KELUN PHARMA(SZ:002422)2025-08-19 05:42Summary of Kelun Biotech Earnings Review Company Overview - Company: Kelun Biotech (6990.HK) - Industry: Biotech, specifically focused on developing and commercializing differentiated antibody drug conjugates (ADCs) for global patients [8][9] Key Financial Highlights - 1H Revenue: Rmb950 million, with Rmb302 million from sac-TMT and Rmb628 million from licensing income, both broadly in-line with expectations [1] - Net Loss: Rmb-145 million, narrower than the expected Rmb-184 million, attributed to managed SG&A spending of Rmb253 million, which increased by 6% half-on-half [1] - Cash Position: Rmb4.5 billion in cash equivalents, up from Rmb3.1 billion by year-end 2024, sufficient to support near-term operations [1] Product Performance and Outlook - sac-TMT: Achieved high double-digit month-over-month growth, with NSCLC patients becoming the majority post-March approval. Management is confident in accelerated growth in the second half of the year [2][6] - Mature Products: Limited revenue in 1H, but expected growth post-NRDL coverage beyond 2025 [2] - Next Potential Asset: SKB571 (EGFR/cMET BsADC) is being positioned as the next anchor asset, with ongoing Phase 2 trials [6] Research and Development Insights - R&D Expenses: Decreased to Rmb612 million in 1H25, down 6% year-on-year, as more late-stage assets enter NDA or later stages [1] - Pipeline Development: Focus on addressing unmet medical needs with a variety of drug candidates in early-stage development [6] Valuation and Price Target - Target Price Adjustment: 12-month target price adjusted to HK$454.04 from HK$406.74, based on risk-adjusted DCF methodology [7] - Earnings Per Share (EPS) Estimates: Adjusted for 2025E-27E to reflect updated financials and lowered sales estimates for certain products [7] Risks and Challenges - Key Risks: Include R&D risks in developing new indications, competition in the ADC field, limited commercial manufacturing and sales track record, talent competition, and alliance risks [8][10] Conclusion - Investment Rating: The company is rated as a Buy, with expectations for meaningful growth driven by its product pipeline and strategic collaborations [9][11]