Core Viewpoint - Daiwa maintains a "Buy" rating for China Biologic Products (01177) and raises the target price from HKD 5.6 to HKD 10, reflecting an upward revision in revenue and earnings forecasts due to improved sales of innovative drugs and expected dividend income from Sinovac Biotech [1] Group 1: Financial Projections - Revenue forecasts for China Biologic Products for 2025 to 2027 have been adjusted upward by 1% to 6% [1] - Earnings per share estimates have been increased by 56% to 106% [1] Group 2: Product Development - The sales of innovative drugs are progressing as expected, with a 27% year-on-year increase in revenue for innovative drug products, reaching RMB 7.8 billion in the first half of the year [1] - The company anticipates launching a total of 21, 26, and over 35 innovative products in 2025, 2026, and 2027, respectively [1] Group 3: New Drug Launches - The report highlights three new drugs expected to be launched by 2027: TQC3721 (PDE3/4), LM-302 (Claudin18.2 ADC), and TQC2731 (TSLP mAb) [1] - The authorization deal for TQC3721 (PDE3/4 inhibitor) is expected to be completed within 2025, as the company is revising terms with potential partners [1]

Core Viewpoint - Daiwa's research report indicates that China National Pharmaceutical Group's innovative drug sales are progressing as expected, with an upward revision of the three-year product launch plan, projecting a total of 21, 26, and over 35 innovative products by 2025, 2026, and 2027 respectively [1] Group 1: Product Launch and Projections - The main change for China National Pharmaceutical Group is the addition of three new drugs in 2027: TQC3721 (PDE3/4), LM-302 (Claudin 18.2 ADC), and TQC2731 (TSLP mAb) [1] - The company anticipates that the licensing deal for TQC3721 (PDE3/4 inhibitor) will be completed within 2025, as it is currently revising terms with potential partners [1] Group 2: Financial Outlook - Daiwa maintains a "Buy" rating for China National Pharmaceutical Group, raising the target price from HKD 5.6 to HKD 10 based on discounted cash flow [1] - Revenue forecasts for the company from 2025 to 2027 have been increased by 1% to 6%, with earnings per share estimates raised by 56% to 106%, reflecting the upward revision in innovative drug sales and other income projections due to expected continued dividend income from Sinovac Biotech [1]

Group 1 - The Hong Kong innovative drug concept stocks experienced a significant decline on September 17, with major companies like China Biologic Products, Weiya Bio, and Fosun Pharma dropping over 4% [1] - Other companies such as Junshi Biosciences, Rongchang Biopharma, and Innovent Biologics also saw declines exceeding 3% [1]

港股创新药概念股震荡下挫，中国生物制药、维亚生物、复星医药跌超4%，君实生物、荣昌生物、信 达生物多股跌超3%。 ...

Core Insights - The National Medical Products Administration of China has approved the injection of Acetate Degarelix (trademarked as Qinglishu) developed by Chengdu Tianqing Pharmaceutical, which is used for androgen deprivation therapy in prostate cancer patients [2] - Chengdu Tianqing's Acetate Degarelix has previously been approved in the EU and is the first generic drug globally, with temporary approval in the US [2] - The company successfully challenged two core patent claims of the original drug during the domestic application review process, allowing the product to gain a "12-month exclusivity period" under China's early resolution mechanism for drug patent disputes [2] Industry Mechanism - The early resolution mechanism for drug patent disputes, also known as the drug patent linkage system, aims to balance the interests of innovative drug companies and generic drug manufacturers, promoting the early market entry of generics while protecting drug innovation [2] - This mechanism encourages healthy competition in the industry and allows patients to access more affordable generic drugs sooner [2] - Chengdu Tianqing's successful patent challenges were supported by the Beijing Intellectual Property Court, demonstrating the effectiveness of this system in facilitating market competition [2]

中国每年逾10万的前列腺癌患者将迎来新的治疗选择。日前，国家药监局官网显示，中国生物制药 （01177.HK）旗下核心企业正大天晴药业集团自主研发的注射用醋酸地加瑞克（商标名：晴立舒）获 批上市，用于需接受雄激素去势治疗的前列腺癌患者。值得注意的是，正大天晴醋酸地加瑞克此前已在 欧盟市场获批，成为全球首仿，并在美国获得暂时批准。此次在国内申报审评过程中，正大天晴还同步 发起专利挑战，成功宣告原研药2项核心权利要求无效，该产品也成为我国药品专利纠纷早期解决机制 实施以来，又一获得"12个月独占期"的药品。 中美欧三地造福前列腺癌患者 前列腺癌是全球男性第二大常见癌症，也是2022 年男性癌症死亡的第五大原因。国际癌症研究机构发 布的数据显示，2022年，全球有150万前列腺癌新发病例和近40 万死亡病例。在世界上几乎 2/3 的国家 中，前列腺癌是男性最常被诊断的癌症。 中国前列腺癌的发病率近年呈现明显的增长态势，2022年新发病例达13.42万人。由于早期症状不明 显，不少患者确诊时已经是晚期，且发病率随年龄增长而升高。也因如此，前列腺癌又被称为男性健康 的"沉默杀手""退休癌"。 药品专利纠纷早期解决机制， ...

Market Overview - On September 11, the Hang Seng Index fell by 0.43%, closing at 26,086.32 points, while southbound funds through the Stock Connect recorded a net purchase of HKD 18.989 billion [1][3] - The total trading volume for the Stock Connect on September 11 was HKD 172.214 billion, with a net purchase of HKD 18.989 billion [1] Stock Performance - In the Shanghai Stock Connect, the total trading volume was HKD 103.737 billion, with a net purchase of HKD 8.073 billion [1] - In the Shenzhen Stock Connect, the total trading volume was HKD 68.477 billion, with a net purchase of HKD 10.916 billion [1] Active Stocks - The most actively traded stock in the Shanghai Stock Connect was Alibaba-W, with a trading volume of HKD 80.75 billion and a net purchase of HKD 29.46 billion, closing up by 0.35% [1][2] - Meituan-W had the highest net sell amount of HKD 9.36 billion, closing down by 5.06% [1][2] - In the Shenzhen Stock Connect, Alibaba-W also led with a trading volume of HKD 43.575 billion and a net purchase of HKD 7.835 billion [2] - The top net purchase stock was Innovent Biologics, with a net purchase of HKD 0.847 billion, despite closing down by 2.51% [2] Summary of Key Stocks | Stock Code | Stock Name | Trading Volume (HKD million) | Net Purchase (HKD million) | Daily Change (%) | |------------|------------------|------------------------------|----------------------------|-------------------| | 09988 | Alibaba-W | 807.48 | 294.62 | 0.35 | | 03690 | Meituan-W | 618.38 | -93.59 | -5.06 | | 00981 | SMIC | 491.04 | 41.75 | 4.97 | | 01801 | Innovent Biologics| 253.79 | 84.73 | -2.51 | | 00700 | Tencent Holdings | 263.33 | -92.26 | -0.63 | [2]

Market Overview - On September 11, the Hang Seng Index fell by 0.43% with a total southbound trading volume of HKD 172.21 billion, including buy transactions of HKD 95.60 billion and sell transactions of HKD 76.61 billion, resulting in a net buy of HKD 18.99 billion [1] Southbound Trading Activity - The southbound trading through Stock Connect (Shenzhen) had a total trading volume of HKD 68.48 billion, with buy transactions of HKD 39.70 billion and sell transactions of HKD 28.78 billion, leading to a net buy of HKD 10.92 billion [1] - The southbound trading through Stock Connect (Shanghai) had a total trading volume of HKD 103.74 billion, with buy transactions of HKD 55.91 billion and sell transactions of HKD 47.83 billion, resulting in a net buy of HKD 8.07 billion [1] Active Stocks - Alibaba-W was the most actively traded stock with a total trading volume of HKD 124.32 billion and a net buy of HKD 37.30 billion, closing with a price increase of 0.35% [1][2] - Other notable stocks included Meituan-W and SMIC, with trading volumes of HKD 84.52 billion and HKD 80.43 billion, respectively [1] - Tencent Holdings had the highest net sell amount of HKD 11.51 billion, closing down by 0.63% [1][2] Continuous Net Buying and Selling - Alibaba-W and SMIC were the only two stocks with continuous net buying for more than three days, with Alibaba-W having a total net buy of HKD 371.43 billion over 15 days and SMIC with HKD 15.76 billion over 3 days [2] - Stocks with continuous net selling included Kangfang Biotech, Tencent Holdings, and Meituan-W, with total net sell amounts of HKD 17.48 billion, HKD 14.61 billion, and HKD 10.28 billion, respectively [2]

Core Insights - On September 11, 2025, Alibaba-W (09988), Meituan-W (03690), and SMIC (00981) were the top three stocks by trading volume in the southbound trading of the Shanghai-Hong Kong Stock Connect, with trading amounts of 8.075 billion, 6.184 billion, and 4.910 billion respectively [1] - In the southbound trading of the Shenzhen-Hong Kong Stock Connect, Alibaba-W (09988), SMIC (00981), and Innovent Biologics (01801) led the trading volume, with amounts of 4.357 billion, 3.132 billion, and 2.538 billion respectively [1] Southbound Trading Highlights - **Shanghai-Hong Kong Stock Connect:** - Alibaba-W (09988): Trading amount of 8.075 billion, net buying of 2.946 billion - Meituan-W (03690): Trading amount of 6.184 billion, net selling of 0.936 billion - SMIC (00981): Trading amount of 4.910 billion, net buying of 0.417 billion - Other notable companies include Kangfang Biologics (09926) with a trading amount of 2.797 billion and net selling of 0.755 billion, and Tencent Holdings (00700) with a trading amount of 2.633 billion and net selling of 0.923 billion [2] - **Shenzhen-Hong Kong Stock Connect:** - Alibaba-W (09988): Trading amount of 4.357 billion, net buying of 0.784 billion - SMIC (00981): Trading amount of 3.132 billion, net buying of 0.515 billion - Innovent Biologics (01801): Trading amount of 2.538 billion, net buying of 0.847 billion - Other significant companies include Kangfang Biologics (09926) with a trading amount of 2.418 billion and net buying of 0.365 billion, and Meituan-W (03690) with a trading amount of 2.268 billion and net buying of 0.839 billion [2]

Group 1 - The Hong Kong stock market saw a collective decline in the biopharmaceutical sector, with China Biologic Products and CSPC Pharmaceutical Group dropping over 10% [1] - Fosun Pharma experienced a decline of over 7%, while WuXi Biologics and WuXi AppTec also followed suit with declines [1]