Summary of Key Points from the Conference Call Companies Involved - Innovent Biologics (1801 HK) - Akeso (9926 HK) Core Insights and Arguments Innovent Biologics - Innovent is positioned as a significant player in the China biopharma sector, focusing on oncology and GLP-1 therapies [4][8] - The company has 16 drugs on the market and approximately 4,000 commercial staff, with expectations to achieve IFRS net-income break-even by 2025 [8] - Projected sales for 2027 could reach RMB 20 billion based on company guidance [8] - Key upcoming events include: - Approval of IBI112 (IL-23p19 inhibitor) for psoriasis in 2H25 [5] - Phase 3 data readout for IBI343 (CLDN18.2 ADC) in 2H25 [5] - Data readout for IBI362 (GLP-1/GCGR) in 2H25/1H26 [5] - IBI363 (PD-1/IL-2α-bias) has shown promising data, with peak sales forecasted at RMB 7 billion in China and RMB 10 billion ex-China [16][8] - The GLP-1 drug mazdutide (IBI362) is expected to capture approximately 11% of the China GLP-1 market, with potential peak sales of RMB 50 billion [8] - Risks include potential pricing cuts, pipeline development setbacks, and competition in the weight loss drug market [8] Akeso - Akeso is recognized as a leading bispecific antibody company in China, having launched the first bispecific drug, AK104 (PD-1/CTLA-4), in 2022 [33][36] - Forecasted peak sales for AK104 in China are around RMB 6 billion, with potential expansions into various cancer indications [36] - AK112 (PD-1/VEGF bispecific) has been out-licensed to Summit Therapeutics, with expected peak sales of over RMB 5 billion in China and over USD 2.5 billion in the US [36] - Upcoming key events for Akeso include: - Sales data for AK104 and AK112 in 1H25 [34] - Detailed data readout for AK112 in various trials in 2H25/1H26 [34] - Concerns exist regarding AK112's commercialization potential in the US due to previous trial results, but there is optimism for improved outcomes with longer follow-up [40] - AK104's efficacy in trials has not been fully appreciated by the market, and a global development plan announcement could enhance investor interest [41][44] Additional Important Content - Innovent's pipeline includes a diverse range of assets across oncology, cardiovascular, autoimmune, and ophthalmology, which supports its growth strategy [12] - Akeso's sales forecasts indicate a strong growth trajectory, with total product sales expected to reach RMB 16.1 billion by 2034 [45] - Both companies face risks related to pipeline development and market competition, which could impact their future performance [8][34]
Asia Deep Dive_ Akeso & Innovent
2025-07-07 00:51