JPMorgan has released a research note previewing key updates from a number of Chinese biotech and pharmaceutical companies within its coverage ahead of the European Society for Medical Oncology (ESMO) annual meeting. The bank believes a range of catalysts could drive Chinese biotech stocks higher and further validate the strength of China's original innovation in bispecific antibodies, ADCs and targeted oncology.
The more than 20 Chinese biotech stocks covered by the bank fell 4.4% last week, underperforming the Hang Seng Index, which rose 1.8%. Within the biotech sector, the bank's top picks remain Kelun-Biotech (06990) and Innovent Bio (01801), which it sees as having rich catalyst paths into ESMO and beyond; the bank also holds a more positive view on Akeso (09926) after AstraZeneca (AZN.US) invested US$2 billion in the company's U.S. partner Summit (SMMT.US). The bank noted that early-stage Phase 1 asset readouts from Insilico Medicine (03696) can serve as relevant data points for its AI-driven drug discovery (AIDD) platform, while late-stage assets from Hengrui Pharma (01276) and Hansoh Pharma (03692) remain the focus for investors watching mid-term growth drivers.
ESMO abstract papers are expected to be released at 6 p.m. U.S. Eastern Time on October 18, with posters expected to go live on October 23; the ESMO conference runs from October 23 to 27. Kelun-Biotech's sac-TMT has two key Phase 3 catalysts, including the global Phase 3 TroFuse-005 trial in endometrial cancer and the China Phase 3 OptiTROP-Lung06 trial in first-line PD-L1-negative non-squamous non-small cell lung cancer. Investor focus is on whether the data can further validate sac-TMT's cross-tumor activity, support its global registration strategy and strengthen confidence in its ADC platform and its collaboration with Merck.
The most important catalyst for Innovent Bio is data from the China registrational Phase 3 G-HOPE-001 trial of CLDN18.2 ADC IBI343 (arcotatug tavetecan) in third-line gastric cancer, which will be presented as a late-breaking oral presentation; the bank is also watching updates on IBI363 in first-line gastric/gastroesophageal junction adenocarcinoma and first-line non-small cell lung cancer, as well as other ADC readouts.
The focus for Akeso is Phase 3 data from the HARMONi-GI1 trial of ivonescimab in first-line advanced biliary tract cancer versus durvalumab plus chemotherapy; the bank estimates the overall survival hazard ratio could reach 0.6 or lower, and if confirmed, this would be the best overall survival hazard ratio achieved by ivonescimab in a China Phase 3 study.
The bank also noted that Insilico Medicine's AI-designed pan-TEAD inhibitor ISM6331 will be presented in a rapid oral presentation, with focus on safety, dose escalation and early efficacy signals. Hengrui Pharma's updates span projects including KRAS G12D, HER2 ADC and HER3 ADC, including HRS-4642, SHR-A1811 and SHR-A2009, and are expected to draw investor attention to whether they can support mid-term growth and global expansion. For Hansoh Pharma, Phase 3 osteosarcoma data for Ris-Rez (HS-20093) remains a key late-stage catalyst, along with ADC updates including HS-20122. The bank rates all of the above companies "Overweight."
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