Summary of Shanghai Junshi Biosciences Conference Call Company Overview - **Company**: Shanghai Junshi Biosciences - **Established**: 2012 - **Focus**: Commercialization-stage biotech company specializing in oncology and autoimmune indications with over 15 clinical-stage assets [11][29] Key Industry Insights - **Market Performance**: Junshi's share price increased by 167% year-to-date, outperforming HSBIO's 100% increase [2] - **Valuation**: The price target is set at HK$34.70, reflecting a risk-adjusted P/peak sales of 2.4x, in line with peer median [5][7] Core Product Insights - **Toripalimab (PD-1)**: - Remains the primary revenue driver, with sales of Rmb954 million in H125, up 42% YoY [4][29] - Expected to exceed Rmb2 billion in 2025 due to new indications included in the National Reimbursement Drug List (NRDL) [29] - Anticipated sales growth driven by additional indications such as perioperative NSCLC and 1L TNBC [9][29] Clinical Development Highlights - **JS207 (PD-1/VEGF)**: - Key candidate with eight phase-2 trials initiated, covering various cancers [3][12] - Early-stage data expected by late 2025/early 2026, crucial for demonstrating its potential [3][15] - Positioned as a strong competitor in the PD-1/VEGF field [3][12] - **Other Candidates**: - **JS015 (DKK1)**: First-in-class DKK1 in phase-2, showing promising early data in colorectal and gastric cancers [19][20] - **JS203 (CD20/CD3)**: Early efficacy signals with 80% ORR in phase-1 trials, pivotal trials expected to start in 2026 [22][23] - **Tifcemalimab (BTLA)**: Global first-in-class candidate in phase-3 for limited-stage small cell lung cancer, with data read-out expected in late 2026 [16][17] Financial Projections - **Revenue Growth**: Projected sales CAGR of 20% from 2025 to 2027, primarily driven by toripalimab and new NRDL inclusions [4][9] - **Profitability Timeline**: Expected to reach breakeven by 2027, with net earnings improving from losses in the coming years [6][29] Risks and Considerations - **Clinical Data Dependency**: The success of multiple candidates, especially JS207, hinges on upcoming clinical data readouts [15][28] - **Market Sentiment**: Positive market sentiment exists for Junshi's potential business development (BD) opportunities, but actual performance will depend on clinical outcomes [15][28] Conclusion - Junshi is positioned for growth with a strong pipeline and key revenue drivers, particularly toripalimab. However, the company must navigate the challenges of clinical data validation and market competition to realize its full potential.

Investment Rating - The report maintains an "Overweight" rating for the pharmaceutical and biotechnology industry [1] Core Insights - The upcoming World Conference on Lung Cancer (WCLC) is expected to showcase significant advancements in innovative drugs, generating new business development expectations [1] - The A-share pharmaceutical index has increased by 3% this week and 25% year-to-date, outperforming the CSI 300 by 0.7% and 18.2% respectively [4][9] - The report highlights the strong performance of the pharmaceutical sector, particularly in innovative drugs, research services, and CXO [10][11] Industry Trends - The WCLC will take place from September 6 to September 9, 2025, in Barcelona, featuring over 1,500 presentations, with a significant number from Chinese researchers [17][18] - Chinese innovation is prominently represented, with over 400 submissions, indicating a shift towards the commercialization of innovative drugs [18][19] Stock Performance - Notable stock performances include a 69% increase for Sainuo Medical and a 94% increase for Paig Biological in the H-share market [4][9] - The report provides a detailed overview of stock performance, highlighting both top gainers and losers in the pharmaceutical sector [9][13] Recommendations - The report suggests a focus on specific sub-sectors, ranking them as follows: innovative drugs > research services > CXO > traditional Chinese medicine > medical devices > pharmacies [10] - Specific stock recommendations include companies like Bory Pharmaceutical, Singlera Genomics, and Innovent Biologics based on various therapeutic angles [11][12]