Kelun Biotech Management meeting takeaways on sac-TMT and ASCO data

Research evidence excerpt

Kelun Biotech Management meeting takeaways on sac-TMT and ASCO data

Yang Huang AC Asia Pacific Equity Research

(852) 2800 3812 15 May 2026 J P M O R G A N

yang.huang@jpmorgan.com

Figure 2: DCF Valuation

Source: J.P. Morgan estimates, Bloomberg Finance L.P.

Risks to Rating and Price Target

Key downside risks to our rating and price target include:

• Regulatory Risks: Changes in regulatory policies or standards could introduce new

compliance challenges, potentially increasing costs and affecting the company’s ability

to operate efficiently across different markets.

• Geopolitical Risks: Geopolitical risks can arise from tensions, such as trade disputes,

tariffs, or sanctions. These tensions could lead to increased regulatory scrutiny,

restrictions on technology transfer, and challenges in cross-border collaboration. In

addition, geopolitical risks can affect supply chains, as companies may face disruptions

in the availability of raw materials or components sourced from regions experiencing

conflict or political instability. Changes in government policies, such as shifts in foreign

investment regulations or healthcare policies, could also impact business operations and

profitability.

• R&D Risks: Clinical trials can fail at any stage due to safety concerns, lack of efficacy,

or unforeseen side effects. Such failures not only could result in sunk costs but could also

damage the company’s reputation and investor confidence. Moreover, the rapid pace of

scientific advancement means that Kelun Biotech must continuously innovate to stay

ahead, which could strain resources and require ongoing investment.

• Competitive Landscape: The entry of new competitors or the development of superior

treatments by rivals could erode Kelun Biotech’s competitive position and impact its