Innovent Announces Financial Results for Full Year Ended December 31, 2019 and Corporate Progress

SUZHOU, China, March 30, 2020 /PRNewswire/ -- Innovent Biologics, Inc. ("Innovent" or "the Company") (HKEX: 01801), a world-class biopharmaceutical company that develops, manufactures and commercializes high quality innovative medicines for the treatment of oncology, autoimmune, metabolic and other major diseases, today announced its financial results for the full year ended December 31, 2019 and corporate progress.

Full Year 2019 Highlights and After Period Development

    --  Total revenue for the full year of 2019 increased to RMB1,047.5 million,
        including RMB1,015.9 million attributable to sales of Tyvyt(®)
        (sintilimab injection).
    --  Gross profit margin was 88.1% for the full year of 2019.
    --  Tyvyt(®) became the first and the only PD-1 inhibitor to be included in
        the National Reimbursement Drug List (NRDL).
    --  NDAs for IBI-303 (adalimumab biosimilar), IBI-305 (bevacizumab
        biosimilar) and IBI-301 (rituximab biosimilar) were granted priority
        review status by the NMPA.
    --  Phase 3 study of Tyvyt(®) in first-line non-squamous NSCLC in China met
        the predefined primary endpoint of PFS in an interim analysis.
    --  Expanded collaboration with Eli Lilly for the development and
        commercialization in China of OXM3, a potentially global best-in-class
        clinical-stage novel diabetic therapy.
    --  Completed GMP commissioning and process validation of the second phase
        manufacturing facilities housing six 3,000L stainless steel bioreactors.

"2019 saw us start to fulfill our mission. Over the course of last year, our Tyvyt(®) successfully commenced sales and marketing, and became the first and the only PD-1 inhibitor to be included in China's NRDL," said Dr. Michael Yu, Founder, Chairman and CEO of Innovent. "We have also made significant progress in developing our pipeline products, advancing regulatory filings and registration processes, expanding our manufacturing capabilities, and achieving other corporate development milestones. These achievements have laid the solid foundation for Innovent to seize market opportunities in 2020 and leapfrog into a leadership position. Among other promising prospects, we expect to leverage the unique advantages from the NRDL inclusion and continue to drive the sales of our Tyvyt(®). Our preparations for the commercial launches of our three NDA-stage biosimilar products have been well under way. In addition, we expect to submit up to five new NDAs for Tyvyt(®) from this year through early next year covering various major cancer indications including lung, liver and esophageal cancers. We will continue to grow our rich pipeline of innovative and complementary therapies, and we expect to leverage our fully-integrated multi-functional platform and advance more than 50 clinical trials (including 17 pivotal registration trials) throughout the year. We are confident that Innovent is well positioned to sustain its rapid growth and deliver tremendous value for our patients and shareholders."

"Despite the recent challenges caused by the global COVID-19 outbreak, we do not expect the pandemic to have a significant impact on our business for 2020," said Dr. Yu. "We have firmly responded to the outbreak by making a charity donation to the City of Wuhan in January and implementing comprehensive measures to protect our staff, prevent interruptions to our business operations, and minimize delays and disruptions to the treatment of our patients. Overall, our operations have gradually resumed since late February and through the month of March. We will be closely monitoring the evolving situation and continue to execute our commercialization, regulatory and clinical development plans and strategies accordingly."

Business Performance Summary and Expected Milestones

Our Commercial and NDA-Stage Products

Tyvyt(®) (sintilimab injection), an innovative fully human anti-PD-1 monoclonal antibody co-developed with Lilly; accepted into the National Major New Drugs Innovation and Development Program; approved in China

Commercial Development Milestones

    --  Tyvyt(® )commenced sales in China in March 2019, within the ten-month
        period ended 31 December 2019, generated RMB1,015.9 million in revenue,
        becoming one of the best-selling drugs ever launched in China in terms
        of first-year sales.
    --  In November 2019, Tyvyt(®) became the only PD-1 inhibitor to be
        included in the NRDL with price slightly under RMB100,000, allowing more
        patients to enjoy the benefits of our drug product at a reasonable cost.
        This has demonstrated our company's commitment to deliver high-quality
        innovative medicines that are affordable to ordinary people.
    --  Based on the impressive clinical results, Tyvyt(®) was included in the
        2019 Guidelines of the CSCO for Lymphoid Malignancies and published in
        The Lancet Haematology and featured as a cover story.

Clinical Development Milestones

We are executing a broad clinical development program for Tyvyt(® )to evaluate its efficacy and safety and aiming for drug registration in a wide variety of major cancer indications. Currently we have more than 20 trials ongoing including over 10 pivotal registration clinical trials, in both US and China.

    --  Completed patient enrollment in four pivotal registration trials in
        China, including first-line non-squamous NSCLC, first-line squamous
        NSCLC, second-line squamous NSCLC and first-line hepatocellular
        carcinoma (combo with IBI-305 (bevacizumab biosimilar)).
    --  Completed first patient dosing in three pivotal registration trials in
        China, including first-line esophageal squamous cell carcinoma,
        first-line gastric or gastroesophageal junction adenocarcinoma, EGFR+
        TKI failure non-squamous NCSLC (combo with IBI-305 (bevacizumab
        biosimilar)).
    --  Entered into research collaborations with strategic partners, including
        Chi-Med, Chipscreen Biosciences, Shenogen Pharma, Sirnaomics, to explore
        the potential of Tyvyt(® )in combination therapies.
    --  Presented key results from 6 clinical studies of Tyvyt(®) either orally
        or by posters/abstracts at ASCO in 2019.

Post-Reporting Period (Expected) Milestones

    --  Announced that the Phase 3 study in China of Tyvyt(®) combined with
        ALIMTA(® )(pemetrexed) and platinum in first-line non-squamous NSCLC
        met the predefined primary endpoint of PFS in an interim analysis in
        January 2020.
    --  Received a global Phase 3 study initiation approval in the U.S. from the
        FDA for Tyvyt(®) in first-line esophageal carcinoma in February 2020.
        We expect to enroll the first patient in the first half of 2020.
    --  Expected to submit up to 5 NDAs to the NMPA for Tyvyt(®) in 2020 or
        early 2021, including first-line non-squamous NSCLC, first-line squamous
        NSCLC, second-line squamous NSCLC, first-line hepatocellular carcinoma
        and second-line esophageal squamous cell carcinoma.
    --  Expected to present key results of five trials for Tyvyt(®) at medical
        conferences in 2020 or 2021.

IBI-303 (adalimumab biosimilar), an anti-TNF- monoclonal antibody; accepted into the National Major New Drugs Innovation and Development Program; NDA submitted in China

    --  Received priority review status grant to the NDA of IBI-303 from the
        NMPA in March 2019.
    --  The key clinical results from a Phase 3 trial of IBI-303 in ankylosing
        spondylitis were published in the inaugural issue of The Lancet
        Rheumatology in August 2019, marking the first time that a China-based
        Phase 3 biosimilar trial has been reported in a first-tier international
        medical journal.

Expected Milestone

    --  Receive the NDA approval for IBI-303 in 2020.

IBI-305 (bevacizumab biosimilar), an anti-VEGF monoclonal antibody; accepted into the National Major New Drugs Innovation and Development Program; NDA submitted in China

    --  Received priority review status grant to the NDA from the NMPA in April
        2019.
    --  Presented the clinical efficacy and safety results of IBI-305 as
        compared with bevacizumab in advanced, first-line, non-squamous NSCLC
        patients at ASCO in 2019.

Post-Reporting Period (Expected) Milestones

    --  Entered into an out-license agreement with Coherus in January 2020 to
        commercialize IBI-305 in US and Canada.
    --  Expected to receive the NDA approval in 2020.

IBI-301 (rituximab biosimilar), an anti-CD20 monoclonal antibody co-developed with Lilly; accepted into the National Major New Drugs Innovation and Development Program; NDA submitted in China

    --  Received priority review status grant to the NDA from the NMPA in August
        2019.
    --  Presented data from two clinical studies of IBI-301 at CSCO in 2019.

Expected Milestones

    --  Receive the NDA approval by late 2020 or early 2021.

Our Clinical-Stage Drug Candidates

IBI-306, a novel anti-PCSK9 monoclonal antibody; accepted into the National Major New Drugs Innovation and Development Program

    --  Completed a Phase 2 clinical trial in China for non-familial
        hypercholesterolemia.
    --  Achieved first patient dosing in a Phase 3 clinical trial in China for
        heterozygous familial hypercholesterolemia (HeFH) and a pivotal Phase
        2b/3 clinical trial in China for homozygous familial
        hypercholesterolemia (HoFH).

Expected Milestones

    --  Initiate a Phase 3 clinical trial in China for non-familial
        hypercholesterolemia and enroll the first patient in 2020.
    --  Complete patient enrollment for the Phase 3 trial in HeFH and the
        pivotal Phase 2b/3 trial in HoFH in 2021.
    --  Present key results data in major medical conferences.

IBI-310, an anti-CTLA-4 monoclonal antibody

    --  Completed a Phase I dose escalation study in China in combination with
        Tyvyt(®) in patients with melanoma.

Expected Milestones

    --  Enroll the first patient in a Phase 3 study in melanoma and a pivotal
        Phase 2 study dMRD or MSI-H locally-advanced or metastatic colorectal
        cancer in China in the first half of 2020, in each case combined with
        Tyvyt(®).

IBI-188, a potentially best-in-class anti-CD47 monoclonal antibody;

    --  Announced first patient dosed in a Phase 1 clinical trial in China in
        advanced malignant tumors in January 2019.
    --  Announced first patient dosed in a Phase 1 clinical trial in US in
        advanced malignant tumors and lymphomas in March 2019.

Expected Milestones

    --  Clinical phase I dose escalation study is on-going in both US and China.
        Preliminary data indicates IBI-188 is well tolerated in patients.
    --  Expected to initiate a global pivotal registration study with first
        patient enrolled in the second half of 2020 in both US and China.

IBI-375 (pemigatinib), a novel FGFR inhibitor in-licensed from Incyte

    --  Received IND approval from the NMPA in November 2019.
    --  The FDA accepted the NDA submitted by Incyte for pemigatinib in
        second-line metastatic cholangiocarcinoma (mCCA) and granted priority
        review status. The Prescription Drug User Fee Act target action date is
        May 30, 2020.

Post-Reporting Period (Expected) Milestones

    --  Announced first patient dosed in the pivotal Phase 2 trial of IBI-375 in
        second-line mCCA in China in March 2020. We expect to submit NDAs for
        IBI-375 in second-line mCCA to the NMPA in mainland China, Hong Kong and
        Taiwan in 2021.
    --  Expected to join an Incyte-sponsored global Phase 3 clinical trial in
        first-line mCCA.

IBI-376 (parsaclisib), a novel PI3K inhibitor in-licensed from Incyte

    --  Received IND approval from the NMPA in November 2019.
    --  In the U.S., Incyte is evaluating parsaclisib in three Phase 2 studies
        in patients with relapsed or refractory follicular, marginal zone and
        mantle cell lymphoma, respectively.

Expected Milestones

    --  Enroll first patient in a pivotal Phase 2 trial in China in third-line
        follicular lymphoma or marginal zone lymphoma in the first half of 2020.

IBI-377 (itacitinib), a novel JAK1 inhibitor in-licensed from Incyte

    --  Received IND approval from the NMPA in November 2019.
    --  In January 2020, Incyte announced Phase 3 trial of itacitinib in
        patients with newly diagnosed acute GVHD did not meet the primary
        endpoint.

Expected Milestones

    --  Keep on developing IBI-377 in other indications, as the clinical data
        suggested it may have specific effects in other indications.

IBI-326, a novel fully-human anti-BCMA CAR-T therapy, co-developed with IASO BIO

    --  Received IND approval from the NMPA to evaluate IBI-326 in hematology in
        September 2019.
    --  Presented promising clinical data of IBI-326 at ASCO, EHA and ASH in
        2019, with 100% ORR, over 72% CR in patients with relapse/refractory
        multiple myeloma (r/r MM).

Expected Milestones

    --  Initiate a pivotal Phase 2 trial in r/r MM with first patient enrolled
        in 2020.
    --  Report the results of extended follow-up on IIT at ASH in 2020.

IBI-318, a first-in-class anti-PD-1/PD-L1 bispecific antibody co-developed with Lilly

    --  Announced first patient dosed in a Phase 1 clinical trial in patients
        with advanced malignancies in China in April 2019.

Expected Milestone

    --  Present preliminary clinical data in major medical conferences.

IBI-315, a first-in-class anti-PD-1/HER2 bispecific antibody co-developed with Hanmi

    --  Announced first patient dosed in a Phase 1 clinical trial in patients
        with advanced malignancies in China in November 2019.

IBI-302, a potential first-in-class anti-VEGF/complement bispecific fusion protein; accepted into the National Major New Drugs Innovation and Development Program

    --  Announced first patient dosed in a Phase 1 clinical trial in China for
        wet AMD in April 2019.

Expected Milestones

    --  Enroll first patient in a Phase 1b study in China in wet AMD in 2020.
    --  Present the clinical results of the Phase 1 study at a scientific
        conference.

IBI-101, a novel fully humanized anti-OX40 monoclonal antibody

    --  Completed first patient dosed in a Phase 1a study as monotherapy and a
        Phase 1b study of in combination with Tyvyt(®), in each case in
        advanced solid tumors in China in February 2019.
    --  Obtained IND approval from the FDA in advanced solid tumors.

Expected Milestones

    --  Complete the patient enrollment of the Phase 1 trials in advanced solid
        tumors in the second half of 2020.

IBI-110, a novel anti-LAG-3 monoclonal antibody

    --  Announced first patient dosed in a Phase 1 clinical trial for treatment
        of advanced solid tumors in China in December 2019.

IBI-322, a first-in-class anti-CD47/PD-L1 bispecific antibody

    --  Filed an IND application with each of the NMPA and the FDA to evaluate
        IBI-322 in solid tumors in China and in US in October and December 2019,
        respectively.

Post-Reporting Period Milestones

    --  Received IND approvals from the NMPA and U.S. FDA respectively in
        January 2020. We are actively preparing the initiation of the study in
        patients in China and in US.

IBI-939, a novel anti-TIGIT monoclonal antibody

    --  Submitted an IND application for IBI-939 to the NMPA in September 2019.

Post-Reporting Period Milestones

    --  Received IND approval from the NMPA in advanced solid tumors and
        hematological malignancies in January 2020.

IBI-362, an oxyntomodulin analog (OXM3) in-licensed from Lilly, potentially best-in-class clinical-stage diabetes drug candidate

    --  Submitted IND applications to the NMPA in both Type II diabetes and
        obesity in December 2019.
    --  Lilly completed the patient enrollment of a Phase 1b study in US to
        evaluate IBI-362 in patients with Type II diabetes in 2019.

Post-Reporting Period Milestones

    --  In January 2020, the NMPA accepted the IND application.
    --  Lilly has initiated a Phase 2 study in Europe in Type II diabetes.

Manufacturing Facilities

    --  Completed GMP commissioning and process validation of second phase
        manufacturing facilities housing six 3,000L stainless steel bioreactors.
        This expansion increased our total production capacity to 23,000L, one
        of the largest in China, and further boosted our manufacturing capacity
        per batch.

Corporate Development

    --  Expended collaboration with Eli Lilly for the development and
        commercialization in China of a potentially best-in-class clinical-stage
        novel diabetic therapy, OXM3, in August 2019.
    --  Entered into an out-license agreement with Coherus to commercialize our
        IBI-305 (bevacizumab biosimilar) in the U.S. and Canada in January 2020.
    --  Entered into an in-licensing agreement with Alector to develop and
        commercialize AL008, a first-in-class anti-SIRP-alpha antibody for the
        treatment of oncology indications in China in March 2020.
    --  Raised approximately HK$2.4 billion and HK$2.3 billion through new
        shares placement in October 2019 and February 2020 respectively.
    --  Innovent's stock was included in both the MSCI China Index and the Hang
        Seng Hong Kong-Listed Biotech Index in 2019.

Financial Performance Summary

    --  Total revenue was RMB1,047.5 million for the year ended 31 December
        2019, including RMB1,015.9 million attributable to sales of Tyvyt(®),
        as compared with total revenue of RMB9.5 million for the year ended 31
        December 2018.
    --  Gross profit margin was 88.1% for the year ended 31 December 2019,
        reflecting the Company's ability to leverage our fully-integrated
        multi-functional platform and carry out efficient, high quality
        production of Tyvyt(®) at commercial scale.
    --  Research and development expenses were RMB1,294.7 million for the year
        ended 31 December 2019, as compared with RMB1,221.7 million for the year
        ended 31 December 2018. The spending was mainly attributable to expenses
        incurred for our key ongoing pivotal or registration trials of Tyvyt(®)
        in China.
    --  Direct selling and marketing expenses were RMB692.5 million, or 66.1% of
        total revenue, for the year ended 31 December 2019, as compared with
        RMB270.1 million, or 78.2% of total revenue, for the six months ended 30
        June 2019, and as compared with RMB136.0 million for the year ended 31
        December 2018. The year-over-year increases were primarily attributable
        to the successful launch of Tyvyt(®) in March 2019. To support the
        commercialization efforts, the Group expanded its sales and marketing
        team from a total of 264 employees as of 31 December 2018 to a total of
        688 employees as of 31 December 2019, which was one of the major
        contributors to the increase in the selling and marketing expenses.
    --  Payments under Collaboration Agreement were RMB499.7 million for the
        year ended 31 December 2019, represents the milestone payments for the
        various licensing-in products as well as royalty and profit sharing
        payments to third parties.
    --  Loss and total comprehensive expenses were RMB1,719.9 million for the
        year ended 31 December 2019, representing a significant decrease of
        70.7% from RMB5,873.0 million for the year ended 31 December 2018 during
        which, as required under the International Financial Reporting Standard
        ("IFRS"), the Group recorded a non-cash, non-recurring loss of
        RMB4,338.0 million on the fair value changes of preferred shares upon
        their conversion into ordinary shares at the Company's initial public
        offering.
    --  Net cash from financing activities for the year ended 31 December 2019
        was RMB2,109.3 million, principally attributable to net cash generated
        from our successful placement in October 2019. For the balance sheet at
        December 31, 2019, the company's total cash and cash equivalent was
        4,695.2 million. In February 2020, we raised additional HK$2.3 billion
        through new shares placement, our cash position at the end of February
        2020 was about US$950 million.

For more detail review of Innovent's operation for 2019, please refer to the Company's announcement posted on HKEX website as well as the Company's website.

Conference Call Information

Innovent will host a live conference call at 9:00 a.m. March 31, 2020 Beijing time to review its financial results and provide a general corporate progress.

Please call 4001200657 (Mainland China), +852 30186779 (Hong Kong), +18664819184 (U.S.), 08081016564 (United Kingdom), or +65 67135381 (Singapore) to listen to the conference call. The conference ID password for the live call is Innovent. The replay may be accessed by visiting the Company's website at www.innoventbio.com shortly after the call.

About Innovent

Inspired by the spirit of "Start with Integrity, Succeed through Action," Innovent's mission is to develop and commercialize high quality biopharmaceutical products that are affordable to ordinary people. Established in 2011, Innovent is committed to developing, manufacturing and commercializing high quality innovative medicines for the treatment of oncology, autoimmune, metabolic and other major diseases. On October 31, 2018, Innovent was listed on the Main Board of the Stock Exchange of Hong Kong Limited with the stock code: 01801.HK.

Since its inception, Innovent has developed a fully-integrated multi-functional platform which includes R&D, CMC (Chemistry, Manufacturing, and Controls), clinical development and commercialization capabilities. Leveraging the platform, the company has built a robust pipeline of 22 valuable assets in the fields of oncology, autoimmune, metabolic diseases and other major therapeutic areas, with 17 in clinical development, 5 in Phase 3 or pivotal clinical trials, three NDAs under review by NMPA with priority review status, while Tyvyt(®) (sintilimab injection), officially approved for marketing in China in 2018, has been the only PD-1 inhibitor included in the NRDL since 2019.

Innovent has built an international team of advanced talents in high-end biological drug development and commercialization, including many overseas experts. The company has also entered into strategic collaborations with Eli Lilly and Company, Adimab, Incyte, Hanmi and other international pharmaceutical companies. Innovent strives to work with all relevant parties to help advance China's biopharmaceutical industry, improve drug availability to ordinary people and enhance the quality of the patients' lives. For more information, please visit: www.innoventbio.com.

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SOURCE Innovent Biologics, Inc.