Kelun Biotech (6990.HK): OptiTROP-Lung06 further validates sac-TMT's 1L PD-L1-negative nsqNSCLC opportunity

We view OptiTROP-Lung06 ESMO presentation as a strong Ph3 readout for Kelun Biotech's sac-TMT in 1L PD-L1-negative advanced non-squamous (nsq) NSCLC, where sac-TMT plus pembrolizumab delivered a highly significant PFS benefit versus chemo plus pembrolizumab, with median PFS of 15.0 vs 5.7 months (HR=0.49), while OS was still immature but directionally favorable with the sac-TMT arm at HR=0.58. While median PFS may fluctuate as the dataset matures given the relatively wide confidence interval at interim analysis, we believe the large sample size and robust HR support the durability of the efficacy signal. Together with a manageable safety profile and lower grade >=3 TEAEs versus the chemo arm (47.6% vs 60.6%), the data reinforce our positive view on sac-TMT following Lung05 and support its broader 1L NSCLC opportunity, including global development by Merck potentially directly in use with its PD-1/VEGF asset. ORR was broadly similar at 50.2% vs 47.3%, with median DoR doubling to 13.6 vs