Core Viewpoint - The report from Guoyuan International highlights that Kangzhe Pharmaceutical (00867) has established a global pipeline of 40 innovative drugs primarily focused on FIC and BIC, with 5 approved innovative drugs accelerating commercial value release, 7 NDA reviews ongoing, and over 10 clinical trials in progress. The oral JAK1 inhibitor Povorcitinib has received breakthrough therapy designation, and a "Buy" rating is given with a target price of HKD 17.68 per share [1]. Group 1: Innovative Drug Pipeline - The company has a rich pipeline of innovative drugs, with 40 global projects focused on FIC and BIC, and 5 approved innovative drugs accelerating commercial value [2]. - The NDA application for the first-class injectable drug Y-3 has been accepted, which is the world's first brain cell protector developed based on PSD95-nNOS and MPO targets, expected to address both stroke treatment and post-stroke depression and anxiety [2]. - The market potential for injectable Y-3 is estimated at RMB 3 billion [2]. Group 2: Clinical Trials and Market Demand - The oral JAK1 inhibitor Povorcitinib has received breakthrough therapy designation from China's NMPA, targeting adult non-segmental vitiligo, with a large unmet treatment demand in China, where there are approximately 10.3 million vitiligo patients, including 8.2 million with non-segmental vitiligo [2]. - Multiple clinical trials for Povorcitinib are ongoing in various countries, including Phase III trials for non-segmental vitiligo and moderate to severe hidradenitis suppurativa, as well as a Phase II asthma trial [2]. Group 3: Financial Performance - In the first half of 2025, the company achieved revenue of RMB 4.67 billion, a year-on-year increase of 8.9%, and a net profit of RMB 930 million, up 3.1% year-on-year [3]. - The skin health line generated revenue of RMB 498 million, a significant increase of 104.3%, accounting for 10.7% of the group's drug sales [3]. - The company's brand and innovative products generated a total revenue of RMB 2.9 billion, a year-on-year growth of 20.6%, representing 62.1% of total revenue [3]. Group 4: Investment Recommendations - The company's performance is expected to recover, with a significant optimization of its product structure focusing on innovative drugs. Revenue projections for 2025-2027 are RMB 7.86 billion, RMB 8.95 billion, and RMB 10.02 billion, with net profits of RMB 1.667 billion, RMB 1.941 billion, and RMB 2.308 billion respectively [4]. - The target price of HKD 17.68 corresponds to a PE ratio of 16.9 times for 2027, indicating a potential upside of 32% from the current price [4].

Core Viewpoint - Company has a rich pipeline of innovative drugs, with 40 products globally focused on FIC and BIC, including 5 approved innovative drugs accelerating commercial value [1][2] Group 1: Innovative Drug Pipeline - The company has 40 innovative drugs in its pipeline, with 5 approved drugs that are beginning to release commercial value [2] - 7 NDA applications are under review, and over 10 clinical trials are progressing [2] - The first-in-class injectable Y-3 has received NMPA acceptance for its new drug application, targeting stroke treatment and post-stroke depression and anxiety [2] Group 2: Market Potential and Clinical Trials - The market potential for injectable Y-3 is estimated at 3 billion RMB [2] - The oral JAK1 inhibitor Povorcitinib has received breakthrough therapy designation in China, targeting adult non-segmental vitiligo, with a large unmet treatment need [2] - There are approximately 10.3 million vitiligo patients in China, with 8.2 million being non-segmental [2] Group 3: Financial Performance - In the first half of 2025, the company achieved revenue of 4.67 billion RMB, a year-on-year increase of 8.9%, and a net profit of 930 million RMB, up 3.1% [3] - The skin health line generated revenue of 498 million RMB, a significant increase of 104.3%, accounting for 10.7% of total drug sales [3] - Brand and innovative products accounted for 2.9 billion RMB in sales, a 20.6% increase, representing 62.1% of total revenue [3] Group 4: Investment Recommendations - The company's performance is expected to recover, with a significant optimization of its product structure towards innovative drugs [4] - Projected revenues for 2025-2027 are 7.86 billion, 8.95 billion, and 10.02 billion RMB, with net profits of 1.667 billion, 1.941 billion, and 2.308 billion RMB respectively [4] - The target price is set at 17.68 HKD per share, implying a 32% upside from the current price [4]

Incyte FY Conference Summary Company Overview - **Company**: Incyte (NasdaqGS: INCY) - **Date of Conference**: November 10, 2025 Key Industry Insights Hematology and Oncology Focus - Incyte is primarily identified as a hematology company, focusing on myeloproliferative neoplasms (MPNs) with three targeted therapies in mid to late stages of development [4][5] - The company aims to transition from nonspecific symptomatic therapies to mutation-specific targeted therapies, which is expected to be a significant growth driver [4][5] R&D Capabilities - Incyte's R&D organization is described as high-quality and efficient, with a focus on fewer, higher-quality investments rather than diffuse spending [5][6] - The company plans to streamline costs while ensuring critical initiatives are funded adequately [5][6] Pipeline Opportunities Jakafi and Antibody Product Candidate 989 - Jakafi remains a leading JAK inhibitor, but the antibody product candidate 989 is positioned as a potential superior alternative for essential thrombocythemia (ET) and myelofibrosis (MF) [9][10] - The commercial opportunity for 989 in ET is estimated at $5 billion, while in MF, it is projected at $2.5 billion, with expectations of capturing significant market shares [11][12] Clinical Data and Future Trials - Phase one data for 989 shows promise in normalizing platelet counts and improving symptoms in ET and MF patients [13][14] - A phase three program for 989 is expected to start in mid-2026, with more data to be presented at the upcoming ASH meeting [10][11][14] Collaboration and Development Strategy - Incyte has partnered with Enable Injections to develop a subcutaneous formulation of 989, aiming to enhance patient convenience and adherence [21][23] - The acquisition of a JAK2 selective inhibitor is part of a broader strategy to provide comprehensive treatment options for MPNs [26][28] Inflammatory Portfolio Povorcitinib - Povorcitinib is being developed for immune-mediated skin conditions, with a focus on hidradenitis suppurativa (HS) [29][30] - The drug shows rapid pain relief and significant skin clearance rates, with potential to capture a substantial market share [31][33] Commercial Synergies - Incyte aims to leverage existing infrastructure from its Opzelura product to create commercial synergies with Povorcitinib, enhancing operational efficiency and market reach [34] Financial Performance and Growth Projections Opzelura - Opzelura has shown strong growth, with a reported 30% increase in revenue compared to the previous year, and is projected to reach peak sales of $1.5 billion in atopic dermatitis (AD) alone [36][37] Nectimbo - Nectimbo is off to a strong start in the GVHD market, with annualized sales expected to approach $200 million by year-end [40] - The product is primarily used in third-line therapy, with ongoing studies to demonstrate its utility in combination with Jakafi [41][43] Conclusion - Incyte is strategically positioned in the hematology and oncology sectors, with a robust pipeline and a focus on targeted therapies. The company is actively pursuing collaborations and acquisitions to enhance its product offerings and market presence, while also demonstrating strong financial growth across its portfolio.

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Financial Data and Key Metrics Changes - The company reported total revenues of $1.37 billion and product sales of $1.15 billion, representing a 20% and 19% increase year-over-year, respectively [4][29] - GAAP R&D expenses were $507 million, with a 7% year-over-year increase, driven by investments in late-stage development assets [29] - GAAP SG&A expenses were $329 million, increasing 6% year-over-year, primarily due to international marketing activities [29] - The company raised its full-year net product revenue guidance to $4.23-$4.32 billion [29] Business Line Data and Key Metrics Changes - Jakafi sales reached $791 million, a 7% increase, with strong demand growth of 10% year-over-year [5] - Opzelura sales were $188 million, a 35% increase year-over-year, with $144 million from the U.S., representing a 21% increase [6] - Niktimvo sales totaled $46 million, a 27% increase from the previous quarter, with 90% of U.S. bone marrow transplant centers adopting the product [7][8] - Monjuvi and ZYNYZ also saw strong growth, contributing to the raised guidance [9] Market Data and Key Metrics Changes - International sales for Opzelura and vitiligo totaled $44 million, a 117% increase from last year [7] - The market for branded non-steroidal topicals is expanding at a 20% rate, with Opzelura well-positioned to capitalize on this trend [6] Company Strategy and Development Direction - The company is focusing on optimizing promotional strategies and investments for key products to drive future growth [4] - A thorough review of the pipeline is being conducted to prioritize high-value programs, with several preclinical and early clinical stage programs being paused or stopped [17][18] - The company plans to launch three important new products next year: Ruxolitinib XR, Opzelura AD in Europe, and Povorcitinib in HS [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of key products and emphasized the importance of demonstrating single-agent activity for new therapies [4][35] - The company is committed to balancing cost management with strategic investments to support long-term growth [14][68] - Management highlighted the potential for significant market opportunities in HS and MPNs, with a focus on targeted therapies [10][12] Other Important Information - The company is actively studying Niktimvo in combination with Ruxolitinib and steroids, which could shift the standard of care in GVHD [8] - The ongoing developments in PN and vitiligo are expected to further strengthen the company's dermatology portfolio [11] Q&A Session Summary Question: Importance of mCALR data for efficacy - Management emphasized the need to demonstrate single-agent activity for the mCALR antibody program, with a focus on clinical and translational endpoints [33][35] Question: Termination of Povorcitinib program at CSU - The decision was based on prioritizing projects with better return profiles, and data from the phase two program will likely be released at a future conference [38][39] Question: Sustainability of Naktinvo's growth trajectory - Management indicated strong initial adoption and positive feedback from transplant centers, with a solid growth trajectory expected [72][74] Question: Development path for mCALR - The goal is to start pivotal trials for mCALR in 2026, with a focus on building a pipeline of targeted therapies for MPNs [51][52] Question: Operating expenses and margin profile evolution - Management expects to streamline costs while ensuring critical initiatives are funded, with an anticipated improvement in margins over time [68][69]

Group 1 - Incyte announced new 24-week Phase 3 data from the STOP-HS clinical trial program for Povorcitinib in Hidradenitis Suppurativa at EADV 2025 [1]

Financial Performance - Total revenues reached $1.053 billion, a 20% year-over-year increase[10, 44] - Product revenues amounted to $922 million, reflecting a 26% year-over-year growth[10, 44] - Jakafi net sales were $709 million, up 24% year-over-year, driven by strong patient demand[23, 46] - Opzelura net sales reached $119 million, a 38% year-over-year increase, fueled by U.S prescription growth and European launches[34, 48] - Niktimvo achieved $14 million in net sales during its initial U.S launch[36] Product & Pipeline Development - Jakafi's FY25 guidance raised to $2.95 - $3.0 billion[26] - Opzelura's FY25 guidance is $630 - $670 million[34] - Povorcitinib demonstrated positive Phase 2 results in CSU, with a planned discussion with the FDA to finalize Phase 3 design[15, 68] - The company anticipates having more than 10 high impact launches by 2030[5, 63] Financial Outlook - The company has $2.4 billion in cash[11] - GAAP Cost of product revenues is unchanged at 8.5 – 9% of net product revenues[60] - GAAP Research and development expenses is unchanged at $1.930 - $1.960 million[60]