Summary of Junshi Biosciences Conference Call Company Overview - **Company**: Junshi Biosciences - **Date**: August 27, 2025 Key Financial Performance - **R&D Expenses**: CNY 706 million, up 29% YoY [2] - **Sales Expense Ratio**: Decreased to below 50% [2] - **Management Expenses**: Decreased by 19% YoY to CNY 195 million [2] - **Net Loss**: Decreased by 36% YoY to CNY 413 million [3] - **Revenue**: CNY 1.168 billion, up 49% YoY [3] - **Core Product Revenue**: Core product Tuoyi generated CNY 954 million, up 42% YoY [3] - **Funding**: Completed nearly CNY 1 billion in Hong Kong stock placement, ensuring good financial health for future R&D and business expansion [2] Product Development and Market Expansion - **Core Product - Toripalimab**: - New indications approved for first-line treatment of melanoma and combination therapy with Bevacizumab for advanced liver cancer [2][4] - Total of 12 approved indications in China, with 10 included in the national medical insurance directory [4] - Sales in the first half of 2025 approached CNY 1 billion, driven by policy support, governance improvements, market expansion, and academic promotion [3][14] - **Pipeline Projects**: - **GS207 (PD-1/VEGF Dual Antibody)**: Currently in Phase II clinical trials for various cancers [5] - **BTLA Antibody**: Phase III global multi-center study for small cell lung cancer expected to complete enrollment by 2026 [5] - **JT002**: A CPG oligodeoxynucleotide for allergic rhinitis, submitted for Phase III registration, showing potential for international markets [6] - **GS212 (EGFR ADC)**: In Phase I dose escalation, showing good safety profile [18] Clinical Trials and Research Progress - **Clinical Trials**: Multiple ongoing Phase III trials for Toripalimab in esophageal cancer, gastric cancer, and cholangiocarcinoma [25] - **Expected Data Readouts**: - Combination therapy for liver cancer expected by late 2025 or early 2026 [25] - Esophageal cancer data expected in Q3 or Q4 of 2026 [25] Strategic Focus and Future Directions - **Operational Strategy**: Focus on quality improvement, cost reduction, and efficiency enhancement to meet global market demands [7] - **R&D Resource Allocation**: Prioritizing key products in clinical validation stages, including dual antibodies and ADCs [13] - **Market Expansion**: Plans to enhance commercialization efforts and expand into new markets, with significant growth in overseas sales [16] Regulatory and Market Considerations - **Regulatory Environment**: Positive impact from national medical insurance policies and compliance guidelines on product growth [14] - **Sales Growth Drivers**: Increased market share due to new indications and improved governance and management practices [14][17] Conclusion - **Investment Potential**: Junshi Biosciences shows strong growth potential with a robust pipeline, strategic market expansion, and improved financial health, making it a noteworthy company for investors to monitor [26]

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].

Core Viewpoint - Junshi Bioscience has announced adjustments to certain sub-projects and funding amounts related to its fundraising initiatives, maintaining the total amount of raised funds unchanged [1][3]. Fundraising and Project Adjustments - The company held board and supervisory meetings on May 29, 2025, to approve changes to the "Innovative Drug R&D Project" under the 2022 fundraising efforts, specifically adjusting clinical trial sub-projects and their funding amounts [1]. - New sub-projects added include "JS207 domestic and international R&D," "JS107 domestic and international R&D," "JS125 domestic and international R&D," "JT002 domestic and international R&D," "JS203 domestic and international R&D," and "JS015 domestic and international R&D," with funding sourced from reduced amounts in other sub-projects [2]. Strategic Rationale - The adjustments are based on the company's development strategy and product R&D progress, aimed at improving the efficiency of fund utilization and optimizing resource allocation, thereby supporting long-term development [3]. - The changes will not adversely affect the company's normal operations and align with the long-term interests of all shareholders [3]. Fundraising Details - In 2022, Junshi Bioscience raised a total of RMB 3.7765 billion by issuing 70 million A-shares at a price of RMB 53.95 per share, with a net amount of RMB 3.7448 billion after deducting issuance costs [4]. - The funds were deposited into a special account for fundraising and were verified by a certified public accountant [4]. Company Performance - Since its listing on July 15, 2020, Junshi Bioscience has raised a total of RMB 8.613 billion through two fundraising rounds [7]. - The company reported a net profit attributable to shareholders of -2.35 billion in Q1 2025, an improvement from -2.83 billion in the same period last year, with a revenue of 5.01 billion, reflecting a year-on-year growth of 31.46% [7][8].