Chinese biotech breakthrough and AI integration (with Yvonne Man, David Ingles)

Asks about the significance of Akeso presenting data at ASCO's main plenary session.

Yvonne Man

Wayne T. W. Lee

This is a historic first. Akeso is presenting the first-ever China data at ASCO's plenary session. This is significant because it's a head-to-head comparison with Keytruda (the best-selling drug in history), which addresses past criticism of China data quality.

The Pfizer-Inveni deal ($10.5B) earlier today is another example of growing MNC endorsement of Chinese data quality.

Asks what Akeso is expected to present at the conference.

David Ingles

Wayne T. W. Lee

The data will show how superior Akeso's drug is to the current standard of care. The head-to-head comparison with Keytruda is why global physicians and investors care so much about this China-only data.

Asks about the regulatory risk from the US regarding potential bans or restrictions on Chinese licensing deals.

Yvonne Man

Wayne T. W. Lee

Despite constant noise (BIOSECURE Act, etc.), actual punishment or restriction is less likely. MNCs are eager to do deals with China because they face patent expiries and need a quick fix for their pipelines. China offers 40-60% cost savings and is 30-50% faster.

This cost and speed advantage is a 'secret weapon' for Chinese companies.

Asks if the proportion of global out-licensing deals from China will increase following the Pfizer-Inveni deal.

David Ingles

Wayne T. W. Lee

Last year, 69% of total deal size came from Chinese companies. The total deal size was $130 billion last year, and in Q1 this year alone it's already $60 billion. The trend will continue.

Asks how AI is being integrated into the biotech industry and its impact on drug discovery.

Yvonne Man

Wayne T. W. Lee

AI is the most interesting part. AI biotech companies are doing out-licensing deals to MNCs, providing another option for drug discovery. MNCs like Lilly and Pfizer are embracing AI as the future. AI will improve drug efficiency and accuracy, but a real breakthrough is likely 3-5 years away.

At this stage, AI is mainly impacting early-stage drug discovery, not the clinical process.

Asks if AI brings down all costs or only a portion of drug development costs.

David Ingles

Wayne T. W. Lee

At this stage, AI is only impacting the early stage. It's just a matter of time before it impacts other areas, possibly a breakthrough in 3-5 years.

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