Innovent Biologics, Inc. · HKEX:1801
Innovent Biologics — H1 2023 Earnings Presentation
47 slides from Innovent Biologics's earnings presentation, August 2023
Slide 1: Innovent Biologics 2023 Interim Results
Innovent Biologics 2023 Interim Results August, 2023
Slide 2: Agenda and Speakers
Business Review and Outlook R&D Updates 01 Dr. Michael Yu 02 Dr. Yongjun Liu Founder, Chairman and CEO President Agenda and Speakers Financials and Summary Q&A 03 Mr. Ronnie Ede 04 All Management Team CFO Confidential Copyright© 2023 Innovent 2
Slide 3: Business Review & Outlook
Business Review & Outlook Dr. Michael Yu Founder, Chairman and CEO 3
Slide 4: 2023 Interim Review: Remarkable Achievements in All Aspects Have Proven Sustainable Growth
2023 Interim Review: Remarkable Achievements in All Aspects Have Proven Sustainable Growth Stronger More Diversified Enhanced R&D Improved Financial Commercialization Portfolio Capability Margins Strong revenue performance, Diversified robust pipeline with Enhanced R&D strategy for global Improving
Slide 5: Commercial & Operation: Strong Revenue Growth and Improved Efficiency
Commercial & Operation: Achieved Strong Revenue Growth and Continually Improved Efficiency Under a Sustainable Business Model Total Revenue & Product Revenue Product Selling & Marketing Exp LBITDA RMBm 3,000 2,702 RMBm Total RMBm Exp % ↑20.6% 1,200 2,240 Revenue 1,400 80% 2,000 1,036 Product 66.7% 1
Slide 6: Reinforced Solid Revenue Growth Expectation for 2023 and Long-term Portfolio Potential
Reinforced Solid Revenue Growth Expectation for 2023 and Long-term Portfolio Potential Near-Term: Solid Revenue Growth in 2023 Long-Term Annual Product Revenue (RMB) More products into visibility: ✓ 1L GC and 1L ESCC included in NRDL with no price cut ~RMB 20bn GLP-1R/GCGR LAG3/TIGIT/IL-2/ ADC/VEGF
Slide 7: R&D: Approved Products Expand to Ten; Four New Phase 3 Assets
R&D: Approved Products Expand to Ten; Four New Phase 3 Assets; Preliminary Signals for Early-stage Oncology Pipeline Approvals-> 10 Commercial Products Pivotal/Ph3 -> 7 Novel Assets New Ph3: Ongoing: • FUCASO® (BCMA CAR-T): R/R MM (9th Product) • IBI362 (GLP-1R/GCGR): • IBI351 (KRASG12C): 2L NSCLC •
Slide 8: Oncology: Strengthen Leadership Position; Focus on Global Innovation
Oncology: Strengthen Leadership Position; Focus on Global Innovation Approved Commercial portfolio Late-stage assets with Focus on ADC and mono-/bispecific antibody continually expands in 2023 synergetic value for the next wave of global innovation TYVYT Parsaclisib (PI3Kδ) CEACAM5 • NDA Accepted fo
Slide 9: Cardiovascular & Metabolic
CVM: First Drug Approved and Robust Data Readout in Obesity; Expand Next-generation Pipeline Approved Product Mid-to-Late Stage Assets Early Stage Programs Mazdutide (6mg) IBI128 (Tigulixostat) Next wave CVM pipeline: • Ph3 – Overweight/Obesity • MRCT Ph3 – Gout (overseas, LG Chem) • Oral CVM projec
Slide 10: Autoimmune: Advance Best-in-class IL-23p19 into Phase 3
Autoimmune: Advance Best-in-class IL-23p19 into Phase 3; Early Stage Programs to Fulfill Global Unmet Needs Approved Product Mid-to-Late Stage Assets Early Stage Programs • IBI356 (OX40L) IBI112 (IL-23p19) IBI353 (PDE4) • IBI355 (CD40L) • Ph3 – PsO • Ph2 MRCT– PsO/AD • ~10 undisclosed pre-clinical p
Slide 11: Ophthalmology: Accelerate Registrational Studies for Two Important Assets
Ophthalmology: Accelerate Registrational Studies for Two Important Assets Late Stage Assets Early Stage Programs Preclinical IBI311 (IGF-1R) IBI302 (VEGF/C) IBI333 (VEGF-A/VEGF-C) IBI324 (VEGF-A/ANG-2) • Multiple next generation FIC • Ph3 - TED • Ph3 - nAMD (8mg) • Ph1 - nAMD • Ph1 - DME bispecifics
Slide 12: Develop Early Stage Innovation in MRCT for Global Launch
Develop Early Stage Innovation in MRCT for Global Launch Pre-clinical PDP CMC Innovent Academy as powerful Product development team with Operating per international GMP drug discovery engine proven track record requirements (FDA, EMA and NMPA) Ph1 MRCTs in China and Australia Potential Global Blockb
Slide 13: Anticipated Development Milestones by Early 2024
Anticipated Development Milestones by Early 2024 Regulatory Actions New Phase 3 PoC Readouts Early Stage Ongoing First-in-Human Assets / Pivotal Trials Approval IBI351 (KRAS G12C) IBI363 (PD-1/IL-2) TYVYT® IBI362(GLP-1R/GCGR) PD-1 resistant/refractory IBI334 (EGFR/B7H3) 3L CRC* & 2L NSCLC EGFRm NSCL
Slide 14: Major R&D updates
Major R&D updates Dr. Yongjun Liu President 14
Slide 15: IBI343: Potential Best-in-Class CLDN18.2 ADC
IBI343: Potential Best-in-Class CLDN18.2 ADC Differentiated Design for Potential Wide Therapeutic Window and High Potency Differentiated Design for Potential Best-in-Class Profiles Better In-vivo Efficacy than MMAE and Dxd Heterogeneous TAA expression Asn297 • World leading ADC technology collaborat
Slide 16: IBI343: Potential Best-in-Class CLDN18.2 ADC
IBI343: Potential Best-in-Class CLDN18.2 ADC Preliminary Efficacy and Favorable Safety Signals Observed with Dose Escalated to 10mg/kg Observed better-than-peer safety at high dose level Encouraging ORR and high DCR observed • Dose escalation reached 10mg/kg. • Dosed over 60 GC/PDAC patients with CL
Slide 17: IBI363 (PD-1/IL-2): Highly Potent Bispecific Fc Fusion Protein
IBI363 (PD-1/IL-2) : Highly Potent Bispecific Fc Fusion Protein Mechanistically Enhance IO Treatment, including PD-1/PD-L1 Resistant/refractory and Cold Tumors Unique molecular design based on breakthrough findings to enhance antitumor efficacy and reduce toxicity • IL-2α-bias agonists that preserve
Slide 18: IBI363 (PD-1/IL-2): Highly Potent Bispecific Fc Fusion Protein
IBI363 (PD-1/IL-2) : Highly Potent Bispecific Fc Fusion Protein Dose Escalation Reach Unprecedented Level and Preliminary Efficacy Observed in IO-failed Cancers Phase 1 MRCT ongoing with 200+ patients dosed Durable response in IO-failed cancers and cold tumors pembrolizumab-resistant melanoma Baseli
Slide 19: Mazdutide (IBI362): Globally First GLP-1R/GCGR Dual Agonist in Phase 3
Mazdutide (IBI362) : Globally First GLP-1R/GCGR Dual Agonist in Phase 3 Potentially Best-in-class Therapy for Obesity and Diabetes Mazdutide Development Overview Expected Ph2 Ph3 • Potential disruptive therapy to treatment regimen for launch huge obese and overweight population Obesity (6mg) GLORY-1
Slide 20: Mazdutide (IBI362) 9mg and 6mg Phase 2 in Obesity or Overweight
Mazdutide (IBI362) 9mg and 6mg Phase 2 in Obesity or Overweight Potentially Best-in-class Weight Reduction Among the GLP-1 class drugs approved and under clinical development globally, mazdutide is… Placebo-adjusted mean body weight reduction at Week 24 (Indirect comparison) BMI: 31.8 BMI: 34.3 mean
Slide 21: Mazdutide (IBI362) 6mg Phase 3 in Chinese T2DM Patients
Mazdutide (IBI362) 6mg Phase 2 in Chinese T2DM Patients Achieve Both Weight Loss and Glycemic Control for Long-term Benefits Primary & Key Secondary Endpoints HbA1c reduction from baseline at Week 20 0.5 Change from baseline • HbA1c reduction trend is sustained in patients receiving 6mg 0 0.03% in H
Slide 22: Tigulixostat (IBI128)
Tigulixostat (IBI128) Potentially Best-in-class Phase 3 XOI for gout patients with hyperuricemia Xanthine oxidase inhibitors prevent the production of uric acid URAT inhibitors enhance renal uric acid excretion Allopurinol / Febuxostat / Tigulixostat Benzbromarone / Sulfinpyrazone / Lesinurad /Probe
Slide 23: Pincankibart (IBI112): Potentially Best-in-class IL-23p19 Inhibitor
Pincankibart (IBI112) : Potentially Best-in-class IL-23p19 Inhibitor Extended Half-life, Long-dosing Interval and Compelling Efficacy Observed in Ph3 IL-23 complex is an upstream regulatory cytokine Pincankibart (IBI112) Ph3 optimized dose regime to fully exhibit compelling efficacy Dendritic cell I
Slide 24: IBI302 (efdamrofusp alfa): First-in-Class VEGF/Complement Fusion Protein
IBI302 (efdamrofusp alfa) : First-in-Class VEGF/Complement Fusion Protein Potential Effect in Anti-macular Atrophy and Extended Durability Non-inferior BCVA gain MA incidence decreased Extended dose interval potential IBI302 2mg/4mg Ph2: BCVA gains with were IBI302 2mg/4mg Ph2: less macular atrophy
Slide 25: Financials and Summary
Financials and Summary Mr. Ronnie Ede CFO 25
Slide 26: Strong Revenue Growth and Continuously Improved Operational Efficiency
Strong Revenue Growth and Continuously Improved Operational Efficiency Under A Sustainable Business Model Strong Revenue Growth Remarkably Narrowed LBITDA and Net Loss LBITDA Net Loss RMBm RMBm RMBm ↑20.6% 3,000 Total 1,200 1,200 2,702 1,085 Revenue 1,036 2,240 2,000 800 ↓74.2% 800 ↓82.5% ↑20.4% 2,4
Slide 27: Strong Revenue Growth and Continuously Improved Operational Efficiency
Strong Revenue Growth and Continuously Improved Operational Efficiency Under a Sustainable Business Model Increased Product Gross Profit Margin Decreased Product S&M Ratio Decreased G&A Ratio RMBm RMBm RMBm 3,000 80.8% 90% 3,000 90% 900 90% 66.7% 2,500 78.6% 2,500 60% 54.5% 60% 600 60% 1,986 2,000 2
Slide 28: Healthy Financial Position and Improving Financials Safeguard Operation Resilience
Healthy Financial Position and Improving Financials Safeguard Operation Resilience Investment for Sustainable Growth Healthy Financial Position R&D Expenses Cash and Cash Equivalent for 2023 As of 30 June 2023 RMB 826million in H1 RMB 8,527 million （could be higher in H2） (about US$1.2 billion) Note
Slide 29: Income Statement
Income Statement Non-IFRS measure Six months ended 30 June RMB'million 2023 % 2022 % Revenue Revenue 2,701.5 100.0% 2,239.6 100.0% ⚫ For the six months ended 30 June 2023, we generated total Cost of sales (477.5) (17.7%) (436.4) (19.5%) revenue of RMB 2,701.5 million, including RMB2,457.5 million dr
Slide 30: Balance Sheet
Balance Sheet IFRS-measure RMB'million 2023/6/30 2022/12/31 Cash balance Bank balances and cash 7,655.7 9,162.8 Other financial assets 870.8 3.2 ⚫ As at 30 June 2023, our total cash and short- Trade receivables 1,015.5 575.3 term financial assets was RMB 8,526.5 million Prepayments and other receiva
Slide 31: Key Takeaways: The Remarkable Achievements in 1H2023
Key Takeaways: The Remarkable Achievements in 1H2023 Solidified the Foundation of Our Sustainable Business Development Strong revenue performance and improved operational efficiency under sustainable business model; A more diversified pipeline portfolio and enhanced R&D Reinforced commitment and con
Slide 32: Company Overview
Company Overview 32
Slide 33: Established Integrated Platform, Improving Business Model for Sustainable Growth
With Established Integrated Platform, Innovent Continues to Improve our Business Model to Achieve Sustainable Growth • In the past decade, Innovent has transformed from a biotech start-up to a leading biopharma company in China with an established integrated platform. 10 25 140,000L 30 6,000 Commerc
Slide 34: Robust Pipeline Across Novel Therapeutics – Oncology
Robust Pipeline Across Novel Therapeutics – Oncology 8 approved, 1 NDA, 3 in pivotal trials and over 10 assets in clinical stage covering monoclonal antibodies, bispecific antibodies, CAR-T and small molecules Status Pivotal Phase 2 / Products Target (s) Modality Therapeutic Area Rights Pre-clinical
Slide 35: Robust Pipeline Across Novel Therapeutics – Non-oncology
Robust Pipeline Across Novel Therapeutics – Non-oncology 2 approved, 4 in pivotal stage, 4 assets in clinical stage represents long-term growth potential in major therapeutic areas including autoimmune, metabolic, and ophthalmology Pivotal Phase 2 / Products Target (s) Modality Therapeutic Area Righ
Slide 36: 2023 Outlook: Continuous Focus on Strategic Goals
2023 Outlook: Continuous Focus on Strategic Goals of Sustainable Growth and Global Innovation Further portfolio expansion, solid growth, and efficiency improvement Commercialization ✓ Increase contribution from new products ✓ Build presence for upcoming high potential non-oncology products ✓ Improve
Slide 37: Strong Long-term Growth Potential: ~RMB 20bn Upside Potential
Strong Long-term Growth Potential: Diversified Commercial Portfolio With High Potential Assets and Improving Operational Efficiency Fully-fledged Commercial Ecosystem + Validated Track Record + Rich and De-risked Portfolio + Sustainable Business Model = More products into visibility: ~RMB 20bn GLP-1
Slide 38: Fully-fledged Commercial Ecosystem with Validated Track Record
Fully-fledged Commercial Ecosystem with Validated Track Record Fully-fledged Commercial Ecosystem + National Coverage + Validated Track Record Total Product Revenue (RMB) Affordability Commercial City Solutions Team Coverage 4.1 bn Patient ~3000 300+ 4.0 bn Benefits 2.4 bn 2.4 bn Hospital DTP 2.0 bn
Slide 39: Global R&D Structure with Expanding Footprint
Global R&D Structure with Expanding Footprint Innovent R&D • Chairman of the Department of Immunology; Founding Director of the Center for Cancer Immunology Research Led by Dr. Yongjun Liu of MD Anderson Cancer Center President, Innovent • Global Head of Research of Sanofi 1,500 R&D employees Innove
Slide 40: Oncology: Established a Leading Position and Brand Franchise
Oncology: Established a Leading Position and Brand Franchise Expansive Oncology Pipeline with Robust Supporting Commercial Structure Robust Oncology Pipeline Well-positioned with Industry Leading Footprint and Comprehensive Coverage More ADC, IO Bispecific, T/NK Engager… Targeted therapy CLDN18.2 AD
Slide 41: CVM & Endocrinology: New Franchise with High Potential Innovative Assets
CVM & Endocrinology: New Franchise with High Potential Innovative Assets Substantial Patient Base in Need of Next-Generation Drugs Hypercholesterolemia Diabetes Hyperuricemia Obesity TED NASH Heart failure No SoC* Renal disease 200m 140m 180m 160m AD …… adults affected only 50% receiving treatment ~
Slide 42: Autoimmune: Strategic Vision to Fulfill Unmet Medical Needs
Autoimmune: Strategic Vision to Fulfill Unmet Medical Needs Switching from Traditional to Innovative Targeted Therapies in Various Autoimmune Diseases High Potential Therapeutic Area Driven By: Patient Friendly Solutions: Deeper understanding of the mechanisms of action Longer dosing interval to imp
Slide 43: State-of-the-art Manufacturing Facilities Designed to International Standards
State-of-the-art Manufacturing Facilities Designed to, Built with, and Operating at International Standards • Full CMC capability across process • Advanced CMC development capability Suzhou Manufacturing Site development, manufacturing, quality, including perfusion, ADC and high concentration DP pla
Slide 44: Innovent is Your Preferred Partner in China
Innovent is Your Preferred Partner in China “from product development to commercial launch” Building Platforms Unlocking Value of Regional Pioneering MNC for the Future Best-in-class Partnering In-house R&D Partnerships Biotech Assets Most Comprehensive partnership with Lilly Establishing a world-cl
Slide 45: Long-Term Vision
Long-Term Vision Developing core competiveness 2030 based on strategic vision, global 2025 talent and strong execution • More commercialized • Expanded products, including 2023 commercialized first-in-class products in China blockbusters launched globally • Multiple products • 10 commercialized laun
Slide 46: Disclaimer
Disclaimer This presentation includes forward-looking statements. All statements contained in this presentation other than statements of historical facts, including statements regarding future results of operations and financial position of Innovent Biologics (“Innovent” “we,” “us” or “our”), our bu
Slide 47: Confidential
Confidential Copyright© 2023 Innovent 47