Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Thematic (Sector/Industry)

<ul>
<li>China's AI-driven drug discovery (AIDD) sector is growing rapidly, with leading drug and biotech companies entering R&amp;D and drug-development partnerships with global pharmaceutical companies.</li>
<li>Over 30% of new drugs were developed using AI tools in 2025, with discovery timelines reduced by 25–50%, and the industry is projected to grow by 25%/year through 2033.</li>
<li>
<a href="https://www.smartkarma.com/entities/insilico-medicine-cayman-topco" target="_blank" data-smartkarma-citation="entities:39890:1" rel="noopener">Insilico Medicine (3696 HK)</a> is a pure-play AIDD company. Insilico operates an end-to-end AI drug discovery platform (Pharma.AI) spanning target identification, molecule generation, and clinical trial outcome prediction. 
</li>
</ul>


China's AI-driven drug discovery (AIDD) sector is growing rapidly, with leading drug and biotech companies entering R&amp;D and drug-development partnerships with global pharmaceutical companies.
Over 30% of new drugs were developed using AI tools in 2025, with discovery timelines reduced by 25–50%, and the industry is projected to grow by 25%/year through 2033.

Insilico Medicine (3696 HK) is a pure-play AIDD company. Insilico operates an end-to-end AI drug discovery platform (Pharma.AI) spanning target identification, molecule generation, and clinical trial outcome prediction. 



Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK)</a> has announced 1H25 result, with total revenue increasing 51% YoY. The company recorded its maiden net profit of RMB834M on a reported basis.</li>
<li>Despite an overcrowded PD-1 inhibitor market in China, core oncology product, Tyvyt maintained good growth momentum. Tyvyt is under NDA review for its ninth and tenth indications.</li>
<li>In June, Innovent received approval for mazdutide, first-in-class chronic weight management drug in China. In 2H25, mazdutide is expected to receive approval for a second indication in type 2 diabetes.</li>
</ul>



Innovent Biologics Inc (1801 HK) has announced 1H25 result, with total revenue increasing 51% YoY. The company recorded its maiden net profit of RMB834M on a reported basis.
Despite an overcrowded PD-1 inhibitor market in China, core oncology product, Tyvyt maintained good growth momentum. Tyvyt is under NDA review for its ninth and tenth indications.
In June, Innovent received approval for mazdutide, first-in-class chronic weight management drug in China. In 2H25, mazdutide is expected to receive approval for a second indication in type 2 diabetes.


Innovent Biologics Inc (1801 HK): Dual Engine Growth Strategy Is Yielding Result

Healthcare Analyst

Wilfred Yuen

<ul>
<li>
Wuxi Apptec 2Q26 results beat on strong QoQ growth in TIDES. BeOne 2Q26 results driven by robust Brukinsa revenue (+14% QoQ to USD1.2bn). Zai 2Q26 +11% QoQ in product revenue</li>
<li>
Innovent robust 2Q26 product revenue +60% YoY (or +13% QoQ) to RMB4.3bn; RemeGen 1H26 results preview: strong revenue growth + turnaround in profit; Alphamab licensed-out TROP2/HER3 ADC to Pathos AI.</li>
<li>Other updates include Hengrui, Wuxi Biologics, Metis Techbio, CSPC, and Akeso.</li>
</ul>



Wuxi Apptec 2Q26 results beat on strong QoQ growth in TIDES. BeOne 2Q26 results driven by robust Brukinsa revenue (+14% QoQ to USD1.2bn). Zai 2Q26 +11% QoQ in product revenue

Innovent robust 2Q26 product revenue +60% YoY (or +13% QoQ) to RMB4.3bn; RemeGen 1H26 results preview: strong revenue growth + turnaround in profit; Alphamab licensed-out TROP2/HER3 ADC to Pathos AI.
Other updates include Hengrui, Wuxi Biologics, Metis Techbio, CSPC, and Akeso.


HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>Whether it is big pharmaceutical company or Biopharma that currently generates revenue/profits mainly through one or two products, they may not be able to "defend" successfully in long term.</li>
<li>The logic for innovative medical device is similar to innovative drugs - It takes 1-2 years from the turning point of policies to the turning point of fundamentals.</li>
<li>The Innovent-Takeda deal is logical. However, stock price performance of Innovent was disappointing, which is due to the “turning point” of HK biotech sector.The current decline is far from over.</li>
</ul>


Whether it is big pharmaceutical company or Biopharma that currently generates revenue/profits mainly through one or two products, they may not be able to "defend" successfully in long term.
The logic for innovative medical device is similar to innovative drugs - It takes 1-2 years from the turning point of policies to the turning point of fundamentals.
The Innovent-Takeda deal is logical. However, stock price performance of Innovent was disappointing, which is due to the “turning point” of HK biotech sector.The current decline is far from over.


China Healthcare Weekly (Oct.26) - Turning Point of Medical Device, Innovent-Takeda Deal Makes Sense

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>Innovent has announced a global strategic partnership with Takeda on several key oncology assets, including IBI363 (PD-1/IL-2), IBI343 (CLDN18.2 ADC), and potentially IBI3001 (EGFR/B7H3 ADC).</li><li>This partnership is designed to expand Innovent’s global footprint, while strengthening Takeda's solid tumor pipeline.</li><li>Under the agreement, Takeda will lead global development of IBI363, with Innovent sharing 40% of the development costs. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Innovent has announced a global strategic partnership with Takeda on several key oncology assets, including IBI363 (PD-1/IL-2), IBI343 (CLDN18.2 ADC), and potentially IBI3001 (EGFR/B7H3 ADC).This partnership is designed to expand Innovent’s global footprint, while strengthening Takeda's solid tumor pipeline.Under the agreement, Takeda will lead global development of IBI363, with Innovent sharing 40% of the development costs. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Innovent Biologics (1801 HK) - Strategic Partnership with Takeda to Develop Global R&D ...

China

Innovent Biologics is a biopharmaceutical company that discovers, develops, manufactures, and commercializes innovative medicines. The company focuses on therapeutic areas including oncology, autoimmune, cardiovascular and metabolic, and ophthalmology diseases, with 18 products currently on the market. Innovent Biologics was founded in 2011 and is headquartered in Suzhou, Jiangsu, China.

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Innovent Biologics (1801 HK)

CHINA/HK: AI & RX - Together At Last !!

China's AI-driven drug discovery (AIDD) sector is growing rapidly, with leading drug and biotech companies entering R&D and drug-development...

David Mudd

Innovent Biologics Inc (1801 HK): Dual Engine Growth Strategy Is Yielding Result

Innovent Biologics will be added to Hang Seng index after the market close on December 5. Last month, Innovent signed an $11B outsourcing deal with...

Tina Banerjee

China Healthcare Weekly Wrap (3-7 Aug)

Wuxi Apptec 2Q results beat; BeOne 2Q driven by robust Brukinsa; Innovent robust 2Q product revenue +13% QoQ; Alphamab licensed-out TROP2/HER3 ADC...

Wilfred Yuen

China Healthcare Weekly (Oct.26) - Turning Point of Medical Device, Innovent-Takeda Deal Makes Sense

Companies cannot "defend" by just relying on limited products. The turning point of medical device has arrived. Innovent-Takeda deal makes sense,...

Xinyao (Criss) Wang

Innovent Biologics (1801 HK) - Strategic Partnership with Takeda to Develop Global R&D ...

Innovent has announced a global strategic partnership with Takeda on several key oncology assets, including IBI363 (PD-1/IL-2), IBI343 (CLDN18.2...

CMB International

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