Daily Brief Health Care: Innovent Biologics Inc, Lonza Group , Sichuan Biokin Pharmaceutical Co Ltd, Rain Oncology , Chugai Pharmaceutical, WuXi AppTec, IGM Biosciences Inc, Puma Biotechnology and more

• 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.

• Lonza Group AG provided a qualitative update for its Q3 2025 performance, emphasizing a strong outcome in its Contract Development and Manufacturing Organization (CDMO) business and confirming its outlook for the remainder of the year.
• Positively, the company anticipates sales growth of 20% to 21% at constant exchange rates (CER) and an improved core EBITDA margin between 30% and 31% for the full year.
• The performance in Integrated Biologics contributed significantly, supported by robust demand for its large-scale mammalian assets, including its site in Vacaville, which is over-performing its targets.

• Chairman of the Board Zhu Yi hopes to build Biokin into an MNC with the success of BL-B01D1.In other words, Zhu Yi is prepared to bet all on this product.
• Biokin’s valuation should be lower than Akeso Biopharma Inc (9926 HK), but higher than RemeGen. If BL-B01D1’s development is successful, Biokin’s future valuation ceiling will be higher than Kelun Bio.  
• Global peak sales revenue share of BL-B01D1 could reach approximately RMB20 billion. If based on P/S of 5x, market value is RMB100 billion. So, there’s bubble in valuation in A-share.

• Company Acquired: Rain Oncology was acquired by Pathos AI, Inc. and ceased to trade as an independent public entity in January 2024. This primer analyzes the company’s status and assets leading up to the acquisition.
• Pivotal Trial Failure: The company’s lead asset, milademetan, an MDM2 inhibitor, failed to meet its primary endpoint in the Phase 3 MANTRA trial for dedifferentiated liposarcoma in May 2023, leading to a strategic re-evaluation and significant restructuring.
• Strategic Pivot to Acquisition: Following the clinical setback, Rain Oncology halted further development of milademetan in liposarcoma, reduced its workforce by 65%, and explored strategic alternatives, culminating in the acquisition by Pathos AI.

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• Chugai Pharmaceutical (4519 JP) reported flat Hemlibra sales in 9M25 overcoming shipment issues. Higher volumes boosted Actemra revenue (up 27% YoY) amid declining in export unit price.
• 2025 guidance reiterated. Satisfactory progress after 9M25 with major line-items achieving 76-81% of full year guidance. Management expects to beat the export forecast in case of both Hemlibra and Actemra.
• Strong progress of out-licensed products (nemluvio and orforglipron) with high sales potential will help drive growth in the short to medium term.

• WuXi AppTec (2359 HK) has announced 3Q25 result, with revenue growing 15% YoY and net profit increasing 83% YoY. U.S. remains the main driving force behind the company’s strong performance.
• With continuous capacity expansion to better meet customer demand, backlog for continuing operations reached a record high of RMB60B as of September 30, 2025, up 41% YoY.
• Based on the current momentum and confidence in customers’ ongoing demand for enabling services, Wuxi AppTec has further raised its full-year revenue growth guidance to 17–18% from 13–17%.

• IGM Biosciences is a clinical-stage biotechnology company centered on a proprietary platform for developing engineered Immunoglobulin M (IgM) antibodies. The key differentiating feature of its technology is that IgM antibodies have 10 binding sites for a target, compared to two for conventional IgG antibodies, which may enable stronger binding and more potent biological activity.
• Following a strategic pivot to exclusively focus on autoimmune diseases in late 2024, the company announced in January 2025 the discontinuation of its lead clinical programs, imvotamab and IGM-2644, after interim data showed insufficient efficacy. This significant clinical setback precipitated a major restructuring and a re-evaluation of strategic alternatives.
• In July 2025, the company entered into a definitive merger agreement to be acquired by Concentra Biosciences for $1.247 in cash per share plus a non-tradeable contingent value right (CVR). This event effectively ends its status as a standalone publicly traded entity, with future value for shareholders dependent on the CVR and the acquirer’s ability to realize value from the underlying IgM platform and remaining partnerships.

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• Puma Biotechnology is a single-product commercial-stage biopharmaceutical company, with its revenues entirely dependent on its sole approved product, NERLYNX (neratinib), for HER2-positive breast cancer.
• The company has achieved profitability and positive operating cash flow, shifting its focus to maximizing NERLYNX sales and advancing its key pipeline asset, alisertib, an Aurora Kinase A inhibitor, into Phase II trials for breast and small cell lung cancer.
• Significant long-term risk stems from intense competition in the HER2-positive breast cancer market from more effective therapies like AstraZeneca/Daiichi Sankyo’s Enhertu, alongside the eventual patent expiration of NERLYNX in 2030.

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