...

Investment Rating - The report assigns a "Buy" rating to the company [12][14]. Core Insights - Junshi Biosciences is one of the earliest innovative biotech companies in China, with a strong focus on innovation and a robust pipeline that is expected to enter a harvest phase soon. The company is experiencing a sales acceleration in its existing business, with multiple innovative assets entering Phase III clinical trials, indicating a potential turning point in its fundamentals [4][9][12]. - The core product, Toripalimab, is projected to achieve sales of 1.501 billion yuan in 2024, representing a 66% year-on-year growth. The subcutaneous formulation of Toripalimab is currently in Phase III clinical trials, which, upon approval, is expected to further solidify its market position [9][12]. - The company has over 50 products in its pipeline, covering various therapeutic areas, including oncology, autoimmune diseases, chronic metabolic diseases, neurological disorders, and infectious diseases. The year 2025 is anticipated to be a breakthrough year for the company [9][35]. Summary by Sections Company Overview - Junshi Biosciences, established in December 2012, is an innovative pharmaceutical company focused on the discovery, development, and commercialization of innovative therapies. It was listed on the Hong Kong Stock Exchange in 2018 and on the Shanghai Stock Exchange's Sci-Tech Innovation Board in 2020 [9][22]. Sales and Financial Performance - The company reported a revenue of 1.948 billion yuan in 2024, a year-on-year increase of 29.67%. The net profit attributable to shareholders was -1.281 billion yuan, indicating a significant reduction in losses. The existing business is entering a phase of explosive growth, driven by the expansion of indications for Toripalimab and the launch of new products [33][35]. Pipeline and Clinical Development - Junshi Biosciences has a rich early-stage pipeline with comprehensive technology platforms. Key assets such as JS203, JS107, JS207, and JT002 are expected to advance to Phase III clinical trials soon. The company is also exploring various combination therapies to enhance the potential of its PD-1/VEGF dual antibody product, JS207 [10][11][51]. - The report highlights the potential of several innovative drug assets that require re-evaluation of their value, particularly JS107, JS207, and JS015, which are positioned favorably in the competitive landscape [10][12][40]. Future Outlook - The company is expected to see revenues of 2.681 billion yuan, 3.673 billion yuan, and 5.479 billion yuan from 2025 to 2027, with net profits projected to improve significantly by 2027 [12][33].

Summary of Key Points from the Conference Call Industry Overview - The focus is on the next-generation immuno-oncology (IO) therapeutics, which include bi/trispecific PD-1/VEGF, PD-1/IL-2, and PD-1/VEGF/CTLA4 candidates that have the potential to significantly alter cancer treatment landscapes [1][11][19]. Market Potential - The total addressable market (TAM) for next-generation IO products is estimated to exceed US$62 billion, driven by the expiration of key patents like Keytruda and Opdivo in 2028 [2][19][24]. - The current market for PD-1 IO therapies is projected to reach over US$50 billion, with significant growth expected as new candidates enter the market [11][19]. Company-Specific Insights Akeso Inc (9926.HK) - Akeso's ivonescimab has demonstrated statistically significant improvements in progression-free survival (PFS) in the HARMONi-2/HARMONi-6 trials, with promising overall survival (OS) data [2][29]. - Target price (TP) raised to HK$185 from HK$98, reflecting strong revenue growth and a robust pipeline [5][31]. - The company has achieved significant revenue of Rmb2.1 billion in 2024 and has transitioned from a high-risk rating to a buy rating [5][31]. Innovent (1801.HK) - Innovent's IBI363 has shown promising data in IO-treated non-small cell lung cancer (NSCLC) and is expected to launch pivotal trials in 2H25 [2][32][33]. - TP increased to HK$105 from HK$90, with a focus on next-generation IO and antibody-drug conjugate (ADC) combinations [5][34]. 3SBio (1530.HK) - 3SBio is developing SSGJ-707 (PD-1/VEGF) and is expected to present more data in upcoming meetings [27]. - TP raised to HK$36 from HK$21, reflecting increased peak sales forecasts [5][28]. Shanghai Junshi Biosciences (1877.HK) - Junshi is conducting Phase 2 studies for JS207, with data expected in 3Q25 [35]. - TP adjusted to HK$32 from HK$17, indicating growth potential [5][36]. Sino Biopharmaceutical (1177.HK) - Sino Biopharmaceutical announced the acquisition of LaNova Medicines to enhance its innovative pipeline [37]. - TP increased to HK$8.80 from HK$6.20, reflecting progress in drug development [5][38]. Investment Opportunities and Risks - There are numerous business development (BD) opportunities as multinational corporations (MNCs) seek to replenish their pipelines with new drugs [3][24]. - The expiration of patents for leading IO products creates a competitive landscape, necessitating innovation and strategic partnerships [3][24]. Clinical Data and Progress - Promising clinical data for next-generation IO candidates, including head-to-head comparisons, have garnered investor interest [11][16]. - The report emphasizes the importance of clinical data in determining market share and probability of success (PoS) for each candidate [4][18]. Conclusion - The next-generation IO space presents significant investment opportunities, with several companies showing promising clinical data and strong market potential. Adjustments in target prices reflect the anticipated growth and success of these candidates in the evolving oncology landscape [5][18][19].

Core Insights - The report emphasizes the flourishing approval of new drugs and highlights the importance of focusing on technological tracks and opportunities within the industry chain [1][5] - It suggests a dual growth strategy combining internal and external growth, particularly in the context of the imminent patent cliff for IO1.0 and the increasing recognition of Chinese innovative pharmaceutical companies globally [5] Industry Overview - The report notes a significant recovery in domestic healthcare policies, including the integration of commercial insurance into the medical insurance system and the inclusion of high-priced innovative drugs in the Class B medical insurance catalog [5] - The overall revenue growth rate for chemical pharmaceutical companies in 2024 is projected at 4.10%, a substantial increase from 0.24% in 2023, while the net profit growth rate is expected to be 51.66% [12][15] Investment Opportunities - Short-term focus is recommended on certain tracks with high certainty, such as IO+ADC, while long-term investments should target new technologies with significant potential, including small nucleic acids and CAR-T [5] - The report categorizes various technological tracks for investment, including combinations of PD-1 with other mechanisms and innovative solutions for unmet clinical needs [5] Company Valuations - The report provides a comparative valuation of unprofitable innovative pharmaceutical companies, highlighting their market capitalizations and projected revenues for 2024 to 2027 [6] - It also presents a comparative valuation of profitable innovative pharmaceutical companies, detailing their market capitalizations and projected net profits for the same period [8] Performance Review - The report reviews the performance of pharmaceutical companies in 2024 and Q1 2025, noting that while the overall industry faced temporary pressure, gross profit margins have steadily improved [12][15] - It highlights that many small and mid-cap innovative pharmaceutical companies have turned profitable in Q1 2025, indicating a positive trend in the sector [18]

Group 1 - Junshi Biosciences (01877) saw its stock price increase by over 10%, currently trading at 26.2 HKD with a transaction volume of 4.52 billion HKD [1] - The preclinical research results of JS207, a recombinant humanized PD-1 and VEGF bispecific antibody developed by Junshi, were published in the journal "Frontiers in Immunology," detailing its molecular design, in vitro characteristics, functions, and anti-tumor efficacy [1] - According to Founder Securities, the preclinical data of JS207 demonstrates the potential of second-generation PD-1 antibodies in anti-tumor applications, indicating its business development (BD) potential [1] Group 2 - Reports indicate that AstraZeneca is in discussions with Summit regarding a collaboration on the AK112 drug, with a potential deal value of up to 15 billion USD [2] - PD-(L)1/VEGF bispecific antibodies are expected to be the next-generation cornerstone drugs in the immuno-oncology market, with ongoing combinations with ADC/TCE likely to expand market opportunities [2] - As of May 2025, only Pfizer and Merck have entered this market segment among multinational corporations, suggesting that other early-stage PD-(L)1/VEGF bispecific antibodies from China may have opportunities for business development abroad as data matures [2]

Core Insights - JS207, a bispecific antibody targeting PD-1 and VEGFA developed by Junshi Biosciences, has demonstrated strong antitumor activity and favorable safety profiles in preclinical studies, indicating its potential as a novel cancer treatment [1][2] Group 1: Mechanism and Preclinical Results - JS207 exhibits high affinity binding to PD-1 and VEGFA, showing comparable or superior antigen affinity, immune activation, and vascular proliferation regulation compared to similar drugs [1][2] - In various tumor models, JS207 has shown robust antitumor activity, with good tolerability and thermal stability, making it a promising candidate for cancer therapy [1][2] Group 2: Structural and Functional Characteristics - Structurally, JS207 is based on Trastuzumab, combining a full-length anti-PD-1 IgG antibody with a VEGFA-targeting heavy chain variable region, demonstrating effective blocking of PD1/PDL1 and PD1/PDL2 interactions [2] - In mouse tumor models, JS207 exhibited dose-dependent antitumor effects, outperforming Trastuzumab alone or in combination with VEGF DotAb treatment [2] Group 3: Clinical Development and Market Potential - JS207 is currently undergoing multiple Phase I-II clinical trials for various cancers, including non-small cell lung cancer, hepatocellular carcinoma, renal cancer, and colorectal cancer, indicating its broad application potential [3] - The drug has significant combination potential with other products in the company's pipeline, such as DKK1 inhibitors and CTLA-4 monoclonal antibodies, enhancing its market prospects [3] Group 4: Financial Projections - Revenue forecasts for the company from 2025 to 2027 are projected at 2.6 billion, 3.5 billion, and 4.5 billion yuan, with year-on-year growth rates of 33.45%, 34.62%, and 28.57% respectively [4] - The net profit attributable to the parent company is expected to be -685 million, 29 million, and 306 million yuan for the same period, with significant growth rates of 46.53%, 104.18%, and 968.22% respectively [4]

Core Viewpoint - The recent equity placement announcement by Junshi Biosciences has led to a significant decline in its stock price, reflecting market concerns over its financing strategy and the sustainability of its business model [1][4]. Group 1: Equity Placement Details - Junshi Biosciences announced a placement of 41 million new H-shares at a price of HKD 25.35 per share, representing a discount of 11.52% from the previous closing price, with expected net proceeds of approximately HKD 1.026 billion [2]. - The funds raised will be allocated primarily to innovative drug research and development, with 70% directed towards key drug pipelines including JS207, JS212, and JS213, while the remaining 30% will be used to supplement working capital [2]. Group 2: Financial Performance and Challenges - The company has invested over RMB 7.6 billion in R&D from 2021 to 2024, with a 26.89% year-on-year increase in Q1 2025 R&D spending to RMB 351 million, accounting for 70.03% of its revenue [3]. - Despite a 45.72% increase in sales revenue of its core product, Tuoyi®, to RMB 447 million in Q1, the company still reported a loss of RMB 235 million, highlighting ongoing financial pressures [3]. - As of the end of March, the company had cash and financial assets of only RMB 3.022 billion, raising concerns about its ability to fund multiple clinical projects in the future [3]. Group 3: Market Sentiment and Future Outlook - The equity placement coincided with a high stock price for Junshi Biosciences, which saw a 130% increase in H-shares and over 32% in A-shares this year, driven by several business development transactions and industry recovery [4]. - The discount on the equity placement has triggered profit-taking among investors, indicating sensitivity in the market towards the financing strategies of biotech companies [4]. - The situation reflects a broader challenge for unprofitable biotech firms, as they navigate the balance between funding and achieving commercial viability, raising questions about whether Junshi Biosciences can sustain its market valuation amidst ongoing financial strain [5].

Investment Rating - The report provides a neutral (N) rating for RemeGen and Junshi Biosciences, with price targets of Rmb 63 and Rmb 35 respectively [20][24]. Core Insights - The recent stock price rallies of RemeGen and Junshi are attributed to their developments in PD-1xVEGF bispecific antibodies (bsAbs), with RemeGen's stock jumping approximately 18% and Junshi's by about 6% on June 12, 2025 [2]. - RemeGen's potential out-licensing deal for telitacicept and ongoing trials for RC178 are key drivers of investor interest, while Junshi's JS207 is undergoing multiple Phase 2 trials, indicating strong market expectations for both companies [5][6]. Summary by Sections RemeGen - RemeGen's stock performance is driven by expectations of a telitacicept out-licensing deal and positive clinical data presentations at the ERA Congress 2025 [5]. - The company is advancing its Phase 3 trial for telitacicept in IgAN, with potential approval in China anticipated [5]. - RemeGen has initiated a Phase 1 trial for RC178, a PD-1xVEGF bsAb, with over 100 patients enrolled and ongoing Phase 2 trials in NSCLC [5][6]. Junshi Biosciences - Junshi's stock sentiment is influenced by the ongoing trials of its PD-1xVEGF bsAb, JS207, which is in several Phase 2 trials [6]. - Management suggests that JS207 has shown comparable efficacy to other bsAbs and may have a better safety profile based on Phase 1 data [6]. - Junshi is exploring a broader range of indications in its Phase 2 trials compared to RemeGen, with potential registrational trials for JS207 expected in late 2025 or early 2026 [6]. Comparative Analysis - Both RemeGen and Junshi are developing PD-1xVEGF bsAbs, with market expectations for out-licensing opportunities [6]. - RemeGen may have slightly more clinical data available than Junshi, but Junshi is exploring a wider range of indications in its trials [6]. - The business development potential for both companies will largely depend on the clinical efficacy and safety of their respective products [6].

Core Insights - The PD-1/VEGF dual antibody is currently a hot topic in innovative drug development, with significant collaborations and financial transactions highlighting its potential [1][2][3] Group 1: Industry Dynamics - Chinese biotech companies are emerging as key players in the global PD-(L)1/VEGF dual antibody development race, demonstrating advanced research progress and achieving international recognition through high-value business development (BD) deals [2][3] - Major collaborations include 12.5 billion USD upfront payment and 60.5 billion USD total deal value between 3SBio and Pfizer for SSGJ-707, and BioNTech's 15 billion USD upfront payment for BNT327 licensed to BMS, totaling over 90 billion USD [1][2] Group 2: Clinical Developments - The PD-(L)1/VEGF target gained traction after Kangfang Biotech's AK112 outperformed the benchmark drug, Pembrolizumab (K drug), in head-to-head trials, leading to increased interest from multinational corporations (MNCs) [3][4] - AK112 demonstrated a higher objective response rate (ORR) of 50% compared to K drug's 38.5% and a disease control rate (DCR) of 89.9% versus 70.5% in late-stage non-small cell lung cancer (NSCLC) trials [4][6] Group 3: Competitive Landscape - The success of AK112 has intensified competition among MNCs, with companies eager to capitalize on the potential of PD-(L)1/VEGF dual antibodies, as evidenced by Pfizer's strategic investments [9][10] - As of May 2025, there are 14 PD-(L)1/VEGF dual antibodies in clinical stages globally, with half originating from Chinese biotech firms, indicating a robust pipeline and potential for further BD opportunities [15][24] Group 4: Future Prospects - Companies like Junshi Biosciences, I-Mab, and Hualan Biological Engineering are actively pursuing PD-(L)1/VEGF dual antibodies, with significant investments and clinical trials underway [15][20][22] - The shift from merely imitating existing drugs to innovating new targets and technologies marks a significant evolution in the Chinese pharmaceutical industry, enhancing its international competitiveness [24][25]

Core Insights - Bristol-Myers Squibb (BMS) acquired BioNTech's PD-L1/VEGF dual antibody BNT327 for $9 billion, highlighting the increasing interest in Chinese biotech firms and their innovative drug pipelines [1][2] - The rapid financial success of BioNTech, which earned over $8 billion from the initial $55 million licensing deal with Chinese firm Pumice Biologics, raises questions about the pricing strategies of Chinese pharmaceutical companies in the global market [1][2][3] - The trend of multinational corporations (MNCs) aggressively acquiring Chinese dual antibodies is reshaping the global landscape of innovative drugs, with significant deals such as the $6.05 billion agreement between 3SBio and Pfizer [1][4] Group 1: Major Transactions - BMS's deal with BioNTech includes a $1.5 billion upfront payment, a record for oncology licensing agreements, along with additional milestone payments totaling $76 billion [2] - 3SBio's licensing of its PD-1/VEGF dual antibody SSGJ-707 to Pfizer for $6.05 billion, with an upfront payment of $1.25 billion, sets a new record for domestic innovative drug licensing [4][5] - Other notable transactions include Merck's $3.3 billion investment in LianBio and the anticipated $5 billion deal involving Shijiazhuang Yiling Pharmaceutical [5][6] Group 2: Market Dynamics - The surge in MNCs acquiring Chinese dual antibodies is driven by the expiration of patents for existing blockbuster drugs and the need for new products [6][7] - Chinese innovative drug companies benefit from lower development costs and a large patient pool, making them attractive targets for MNCs seeking to enhance their product pipelines [6][7] - The total value of outbound licensing deals for Chinese innovative drugs reached $45.5 billion since early 2025, with 42% of high-value projects coming from China [5][6] Group 3: Future Outlook - The ongoing trend of MNCs partnering with Chinese biotech firms is expected to bolster the confidence of domestic companies in pursuing research and development [7][8] - The ability of Chinese innovative drug companies to negotiate higher prices in licensing deals will depend on their negotiation skills and market positioning [8] - The need for a "pricing power revolution" in the Chinese pharmaceutical industry is emphasized, as companies face challenges from rising R&D costs and stringent domestic pricing policies [9]