A：The three main objectives of Latent Biotech under the new leadership are maximizing carvac, advancing the next generation pipeline, and strengthening execution across all fronts.

A：Latent Biotech reported adjusted net income of $63 million for the second quarter and indicated that it expects to maintain adjusted net income profitability for the second half of 2026.

A：Carvac's global net trade sales increased by 50% year over year to $657 million, with strong sequential growth of 10% compared to the first quarter and quarter-over-quarter growth of 9% in the U.S.

A：Encouraging updates include Lb 2102, a Dll 3 targeted Car T therapy for small cell lung cancer and large cell neuroendocrine carcinoma, demonstrating a manageable safety profile and encouraging clinical activity in a heavily pretreated patient population. Additionally, Lb 2501, a CD CD 20 group targeting in vivo car T therapy for relapsed refractory non Hodgkin's GM photoma, showed a 100% objective response rate and an 83.3% complete response rate in a dose escalation phase One study in an investigator initiated trial conducted in China.

A：The next steps for Lb 2501 include filing a U.S. Ind by the end of the year to initiate a U.S.-based clinical program in NHL and reporting additional data from the China study in due course.

A：The company is advancing studies on autologous and allogeneic cell therapies including CART 2, 5, 6, and others that could potentially expand the market opportunity into the first line setting across their autologous portfolio. They are developing therapies targeting CLO, 18.2 Dll 3, TPR C 5 d, and pursuing dual target approaches. Additionally, they are advancing several off-the-shelf Car T programs for autoimmune diseases and T cell malignancies, as well as in vivo Car T candidates.

A：The company believes it is well positioned for sustainable long-term growth. Financial milestones include an IND submission for Lb 2501, with a current cash position of approximately $965 million. They have demonstrated a revenue CAGR of 74% since the second quarter of 2023, with a significant improvement in operating margins. The company aims for adjusted net income profitability by 2026, supported by a durable commercial business, a deep pipeline, and a focus on execution. Strategic milestones include continued pipeline development, potential international expansion, and disciplined investment for future growth.

A：The company has noted the recent increases in international sales and plans to use constant foreign exchange rates for collaboration revenue going forward. This decision was made because a significant portion of the revenue is generated from international sales, and movements in foreign exchange rates can lead to a divergence between reported collaboration revenue by the company and its partner. Despite the impact of foreign exchange and international sales, the company remains confident in its adjusted net income profitability projections for Q3 and Q4.

A：Gross margin on net product sales grew 1% year over year, improving to 58%, which is an improvement compared to 41% in the first quarter of 2026. This improvement is attributed to the unwinding of one-time costs associated with manufacturing expansion in Q2. The company expects continued improvements over time through investments in manufacturing, leading to more reflective volume-based margins. However, there will still be quarter-to-quarter variability in gross margin, with Q3 expected to be in the lower 50% range and a rebound into the mid-50% range anticipated for Q4.

A：Total operating expenses increased only 7% year over year, reflecting disciplined investment and operating leverage. Research and development expenses decreased 2% year over year, while selling, general, and administrative expenses increased 19%, primarily driven by investments to maintain leadership in BCMA Car T markets. This resulted in an operating margin improvement to a positive 15% from negative 9% in the second quarter of 2025. The company has achieved quarterly profitability and is negotiating a unilateral advance pricing agreement with Chinese tax authorities, which will affect future income tax expenses.

A：The company remains committed to delivering sustainable profitability on adjusted net income while advancing its in vivo Car T pipeline and making modest capital investments for manufacturing capacity expansion. Key objectives include growing business through 2026 with an increasing portion from second to fourth line patients, achieving adjusted net income profitability for the second half of 2026, submitting an IND for Lb 2501 in Q4, and presenting additional in vivo data at future medical conferences.

A：The ongoing transition is a period of leadership transition, not strategy transition, as indicated by the Q2 financial results.

A：An investigator initiated clinical study in China is being conducted by Legend evaluating Lb 2505, an investigational BCMA targeted in vivo Car T therapy for multiple myeloma. Further details cannot be shared at this time due to the terms of the collaboration agreement with J.

A：The minimum duration of response needed for confidence in the durability of a complete response is not specified, but the long-term goal is to share data at the six-month mark. Updates on Lb 2501 will be provided at future medical conferences.

A：The feedback indicates that physicians are gradually becoming comfortable with managing and anticipating the tasks in the study. There is also some commentary that the combination might be professionally sequenced for later line usage. The feedback from Key Opinion Leaders (KOLs) is focused on the optimal sequencing of treatments, with the conversation shifting towards benefits for patients who receive Car T first.

A：As the proportion of outpatients increases to approximately 60% of the overall mix, it could impact gross margins. The company is focused on the cost of goods sold declining over time with a path to achieving industry standards of around 75% gross margins as volume levels increase and reach a steady state.

A：The recent equity raise was an opportunistic move following strong data presented at Eha, aimed at accelerating the development of Lb 2501 and the broader in-vivo platform. This provides better business development options in the future and maintains confidence in profitability goals. The company will be in a stronger position to fund its R&D efforts following the loan repayment to JJ.

A：The implications of the tax rate in China on global profits are tied to whether the tax will result in a cash payment or an accounting adjustment, but the specifics are not detailed in the transcript.

A：The payment to J and J mentioned in the transcript is related to historical CapEx. It is part of a collaboration agreement where a loan of around $300 million with accrued interest over time has become a current liability. The company has been making payments down on both principal and interest and expects to fully settle the liability in the current year.

A：The board is conducting a thorough search process for the full-time permanent CEO position without setting an artificial deadline. They are looking holistically at various qualities to find the best long-term leader for the company, considering the stage of the company's growth.

A：The company plans to fill the CEO position through an ongoing search process without specific timelines shared at the point of the transcript. As for in-vivo car T development, the company intends to move towards IND submission for BCMA in the second half of 2026, planning to conduct phase 1 trials themselves due to existing capabilities, financial flexibility, and resources. The company remains open to partnerships for further development.

A：The J and J partnership is specifically related to BCMA car-T in multiple myeloma. Although there is collaboration with J and J, the company's focus remains on its own in vivo programs, which have potential for BCMA, CD19, CD20 targets in autoimmune diseases. The platforms differ significantly, as J and J's focus is on preclinical circular mRNA and L and T, whereas the company's platform is LV-based and has already shown clinical data in non-shootout lymphoma.

A：Updates on allogeneic car T cells are not provided in the transcript, but the focus is on the in vivo platform with prioritization. However, the company believes that allogeneic cell therapies have a place in treatment and will continue to provide updates on the G30 ID program and other projects.

A：The current mix of the business in terms of line of therapy is over 70% in the second through fourth line, with a significant shift from prior periods, suggesting that the company is making progress in using Car T therapy earlier in the treatment paradigm.

A：The company is looking across a range of potential solid tumor targets and acknowledges the unique challenges in this area. They have not disclosed specific plans for extending the in-vivo platform into solid tumors, including the role of LLL3, as more information will be provided in the future.

A：The company is growing in second and third line and sees this as the fastest growing part of their business. They focus on early line opportunities from both a clinical and commercial execution standpoint.

A：The hazard ratio of 0.11 on PFS in second to fifth line patients indicates a potential benefit of the treatment, implying that patients have prolonged survival and better outcomes.

A：The company maintains global sequential growth quarter on quarter, and although specific remarks about U.S. sales growth in the third and fourth quarter were not directly confirmed, the focus is on maintaining alignment with J and J's progression and the unique value proposition that car T provides.

A：There is a robust conversation about sequencing in medical conferences, with real-world evidence showing that patients who receive car T first have prolonged survival, better outcomes, and fewer opportunities for antigen escape or mutations.

A：Potential MRD results could inform the calculus for the possibility of filing for car 6 and potentially accelerating the time to market for CV in the frontline transplant population, pending further analysis and FDA discussions on the use of MRD as a surrogate for registration purposes.