J.P. Morgan China/HK FTM 17 Jul 26 Kelun Biotech; China Healthcare; China Banks; China Gas Utilities; China Basic Materials; Hong Kong Property & Conglomerates

Research evidence excerpt

J.P. Morgan China/HK FTM 17 Jul 26 Kelun Biotech; China Healthcare; China Banks; China Gas Utilities; China Basic Materials; Hong Kong Property & Conglomerates

Asia Pacific Equity Research

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China/HK First to Market 17 July 2026

Top Stories

Kelun Biotech (6990.HK, OW – HK$536.50), China (Yang Huang)

The first PD-1+sac-TMT Ph3 win over PD-1+chemo; raising PT on higher PoS

Amid the recent sharp re-rating of the China healthcare sector, Kelun Biotech has been one of the strongest

performers and has rebounded 38% (vs. Hang Seng Innovative Drug Index +24%) from its early June low,

reflecting improved investor sentiment toward China biotech/pharma with clear commercialization potential

and increased confidence in China’s globally competitive ADC pipeline. The stock gained another 8%

yesterday (July 15, vs. HSIDI +4.6%) after the company announced the China Ph3 trial of OptiTROP-

Lung06 met the primary endpoint of PFS (progression-free survival) with OS (overall survival) benefit trend.

Recall OptiTROP-Lung06 compares Keytruda+sac-TMT against Keytruda+chemo in 1L PD-L1 negative

non-sq NSCLC (non-squamous non-small cell lung cancer) patients. We believe this trial success carries

more significance than the success of OptiTROP-Lung05 where Keytruda+sac-TMT beat Keytruda

monotherapy in 1L NSCLC with high PD-L1 expression. This is not only because OptiTROP-Lung06 covers

a much larger patient population than OptiTROP-Lung05, but also because the trial success is the first time