Half Year 2021 I-Mab Earnings & Corporate Progress Update Conference Call
Is not only innovative and globally competitive but also clinically advanced.
Now one BLA submission.
Two registrational trials ongoing seven phase III and a phase one clinical trials in both U S and China.
Now the focus of our pipelines placed around the six core assets as highlighted within the Red Red box because.
<unk> potential to become highly differentiated medicines.
Successfully approved.
On slide six.
Excited to report that we have achieved so far 13 topline milestones since the beginning of this year, including seven new R&d's all trial starts.
For positive data readout events that are considered critical to further developments of the key assets, which we will give you more details later at this presentation.
We're on track for BLA submission for <unk> in fourth quarter 2021 this year.
Now slide number seven.
We have a success successfully completed registrational.
Registrational trial.
Third line trials sarcoma for multiple myeloma.
Top line results have met the primary and secondary endpoints more importantly, the study has confirmed clinical advantages of <unk> south to map in terms of shorter injection time, which our last communicated to us at the outpatient setting and a lower injection rash.
Right.
It's a safety advantages can offer.
Sure.
Better treatment option for elderly patients and patients with severe complications.
BLA submission.
Scheduled for first for the fourth quarter this year and the company is a preparation of the product launch.
In terms of market access and inclusion in the national drug reimbursement list sales with strategy and so on.
Now the Registrational trial for second line treatments for multiple <unk> for multiple myeloma is on track and the enrolment of nearly 300 patients will be completed by the end of next month in September.
In addition, we plan on filing a new R&D to explore a first line treatment option.
For multiple myeloma, combining sales after map with one of our own clinical assets.
Our pipeline.
On slide number eight regarding T. J 101 hour long acting growth hormone. The Registrational trial is on track for patient enrollment.
<unk> hundred 65 patients to be in roads, which will be completed by early 2022.
And we are very excited by the outlook of the <unk>.
Growing growth hormone market in China, and I believe <unk> 101 has a significant market potential.
As we communicated previously we have been seeking a commercial partnership with one of the pharmaceutical companies, who have a pediatric product portfolio and our well established commercial channel and a specialized sales force.
Now I am happy to report that the business negotiation.
To the country's stage, we hope to finalize that Europe and report back soon.
On slide number nine.
So Panama.
Highly differentiated CD 47 antibody.
We have made remarkable progress in clinical developments of language, Panama in both U S and China, which we hope will lead to Registrational trials next year in 2022.
Our ambition is to launch Lenzo polymath as the first CD 47 antibody product in China and facilitates the global developments our partner Abbvie for global registration.
Is the summary.
Firstly.
That's a polymath in combination with where toxin map for non Hodgkin's lymphoma. Our U S trial is on track and has generated early clinical results, which we are very excited about.
As a result, we recently submitted abstracts to present, the clinical data at Ash this year and hope to share the clinical results sooner if possible.
While the U S trial is ongoing.
We have prepared multiple clinical sites in China to join the clinical trial in September next months to expanse and facilitate us study.
We hope that the current clinical trial will lead to Rachel.
<unk> of study for non Hodgkin's lymphoma in 2022.
Secondly, Linda Panama in combination with AC <unk> for AML Mds I Mab is on track to complete a abbreviated phase III clinical trial in China.
The clinical trial is progressing we have already seen encouraging early clinical efficacy signals.
And we're very excited about that.
We plan to complete all the patient enrollments within this year and I hope that the current study will also lead to another.
Another registrational trial in 2022 in China.
In the U S. Our partner Abbvie is conducting a global clinical trial with Ace and the financial collapse in patients with AML Mds and we are very pleased to mention that we have been working together very well with abbvie.
Certainly.
Lenzo polymath in combination with Pembroke for solid tumors.
Our U S trial is progressing two includes more cancer patients for better clinical efficacy assessment.
More complete clinical data would be hopefully available by the end of this year or early next year, when we reported clinical data at that time.
In China, we have <unk> approval to start a phase II clinical trial with a basket designed to focus on selected tumor types that we believe are more susceptible to this combo treatment to.
To summarize in terms of safety.
So far a total of 86 patients in the U S and China have been dose with the drought and the safety profile continues to be very good.
Yes, I wanted to emphasize therefore, lenzo, Panama, no priming dose as needed throughout.
We remain very excited and confidence was more clinical efficacy data coming out.
Notable clinical trials.
Our current goal is to focus our team execution to facilitate a clinical trials in both U S and China. So that we will be in a better position to potentially initiate registrational studies in 2022.
On slide number 10 regarding you'll be lapping the map our highly differentiated CB 73 antibody.
Yes, the phase one clinical trial in combination with a T cell a PDL one antibody for solid tumors was completed early this year.
We're very excited by the clinical data.
<unk> presented the details of results at ESMO this year.
In short the OE.
<unk> observed with a yearly lastly, Matt in combination with a T cell is the highest among all clinical stage <unk> 73 antibodies as well.
We believe this may be attributable to the differentiated property up unilaterally map as it is designed to avoid.
The whole case.
Now usually likely Matt.
Safe and well tolerated RP.
<unk> at 20 milligram per kilo is.
Tony.
It is also important to note that.
There's a good correlation between clinical response, and a higher <unk> expression in the past biopsies tumor specimens.
No.
Three tumor specimens with a higher Cds somebody three expression.
<unk> exactly with the three clinical responders and they are they are the same patients has shown.
In the.
Three red box on the lower middle to figure out.
Slide number 10.
And this is very exciting because it may provide the opportunity to stratify patients cancer patients who are more suitable to this combo therapy.
Order to increase the probability of success.
We will be moving ahead to start a phase II clinical trial in solid tumors in the U S. This year and continue to complete the current phase II clinical trial in China and solid tumor.
And we'll have more data to share next year.
On a separate notice we are in.
We continued discussions with selected pharma partners.
<unk> potential global global partnership.
For for Uli likely Matt.
Now I will ask Dr. <unk> to elaborate on the progress <unk> seven our long acting into looking seven four cancers, and our Pearl Multimap out GM CSF antibody for cytokine release syndrome associated with severe COVID-19.
<unk>.
Great. Thanks for that that's okay.
So, yes, or our pone Multimap T J M too as we have built earlier this month, our interim analysis readout from our phase two three studies.
This is a study is designed for treating cytokine release syndrome associated with severe COVID-19, and the primary endpoint and secondary endpoints.
From the interim analysis have shown a very positive trends same, particularly the patients without emulation baseline a passage tens of 7% differences that have been observed.
Treatment group versus placebo, which is very comparable to that effect size.
Europe in Zillow map, which is another chance to.
To manage it.
And then mortality rate is 5% income on a map comparing with 13.
Stable arm at Pfizer.
<unk> 30.
And then approximately 10% improvement in recovery rates by day 14, and then they 30 income moneyman compared with placebo arm. So all those dates are very major primary and secondary endpoints and then safety wise, it's a well tolerated.
And then also.
It's worth to note that the biomarker missed it in the slides had shown.
Positive trend also towards the clinical outcome.
So moving forward considering the delta outbreak still ongoing in U S and other countries. We're continuing these phase two phase III studies.
In Europe.
19 states.
Same time, we're also seeking to explore additional indications associated with <unk>, particularly.
Particularly we are in preparation for <unk>.
Associated with subsets led by professor shallow from Washington Hospital.
And then the R&D is prepared.
Before the end of this year.
Next.
So I talked about.
So.
For this hour.
If a naphtha king and Alpha which is the T. J one Kevin are we have been a license being former partner that's income Korea. Since then we have conducted two studies first Jason.
Phase <unk> studies for the patient to wait Lymphopenia after chemo radiation therapy.
And these studies poor results have demonstrated that.
Safety profile and the PK PD correlations and therefore they'd have to submit it to the states this year and it won't be published.
Second studies, our GBM study is a phase II studies for GBM patients.
This has been a fully enrollment updates here.
And then another exciting news is our partner Sun Gannett and its subsidiaries and Nike have issue with a very tightening results. Both the G. P M and also.
No matter.
Treatment in combination with a.
PD one so based on those data sets. So we are in full power Corporation for the third study at all.
But she is for the also kind of on this map a combination therapy in our additional study at some point in the solid tumors as a basket trial design in particular already to look after the U T M. P C and head and neck cancer patients and also guided by about markers.
So these studies will also be initiated.
Towards the end of this year.
So I will keep Baptist without the chance to continue the rest of the presentation.
Yeah. Thank you, 12% now let's move on to discuss about our efforts and progress in generating the next generation of innovative assets to expand our pipeline.
On slide 13, while we focus on delivering the clinical milestones out the first wave of clinical assets, including the six core assets as we just discussed the company has made significant progress in generating the second and the third.
Wade.
Innovative assets the first wave innovative assets.
Presented.
Portfolio of highly differentiated monoclonal antibodies fusion proteins, such as Atlanta, polymath, Julie laterally map south of that.
And obviously to the map and so on.
With the one exception they are all in phase II or phase III clinical trials and they are very advanced.
The second wave innovative assets are represented by a bi specific antibodies, we either pushing cost of best in class potential. The two most advanced the bi specific antibodies T. J <unk> PDL, one pulling BD and a T J CB for BD that's caught.
18, two point BB in phase one clinical trials in the U S.
The third.
Wave innovative assets I would characterize our emerging portfolio of a super antibodies that are enabled by transformative technologies.
Not the drug candidates are expected to advance to the R&D stage by the end of 2022 or 2023, we believe they represent truly cutting age drug candidates in the field of oncology globally.
On slide 14.
Our bi specific antibody portfolio is designed to confirm immunologically cold tumors that are resistant to immunotherapy.
Hot tumors or better treatment efficacy.
More importantly, despite specific antibodies that enables us to address the current Amit medical needs in oncology, where a majority of cancer patients do not respond to.
Checkpoint inhibitors.
Most of that advanced assets.
As I mentioned earlier enter phase one clinical trials in the U S. Early this year.
Use the conditional activation of <unk>, which is an important differentiation.
To avoid systemic toxicity induced by form D b.
Other bi specific antibodies.
Preclinical stage will be towards R&D.
Now on slide 15 early this year, we announced a discovery initiatives to generate the third wave of innovation.
This new generation of antibodies are not regular monoclonal antibodies or by specific antibodies internally, we call them Super antibodies because they are enabled by transformative technologies to perform unique drug properties that are otherwise not assessed by regular antibodies.
For example, we are working on drug candidates using our partners messenger RNA platform to deliver formulated messenger RNA drugs.
That kind of abuse.
Antibodies inside a patient's body.
This was truly transformative.
It's proven in clinical trials.
Another example is to utilize complex platform to generate intracellular antibodies that can get into cells to target otherwise intractable intracellular drug targets.
There are more examples here, we will continue to update you.
As we make progress with this novel Super antibodies.
Now on slide 16.
Look forward to delivering a set of 15 critical milestones before the end of this year.
In the interest of time I'm not one of those through the entire list, but to mention a few critical milestones such as to start off.
Registrational studies.
Four.
Lenzo polymath.
CLA milestones for <unk> hundred one and feel its aftermath second line treatment.
We're determined to meet these goals and have set a solid foundation for even more advanced topline Cabana in 'twenty 'twenty two next year.
Now, let me switch gear.
To talk about.
How are pipelines will create short value at <unk>.
We cannot build our future.
On slide number 18, why would we focus on our efforts and resources to deliver on the top line to create short term value.
<unk> made great progress in building, our future to transform the company on a clinical stage biotech to a global biopharma.
No.
More details.
Illustration, there's some slide 19 to achieve this goal within the next few years. Firstly, we have been upgrading our global R&D and established a new R&D facility in San Diego to focus on translational medicine and formulation to support.
Yes.
And Ah facilitates our innovative pipeline globally.
Secondly, we are on track with the construction of our manufacturing facility Hangzhou. The pilot plant will be ready by mid next year and commercial production by the end of the country 23.
As a matter of fact, our PD laboratory has already started to function.
To take on our CMC projects in concert.
Sure.
We have built our initial commercialization capability with our <unk> and our commercial strategy to move forward to Ciena has has already started to prepare for the product launch.
So it's often that our initial commercial strategy is really to focus on.
Hematologic malignancies by leveraging our unique position with sarcoma as a backbone drug for multiple myeloma cell on payments second line treatments and potentially first line treatments.
Language, Panama as a backbone drug for leukemia AML.
Mds is aware.
Lymphoma, when combined with a CD 19, our CD 20 antibodies.
Currently we're actively seeking commercial partnerships and in licensing opportunities to further enrich our initial him.
Focus commercial portfolio to potentially become a leader in the him onto the therapeutic area in China.
And the commercial portfolio for solid tumors will follow after 2024 with ULE laterally map.
The.
Innovative assets movie from clinical trials towards BLA.
Now I will ask Dr <unk> to discuss about.
Some other items related to awards Rex.
<unk> recognition in our how we made efforts to strengthen the company's corporate governance and social responsibilities.
Thanks for that Stan Yeah, I, just want to expand it a little bit and how we are as a company continue to grow to take on the responsibility of case ends at a rapid clip both company and then.
Because of that we have obtained a numerous awards for our innovation and then our unquote say on these slides just mentioned that for you.
As you can see so the first of all I use our institutional Investor Award for top ranking and top CFO and secondly is that keep costs excellent employer award and that certainly is the top 50 enterprise.
Knowledge of power those are just the representing an hour a recognition by the industry and.
The Society next site.
And as such as Dan also mentioned as we take on the steps for.
Advancing our company, we also need to become a diversified and highly governance standards and the socially responsible corporate.
So we received the.
Hi, it's the first time yesterday rating among China based biotech companies from the Am Spi 2020, as you can see from the personal line.
And we also build a woman leadership council promote female leaders Korea keep out much.
We now have two sorts of female employees and over 30% of women board of directors.
We have also a newly formed independent ESG Committee with me and to other independent Board members as a committee.
<unk> said over the ESG strategy.
We also made multiple donations for disaster relief, including donations of medical supplies at a COVID-19 outbreaks and donations to Hunan Cherokee General Federation.
The rescue and the restructuring of the profit, reaching the Hunan province, and et cetera.
So our company continue to appeal to the infrastructure as well that the overall organization of covenants could become I'm worried in a more rapid double and the representatives and Albert.
Oh societies.
So from there I will.
Let's turn to the children to continue with the financial reports.
Gentlemen, please.
They care about that yet.
Now, let me turn to review our financial results for the six months ended June 30th 2021 that's on slide 23.
First of all as of June 30th 2021.
<unk> cash, meaning cash cash equivalents restricted cash and short term investments totaled $12.0 billion RMB or 790 <unk>.
$41.0 million U S dollars compared with $12.0 billion RMB as of December 31st 2020.
We are very well capitalized for the size of the opportunities in front of us and our vision to become a fully integrated Biopharma company.
Our strong cash balance provides sufficient funding and the strategic flexibility through major value, creating milestones in relation to T. J to O. Two T. J one O one of T. J C T J D five.
Over the next one or two years.
Now, let me turn to the revenue side for the six months ended June 30th.
21 net revenues were.
$725.0 million RMB or $10.0 million U S dollars compared was nil for the six months ended 22020.
Revenues generated for the six months ended June 30th 2021 solid consistent of revenues recognized in connection with Imap strategic collaboration with Abbvie and our collaboration with Abbvie has been going very well.
Now, let me turn to the R&D expenses.
Total R&D expenses, meaning.
Our core R&D expenses, plus the aesop related share.
Share based compensation.
For the six months earlier this year were 593.
Many of the RMB $499.0 million U S dollars compared with $445.0 million for the same period in 2020.
The increase in total R&D expenses was primarily due to the increased C. R. O service fees to advance the company's broad pipeline, especially for our key assets, including Lemzo polymath T. J C. Four really lovely Mab <unk> five and the absence of atropine Alpha she didn't want on one.
Now within the total R&D expenses as you can see we're broken down for you.
The cash versus noncash.
<unk> expenses, so the noncash share based compensation expenses accounted for $112 seven minute on B b.
RMB or $17 five minutes U S dollars.
For the six months ended June 2021.
Compared with $139.0 million for the six months ended June 30th 2020.
The overall the overall growth in R&D expenses.
For the six months earlier this year reflected the rapid growth or progress of the company's pipeline assets.
Now, let me turn to administrative expenses.
Total administrative expenses for the six months ended June 32021.
451, five minute RMB or $78.0 million U S dollars.
<unk> to $175.0 million RMB for the same period in 2020.
The increase was primarily due to higher share based compensation expenses, which we have broken out for you here increased professional service expenses, including one time expenses and expansion in payroll as a result of increased headcount driven by new hires we've made.
In preparation for the company's future commercialization and a product launch in China.
Within the total administrative expenses share based compensation expenses accounted for 222 million RMB or $38.0 million U S dollars for the six months ended June 32021, compared with 70, $98.0 million RMB for the six months last year.
One time expenses, which consisted of listing related expenses and other expenses were.
$78.0 million RMB or $18.0 million for the six months ended June 30th 2021.
No onetime expenses.
At one time administrative expenses for the same period last year.
Now if you look at the.
The core admission.
It would have expenses without the share based compensation and a one time fees. They track the growth in our in our R&D staff base and that the operating footprint very well and the demonstrated necessary investment we are already making for commercialization in China.
Now one more point.
The last point on expenses I would say that the broad expense profile with the core R&D and administrative expenses is highly consistent with our strategic ambition of transitioning into a fully integrated Biopharma company built a strong internal R&D partnership manufacturing and a.
Actual ization capabilities, we are investing for the future.
Last one on the P&L for the six months ended June 30th 2021, I Mab reported a GAAP net loss of.
1.1.
1.07, or 8 billion RMB $473.0 million U S dollars compared with a GAAP net loss of $591.0 million RMB for the same period in 2020.
Non-GAAP net loss, which excludes the share based compensation expenses was $733.0 million RMB or $113 million compared with non-GAAP net loss of $354.0 million for the same period in 2020.
Next page.
This is the last page in the in the prepared remarks section.
And this page I want to give you a quick update on where we are in preparing for the dual listings in greater China. Our board approved a preliminary listing plan on a star market in Shanghai in late July and we subsequently entered into a tutoring agreement with TICC one of the most well known investment banks.
China to kick off the process. The tutoring application package was accepted and registered with the Shanghai Branch Shanghai Bureau of the China Securities Regulatory Commission on August.
The 20th.
In the meantime, we're also taking steps to planning and additional listing in Hong Kong Chubb, the 18th a market.
We strongly believe that the dual listings will broaden and diversify our existing shareholder base.
Some of the geopolitical concerns and potentially bring down our overall cost of capital. We expect is that we expect these dual listings to be completed by the end of 2022.
Now with that wed like to end the prepared remarks for this call and to start the Q&A session.
Please ask your question by pressing the raise their hand button in a zoom pedal, we'll take your questions. One by one thank you.
Thank you for the detailed feedback after now.
Now, let's start the Q&A session. So if you have a preference.
Raise your hand.
We welcome you to deepwater.
Our first question comes from.
I'm sorry.
From a product mix.
Cause I kind of go back and thank you for taking my questions.
Non-GAAP home well level.
A lot of detail should a weeks, perhaps one of the top line read out I forgot already challenge trial at Ash and what is the Africa bar whatever program to move forward.
And my second question is just want a part of Nash you bring to Abbvie. One do you expect the next milestone payment and also and they sell a chunk of our trial and discussions that it won't be a lot of abbvie.
Thank you very much.
Yes, Thank you Kelly.
This is a <unk> let me first.
Address your first question.
Our U S trial of Atlanta polymer in combination with Rituximab in.
In patients with non Hodgkin's lymphoma showed really excellent clinical results. Firstly. It has further confirms the safety profile of Lento Panama.
Again.
Trial.
The safety is very good.
We did not.
Ah patients a priming dose because it was not needed because of the safety profile SEC.
Secondly, we observed.
Very encouraging clinical efficacy signals.
Although at this time.
Positioned to give you all the details, but as I mentioned.
The past few months, we we submitted an abstract to ash this year.
We are prepared to.
To release clinical data at Ash in November and hopefully if possible.
The opportunity to release the data earlier.
Kelly let me.
Emphasize three points regarding <unk>.
Panama.
First draw internally in terms of the speed of clinical development.
As we discuss our ambition is to launch <unk> as the first CD 47 antibody product in China and also helped the applebee to achieve the global registration.
And we had been.
Accelerating multiple clinical programs by leveraging the advantages in both U S and China.
As a result, we have a free I dunno lines of clinical development, non Hodgkin's lymphoma, AML Mds and solid tumors.
We have made remarkable progress in all three lines now most importantly, we're very excited that the current progress may potentially lead to Registrational trials in 2022 next year.
This is a really good speeds to move.
Got it.
<unk> assets into a late stage pivotal stage of development.
The second point is in terms of safety advantages of lenses panamax.
So far they are mature.
<unk> 86 patients.
Had been dosed in the in.
In the in the U S and the trials in the U S and China to safety profile remains very good and no priming dose as needed in our clinical trials and together.
They are important clinical differentiation.
Clearly that's the third point is in terms of clinical efficacy.
We're see goods.
Clinical efficacy signals in solid tumors with monotherapy of Atlanta, Panama as we reported last year.
We expect to see even better efficacy signals in selected tumor types.
Current clinical trials in combination with Pembroke now this is a combo study and we hope to see a better clinical efficacy signal.
We are seeing we are also seeing a very encouraging clinical efficacy Cmos.
In non hodgkins lymphoma in combination with talks about as I mentioned earlier.
We submitted.
Stress already.
At the same time.
Abbreviated phase II clinical trial in China.
We've also seen very encouraging clinical efficacy signal.
In patients with AML or Mds in combination with a C H.
At this point, although the efficacy data are preliminary at this time.
They are among the best efficacy signals seen so far with clinical stage CD 47 antibodies around the world.
For the second question I would direct.
Two children to talk about.
Payments that expected payments.
Athlete.
Sure. Thank you Doug and thanks, Kelly for the question. So let me address your question regarding the Abbvie payments.
We expect to receive three payments are three milestone of three additional milestone payments in the next 12 to 18 months.
The next milestone payment, we expect to be risk to receive a second half of this year.
That's a 50 million dollar payments.
And then the following two payments successive play will be received sometime next year. Those two are related to the initiation of pivotal trials.
To be initiated by Abbvie.
Yes.
Total from the three payments will be a $175 million in total.
In addition to that as Dr. Dan alluded to earlier in the in the in the presentation.
We also have the 10 billion. We also have the bi specific program.
Which was part of the scope of the partnership we signed last year. They will also.
If we move forward with Abbvie on that they will also bring additional upfront payments and milestone payments now let me broaden my answer a little bit.
In addition to our continuous payment streams from Abbvie. We also have existing partnerships with other players like <unk> in China. In addition, we are also.
As discussed.
<unk> discussed in the earlier part of the presentation. We're also we're also looking at potential partnerships.
Sure.
T J D five yearly laterally met and a commercial partnership in relation to the long long acting growth hormone and perhaps.
Are there other assets innovative assets in our pipeline.
You know those additional those additional milestone payments from existing partners and also new milestone payments and upfront payments from potential new partners, who will bring hundreds of millions of dollars over the next one or two years, if things progress as well.
So we are very confident about our.
About the about the visibility and the stability of our topline.
And the earnings as we move forward, because we have a model where we can realize.
Significant value of our pipeline assets before they are even brought to the market by by doing the POC studies in the U S and up and striking a very very good.
Good partnerships.
With with players big players outside of China. So I just wanted to emphasize that and it's important to look at that as we move forward in our in our next two reporting cycles.
Oh, thank you thank.
Thank you gentlemen.
Our next question comes from Louise Chen.
Please go ahead.
Hi, This is Jen Kim on for Louise Thanks, So much for taking our questions and congrats on all the progress we had one broader question. So there've been a lot of headlines regarding I guess, the regulatory uncertainty around China can you walk us through how you're navigating through this uncertainty and how you think about your fundamental value as in.
Innovative player in the biotech space.
<unk>.
Thank you Luis.
Oscar children to elaborate on this question.
Thank you for the question a very a very good question.
I'll try to answer a question, perhaps on a three to four different levels.
First let me start with the broad macro picture.
<unk>, which we have no control over but it's it's important anyways.
I think the regulations in China.
We are targeting the Internet Giants that showed a tendency to monopolize as well as sort of sensitive industries like the 200 and industry.
And and food delivery and so on and so forth.
Based on our own experience dealing with regulators and different levels of government in China. We strongly believe that biotech is not not not only.
And the industry that they would not.
Target, but it actually went up the industries that they are actively promoting it is very important to realize that biotech industry is one of the.
Hi Tech industries in China.
Which will help.
Create a lot of social benefits and extolling the externalities for the for the government in China. So it's important to realize that and also because biotech industry is not an industry where I'm honest.
It's been a restricted so most of it.
As I remember as far as I can remember all of the biotech companies do not need to adopt a V. I a structure of the I E.
Structure, which is also I believe one of the topics that brought some concerns from investors.
So short answer on the macro picture is we think.
And I think most of our peers would agree that biotech industry will actually received increasingly more support from the government in the from different levels of government government in China.
And I would add to this point that recently, if you look at some of the Western KEPCO Els for example, Ray Daniels from Bridgewater.
The head of the MSCI, China and in the end the capital group, they've all made a relatively optimistic remarks about the.
But what's what's called the impact the ability of Chinese stock market and also overall.
The picture.
About regulation in China, So I would encourage you to look at that as well.
I think the second point is in relation to our own business model and the quality of our assets, we have a very very highly differentiated pipeline.
Our pipeline has.
You know either you know first mover assets or highly differentiate our potentially best in class assets, both in China and globally.
So when you think that some of the issues you may be seeing in China for example, the cost containment.
The piece from the N R and R. D L. A it perhaps in relation to sectors like PD one.
We think we're relatively insulated.
From that because as you know.
Our our assets for example, CD 47, Lemzo polymath most.
Most of the value, we think will be coming from.
Territories outside of China for example, bio partnership with Abbvie and we will continue to do that for other assets like <unk> 73, and other other assets down the road so.
If you look at a lifecycle of of assets like that we think that the economic value of these assets will not be limited most of the that it would not be limited to two the market in China Secondly, even in the Chinese marketplace, because we're not in quality at our super crowded sectors like P.
What all PDL, one and maybe others.
Our our experience and and and the estimation is that.
Because of the highly differentiated nature of our assets and the less crowded.
Competition structure in these in these in these segments, we think we will face a less harsh or more accommodative pricing structure in China, even in the Chinese marketplace. So if you combine these two points, we think were relatively well positioned.
In terms of dealing with some of the potential headwinds you may you may be seeing.
In the India into NR D L tender process.
The third point I want to make is.
I discussed the financial section and and early part of this call we actually actively.
Diversifying our listing our values. So we have kicked off the stock market listing process in Shanghai, We're also considering.
Additional dual listing in Hong Kong all of that will also help.
US to manage some of the geopolitical risks and also diversify our shareholder base and I think potentially or probably it will also lower our overall cost of capital.
So very very good we think we're making very good moves to manage that part of that part of the risk space I know the lastly.
The.
All pharma sector biotech sector.
Sector in China has seen some relatively relatively big volatilities in the last few weeks and where we're probably no exception to that but I want I want to emphasize that.
The volatility in the stock price.
Has nothing to do with our fundamentals as you can see we're making so much progress in the loss in the first six months of this of this year, we're actually making significantly more more more progress than we thought when we did the business planning at the end of at the end of last year beginning of this year.
We are very very happy with where we are and we are optimistic about the future of this company. We had we had been in close.
Communication with some of the major shareholders of the company and they share the same view with us and they are they remain loss long term supporters of the company.
So I I want to end on that note and <unk> and to give the floor.
Flow back to the host.
Thank you Sheila.
Due to time limitations, but let's take one last question. So the last question comes from Joe Catanzaro.
Okay.
Great. Thanks, Thanks, so much for taking my questions and congrats on all the progress maybe two quick ones for me. So you guys are pretty active on the BD front with a number of platform related deals in the first half of the year, Jamie you maybe alluded to it but what other deals can we expect in 2021, and I guess I'm, specifically thinking about <unk> and what partner deal terms.
You're interested in there and maybe whether we could see a potentially similar deal term and structure at the Abbvie Monzo partnership and then as a follow up Dr. Zhang you mentioned longer term value creation coming from the growing early stage pipeline. So maybe as we look beyond some of the mid later stage assets what programs do you see as having.
Significant opportunity for value creation with some early proof of concept data over the next couple of years. Thanks.
Alright, Thank you Joe.
Great questions. Let me first address your first question on the on the BD BD side of things.
We're actually working on several assets for potential BD partnerships globally and also domestically in China.
On the global front, well be discussing with potential global partners.
For.
For partnerships for T. J P. Five yearly laterally, Matt as I mentioned earlier.
We're actually in discussion with several other companies.
For for bi specific antibody so it's been a newer assets coming fall.
So those deals are.
Very similar to.
To the deals we made last year with Abbvie.
On Lenzo, Panama and <unk>.
We're very excited and moving forwards continue to moving forward with those discussions.
At one point.
We would feel comfortable two two release to release the tons in and discuss.
Those deals.
So that's one.
On the second fronts.
We are.
We are seeing tons sheet when.
Several.
Several companies.
We're about to select.
One company.
Two solid five.
Our commercial discussion.
T J 101, a long acting growth hormone and this is going to be a big and digital deal in China.
Exemplifies signifies how.
Tech companies like I'm a.
Working together are partnering with.
Big pharmaceutical groups in China in order to maximize the value of our commercial products like la activity goes home.
And at the same time.
This year, we have successfully closed.
<unk>.
Hum.
BD deals and those are relatively early stage assets.
Talk about.
Messenger RNA platform I talked about.
Complex intracellular platform. So those deals were.
Help us to build the first wave innovation.
The.
Super antibodies as mentioned earlier so.
All together, we're very active on the BD fronts.
Holly and demand domestically in China.
Hopefully before the end of this year.
You might be in a position to close a few deals if not.
Would be early next year.
So we're quite excited.
To look forward to it.
Now your second question.
As discussed today in our presentation our pipeline so it's a very innovative and clinically.
And quite rich.
With the three waves of innovation.
No.
In addition to landfills, Panama, usually likely map in our ammonium primarily map at a highly visible in our pipeline that actually a few other exciting assets.
Making their way.
Towards.
Towards the late stage.
And to the same level of the assignments.
One is a tier one or seven we've discussed a little bit about this particular asset. This is a phase II assets.
We're working on in China.
We have already started a phase II clinical trial in patients with GBM.
And the other clinical trial, we are about to start a phase III trial in combination with <unk>.
For for cancer treatments. So this is a very exciting assets now moving towards late stage by next year, we should have more data to report and it's important to mention.
Our partner.
From South Korea.
Has generated quite a lot of data.
In relation to <unk>.
The ROE of the T J windows seven.
Treatments of Kansas.
In terms of combination therapy with <unk> in patients with triple negative breast cancer and they are seeing a pretty good one.
Uh huh.
Above.
Monotherapy with Pembroke.
And they have also seen pretty good efficacy signals.
Funds their trials in patients with <unk> with.
With GBM.
Moving towards late stage.
And it becomes more and more visible in the other assets.
As a.
And normally tusa map.
The <unk> III assets, it's also a phase two assets we.
We in licensed from Macrogenics.
And we have done quite a lot of internal work.
With a preclinical stage.
And we pretty much based on all the data could be much picked out how to move forward very quickly.
To get through phase II phase III and to launch the product and the strategy is quite clear now.
<unk>.
People will hear more about our progress on this.
<unk> phase III assets.
Since we have few minutes, maybe I would ask Jerome to see whether you have.
One of points to add.
Okay. Yeah. Thanks, Jack I, just wanted to probably elaborate that they'd be more both compounds, which are both in the phase III stages, so for an hour.
T J wireless oven, which is being produced a lot of data from our partner <unk> and its subsidiaries and so in particularly on there you can check that out from their webpage at their report on the GBM studies that.
The ALC increased its quite want to foreclose and one year survival rate of 83.3%, which is definitely Anthony and above the standard of care.
Another important Dave Hobby also presented on last year's aesthetic shows a combination treatment win with Pimco achieved then the loss of 28% on that.
I think the team B C. So this is also very encouraging so we are.
We have submitted our R&D to pursue the baskets how design on this Kim D C as well as head and neck cancers and also a few other tumor types are guided by our translational medicine.
And so this is someone study the other one in <unk>, which is about to also that as Jan mentioned earlier, we had the.
Quite a few exciting statehouse coming out all of our translational medicine work. In addition to Macrogenics phase two data. We believe it has a great potential for combination treatments for solid tumors.
Especially it's a combination with a checkpoint inhibitors as well as Andre on chemo combos. So we are also submitting the int eh actually September any small or a basket trial design for pursuing the solid.
Solid tumor types, including lung cancers. So these two are also impose speed for a face to face to hopefully in the near future. We can accelerate its corrado registrational trials, so I want to stop them here.
Thank you have a dominant position.
Thank you everyone for joining our meeting today. So if you have further questions. Please feel free to reach out to the IR team and we hope to connect with the other formats.
Good day Bye bye.
Thank you everyone. Good day all connect.
Okay.
Okay.