Call in the Global Specialist (26/6): Global Sector Specialist Commentary

Research evidence excerpt

Call in the Global Specialist (26/6): Global Sector Specialist Commentary

and going

to 100% POS would imply c. 50bp upside to our NPV/share. Investors could be excited on the read across from this 2L study to

the key 1L DLBCL trial, which is more commercially relevant (JPMe $1.3bn at 70% PoS). However, in our view, a direct read is

not appropriate given the differing chemo backbone between the 2L and 1L with 1L trial in combination with R-CHOP. 1L

DLBCL trial is expected to read out in H2. We believe this read out will be the final rather than interim read out even though

mgmt have not commented on whether an interim has passed or not. Per Zain Ebrahim’s note, we expect efficacy to be broadly

comparable with Roche’s POLARIX trial in the range of 28-32% rather than some expectations for efficacy above POLARIX.

Beyond 1L DLBCL, investors remain focused on the Peto and Rina S read outs. On the former, there will be some headline risk

from JNJ’s Rybrevant, which will have 1st line phase II head and neck data in combo with chemo at ESMO in the autumn.

Efficacy is likely to look higher than peto’s pII on ORR given the inclusion of chemotherapy in the regimen. We remain on the

sidelines into 1L DLBCL and JNJ data.

Research: Zain Ebrahim rates the stock aNeutral

Short Interest: 4 ADTV to cover or 3% of ffloat

Industrials: Sam Edmunds & Joann Kim

Buy Renk into the Nato conference in Ankara July 7th-8th: It’s been a torrid week for Defence shares and for the German stock

in particular. The catalyst was Germany’s decision to cancel the troubled F126 frigate contract which Rheinmetall had expected

to win. Understandably, this has caused concern for defence budgets overall and has seen a de-rating of the German stocks in

particular. This is an opportunity to buy Renk.