Half Year 2023 HUTCHMED (China) Limited Earnings Call
Good day, and thank you for standing by welcome to Hutch map 2023 half year financial results presentation.
At this time, all participants are in listen only mode.
After the speaker's presentation, there will be question and answer session to answer questions. During the session you will need to press star one on your telephone you wouldn't hear an automated message revising your hand is raised she ritual. Your question. Please press star one again please.
Please be advised that today's conference is being recorded.
I'd now like to hand, the conference over to Mr. Mark Lee Senior Vice President Corporate Finance and development I'll touch Matt. Please go ahead Sir.
Thank you Linda and thank you everybody and welcome.
At this time I will remind you that the statements we have forward looking in nature and the results and operations of the archway group.
Historically possible, there's no guarantee of future results and that this presentation is intended for investors only and should be read in conjunction with the announcement. We just made regarding the results for the six months ended June 30th 2023, and our various other filings.
In your report.
Now I'll hand, you over to Dr. Xu Chief Executive Officer, and Chief Science Officer.
Yeah.
Thank you Mark.
Good evening, good morning, everyone welcome to Hutch, Matt first half 2023 results conference call.
Next slide please.
Yeah.
Okay.
But during the.
First half 2023.
We focus on executing on our strategy for the long term growth and also reaching profitability by 20 to 25 goal include.
Including China commercial growth and spending control.
We also delivered on all key objectives.
With our pipeline.
Highlighted by fruit Quintin B U S NDA and EU MAA submissions.
And advancement of multiple programs into pivotal registration studies, including save literally in second line gastric and.
And also H M. P. L. <unk> five three our selective FGF all one two and three inhibitor in second line Cholangiocarcinoma.
For Clinton at the U S. NDA was granted priority reviews destination with a producer date of November 32.
2023.
That means that potential approval.
2023.
We are working with our partner Takeda closely to prepare for the launch in the U S.
[noise], China commercial of the three approved.
Collagen products continues to grow in spite of the pandemic outbreak at the beginning of the year next slide.
Today I'm joined by the Hutch Senior management team.
Johnny Channel will lead off with a financial update Gianni over to you.
Thank you Dr Shaw and.
They are doing.
Turning to page five this yep, Okay, I'll quickly bill of our balance sheet two points I would like to highlight here. One is that we have a strong cash position of over 850 million mainly contributed by the 400 made an upfront payment from Takeda.
Secondly, we have completed the construction of our Shanghai factory of which we have utilized a banking facility supported by the local authorities.
This results in loan balance of about 40 minutes at favorable interest rates of around three 5%, which is a much lower than our deposits raised from the cash that we have on hand.
Moving on to page six to reveal our financial performance.
Yeah.
Our consolidated revenue up by 164% from around 200 million to over 513 million, mainly contributed by the recognition of the upfront income from Takeda around $260 million.
Our oncology product sales maintained strong growth of 35% at constant exchange rate the.
The improvement of our other venture business have also contributed to the overall revenue growth.
So on the bottom line net income to a hutch met has improved significantly.
The net loss of $163 million to a net profit of over $168 million.
In addition to the recognition of an income from the Takeda deal reduction of R&D expenditure, resulting from the portfolio prioritization and restructuring of our U S operation as well as a higher interest income from our strong cash balance.
Contributed to the improvement on the bottom line.
Moving on to page seven.
Our oncology product sales as mentioned earlier has maintained a high growth of 35% to $80 million.
So overall, our oncology business in total has achieved around $360 million of revenue three times higher than last year.
So we are on track to meet our guidance set at the beginning of the year that is around $450 million to $550 million revenue for the full year.
I will now turn a posture, our chief commercial officer channel to share with you the details of our commercial business performance.
Thank you Tony.
Uh huh.
Good morning, good evening everyone.
I'm happy to update you Hutch med commercial performance in the first half of 10 standard three.
As a global science focused Biopharma company.
Hudson I had fully integrated R&D and commercialization platform.
Hudson I had debuted build up its own oncology commercial platform since 2018, and the continuous Nate <unk>.
Improvement of commercial capabilities and efficiencies.
By the end of June 'twenty or 'twenty three.
The sales team size, what's close to once all of them are colored anymore. That's resulted in hospitals.
And <unk>.
So it is 3000 oncologists specialists.
Meanwhile.
The government to continue to introduce policies to encourage.
Innovative drug development and the benefit new drug access to patients, including the implementation of dual channel pharmacies, and the simplification of Lal D. L renewal process etcetera.
Slide please.
Yeah.
Yes.
Yes.
Annual age.
Was approved for the treatment of Salon and see I see.
2018.
Ah Tony penetrate.
It's the first year.
So I need it to be listed in an ideal.
Is still keeping strong growth in the first half.
Of this year, we estimate that there were about 17000, new patients with HAE takeaways and units in China in the first half was.
It was 21% goals.
According to our quiver Tucking study report any alleged surpass the revenue in <unk>.
Terms of the patients here since the end up 10.
2021 and does that lead to grow to about 47% patient share at the end of June.
2023.
This resulted in $56 3 million U S dollar in market sales up to 12%.
Those.
Which is about 20% at a C C R.
Gold was this the first half of last year.
Next slide please.
Yeah.
So Linda so Landa was launched in China Internet they widened for the treatment of all otherwise net patients.
The in market sales growth in 10 years and it too was very strong being that first the IDL.
As a result of our continuous marketing activities, increasing patient access to surrender.
It's long duration of treatment.
The total in market sales in the first half of <unk> and 10 history accelerates going by six 6%.
Tool around.
22, 6 million U S dollars.
With estimate tableau saw them new patient mutated.
According to our quiver I can't study report in the first quarter.
So Linda had higher patients here that is total and finical withdraw our pruning China much earlier than surrender.
Next slide please.
Yes.
I'll pass this.
It's the first in class selective <unk> inhibitor to be approved in China, and the market to buy all of our partner.
I saw that any cut in 'twenty to 'twenty one.
Following negotiation with China and HSA in January this year I'll pass. This has been included in the update and IDL since March 1st we saw 38% discount.
The delayed implementation of an ideal plus the price reduction that's with a flat sales.
In the first half of this year.
With about minus 5% growth in U S dollars and the 2% growth at CER.
However, we can see the volume sales grew a very strong in Q2.
Up to 84% comparing to the second quarter of last year.
So in summary al.
All of our three marquee the products are now included in a lot of D. L.
Which which is in line with our commitment to improve patient access.
Despite the sudden in Israel challenges in the first quarter due to the impact of COVID-19.
In market sales of Hudson had three logos products continue to grow at 16% to.
101 million U S dollars in the first half of this year.
That's all for my part thank you.
Okay.
Okay.
Yes.
Jim Payne will cover a manufacturing update.
Okay.
Champagne.
We'll go perhaps you I think he's having some technology problems why perhaps you go ahead.
Alright, so yeah I'll.
Cover for Gen paying basically as you know are we have been.
Building, our new factory in Shanghai at the moment construction is complete we are going through our equipment and validation.
And also applied for a compliance license and we should be able to initiate clinical supply manufacturing later this year and end up at.
At the same time, we will be initiating tech transfer of our commercialized products.
Yes.
For this new factory to start commercial manufacturing as well in the future.
We also are installing solar panels to to be more energy efficient.
Next up is Mike to update the pipeline Mike.
Thank you we go to slide 13 please.
Yet all clinical programs that continue to grow and mature and cover a broad spectrum of hematology oncology product.
And this slide lists our fifth.
<unk> plus ongoing registration trial for seven leading product globally.
Lifecycle indication of market products in late stage assets with the anticipated NDA filing timelines in the next few years.
Brooklyn, and have sublet and events, we're finding that I'll read out in the market in China and two are in global partnership with Takeda and E Z.
And <unk> is leading into the Baltimore multiple lifecycle of indication for this product in China, which already alluded to.
Our next wave of late stage compounds in registration trial also in a hematologist space and two compounds received breakthrough therapy designation in China.
Planet in immune thrombocytopenia, ETP and <unk>, our <unk> Delta inhibitor.
<unk> Follicular lymphoma.
And the easy ice two inhibitor Tazemetostat is firstly in licensed product form Gibson.
We're doing a bridging study our registration in China.
And notably are new to the list.
All four of five three lifting the bottom here.
After your four inhibitor and also entered a registration trial in intrahepatic Cholangiocarcinoma.
Leading our third wave product into the registration trial.
Next slide slide 14.
Yeah.
And Brooklyn at a global regulatory filing has been going on very well and which is supported by the results of our fresco two and recently population of Linzess and also the Ada from Compressco.
China, a registration trial.
So NDA.
Quintin It doctors, who already mentioned granted priority review by the U S FDA and produce that data is November .
30th and MAA validation has been I have said it.
And in June and also we work our partner Takeda.
Takeda is doing the Japan filing.
Later this year.
Next slide.
And our partnership with Takeda has been progressing very well and Johnny I already mentioned, we received the upfront payment of $400 million in.
And also the joint team established and started a collaboration already.
And.
Our NDA filing.
MMA in Japan, and India, as well on target and.
Also on the commercial front.
Data is that.
We initiated the launch readiness in the passport at Purdue date.
And also.
Rapidly trim.
And lifecycle indication part and joined the Takeda Hudson 19 already in discussion and also with our external advisers to be held to discuss the LTE on strategy and Hot Matt is our ongoing clinical program in China May also help inform clinical development.
Yes.
Slide 16.
Yeah for <unk> NDA for second line gastric cancer is already accepted in China.
And this is based on the food fatigue second line gastric cancer trial met one of the dual primary endpoint of PFS, which is the secret.
Pulling up in clinically meaningful.
And the other primary endpoint of OS was not.
A satisfactory significant purpose specified instead of school. So we complete our S. N D are falling and the NDA has been accepted by M. P. A in April we hope to extend the patient Serbian gastric cancer This high unmet need.
Slide 17.
Yes.
And our footprint in that lifecycle indication development.
We are also very pleased to received a breakthrough therapy designation in China for the combination with until them out the PD one from you know that.
In July for the treatment of bank mutual cancer with the provision mismatch repair subtype.
In E&C incidents and mortality are projected to grow in China, and the patient who progressed on a first line therapy remain with a high unmet medical need.
And we have completed a single arm registration phase two study.
And if the favorable results from this trial co leader of regulator approval in this treatment setting.
Next slide.
Slide 18.
Sowell planet.
Is the highly differentiated <unk> inhibitor with breakthrough therapy designation in <unk> in China.
We are particularly encouraged with our.
Phase one to result demonstrate the robust.
Our response rate of 80% and Europe response rate, 40% in relapsed or refractory priority patients.
These high response rate on par with the car and widely used second line treatment.
<unk> such as people are eight.
And the same response rate or being showing patients with.
Previously treated with people, we're not and much higher than that that existing sick inhibitor, let's say in this setting.
So we believe in it.
As the best in class potential in the IDB setting and the results Phase. One study was already published in lancet hematology in April of this year and we have complete enrollment of IPP phase III registration trial easily won.
And I expect the topline resolve the assessments.
So if positive we prepare to NDA filing in China later this year.
Next slide.
Slide 19.
And as well is that our differentiated <unk> inhibitor is currently going on with two single arm phase two registration study in China in the third line Follicular lymphoma.
And second line marginal zone lymphoma.
The updated phase one data were presented at international Congress on malignant.
In June this year.
Demonstrate a compound it's not only promising efficacy with high or response rate four months PFS rate and duration of response rate.
Lymphoma.
But also favorably safety profile when compared with the same class of compounds.
As highlighted with the low instead of a year of interest as well as a low discontinuation rate.
Treatment.
So this of course needs to be further confirming that larger patient population.
I'm very pleased we have completed enrollment for this pivotal trial in Follicular lymphoma earlier, this year and with the clinical read all and the potential NDA filing later this year.
Next slide.
There are seven registration trial for our met inhibitor Solvolytic and all currently enrolling.
And three I'll, let by our partner Astrazeneca globally and for <unk> in China in multiple cancers with net operations, including non small cell lung cancer and popularity of renal cell carcinoma.
In addition, we have entered a registration phase in gastric cancer with met amplification.
Hawk trial results presented earlier this.
This year.
Next slide.
Okay.
Our innovative early stage pipeline continues to grow.
And here, it's only a few examples.
And I mentioned earlier <unk> III.
The FGF inhibitor and a registration trial in Cholangiocarcinoma.
After discussion and in agreement with the CD.
And clinical proof of concept study were presented at the <unk> This year.
And the clinical pop data for <unk> 306.
Our <unk> one on too dour inhibitor also presented at <unk>.
This year.
The randomized phase II dose has been determined and were consulted with a C. D on the registration path forward.
We also in Asia, and a combination of Ah Ah trial.
Trial of Tazemetostat.
Tazemetostat.
And also pediatric <unk> Delta inhibitor <unk>.
Hematology indications.
Also of note mentioning is the newest addition to our early stage pipeline.
<unk> a differentiated the ship two inhibitor H N P 045415.
Next slide.
Okay.
I'm very proud of our R&D team remained focused and executed very well for the first half of the year.
On the regulator activity with submitted regulatory filings for Trinidad.
And on target with our partner and.
And also the Japan.
Third line CRC is also in.
In preparation.
We have submitted as a supplementary NDA filing for as I mentioned earlier for the gastric cancer indication for <unk>.
<unk> already accepted our application.
And we received breakthrough designation for <unk> plus until a map.
A lot of endometrial cancer.
I also want to mention here and following that dialogue with the P. M D regarding the Super fat in there.
We have decided now to file the Japanese NDA for neuroendocrine tumor on the basis of clinical trial data available.
And we also anticipate data readout potential NDA filing in China for several planets second line plus <unk> and the end result is that for third line Follicular lymphoma based on the pivotal trial.
And also double it in the first line non small cell.
<unk> cancer.
Patriot with medicine, 2014, and new patients personalized data will be presented.
September end Douglas DLC.
And also we anticipate.
Uh huh.
The endometrial cancer.
Retail.
On the development.
<unk> on our side.
And hot met our partner AZ will continue to complete enrollment of multiple registration trial for example, and it would be non sports that lobby indications.
And we also will complete enrollment for quintin it plus until a map in the renal cell carcinoma.
And the heme products, we'll complete the enrollment for <unk> in the second line and deal and Tazemetostat bridging study for third line Follicular lymphoma.
We presented clinical readout for <unk> in second line gastric cancer in that amplified patients at ACR and initiate the registration trial for <unk> in the matter amplified gastric cancer.
And also we have completed that.
Sure.
Enrolment several planet phase III part of the second line warm autoimmune hemolytic anemia indication and worthy side for the phase III data readout.
So to recap our R&D progress.
Matt has a deep and broad.
Portfolio and multiple near term demand catalysts in 2023 and 24.
So our R&D team will remain sharply focused on the execution of our late stage product development.
So with that I'll wrap up my part of presentation I'll turn the podium to Dr. <unk> <unk>, our CEO and CFO legal.
Thank you Mike.
Yes, just next slide slide 23.
A reminder of our.
Near term goal of.
Turning profitable by 2025, obviously, we are focused on growing our China business.
China commercial at the same time.
Managing the control managing and controlling the <unk>.
Spending.
Together, hopefully will allow us to achieve our goal of breakeven or profit or property, probably being profitable by 2025.
Next slide.
Uh huh.
Slide number 24.
Now to just sum it up.
We had a very strong first half of 2023, we will continue to focus on our near term goal.
And we are confident that we will be able to deliver.
Deliver on the east coast, because we have a broad pipeline.
And we are working.
Our multiple on very extensive and a robust lifecycle indications for our first wave of compounds, namely frequent <unk>, both in China and outside China.
At the same time.
We are also.
Working to file unregistered basically these compounds outside China for global patience.
Secondly, we are.
Working to file for approval in China, our second wave of compounds, including solve the planet and there's a less of an tazemetostat in the next six to 12 months.
By 2025, we expect to have at least six compounds approved and launched in China.
At the same time, we have.
Expect our third wave of compounds to enter into pivotal registration studies in China in the next six to nine months led by H M. P 0453.
Our selective FGF <unk> three inhibitor.
Yeah.
I mean all of this.
Well present opportunities for NDA submissions in 25 through 27.
And while positioning us for long term growth.
Overall.
Quite happy that we had a very strong first half 2023.
And we are quite excited about our long term prospects given this.
<unk> pipeline.
So this will conclude the presentation and we'll be happy to.
Take any questions.
Thank you we will now begin the question and answer session.
To ask a question. Please press star one one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one one again.
Our first question comes from the line of Kelly <unk> from Jefferies. Please go ahead Kelly.
Okay.
Kelly Your line is open please ask your question.
Yeah.
Sorry, we are not getting a response from Kelly I'll move onto the next question.
Our next question comes from the line of Alex Stranahan from Bank of America. Please ask your question Alec.
Hey, guys. Good morning, Good evening can you hear me.
Yes.
Great.
So thanks for taking my questions two from us.
First could.
Could you help frame.
The scope of the topline for for so.
All of the planet and <unk> in the second half in terms of.
Number of patients and follow up on the on the primary endpoints from those studies.
And then I've got a follow up thanks.
Okay.
Yes.
Solve the planet in in the I T. P. It is a phase III randomized.
Placebo control study.
And in terms of the top line readout, we expect our.
Second half this year should be fairly soon.
Well, obviously announcing due course.
Specifically with regard to patient.
Sample size it is a.
A total of 180 plus patients are randomized two to one.
In the.
Several of planet and placebo arms.
The.
Durable overall response rate will be the primary endpoint so that is about it.
Silva planet.
And there's a list.
There are two acts.
There are two pivotal studies ongoing both are single arm.
Studies.
With.
Overall overall response rate as the primary endpoint, so follicular third line Follicular.
Completed enrollment which is.
100 patients.
And.
The readout.
Chevy or towards the end of this year.
Okay.
And with the plan would be to present those around the scientific meeting or.
Whenever the datas available, you'll you'll update the market.
Yeah of course, yeah.
Okay.
Okay and one last question if I may just on the.
The commercial readiness activities for quick nib.
Could you help us paint the picture of what Takeda is doing currently to prepare for the launch in the U S and from your side on manufacturing.
Maybe help us understand whether that would be in China or.
If you would shift manufacturing to other sites to help support the launch thanks.
Thanks, Alex.
Yes.
No.
We've been working with together just to support them on the.
On the launch readiness and obviously they are driving that.
The activities.
I'll, maybe I'll ask.
Karen too.
Provide some more details on the on the on the preparation from ticket upside in terms of manufacturing.
We.
Quantified two sites for drug product.
Supplies, one is obviously our hutch Matt.
Factory or plant in Suzhou, China. The other is in <unk>, Switzerland.
So obviously you know we are going through.
Preapproval inspections, and so forth so.
So Bob.
Likely the Sutro plan well will be the initial.
Supplier and ultimately the two sides.
We'll be.
Supply global markets, Karen can you talk a little bit about.
Launch readiness.
Yes high level, yes.
We are working very closely with the Takeda or I think you know the date.
They plan assuming that the outcome of the FDA review is positive to be ready to go.
As soon as we have a positive outcome they've already hired the medical team and the marketing team and are now doing the detailed.
Planning from a sales and commercial perspective as well so I think they're taking this very seriously. It's a very important product for them and we are confident that they will be ready to launch as soon as we know the outcome from the FDA.
Thank you Greg.
Okay.
Yes, Thank you Kara.
Thank you do you have any follow up.
That's great. Thank you.
Thank you.
Our next question comes from the line of Mike Mitchell from Permian Gordon. Please go ahead Mike.
Hi, there. Thanks for taking my questions first I was just wondering how the relationship with Takeda might potentially be capitalized you've got the wrong.
Business development, obviously, the focus right now is <unk>, but I don't think there is a wide and deep pipeline within <unk>. So does that provide a basis for more.
<unk> discussions with Takeda or do you envisage potentially the deals that are generating further interest in the pipeline from other third parties.
Obviously Takeda has a very strong potential partner, we're working with them at the moment on frequent.
<unk>.
Great.
Partner to work with.
Yes.
Obviously, we always.
Constantly talk about potential.
Opportunities for collaborations.
So.
No I wouldn't.
I think so.
It's all project based.
Yes, we have a very broad and deep pipeline, but it's it's all about.
Pipeline fit or synergy if you will.
So.
We're just very happy at the moment working with them on frequent internet and.
Well definitely explore.
Other opportunities when they are.
All compounds progress through clinical development when the time is right.
Okay. Thanks.
Follow up with another question just in terms of.
Party relationships.
Thanks, Ed I think we saw earlier in the year.
Speculation.
Thanks, Mike.
If all of its China operations in the future I'm just wondering how you think about that in terms of any changes in terms of spin offs or the restructuring.
China operations, whether or not anything happens.
Change your relationship with particularly in terms of development.
How are the structures.
Set up in order to be flex basically.
Change is a constant.
<unk>.
Almost.
Great company, but specifically for Astrazeneca China.
We don't think that there isn't basis.
It's just.
We believe it's just a just.
Just a rumor.
So at the moment nothing is.
Nothing has changed in our relationship with Astrazeneca.
<unk>.
Playing out according to our original contract.
Okay.
Perhaps I can just.
Just one final quick one just on Covid.
In terms of the commentary around the sort of impact on Q1, just wondering if you can.
Saying anything further into Q2 or even even with current.
The current quarter just in terms of Covid I'm.
Taking my focus away from.
Covid impact in recent months.
Would be very helpful. Thank you.
Yes generally speaking.
The Covid impact was early part of first quarter January in particular, so it was a bit soft the first quarter second quarter things now.
Seem to.
A return to normal.
Seeing the trend.
<unk>.
Things picking up so.
We don't expect any major.
Issues from the second quarter anomaly so.
Pretty much back to normal okay. That's great. Thanks, guys.
Thank you.
Our next question comes from the line of Louise Chen from Cantor Fitzgerald. Please ask your question Louis.
Hi, This is a way also Louise congrats on the progress and thanks for taking our questions we have two.
First question is on the subject to planning it in the press release, you mentioned, new micropsia propagating to the trace one in <unk> in the U S. Depending on the outcome of the China Phase III data. So what do you need to see here or there to two two moving too faced.
The incident U S study and how is it differentiated from the other mechanics enough actions such as FC are in and then the second question is can you discuss your strategy.
For further build out in the hematologic hematology space moving forward given you already have six investigational drug candidates targeting the hematological malignancies in clinical development. Thank you.
Okay. Thanks for the question.
Zinc.
Specifically for the U S strategy for solving the planet.
For auto immune diseases, I think of the ITT in China would it be a major catalyst.
If the phase III top line results.
Recapitulates all phases phase one two data I think.
They represent a very strong opportunity for global market, we believe.
Expedite the process to initiate our phase one U S phase one for autoimmune disease, we do have an active R&D in the U S and we but we do need to.
Quickly.
Confirmed a recommended phase II dose for U S patient population.
For global patient population for that matter so.
We believe it.
It is a very it is a highly differentiated.
Oral <unk> inhibitor.
And the data we presented.
We'll publish now.
For example, a pilot with phase one slash two.
Clearly demonstrated superior efficacy and a much improved safety comparing to foster mountain it which is the only.
Sick inhibitor approved.
So we would.
We believe there would it be.
Clear opportunity for us for several of our planet and autoimmune disease space.
And we definitely would invest too.
Yeah.
Two.
Follow the China.
Studies in China, we are already evaluating.
The landscape and if it is positive readout.
The readout of the phase III in China.
Ill follow with additional life cycle indications for the solve our planet.
In the U S will catch up once the dose is confirmed.
With regard to hematology.
Valued in this space.
I think of the space has changed a lot now versus biospecifics in the car T.
She is well.
We are evaluating the potential opportunities.
For us for the <unk> inhibitors.
But clearly it is now much more crowded comparing to.
Two or three years ago.
Okay. Thank you so much.
Thank you.
Our next question will come from the line of Paul Choi from Goldman Sachs. Please go ahead Paul.
Thank you good morning, and good evening everyone.
My first question is on <unk> I'll, let Nab with regard to the Savannah trial can you remind us.
If there will be an interim update for that study and when that might come or are you going to run that study just to completion.
A potential filing for an accelerated approval.
And then I had a couple of follow ups.
We don't we don't think.
We have interim.
Analysis.
Built into the current phase III registration study.
Savannah study so it would be just.
No.
It's a relatively small study so it will be.
Well it does.
Just.
Straight enrollment into completion and report out.
Okay got it thanks for that.
My second question is on to follow up on the earlier question with regarding.
The Takeda collaboration in commercialization in the U S. Can you remind us if your 2023 oncology guidance is inclusive of any sales.
Post hosted an approval here in the U S or should we assume that the first sale would likely come in 2024.
There is no royalties.
Built into our guideline for 2023, specifically for.
Farooq for Internet.
U S sales.
<unk>.
The.
Now the priority review status and.
Purdue for data before the end of the year.
Just played out we did not build into our guidance.
Okay, great. Thanks for clarifying that.
Last one is on.
Just regarding collaboration and lifecycle development.
Takeda for question Ed.
When do you think you might be in a position to with your partner to talk about.
The development path and <unk>.
Markets outside of China for that.
And can you remind us of how the cost sharing is this going to work there for future clinical development. Thank you very much.
So.
First on our costs, obviously will be a 100% covered by Takeda.
With regard to specific indications to pursue we've been in discussion with Takeda team.
There are obviously a few that we are into.
Interesting.
It is interesting as well so we continue to evaluate and.
Yeah.
The opportunities and also leveraging.
Many proof of concept studies coming to reading at all in China as well so overall.
The two other joint teams have been working together in evaluating different opportunities. We're just.
We just need to.
Finalize the plan, maybe Mike you can.
Jumping on this.
Yes, we have been in active discussion with them to get a team I think is that from a medical perspective right.
<unk> focus on quite a few.
Indications right I think both we have shared.
The China.
Both Hot Mad study and also <unk>.
Resolved I think both Seamark very engaged and we also.
Consulting base terminal Kols Wright medical experts really hold.
Can you shape out some.
In occasion.
For future development. So I think both teams continue to work on that.
Great. Thank you.
Great. Thank you Paul.
Our next question will come from the line of Matthew Yang from CLSA. Please ask your question Matthew.
Hi, Thanks for taking my question and congratulation on the result.
I've got three questions first is regarding our policies.
Stefan study.
Note that that is expected to complete recruitment by end of this year or so.
Do we have any plan for in the readout.
Before this call and also the follow up and they are powering supported by separately and my second question is regarding the other venture I noticed that it grew strong in first half. So so can you share more color on this.
And then my third question is that I think it's quite a.
Our concern for a lot of investor over the weekend is not there.
Commission of the disciplined.
Actually in China.
I'll talk on the Anticorruption campaign up the health care industry in China.
I Wonder if there was any impact on your commercial activities.
Activities regarding just yes, that's my question. Thanks.
So.
Your first question on the ongoing obviously, that's an ongoing trial and not only just the enrollment but also.
PFS follow up and so forth. So we don't really anticipate any interim report.
The results of any ongoing trials. So I don't have for this one as well I don't anticipate any.
Any.
Any reports or publications anytime soon until PFS is mature.
Your last question about commercial.
Anti corruption, so forth Hudson that as always.
Highly compliant with global quality global standards of compliance.
We.
I don't expect any.
A major impact on our commercial operations what was your you, especially for your second question.
The other venture group grew by over 50%.
In the first half, yes, sorry, just related to the logistic distribution business.
Sure.
Okay, maybe Johnny you can you can provide some more details on this.
Basically I think that the key contributor for the other benches growth in the first half is related to the growth of our logistics distribution business.
So.
Our commercial team there have continued.
Continue to to receive.
Good interactions with our with our new customers. So we have been able to do this.
Let's say distribution of work.
Where did well in a in Shanghai region.
So that's contributed to the growth.
Okay.
Lola relatively low low margin business. So I think it is the key importance is our oncology product sales growth.
<unk> has reported a 35% growth in the first.
Hi.
Yeah.
Okay. Thank you.
Thank you Matthew.
Our next question comes from the line of Jack Lin from Morgan Stanley . Please ask your question Jack.
Hi can you hear me.
Yeah.
Hi, Thank you for having me for one of the questions. So let's just.
Three quick questions I think one or two or kind of a follow up to previous question. So on the first one is kind of back to the sort of a plan a in terms of the phase III readout I was wondering how how should the investors and analysts like same the topline results compare to the result that we're being seen for the phase <unk> considering there is a bit.
Different patient enrollment in terms of new line of previous treatments.
That's the first one the second question is in terms of the commercial strategy for ourselves.
So Andy that was considering the indication that there'll be launching is a bit different from kind of the existing product and always looking to.
We established new teams are using existing teams aren't where we'd be.
Looking for partnerships to for their commercialization.
And the.
I think one final one is just on the kind of the commercial dynamics for our salon that domestic you're right.
See that the slides I mentioned there is 12000, new patients that was treated first half of this year. So it's a significant increase from last year, while it looks like on the market share side. The majority of market share gain actually went to others compared to the norm.
Powerpoint slides at the full year results I remember I was just checking it looks like the.
Switzerland, I went from 16% to 17%, while other whereby I think 18% to 23% I'm just wondering what's what's the competitive dynamic in the space right now.
What will be a challenge to continue growing the shares in this market.
And that's all thank you.
Okay. Thanks, Thanks for the questions. So solve the planet phase III Readouts.
I think.
You already see now phase one slash two resolves, 80% overall response rate and 40% durable.
Overall response rate I mean, these are obviously very strong results.
But a very small sample.
A very small sample size is here as well so.
<unk>.
So I think what it would mean.
<unk> solve the planet standout as it's oral.
Convenient dosing and.
Fast onset of activity.
80%.
Is very robust activity for these patients.
Heavy pretreated patients.
So.
And as you know its opening on various.
Very small study so here.
His III, it's randomized placebo control.
Hmm.
This data can be recapitulated it would be.
Very strong.
Data not only comparing to.
Compounding the same class, but also comparing to any.
Treatment available for patients. So these are obviously.
Refractory highly refractory.
Patients.
So I think.
We need to look at the level of efficacy, but at the same time.
Safety profile as well.
Alrighty pointed out early on that we have.
Very low risk of thrombosis.
From a thrombosis.
Thrombosis basically.
With blood clotting formation with typically seeing with people or people are <unk> therapies and it's it's.
It represents a very severe.
Uh huh.
Potential.
Side effects so.
Sick inhibitor of several planet.
So far we've seen very.
We are not seeing any cases of strong bonuses to date and would represent a very low risk there.
So.
Strong efficacy coupled with.
Safety profile low risk of thrombosis and also.
Fast onset of Av.
<unk>.
That would differentiate.
Several of our planet.
The current.
Currently available therapies in order to make it a very competitive product in this category in this patient population.
Commercially commercial strategy it is.
It is.
And other immune disease. However, these patients typically.
In.
Hematology space a lot of these a lot of physicians are.
In hematology.
Our hematologic malignancies like lymphoma leukemia, as we talked so even though the.
<unk> is not a.
Hematologic malignancy, but a lot of doctors.
In the hospital.
They are treated bye bye.
By hematologic malignancy.
<unk> so.
We definitely will have a dedicated team.
Hum.
For this indication, but a lot of doctors.
Physicians will be.
And Ah.
In the same hematology.
Right.
And our hematology space, if you will.
Four cylinder.
I think.
You see a lot of our big.
We are growing the patient.
The numbers and then you know you have to understand the neuroendocrine tumors.
And also the treatments available.
This is a very highly fragmented.
Disease with.
Different two different <unk>.
Originally from different tissues are different organs.
And also.
The hallmark.
This disease is that.
Typically you don't see very high response rates.
What happens is that patients experience.
Many of them any of them, but the majority of them experienced stable disease.
So they can control the disease, sometimes see some tumor tumor.
<unk>, our tumor regression, but not.
To the point of.
Response.
Oftentimes they rotate on the relative onto some other treatments and then they come back to the same treatment to two cylinder for instance.
So.
There is definitely some rotation going on.
But by far.
What we are.
Patients treated so far with cylinder.
By far majority.
Neuroendocrine tumor patients.
Got it understood. Thanks, so much.
Okay.
Okay.
Thank you Jack.
We will now take our final question from the line of Claire <unk>.
With Jefferies. Please ask your question Claire.
Okay.
Hi, Thank you.
Yes.
Yeah.
Okay.
Clara on for Kelly.
On the progress and thanks for taking my question.
No.
Just a question on for <unk>.
And ask Alicia subgroup analysis of overall survival.
Cost of front line.
So could you maybe talk about that.
<unk> development plan to support the earlier line approval.
And you said you plan to validation studies.
Yeah.
Yes ill ask Mike to comment on this Mike.
Yes. So this was brought up earlier.
Earlier lines of <unk>.
Right. So a lifecycle management indication discussion or as I mentioned earlier, we've been actively in discussion with Takeda on the LTE.
LTM plan right, so certainly earlier lineup.
Acacia is also what we are considering and so at this point.
We are further evaluating data Les mentioned, we we certainly have some.
China.
Data show early our line.
Initiative and be combined with <unk>.
Chemo immunotherapy demonstrate.
Signs of clinical activity and safety, so certainly moving to earlier lines of possibility, but were still continue to discuss and evaluate this takeda.
Thank you.
Okay.
Okay.
Thank you.
Thank you all very much for your questions I will now turn the conference back to your speakers for any closing remarks.
Mark do you have any comments to sum it up thank you everybody for joining Michael do you have any comments.
No.
No not for me.
Okay. Thank you everybody for joining and if should you have any questions. Please feel free to contact us.
Happy to.
To answer your questions or organize a meeting if there is anything thats not clear and anything we've spoken about today. Thank you all.
Yeah.
Thank you that concludes today's conference call. Thank you for participating you may now disconnect.
Okay.
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Okay.
Okay.
Yes.
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