Core Insights - Chinese innovative pharmaceutical company 3SBio has entered a record-breaking License out agreement with Pfizer, potentially worth up to $60.5 billion (approximately 435 billion RMB) [1] - This transaction sets a new record for the amount of a single product going overseas from a Chinese pharmaceutical company and highlights the strong emergence of Chinese innovative drug companies in the global bispecific antibody market [1] Transaction Details - The agreement grants Pfizer the rights to develop, produce, and commercialize 3SBio's self-developed PD-1/VEGF bispecific antibody SSGJ-707 in global markets outside mainland China [2] - Pfizer will pay an upfront fee of $12.5 billion (approximately 90 billion RMB) and up to $4.8 billion in milestone payments, along with a double-digit percentage tiered revenue share from sales in the licensed regions [2] - All payments are non-refundable and non-offsettable, and Pfizer retains the option to commercialize the product in mainland China [2] Product Advantages - SSGJ-707 is developed based on 3SBio's proprietary CLF2 platform, featuring a common light chain symmetrical design and IgG-like structure, which significantly reduces production costs and enhances efficiency [3] - Clinical data shows promising anti-tumor activity and safety: - Objective response rate (ORR) of 70.8% and disease control rate (DCR) of 100% for PD-L1 positive non-small cell lung cancer (NSCLC) [3] - ORR of 81.3% for squamous NSCLC and 58.3% for non-squamous NSCLC, with DCR at 100% when combined with chemotherapy [3] - Adverse event rates for grade 3 or higher treatment-related adverse events (TRAE) range from 8.9% to 23.5%, significantly lower than similar products [3] Market Outlook - The PD-1/VEGF bispecific antibody market is expected to explode, with Evaluate Pharma predicting a global market size exceeding $80 billion by 2030 [5] - Currently, only Kangfang Biotech's Ivosidenib is on the market, and 3SBio's rapid advancement positions it to seize market opportunities [5] Industry Trends - The total value of License out transactions for Chinese innovative drugs reached $51.9 billion in 2024, a year-on-year increase of 27.4%, accounting for 30% of global similar transactions [6] - In the first quarter of 2025, Chinese companies completed 41 overseas transactions totaling over $36.9 billion, with a growing proportion of "heavyweight transactions" [6] - This collaboration further confirms the transition of Chinese innovative drug companies from "followers" to "leaders" in the global market [6] Industry Outlook - This transaction not only brings substantial cash flow to 3SBio but also highlights the maturity of Chinese pharmaceutical companies in target selection, clinical design, and international collaboration [7] - As more original Chinese drugs enter the global market, the "two-way rush" between multinational and Chinese pharmaceutical companies may become the new norm, accelerating the gathering of global pharmaceutical innovation resources in China [7] Conclusion - The collaboration between 3SBio and Pfizer marks a significant milestone for Chinese innovative drugs going global, transitioning from "Made in China" to "Created in China" [8] - With support from policies, capital, and technological breakthroughs, Chinese pharmaceutical companies are entering a golden era of License out, potentially reshaping the global pharmaceutical market landscape [8]

Market Overview - The market experienced fluctuations in the early session, with the ChiNext Index leading the decline. The focus of the market was primarily on the consumer and pharmaceutical sectors [1] ETF Performance - Several ETFs related to innovative drugs saw significant gains, with the Hong Kong Stock Connect Innovative Drug ETF (159570) rising by 2.61% and the Hong Kong Innovative Drug ETF (159567) increasing by 2.22% [2] - The Hong Kong Innovative Drug ETF (513120) also rose over 2%, with a total scale of 95.23 billion, tracking the CSI Hong Kong Innovative Drug Index [5] Investment Logic - The innovative drug industry in China is expected to reach a turning point by 2025, shifting from capital-driven to profit-driven trends, presenting opportunities for both performance and valuation recovery [2] - A new round of technological advancements is anticipated to propel domestic innovative drugs into a new development phase [2] Key Stocks in Innovative Drug Sector - Notable companies in the innovative drug sector include: - Innovent Biologics (信达生物) with a market cap of 885.89 million - BeiGene (百济神州) with a market cap of 2,034.42 million - WuXi Biologics (药明生物) with a market cap of 938.65 million - Other significant players include CanSino Biologics (康方生物), China Biologic Products (中国生物制药), and Hengrui Medicine (翰森制药) [3][6][7] Index Composition - The CSI Hong Kong Innovative Drug Index selects up to 50 listed companies involved in innovative drug research and development, reflecting the overall performance of the innovative drug sector in the Hong Kong market [5][6]

Core Viewpoint - The Chinese innovative pharmaceutical sector is gaining international recognition, highlighted by significant deals and promising clinical data, leading to increased interest in related ETFs [1][3][4]. Group 1: Market Performance - The innovative drug ETF (517110) has rebounded nearly 15% since early April, reflecting strong performance in the pharmaceutical sector [1]. - The biopharmaceutical ETF and vaccine ETF also showed positive movements, with respective increases of 1.17% and 0.89% [2]. Group 2: ASCO Conference Insights - At the 2025 ASCO conference, over 70 research outcomes from Chinese pharmaceutical companies were presented, showcasing advancements in ADC and bispecific antibody technologies [3]. - Notable performances include Zai Lab's ZG005 and Huahai Pharmaceutical's HB0025, which exceeded expectations in early clinical trials for cervical and endometrial cancers, respectively [3]. Group 3: Business Development Trends - Recent business development (BD) activities in the innovative drug sector have seen record-breaking upfront payments, such as the $12.5 billion upfront payment from Pfizer for a PD-1/VEGF bispecific antibody from 3SBio [4][7]. - The increase in upfront payments and total deal values indicates growing international recognition of Chinese innovative drugs [7]. Group 4: Future Outlook - The innovative drug sector is expected to benefit from ongoing BD transactions, advancements in artificial intelligence across the pharmaceutical value chain, and the implementation of new healthcare policies [7]. - The overall sentiment and valuation in the pharmaceutical sector may improve due to domestic policy optimizations and a recovery in medical equipment procurement [7].

成交活跃股方面，沪市港股通前十大成交活跃股中，小米集团-W成交额为33.14亿港元，成交金额居 首；其次是美团-W、阿里巴巴-W，成交金额分别为31.69亿港元、27.24亿港元。以净买卖金额统计， 美团-W净买入额为17.80亿港元，净买入金额居首，该股收盘股价下跌5.48%。净卖出金额最多的是盈 富基金，净卖出14.66亿港元，收盘股价下跌1.26%。 深市港股通前十大成交活跃股中，成交额居首的是小米集团-W，成交金额23.12亿港元；其次是美团- W、腾讯控股，成交金额分别为22.17亿港元、17.29亿港元。以净买卖金额统计，有2只股为净买入，净 买入金额最多的是地平线机器人-W，净买入7.30亿港元，该股收盘下跌6.45%。净卖出金额最多的是腾 讯控股，净卖出11.46亿港元，收盘股价下跌1.54%。（数据宝） 5月26日恒生指数下跌1.35%，报收23282.33点，全天南向资金通过港股通渠道合计净卖出15.07亿港 元。 证券时报·数据宝统计，5月26日港股通全天合计成交金额为996.72亿港元，成交净卖出15.07亿港元。 具 体来看，沪市港股通成交金额639.69亿港元，成交净买入18.56 ...

Investment Rating - The report rates the industry as "Overweight" indicating that the industry index is expected to outperform the CSI 300 index by 10% or more over the next six months [39]. Core Insights - The pharmaceutical and biotechnology sector has shown strong performance, with a 1.78% increase in the last week, outperforming the CSI 300 index by 1.96 percentage points. Year-to-date, the sector has risen by 4.30%, ranking 6th among 31 industries [11][12]. - The sector's current PE valuation stands at 27.51 times, which is at a historically low level, with a 132% premium over the CSI 300 index [19]. - Notable individual stock performances include Sangfor Technologies, which surged by 99.96%, and Haicheng Pharmaceutical, which increased by 51.55% [26]. Market Performance - The pharmaceutical and biotechnology sector ranked first among 31 industries with a weekly increase of 1.78% [11]. - Year-to-date, the sector has increased by 4.30%, outperforming the CSI 300 index by 5.64 percentage points [12]. - The top three sub-sectors in terms of weekly growth were chemical pharmaceuticals (3.58%), biological products (1.74%), and medical services (1.42%) [11]. Industry News - On May 20, 2025, Sangfor Pharmaceuticals announced a deal with Pfizer, granting exclusive rights for the global development and commercialization of SSGJ-707, with an upfront payment of $1.25 billion and potential milestone payments of up to $4.8 billion [28]. - The 2025 ASCO annual meeting highlighted the strong performance of Chinese pharmaceutical companies, with over 70 research outcomes presented, marking a 33% increase from the previous year [29][30]. Investment Recommendations - The report suggests focusing on innovative drugs as the core investment theme, highlighting the significant competitive advantages and market potential of domestic innovative drugs [37]. - Recommended stocks include Betta Pharmaceuticals, Teva Biopharmaceuticals, Lingrui Pharmaceutical, Lao Baixing, and Baipusais [37]. - Additional stocks to watch include Kelun Pharmaceutical, Lijun Group, Kaili Medical, Huaxia Eye Hospital, and Qianhong Pharmaceutical [37].

智通财经APP获悉，5月26日港股市场，北水成交净卖出15.07亿港元，其中港股通(沪)成交净买入18.56 亿港元，港股通(深)成交净卖出33.63亿港元。 北水净买入最多的个股是美团-W(03690)、中国移动(00941)、地平线机器人-W(09660)。北水净卖出最 多的个股是腾讯(00700)、阿里巴巴-W(09988)、盈富基金(02800)。 | 股票名称 | 买入额 | 卖出额 | 买卖总额 | | --- | --- | --- | --- | | | | | 净流入 | | 小米集团-W | 16.57 乙 | 16.57 亿 | 33.14 乙 | | HK 01810 | | | -13.02万 | | 美团-W | 24.74 Z | 6.95亿 | 31.69 亿 | | HK 03890 | | | +17.80 乙 | | 阿里巴巴-W | 8.39亿 | 18.85 乙 | 27.24亿 | | HK 09988 | | | -10.46 Z | | 腾讯控股 | 7.79亿 | 17.25亿 | 25.04亿 | | HK 00700 | | | -9.45 Z | | 比 ...

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 的 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 就 因 本 公 告 的 全 部 或 任 何 部 份 內 容 所 產 生 或 因 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （股 份 代 號：1530） 1 1. 省覽並採納本公司截至二零二四年十二月三十一日止年度之經審核綜合 財 務 報 表 及 董 事 報 告 與 核 數 師 報 告。 2. (A) 重選蘇冬梅女士為本公司執行董事（「董 事」）； (B) 重 選 張 皎 娥 女 士 為 非 執 行 董 事； (C) 重 選 楊 凱 蒂 女 士 為 獨 立 非 執 行 董 事； (D) 授權董事會（「董事會」）釐 定 董 事 之 薪 酬。 3. 從本公司的股份溢價賬中向於二零二四年七月二十五日（星 期 五）營業時間結 束時名列本公司股東名冊的股東宣派及派付截至二零二四年十二月三十一 ...

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Industry Investment Rating - The industry investment rating is "Outperform" [2] Core Viewpoints - The report highlights that the recent licensing deal between 3SBio and Pfizer for the PD-1/VEGF bispecific antibody SSGJ-707 marks a record in overseas transactions for Chinese innovative pharmaceutical companies, indicating a potential surge in licensing out activities [5][13] - The global market for bispecific antibodies is projected to exceed $80 billion by 2030, with PD-1/VEGF bispecifics being a focal point for multinational pharmaceutical companies [20] - In 2024, the total licensing out amount for Chinese innovative drugs surpassed $51.9 billion, a year-on-year increase of 27.4%, accounting for 30% of the global total [23] Summary by Sections Weekly Insights - 3SBio's licensing agreement with Pfizer involves an upfront payment of $1.25 billion and potential milestone payments up to $4.8 billion, along with a tiered sales revenue share [13][14] - The report notes that the biopharmaceutical sector has seen a weekly increase of 1.78%, outperforming the CSI 300 index by 1.96 percentage points [24][29] Subsector Performance - The report details that the biopharmaceutical sector's performance is diverse, with the other bioproducts sector showing the highest increase of 4.09%, while the hospital sector experienced the largest decline of 1.07% [6][28] Recommended and Benefiting Stocks - Recommended stocks include Weikang Medical, Maipu Medical, and Yifeng Pharmacy, among others [7][40] - Benefiting stocks from the recent trends include Hualan Biological Engineering, BGI Genomics, and Mindray Medical [7][45] Market Trends - The report emphasizes the acceleration of licensing out activities for Chinese pharmaceutical companies, with a notable increase in both the number and value of transactions in recent years [23][25] - The report suggests that the medical device sector is expected to see significant growth due to policy changes and increased procurement activities [31]

Investment Rating - The industry investment rating is "Outperform" [2] Core Insights - The report highlights that the recent licensing deal between 3SBio and Pfizer for the PD-1/VEGF bispecific antibody SSGJ-707 marks a record in overseas transactions for Chinese innovative pharmaceutical companies, indicating a potential surge in licensing out activities [5][13] - The global market for bispecific antibodies is projected to exceed $80 billion by 2030, with PD-1/VEGF bispecifics being a focal point for multinational pharmaceutical companies [5][20] - In 2024, the total amount of licensing out agreements for Chinese innovative drugs surpassed $51.9 billion, a year-on-year increase of 27.4%, accounting for 30% of the global total [5][23] Industry Performance - The pharmaceutical sector saw an increase of 1.78% this week, outperforming the CSI 300 index by 1.96 percentage points, ranking first among 31 sub-industries [24][29] - The biopharmaceutical sector experienced the highest growth this week, with a rise of 4.09% [6][28] Subsector Highlights - The report identifies several subsectors with notable performance: - Other biopharmaceuticals increased by 4.09% - Raw materials and medical research outsourcing sectors also saw increases of 4.03% and 3.6% respectively [6][28] - The report recommends several stocks, including Weikang Medical, Maipu Medical, and Yifeng Pharmacy, as potential beneficiaries of the current market dynamics [7][40] Clinical Development - SSGJ-707 has shown promising clinical data, with an overall response rate (ORR) of 70.8% in PD-1 positive NSCLC patients and a disease control rate (DCR) of 100% [17][20] - The drug is currently in Phase III clinical trials and has received breakthrough therapy designation in China [16][20] Market Trends - The report notes a significant trend towards the licensing out of innovative drugs from China, with the number of transactions increasing from 3% in 2019 to 13% in 2024 [23] - The report emphasizes the importance of AI and other technological advancements in driving growth within the medical device and pharmaceutical sectors [30][36]