Kelun Biotech (6990 HK) Buy: sac-TMT’s first global phase III trial success; US commercialisation lies ahead

Research evidence excerpt

Kelun Biotech (6990 HK) Buy: sac-TMT’s first global phase III trial success; US commercialisation lies ahead

uchers, we estimate sac-TMT’s overseas launch will take place in 2027. Kelun ROE (%) -9.3 -13.3 8.3 21.8

Biotech’s share price is up c8% y-t-d (vs HSHCI -6% y-t-d) driven by smooth overseas

52-WEEK PRICE (HKD)

progress. We think the valuation is attractive and think sac-TMT’s solid phase III data in

1L lung cancer (2026 ASCO) and overseas launch could result in potential upside. 620.00

440.00

Sac-TMT showed promising China data in broad tumors. Sac-TMT reported

promising China phase II data in advanced EMC in year-end 2025. Sac-TMT 05/25 11/25 05/26260.00

reported a high overall response rate (ORR, 30.7% and 34.1% in 4/5mg cohort), and TargetHigh: 577.50price: 549.00Low: 298.60 Current: 424.20

prolonged median progression free survival (PFS, 6.0m and 7.3m in 4/5mg), while Source: LSEG IBES, HSBC Qianhai Securities estimates

chemotherapy’s PFS usually ranges from 3-5.5m (source: Company data,

Pharmcube). sac-TMT will also update China phase III (OptiTROP-Lung05) data in Cindy Chai* (Reg. No. S1700523040001)

1L PDL1 positive non-small cells lung cancer (NSCLC, sac-TMT+Keyturda vs Analyst, China Healthcare Research

HSBC Qianhai Securities Limited

Keytruda) in 2026 ASCO oral abstract session. We expect such data to provide hints cindy.x.r.chai@hsbcqh.com.cn

for MSD’s oversea phase III trials for treating 1L PDL1 high NSCLC (TroFuse-007). +86 21 5066 2005

Linda Shu*, PhD (Reg. No. S1700522120001)

Future milestone to watch. For sac-TMT, we expect 2026 ASCO readout in 1L Head of China Healthcare Research

PDL1+ NSCLC, followed by China approval in 2H26e and 1L PDL1- NSCLC and 1L HSBC Qianhai Securities Limited

linda.y.l.shu@hsbcqh.com.cn

TNBC China data in 2H26.