Summary of Key Points
Kexi Pharmaceutical's first global CAR-T therapy for solid tumors, "Kailimei," was approved for market in June this year (for advanced gastric cancer) and is priced at 990,000 yuan. The first prescription has been issued, and patient cell collection has begun; revenue is expected to be recognized in the second half of the year. The company forecasts that sales will peak above 2 billion yuan, with 200 treatments completed by 2026. Meanwhile, Kexi achieved revenue of 62 million yuan in the first half of the year with another CAR-T therapy, "SaiKaize," representing a 21.5% increase, and its losses have narrowed. To address the high cost of CAR-T therapies, the company is developing generic and intravenous (in-body) CAR-T products, aiming to reduce the financial burden on patients through insurance programs such as million-yuan medical insurance and public welfare insurance schemes, and also plans to attract international patients.
Detailed Analysis
1. The Commercialization of Kailimei: From Approval to Actual Sales
Kailimei is the world's first CAR-T therapy for solid tumors (advanced gastric cancer). After its approval in June, significant progress was made in August: Beijing Gaobo Hospital issued the first prescription nationwide, Zhongshan Hospital completed the collection of patient cells (a necessary step in the treatment process), and Jiahui International treated a foreign patient. This marks a crucial shift for the company, moving from the research and development phase to the revenue-generating stage.
2. How to Afford the High Price of 990,000 Yuan?
The price of 990,000 yuan is unaffordable for most families, so Kexi is focusing on establishing a payment system:
- The therapy is already covered by medical insurance plans like ZhongAn ZunXiang eSheng (which can cover part of the cost);
- Negotiations are underway to include it in local government-supported insurance programs such as Shanghai HuHuiBao and Guangdong SuiSuiKang, which have lower reimbursement thresholds;
- It has also passed the review process for inclusion in the national commercial insurance innovation drug list, potentially expanding coverage.
In essence, Kexi relies on insurance to help patients afford the therapy; otherwise, it will remain unmarketable.
3. Sales Targets: Peak of 2 Billion Yuan and 200 Treatments by 2026
The company expects Kailimei to generate peak sales of 2 billion yuan and achieve 200 treatments by 2026. Although 200 treatments at 990,000 yuan amount to only 198 million yuan, the company is confident about its targets:
- Gastric cancer is a common cancer in China with a high demand for advanced treatments;
- Kailimei is the world's first CAR-T therapy for solid tumors, providing a unique competitive advantage;
- With a more robust payment system in place, more patients will be able to afford the therapy, leading to increased orders;
- The company also plans to attract international patients through various channels (treatment in China, access via NPP projects, and overseas registration).
4. Company Performance: Supported by SaiKaize, Losses are Narrowing
Kexi's revenue in the first half of the year was 62 million yuan, primarily from SaiKaize (used for multiple myeloma). This therapy is sold through East China Medicine and has been marketed in over 20 provinces and cities, with 110 orders received. Losses amounted to 71 million yuan, a 400,000 yuan reduction compared to last year, indicating that while the company is not yet profitable, its costs are being controlled.
5. The High Cost of CAR-T Therapies: The Future Directions
Currently, both Kailimei and SaiKaize are "autologous CAR-T" therapies, which require individual cell extraction, modification, and cultivation, resulting in high costs. The industry is exploring two solutions:
- Generic CAR-T: Producing cells from healthy donors to reduce costs (more suitable for applications like multiple myeloma);
- Intravenous CAR-T: Injecting the modified cells directly into the body, making treatment more convenient (especially for chronic diseases like autoimmune disorders).
Kexi is simultaneously developing these technologies, which, if successful, could significantly lower the cost of CAR-T therapies and increase their accessibility.
Conclusion
Kexi Pharmaceutical's Kailimei represents a milestone in the field of CAR-T therapy, but the high cost remains a major obstacle. The company is working on commercialization and reducing patient costs through insurance, while also investing in future technologies to address these issues. For investors, key factors include the actual number of orders for Kailimei, the implementation of payment systems, and the progress of new research and development. For patients, it is crucial that insurance coverage expands to make these expensive therapies more affordable.