BeOne Medicines AG (ONC) Earnings Call Transcript & Summary

Good morning and good evening, everyone. Welcome to JPMorgan's 2022 Global Healthcare Conference. My name is Jing Ulrich. I'm JP Morgan's Vice Chairman of Global Banking. So our Global Healthcare Conference is a banner event every year, and we are honored to present some of the best companies in the health care space to global investors. BeiGene is a global science-driven biotech company focused on developing innovative and affordable medicines to improve treatment outcomes and access for patients worldwide. With a broad portfolio of about 40 clinical candidates, BeiGene looks to expedite development of diverse pipeline of novel therapeutics through in-house development capabilities and collaborations. We are honored to have with us today John Oyler, BeiGene's Co-Founder, Chairman and CEO. John cofounded BeiGene in 2010 and has since been the driving force in steering BeiGene from a start-up biotech in 2010 to the driving force in the biopharma space that it is today. As the first ever health care company to achieve listings across the NASDAQ, Hong Kong and Shanghai STAR Board exchanges, BeiGene is truly a trailblazer and a pioneer in the health care space. We will commence the session today with a presentation by John followed by Q&A session. Without further ado, let me hand over to John for the presentation. John, over to you. Thank you so much for joining us.

Thanks so much, Jing. Good afternoon, and good evening, everyone. As Jing said, I'm John Oyler, the CEO and Co-founder of BeiGene, and I'd like to thank JPMorgan Chase for bringing us together today virtually. I'd like to start with one thought that BeiGene as a company that is fundamentally different than any other company in our industry. Our perspectives on the industry are different. Our vision is different and the strategic competitive advantages that we've built are different. We know that we're somewhat hard to understand, we're much more than our pipeline. Could you please turn to Slide 2 in your deck? Before we continue, please be reminded that I'll be making forward-looking statements in today's presentation. And of course, our business carries certain risks. Some of these are discussed in our filings with the SEC, the Hong Kong Stock Exchange and the Shanghai Stock Exchange. Can you please turn to Slide 3? Let me begin by noting how much the environment we all work in has changed over the past year. Last year, there was euphoria. Today, it's just the opposite. The biotech sector overall is down, the cost of capital has increased dramatically and COVID is yet to recede. That said, some things have not changed. Cancer remains a threat to global health. And this year, we expect to lose 10 million people globally to the terrible disease. I stand by my long-held position that to succeed in this fight for life requires transformative innovation and collaboration across the industry, academia, government and medicine. Xiaodong Wang and I founded BeiGene together as a biotech company to fight for cancer with the belief that far too many people around the world were still waiting for affordable impactful medicine. We believe that the industry was entering into a time of fundamental change. This was driven by regulatory policies, scientific progress and globalization. We believe there was an opportunity, a once-in-a-lifetime opportunity to build a truly transformational company to translate exceptional science into impactful medicines and to do things differently so that we could enable more rapid and much more cost-effective clinical development. We believe that we could transform the industry to profitably bring medicines affordably to billions more people around the world. In today's presentation, I'll walk you through how we're translating that vision into action and the strategic competitive advantages that set our company apart. Before I do, I'd like to emphasize that BeiGene is well positioned and was well prepared for the increased cost of capital that's occurring this year. We've built cash reserves, partnered programs recently reducing downstream expenses and generating cash and meaningful near-term traditional milestones. We're marketing today 11 approved medicines with 2 foundational approved medicines that are just beginning to generate revenue and from which we expect rapid growth. Could you please turn to Slide 4? 2021 was a transformational growth year for us. We're a different company than we were a year ago. We have $7.6 billion would represent our end of third quarter cash balance plus the STAR IPO net proceeds and the TIGIT upfront payment. Last year, we generated nearly $1 billion in collaboration upfront payments. We're commercializing 11 approved products. There's 5 new approvals with Brukinsa. We're now in 43 markets across the globe. We made incredible progress in clinical development, continue to build the important capabilities in this area. And we've continued to attract the best talent globally and build our capabilities internally, and we're now expanding our global manufacturing footprint to Princeton, New Jersey, our new innovation center. Please turn to Slide 5. I'd like to help you understand the 5 key areas of strategic competitive advantages that show how BeiGene is very different. I'll explain why these differences can enable us to achieve our vision of becoming a truly transformational company and how they're going to help BeiGene make innovation and innovative medicines more readily available and accessible and affordable to the people who need them across the world. Let me describe these competitive advantages. First, we have one of the largest oncology research teams globally, more than 700 scientists. Its strength has been validated by our global clinical trial results, our regulatory approvals and our collaborations. Again, these collaborations alone generated $1 billion for our cash reserves last year. Second, we have a very unique clinical development approach by internalizing our clinical development, working more broadly across the globe and investing in technology, we can meaningfully reduce cost and time without sacrificing quality. We'll talk later about how important that is. Third, we're building a strong portfolio. This includes 2 cornerstone assets that will support the development of future therapies, including combination medicines, which are expected to also become major revenue sources on their own right. Fourth, we've been creating a truly global commercial team. It already includes more than 3,400 people, and this helps us drive broader access to medicines. In addition to being a clear leader already in China, we're currently in 9 of the 10 largest pharmaceutical markets and the team is generating substantial and rapidly growing revenue. And the final point is our financial strength, which provides us the ability to continue to pursue our mission and invest opportunistically to create long-term value. Could you please turn to Slide 6? I'm going to start with our first competitive advantage, research. We are a science, logic and fact-driven company, and we've built this into the very core of our culture from inception. Over the past 10 years, we've nurtured the culture and maintained it as we grew to over 700 scientists today. We've retained the passion, the entrepreneurship and the scientific rigor that united our initial team. The research team is entirely internal, allowing us to have cost advantages, and the quality of our work has been validated as I mentioned before. Please turn to Slide 7. My co-founder, Xiaodong Wang insisted from day 1 that every program in our company have a differentiated biological hypothesis to be able to move forward. Each of our programs has this. They aren't [indiscernible] programs. For example, our BTK program leveraged a biologic hypothesis that ibrutinib was only able to marginally sustainably inhibit BTK in blood. And it is well known that it's much harder for a small molecule to reach and to be active in disease compartments that are not in the blood, such as lymph nodes, spleen and bone marrow. If a more efficacious BTK inhibitor could be developed that could better sustainably inhibit BTK in all these disease compartments that could be very compelling. This hypothesis was shown to be true in animal models, and now we're seeing the clinical data. Today, we're bringing into the clinic programs with differentiated mechanisms, such as our HPK1, which have the potential to be first in class. Please turn to Slide 8. As I said before, we're validated by our collaborations. And last year, there were 2 with Novartis around our PD-1 and around our TIGIT. These 2 agreements validate the strength of oncology brought in over roughly $1 billion in cash. And I'd like to point out that TIGIT or Oci is already one of the most advanced candidates in its class. It's in multiple Phase IIs and Phase III trials. We'll share more about that collaboration later. Could you please turn to Slide 9? We're on a path to become 1 of the most prolific oncology research teams in the near future. In our first decade, we brought forward 11 molecules into the clinic. Currently, we have 53 programs, about half of which are expected to be first in class. We plan to bring 10 additional new molecules into the clinic in the next 24 months. And starting from 2024 and we anticipate 10 or more new molecules entering the clinic each year. Yes, I said 10 each year. It's amazing. Technology is the key for our industry. And in the past few years, in addition to team growth, we focused on investing in key technology platforms, including our CDAC protein degradators, our bispecific, trispecific antibodies, ADC, CAR NK and mRNA therapies. From the beginning, we followed the science for patients. We have a thoughtful approach, a clear rationale and high hurdles for everything we're doing. Please turn to Slide 10. I want to switch now to our second strategic competitive advantage: clinical development. The biggest pain point in our industry is clinical trials. They account for 75-plus percent of the cost and the vast majority of time required to bring most oncology medicines to a patient. It's not research, it's not manufacturing, and it's not commercial. It's clinical trials. It's incredible. There's many reasons why such a pain point exists in our industry, but probably the largest from my perspective, is that almost all companies rely on third-party CROs, and they're paid based on activity and have no real incentive to modernize, adopt the latest technology and make things more efficient. It's widely recognized that our industry is decades behind in adopting the latest technology and implementing operational excellence in this area. Another reason why is there's such a pain point around clinical trials is that the centers in which we've historically run trials are at capacity. And it just takes too long to enroll patients can cause delays of quarters. BeiGene chose to address these issues by building its own internal clinical development team. It's over 2,200 people. We're largely CRO free. And there are 3 reasons why we did this. The first is to increase enrollment speed and lower cost. To do that, the industry must be more inclusive in its clinical trials. To do this, we need to work broader globally and locally. You have to go to sites that are not very popular with CROs. They require more handholding to ensure quality. They require more work. Whether that's in Australia, New Zealand, China, Poland or the next set of sites in the U.S., it just takes more energy and resources to do this upfront, but it's really important for the industry. There are just not enough patients available in the major clinical trial centers that have been used historically for all the trials being run today. So to be broader globally and locally, we had to be internal. Second, to adopt the latest technology and implement operational excellence, you have to control your own system. You can't ask a CRO to optimize their process. They're working with multiple clients. If you own it internally, we're able to modernize and optimize the infrastructure to implement best practices, operational excellence and, of course, the latest technologies. And third, there's clear cost advantages once you reach scale by removing the markups that are charged by CROs. Please turn to Slide 11. And now today, we're seeing the results of this endeavor. And we believe that we have built one of the most important strategic competitive advantages that exists in the entire industry. And it's around its biggest pain point that has the most leverage. With relation to speed, TIGIT is a good example. We're running strong in the TIGIT race, having gotten Oci off to a fast start. It went from first in human to a broad program with 2 Phase IIIs and 5 Phase II trials within only 24 months. Regarding cost advantages, we so far have been able to achieve about 30% cost savings, and we aspire to do better than that over time. And regarding quality, our quality remains high and within global regulatory standards. We've been through many inspections with satisfactory outcomes, including the FDA, Swissmedic, China NMPA, Russia MOH and of course, all of our global partners. Please turn to Slide 12. I'd like to now speak about our third competitive advantage, our pipeline. It's wonderful to have a pipeline big enough to render it unreadable. There's more eligible versions of this in our investor decks online. A couple of things I would highlight, however. In addition to our 3 marketed products, BTK, PD-1 and PARP, the TIGIT antibody has initiated these 2 Phase III studies. Keep an eye on that clinical development program. Secondly, we anticipate BCL-2 will start pivotal trials later this year. Third, in addition, we're expecting initial clinical data readouts from quite a few of our early-stage programs, including OX40, HPK1, TIM-3 and PI3K delta. Could you please turn to Slide 13? Our collaboration pipeline now adds new modalities in a variety of potential best-in-class and first-in-class candidates as well as novel combinations. In the last year, we've seen a real recognition of the value of our oncology clinical trial expertise in growing geographies. And our partnerships will continue to reflect this trend and the value that partners place in these capabilities. Let's move now to our cornerstone medicines. Please turn to Slide 14. BRUKINSA is helping unlock the enormous potential of the global BTK market which is projected to reach more than $15 billion in 2026. From the beginning, as I mentioned, our scientists set out to develop a BTK inhibitor that address the limitations of other members of the class to meaningfully improve both efficacy and safety outcomes for patients. It all ties back to the biologic hypothesis but other BTKs struggle to achieve sustainable inhibition even in the blood and that it's far more challenging to get a small molecule into the other disease tissue compartments and thus, sustainably inhibit the target in all disease compartments. We believe that BRUKINSA so much that we boldly ran 2 separate head-to-head studies against ibrutinib, one in Waldenstrom and one in CLL. With these results in hand, the combined results from more than 35 studies of BRUKINSA, we think the collective data supports our best-in-class hypothesis. We're excited to see our data continue to mature. We're already approved in 43 countries and with the possibility of having more approved indications than any other non-ibrutinib BTK, BRUKINSA is at the foundation of our long-term hematology franchise. And it's one of very few critical therapeutic building blocks for the future of oncology. Could you please turn to Slide 15? And I'll share a little bit of data. While we're excited to achieve the approvals in mantle cell, Waldenstrom's and marginal zone, outside of China, CLL represents the vast majority of the commercial opportunity for the BTK market. Based on the strength of the readouts of BRUKINSA's pivotal Phase III CLL studies in 2021, we're now well positioned to proceed with CLL regulatory filings this year to secure a potential U.S., EU and other approvals. Beginning with our most recent readout from SEQUOIA, BRUKINSA's first-line CLL study versus BR, you'll note that BRUKINSA delivered a clear PFS superiority at this time point. This is particularly noteworthy because in contrast to other studies comparing BTKs to chemoimmunotherapy, the randomized portion of the SEQUOIA study did not include patients with a 17p deletion. This phenotype is known to not respond well with chemoimmunotherapy. So our hurdle was higher. While not pictured here, a nonrandomized arm enrolling patients with a 17p deletion, one of the largest cohorts of 17p patients ever prospectively treated with a BTK on a study did show a strong PFS for patients treated with BRUKINSA underscoring regardless of 17p status, BRUKINSA delivered robust PFS outcomes versus chemoimmunotherapy. These combined PFS results form a strong foundation for filing BRUKINSA globally for all patients with first-line CLL. From a safety perspective, the study results were consistent with established profile for BRUKINSA, while the reported rates of AFib approximated the background levels of AFib that are typically seen in CLL patients. Could you please jump to Slide 16? Moving on to the ALPINE study, our Phase III head-to-head of Brukinsa versus ibrutinib in an all-comer relapsed/refractory CLL was presented as a late breaker at EHA. The presentation was based on the achievement of the primary endpoint on both noninferiority and superiority in ORR versus ibrutinib. This is a first for any BTK. We show here the preliminary 12-month landmark analysis of the PFS results, illustrating a separation favoring Brukinsa at this time point. While some would position the ALPINE results as having limited follow-up, the recently published long-term PFS results from 123 CLL patients treated with Brukinsa showed the 3-year PFS rate was estimated to be 83.6%. You can find more details in our presentation appendix. Taken together with SEQUOIA, these results validate our confidence in zanu as a treatment that can improve safety and efficacy outcomes for hundreds of thousands of patients living with CLL. Could you please turn to Slide 17? I want to switch now to PD-1. Similar to the BTK class, we see a tremendous opportunity globally in the PD-1 market. This represents the largest growing oncology class with expected revenue exceeding $50 billion by 2025. Our view is the success factors for the PD-1 class of change. Initially, they were clinical excellence, generating a broad mono or standard of care label and numerous indications and commercialization in the U.S., EU and Japan. But looking ahead, we anticipate a different story. Strong clinical execution will always be important. But having the base label and the right combinations to combine to develop the IO solutions of the future will be a key success factor. And as you can see, the global opportunity is growing. It's no longer just about the U.S., EU and Japan, the substantial portion of the market opportunity is in the rest of the world. Players are going to win need the ability to achieve regulatory approvals and compete successfully commercially in all of these markets. Please jump to Slide 18? Tisle is well positioned for global success. The global program that we ran enrolled over 9,000 subjects, more than 2,800 of which were outside of China. Our broad program includes 11 global Phase III trials. That means the trials were designed with global enrollment and with the aid of regulatory consultations with the U.S. and EMA. We do not believe that these trials face the same issues as those with China-only data. We expect Tisle to achieve a broad global label and become a cornerstone medicine for combinations, which are the IO. With Novartis in North America, Europe and Japan and BeiGene focused on the rest of the world, we should have one of the strongest commercial presence. And I'd also like to point out that there are meaningful near-term milestones and of course, meaningful royalties for Tisle. Could you please jump to Slide 19? BeiGene also discovered and developed Oci or TIGIT. This is one of the leaders in the space, and it was recently partnered to Novartis. We've already enrolled over 700 subjects on the trials and have 2 Phase IIIs underway. In combination with PD-1, Oci has the potential to transform the treatment of lung cancer. TIGIT has the possibility to grow into one of the most meaningful classes of all oncology medicines, and we're in a clear leadership position today. Please turn to Slide 20. I'd now like to talk about our fourth competitive advantage: commercial. From inception, our vision has been to get more high-impact medicines to more patients and to do so globally. This chart begins to demonstrate our intention, and we just began to color it in. The dark blue represents markets where we already have medicines approved, light blue is markets with regulatory submissions, and we expect more to come. Since last JPM, BRUKINSA has numerous approvals in 41 markets, including 9 of the top 10 pharmaceutical markets. From Canada to Brazil, Australia to Russia, we have colleagues on the ground who are in multiple launches upcoming. Although not represented on this map, we have more than 8,000 people across 5 continents and 30 offices. That again, sets us apart from most other biotech companies. With our growth across the board in the past year, we're truly global in operating at scale with experience. We have a different vision and hypothesis about our industry that innovative oncology medicines can and will reach far past the U.S., EU and Japan and that they can be brought affordably and profitably to other regions of the world and that this market will be far larger than people expect. Please turn to Slide 21. Much like our research organization, we started with a small but mighty commercial team, and now we've built this into an internal powerhouse. In our most recent reported period, the third quarter, we had total product revenue of $192 million. As we look forward to 2022, we see a commercial team of over 3,400 driving revenue growth around the globe with teams already in place in many of the largest markets. In North America, we've expanded into Canada, while our U.S. team has continued to grow BRUKINSA sales and launch multiple new indications. With a heme-focused team today, we have the opportunity to efficiently expand into solid tumors for Novartis collaborations. In China, our team has expanded throughout the country and is actively driving uptake for our internally developed medicines as well as our partners, both across solid tumor and heme. We believe we're already one of the true leading oncology companies in China. And in Europe, we recently gained approval for BRUKINSA for Waldenstrom's and in the last few weeks, successfully launched in Germany and Austria with more countries on the way. Our presence in APAC is also rapidly expanding with the Australian launch of BRUKINSA slated in the coming months. And we're building unique distribution capabilities in new markets. We're now one of the few biotech companies capable of helping partners commercialize in major markets and far beyond. With our rapid advancing commercial capabilities and a global team in place and expanding, we expect this year's commercial revenue to grow substantially. And beyond the successful commercialization of our own portfolio, we've recently gained the ex-China commercial rights to other molecules. These collaborations leverage our capabilities and bring great science to patients around the world and opportunities to grow our revenue incrementally from our internally discovered portfolio. Please jump to Slide 22. So for these collaborations, we'll start with Novartis, great partner. Last month, the TIGIT collaboration, previously PD-1. Given our reported data, there's huge excitement around TIGIT and its potential for a major role in IO. It's already another PD like race and the leader requires a really broad fast program and early commitment. We're also bringing together the strength of both commercial teams. BeiGene can build capabilities in North America to co-detail, has retained rights to markets representing 6.6 billion people. And we're very pleased with the economics, which both reduced risk exposure and also our spend at a time when the cost of capital is high. Please turn to Slide 23. I BeiGene is also able to do a variety of deals because of the breadth of our strategic capabilities that we can offer partners. The PD-1 and the BTK, we have top-notch clinical and commercial and manufacturing capabilities. Our clinical and commercial expertise is a clear value proposition for partners like Leads for their LAG-3, which will help them bring to market worldwide. Our exceptional R&D organization can help companies like Strand and Shoreline to accelerate progress for their high-value candidates. And for collaborations like those with Zymeworks and Mirati, we're helping accelerate their broad Phase II and Phase III trials at lower per patient costs. Please turn to Slide 24. This is our fifth competitive advantage. At a time when the cost of capital is rising for many companies, BeiGene is well positioned financially. We can share with you the pro forma of $7.6 billion, which is end of third quarter plus STAR IPO and TIGIT upfront. We already have substantial revenue from cornerstone assets with very high growth potential. Subject to data and other events turning out as we respect or in our favor, we could bring in nearly an additional $1 billion by the end of 2023. We're committed to rigorous financial discipline for stability and our success over the long term. And all decisions we're making today and moving forward reflect the higher cost of capital that exists in 2022. I'd now like to jump to the next slide, Slide 25. The year ahead has tremendous productivity with a number of key catalysts. We have CLL filings with the FDA and EMA. We have potential for first U.S. approval for Tisle and esophageal as well as additional filings underway in the U.S. and EU for non-small cell lung cancer. I've talked about the fast-tracking TIGIT and you'll see pivotal trials advancing. Our early assets are expected to make steady progress, including enrollment in pivotal trials for BCL-2 as well as dose expansions for OX40 and HPK1. And our combination strategy moves forward with Tisle plus LAG-3 as well as Tisle with Sitra. As you can see on this chart, we'll have lots to share with you in the coming months as we execute and focus on our short-term priorities. Please jump to Slide 26. So let me just come back to our competitive advantage that I shared at the start. We're building a next-generation biotech company that we think has a unique role to play in this sector. The key advantages that we've built are around research. They're around clinical advantages for cost and time by doing things ourselves and having our own team. They're around the portfolio which exists, and we're developing. They're around our commercial footprint and our advantages in China and other places. They're around our financial stability. Could you please turn to Slide 27? So I'd like to leave with 2 comments on this slide. The first is same as I began the presentation. BeiGene is a very different company. It's also well positioned. We recognize the cost of capital has changed. There's other issues, but we'd like to clarify, we're very well positioned in this environment with strong cash reserves, fast-growing revenue, cost advantage capabilities and disciplined investment that recognizes the 2022 cost of capital. We believe BeiGene is well on our way to achieving our mission and that the 5 strategic competitive advantages position us extremely differently and extremely well to grow into a leading oncology company. With that, I'd like to leave you with the following thoughts. We're fighting cancer. It doesn't recognize borders. It doesn't watch the stock prices. Since the pandemic began, roughly 4x as many people have died globally from cancer as from COVID. Our industry is only addressing a fraction of the true need today. There's so much more to do than has been done both from a geography and from a disease perspective. All that said, science is working. The biotech industry continues to make major impactful breakthroughs that help patients. It impresses me I'm hard to impress, the impact that the industry has had on COVID and that the industry is having on cancer is truly inspiring to one. Lastly, no individual no company, no country, no organization can fight cancer alone. We want to thank our patients, our doctors, our investors, our collaborators, the regulators and fellow oncology companies for everything they're doing in this fight against cancer. Thank you.

John, thank you very much for your excellent presentation. Shall we begin the questions-and-answer session?

Sure.

Great. We have received some questions while you were speaking, John. So may I raise the first question from the audience. The first question is, given the recent dialogue around the FDA positioning on accepting Chinese data, how might this impact your PD-1 filing in esophageal?

Sure. So maybe I could defer that to Wang Lai.

Thank you, John. This is Wang Lai. I'm the head of -- Global Head of R&D at BeiGene. To address this question, first of all, we are not concerned at all about our second-line ESCC filing in the United States. The U.S. filing for atezolizumab in the second-line ESCC was based on a global data pack including our Phase III trial in 512 ESCC patients enrolled around the globe with close to 40% of those patients were enrolled outside of China, and also that the safety data pack from many other trials conducted globally. The initial Phase I alone enrolled over 450 patients, all outside of China. To date, we have run a 2 global program with 9,000 patients enrolled into our Tisle trials with close to 3,000 patients outside of China. There are 11 global pivotal studies involving Tisle in large indications, including lung, esophageal, gastric and liver. Our broad program will support in Novartis filing in their territories. This what enable potential filings in the United States, Europe and other markets outside of China. We will be the only China-developed PD-1 going to Europe in the short term because it requires EU data for filings. It has been our experience that FDA is a scientific and factor-based organization and has a long history of saying and demonstrating by their actions that as long as the study population represents U.S. population and the treatment used in the study represents a clinical process in the U.S., the data is of high quality, as long as you can justify those areas, the foreign data can be accepted. With our mantle cell lymphoma filing and approval for BRUKINSA, it was primarily based on a China pivotal Phase II accompanied by the initial Phase I data in mantle cell lymphoma cohort with ex-China data from 550 patients to support the filing. For BRUKINSA program, we have enrolled over 3,000 patients outside of China. What had happened was some Chinese companies went ahead and filed with China-only pivotal trials. These trials were not discussed with the regulator at the beginning on the design and patient allocation. So there are questions on the representation of the trial relevant to U.S. current process in addition to a range of other potential regulatory issues. If you look at BeiGene, our global pivotal trials all had regulatory advices from FDA, EMA and the CDE at the beginning of the study. It has the clear prespecified primary endpoints and were conducted in a global fashion under standard that is acceptable to regulatory agency around the globe including FDA. We also have Novartis validation and the collaboration on it. So we believe we're in a very good position on having the global data to support a potential approval in this indication and many more to come.

That's great. Thank you very much. John. A, quick reminder on timing, I think about 2 minutes to go, but there are many questions. So I may raise the second question. So recently, investors have been concerned about whether biotech companies can make money in China. How do you see that evolving? I'm going to combine another question to this one, which is how does BeiGene's approach to clinical trials different from other companies? And why is this important? So you have 2 minutes to go, John.

Well, [indiscernible], why don't you address the second one? And if we don't get to the third, I talked about it a lot anyway. So...

Thank you very much. So China market continues to be a big market in terms of volume and also the second biggest market in terms of value. And longer term, China is definitely committed to building a profitable, innovative biotech industry. We see this and at the beginning of the [indiscernible] industry, you probably could say this is clouded. But over time, this market will be definitely differentiated. And head for A player, and so BeiGene is definitely one of them. We have built 3,400 people sized commercial team with all the enabling function, not just the front line sales reps, but also key account access team and the policy team and et cetera, in the central level and also in the province level. And we are very confident over time, and this will be a bigger player in the market and to play a leading role in the market. So I'll stop here because of the timing.

Great. John, do you want to make a quick comment on the last question, about 1 minute to go.

Yes. I mean I think I just would reiterate that the most important aspect of our industry is clinical trials. It's -- for most things, it's over 75% of the cost, and it's the vast majority of the time. And being truly excellent in this area, it's so obvious that every company should be saying, we want to be the #1 oncology clinical company in the industry. BeiGene is saying that very clearly, and we're taking actions to try to achieve that. Now we're growing into it, but we're trying to, and that's our aspiration. And we think this is the area that we're focused on, but the whole industry should be to get many, many more patients enrolled in trials to reduce trial costs so that medicines can be more affordable and available globally for many, many more patients. We think it's real, and we think there's lots of room for improvement from even where we are today. And that's where the industry needs to go.

Excellent. So many thanks to you, John, and to your management team for sharing your very exciting growth story, and thank you again for participating in the JPMorgan 2022 Healthcare Conference. We wish you all the best. Thank you very much.

Thanks, Jing. Thanks, JPMorgan. Thanks, everyone, who listened. Have a great day.