Jianghai Securities: The enthusiasm for DLL3 drug research and development is heating up, and the prospects for domestic ADC drugs are broad.

Jianghai Securities released a research report stating that as the support for the development of innovative drugs by the government continues to increase, and with the urgent demand of cancer patients for new treatment methods, the development of DLL3 target drugs will have a broader market space. It is recommended to pay attention to domestic pharmaceutical companies that have a leading position in the field of DLL3 target drug research and companies with advanced ADC drug development platforms. With the increasing recognition of domestically produced innovative drugs in the international market, companies with international cooperation and overseas potential are expected to further expand their market space. Event: In recent years, DLL3 (Delta-like ligand 3) has become a highly anticipated target in the field of cancer treatment, with a growing enthusiasm for drug development. DLL3 is highly expressed on the surface of tumor cells such as small cell lung cancer (SCLC), providing possibilities for targeted therapy. With many domestic and foreign pharmaceutical companies actively involved in the development of DLL3 target drugs, especially the rapid progress of domestically produced ADC drugs, the DLL3 track is becoming a new hotspot in the medical field. The main points of Jianghai Securities are as follows: Enormous target potential DLL3 is highly expressed on the surface of tumor cells in about 80% of small cell lung cancer, melanoma, medulloblastoma, and other neuroendocrine-derived tumors, and is almost not expressed on normal cells, making DLL3 a target that is almost "customized" for SCLC. Rapid progress of domestically produced ADC drugs Huaze Jing Pharmaceutical: ZG006 is a three-specificity antibody targeting CD3 and two different DLL3 epitopes, has been granted orphan drug designation in the United States, and is in Phase II clinical trials for third-line SCLC in China. ZAI LAB: ZL-1310 is the first domestically produced DLL3 ADC with publicly announced clinical data, showing good objective response rate and safety in extensive stage SCLC, with an ORR of 74%. Jiangsu Hengrui Pharmaceuticals: SHR-4849 is a DLL3 ADC with independent intellectual property rights, the global development, production, and commercialization rights of which have been licensed to IDEAYA Biosciences in the United States, with a potential total payment of $1.045 billion. INNOVENT BIO: IBI3009 is a new generation DLL3 ADC licensed to Roche for global development, with a potential total payment of approximately $1 billion. International cooperation and acceleration of overseas expansion The rapid progress of domestically produced DLL3 ADC drugs is not only reflected in clinical data but also in international cooperation and acceleration of overseas expansion. Hengrui and Xinda have reached significant cooperation agreements with IDEAYA Biosciences and Roche, marking the increasing recognition of domestically produced innovative drugs in the international market. Investment recommendation: It is recommended to pay attention to Suzhou Zelgen Biopharmaceuticals (688266.SH), ZAI LAB (09688), Jiangsu Hengrui Pharmaceuticals (600276.SH), and INNOVENT BIO (01801), etc. Risk warning: Risks of clinical trials, intensified market competition, policy changes, macroeconomic fluctuations.