Summary of Innovent Biologics Conference Call Company Overview - **Company**: Innovent Biologics (1801.HK) - **Industry**: Biopharmaceuticals, focusing on oncology and immunology Key Points from the Conference Call Strategic Collaboration with Eli Lilly - Innovent announced a strategic collaboration with Eli Lilly on February 8, 2026, to advance early-stage oncology and immunology programs - The deal includes: - **Upfront Payment**: US$350 million - **Milestone Payments**: Up to US$8.5 billion - **Sales Royalties**: Tiered royalties from net sales outside of China - This collaboration marks the seventh agreement between Innovent and Eli Lilly, which began in 2015 with a three-mAb oncology deal [1][6] Roles and Responsibilities - Innovent will retain rights in China and lead the programs from concept to clinical proof of concept (POC) - Eli Lilly will manage late-stage global development and hold rights outside of China [1][2] Industry Trends - There is a growing trend of out-licensing deals from Chinese biopharma companies, indicating recognition from global partners of the potential in differentiated pipelines and fast POC delivery [1] Financial Outlook - Innovent is considered undervalued at current levels, with a market-implied weighted average cost of capital (WACC) of 12% reflecting only de-risked indications [1] - The company has a deep pipeline of over 30 assets, including commercialized products like sintilimab, a leading PD-1 inhibitor [1][6] Risks - Key risks identified include: - Intensifying competition in the PD-1/L1 market in China - Uncertain approval timelines for key candidates - Potential restrictions on off-label use due to safety issues - Failure of R&D projects [1][7] Financial Projections - **Market Capitalization**: HK$128.9 billion / US$16.5 billion - **Revenue Projections**: - 2024: Rmb 9,421.9 million - 2025: Rmb 12,783.0 million - 2026: Rmb 17,291.0 million - 2027: Rmb 20,681.3 million - **EBITDA Projections**: - 2024: (462.5) million - 2025: 1,274.8 million - 2026: 3,531.6 million - 2027: 5,106.1 million - **Price Target**: HK$102.85, representing a 29.4% upside from the current price of HK$79.50 [8] Conclusion - Innovent Biologics is positioned to maintain its leading role in the Chinese biotech sector, supported by a robust pipeline and strategic collaborations, particularly with Eli Lilly. The company faces significant risks but also presents a compelling investment opportunity given its growth potential and current valuation [1][8]

Core Insights - Elevation Oncology is advancing its Claudin 18.2 ADC program, EO-3021, for advanced gastric/gastroesophageal junction cancer, with initial data from combination cohorts expected in Q4 2025 or Q1 2026 [1][2] - The company has implemented prospective Claudin 18.2 testing in its ongoing Phase 1 trial to better identify patients likely to benefit from EO-3021 [2][3] - Financial results for the year ended December 31, 2024, show an increase in cash reserves and R&D expenses, reflecting ongoing investment in clinical trials [5][6][14] Clinical Development - EO-3021 is currently being evaluated in combination with dostarlimab and ramucirumab in Phase 1 clinical trials [1][3] - Preclinical data presented at ESMO-IO 2024 demonstrated superior tumor growth inhibition when EO-3021 was combined with either a PD-1 inhibitor or a VEGFR2 inhibitor [3] - The company plans to file an Investigational New Drug (IND) application for its HER3 ADC, EO-1022, in 2026 [1][4][11] Financial Performance - As of December 31, 2024, Elevation Oncology reported cash, cash equivalents, and marketable securities totaling $93.2 million, up from $83.1 million in 2023 [5][14] - R&D expenses for Q4 2024 were $6.6 million, an increase from $4.7 million in Q4 2023, driven by clinical trial costs [6][13] - The net loss for Q4 2024 was $10.4 million, compared to $7.9 million in Q4 2023 [8][13] Upcoming Milestones - The company expects to report additional safety and efficacy data from the EO-3021 monotherapy trial in Q2 2025 [11] - Initial data from the combination cohorts of the EO-3021 trial is anticipated in Q4 2025 or Q1 2026 [1][11] - Preclinical data for EO-1022 will be presented at the AACR Annual Meeting in 2025 [1][11]