Group 1 - The core point of the article is that Sangfor Pharmaceutical's dual-specific antibody (code: 707) has been included in the list of breakthrough therapies by the National Medical Products Administration, targeting first-line treatment for PD-L1 positive locally advanced or metastatic non-small cell lung cancer (NSCLC) [1][2] - Lung cancer has the highest incidence and mortality rates among all cancers, with non-small cell lung cancer accounting for approximately 80%-85% of all lung cancer cases [1] - Current treatments for NSCLC, including anti-PD-1/L1 monotherapy and combination chemotherapy, show limited effectiveness, with a 5-year survival rate of only 17%-30% [1] Group 2 - The dual-specific antibody 707 is developed based on the CLF2 patent platform and can simultaneously inhibit VEGF and PD-1, showing significant anti-tumor activity and good safety profile in clinical trials [1] - Sangfor Pharmaceutical is also advancing clinical research for 707 in other cancers such as colorectal cancer, endometrial cancer, and ovarian cancer, and has received FDA IND approval for 707 [2] - The company has partnered with BaiLi Tianheng to explore the potential of 707 in combination with BL-B01D1 for solid tumors in China, enhancing the application prospects of 707 [2]

（於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （股 份 代 號：01530） 自願公告 抗VEGF/PD-1雙特異性抗體藥物707注射液 獲國家藥品監督管理局突破性療法認定 本公告由三生制药（「本公司」，連 同 其 附 屬 公 司，統 稱（「三生制药」））自 願 刊 發。 三生制药自主研發的抗VEGF/PD-1雙特異性抗體（研 發 代 碼：707注 射 液）於2025年4 月17日 獲 國 家 藥 品 監 督 管 理 局 納 入 突 破 性 治 療 品 種，適 應 症 為 一 綫 治 療PD-L1表 達 陽 性 的 局 部 晚 期 或 轉 移 性 非 小 細 胞 肺 癌。 707注射液是三生制药基於CLF2專利平台自主開發的靶向VEGF/PD-1雙特異性抗 體，目 前 正 於 中 國 開 展 多 項 臨 床 研 究，其 中 一 綫 治 療PD-L1表達陽性的局部晚期 或轉移性非小細胞肺癌已獲國家藥監局藥品審評中心（「CDE」）批准開展III期臨床 研 究。此 外，707注 射 液 正 於 國 內 開 展 聯 合 化 療 一 綫 治 療 晚 期 非 小 細 胞 肺 癌、轉 移 性結直腸癌及晚期婦科 ...

Investment Rating - The report maintains an "Outperform" rating for the pharmaceutical and biotechnology industry [2] Core Insights - The Chinese innovative drug sector is entering a harvest period, with a focus on technological innovation and business development (BD) potential [5] - Companies such as Sangfor Biopharma, Kexing Pharmaceutical, and Yifang Biotech are highlighted for their strong growth prospects and innovative pipelines [4][5] Summary by Sections 1. Chinese Innovative Drugs Entering Harvest Period - **Sangfor Biopharma**: Core products are showing steady growth, and the innovative pipeline is gradually yielding results. The PD-1/VEGF dual antibody AK112 has become the first drug to outperform K drug in head-to-head Phase III clinical trials, enhancing the development enthusiasm for PD(L)-1/VEGF dual antibodies. The company has three ongoing clinical trials demonstrating excellent efficacy and BD potential [7][8] - **Kexing Pharmaceutical**: The CAR-T therapy shows significant potential, with its first product, CT053, approved for treating multiple myeloma in February 2024. Another product, CT041, is a potential first-in-class CAR-T for Claudin18.2, with a Phase II trial for gastric cancer completed. The company is well-positioned in the universal CAR-T technology space [11][12] - **Yifang Biotech**: The drug D-2570 shows promising data for treating psoriasis, with clinical results indicating significant efficacy compared to placebo. The drug is in Phase II trials and ranks third among domestic products, with a large patient population and a competitive landscape [14][15] 2. Weekly Market Review and Hotspot Tracking (March 31 - April 3, 2025) - The pharmaceutical and biotechnology sector index rose by 1.2%, outperforming the CSI 300 index by 2.57%. Year-to-date, the sector index has increased by 4.77%, also outperforming the CSI 300 index by 6.64 [16][18] - The top five performing stocks during this period included Duorui Pharmaceutical (up 56.32%), Weisi Medical (up 31.80%), and Hasanlian (up 31.15%) [29][32] 3. Overall Investment Strategy and Allocation Thoughts - The development of AI is driving the widespread adoption of AI in healthcare, with many medical companies exploring AI applications. Companies with extensive patient data and those with health insurance data are expected to have significant application potential. The report suggests focusing on innovative drugs and companies with a turning point in fundamentals [4][5]

Summary of the Conference Call for Sanofi Pharmaceutical Company Overview - Sanofi Pharmaceutical was founded in 1993 by General Lou Dan, with a military background contributing positively to its long-term development [3] - The company has evolved into a comprehensive pharmaceutical enterprise focusing on oncology, hematology, and consumer healthcare, achieving over 50% market share in key products [3][4] Core Business Insights - **Product Focus**: Sanofi's key products include Teibiao, Yipiao, and Yisai Pu, with a strong emphasis on innovation through self-research and business development (BD) [3][5] - **Clinical Trials**: The company is nearing completion of Phase II clinical trials for its PD-L1/VEGF dual antibody, which could significantly impact non-small cell lung cancer treatment [3][8] - **Sales Projections**: Teibiao is expected to exceed 5 billion yuan in sales for 2024, with further growth anticipated from new indications and lifted insurance restrictions [3][10] Innovation and R&D - **Strategic Investments**: Sanofi has made strategic investments in cutting-edge technologies such as IDFC, cell therapy, and CAR-T dual antibodies [3][5] - **Autoimmune Disease Focus**: The company is targeting well-validated overseas markers in autoimmune diseases, maintaining a competitive position in the market [6] Collaborations - Sanofi has partnered with BeiGene to co-develop PD-L1/VEGF dual antibodies and ADC combinations, aiming to replace existing first-line treatments [7] Consumer Healthcare - **Market Leadership**: The product Mandu has become the market leader in both hospital and retail settings, with projected sales of over 1.3 billion yuan in 2025 [11] - **New Product Launches**: Bever, for moderate acne, is expected to reach 500,000 prescriptions in North America in 2024, translating to approximately $300 million in sales [11] Financial Performance - **EPO Segment**: The EPO segment is projected to achieve an 8%-9% growth rate in the first half of 2024, with a long-acting second-generation product expected to be approved in late 2025 [10] - **Overall Growth Strategy**: Sanofi's strategy of focusing on major products ensures stable growth over the next 2-3 years, with new product launches expected to enhance revenue streams [10][12] Future Outlook - Sanofi's robust pipeline in oncology and consumer healthcare, along with its innovative strategies, positions the company favorably for future growth [12]

Investment Rating - The investment rating for the company is "Buy" (maintained) [5] Core Views - The company is expected to achieve steady growth in core products in 2024, with new drugs potentially providing flexibility in revenue generation [5][7] - The company reported a total revenue of 9.108 billion RMB in 2024, representing a year-on-year growth of 16.5%, with drug sales contributing 8.928 billion RMB, also up by 16.8% [7] - The net profit attributable to shareholders reached 2.09 billion RMB, marking a significant increase of 34.9% year-on-year [7] - Key products such as Tevizo and Mandi are experiencing robust growth, with Tevizo sales projected at 5.06 billion RMB in 2024, reflecting a 20.4% increase [7] - The company has a promising pipeline of innovative drugs, including the PD1/VEGF dual antibody, which shows potential for high returns from overseas markets [7] Financial Summary - Revenue projections for the company are as follows: 10.102 billion RMB in 2025, 11.164 billion RMB in 2026, and 12.430 billion RMB in 2027, with growth rates of 10.9%, 10.5%, and 11.3% respectively [6][8] - The net profit attributable to shareholders is forecasted to be 2.343 billion RMB in 2025, with a growth rate of 12.1% [6][8] - The company's price-to-earnings ratio (P/E) is projected to be 12.42 in 2025, decreasing to 9.68 by 2027 [6][8] - The company aims for a target market value of 40 billion RMB, supported by steady growth in core business and innovative products [7]

Core Viewpoint - The Hang Seng Healthcare Index (HSHCI) has shown strong performance, with significant increases in constituent stocks and the Hang Seng Healthcare ETF, indicating positive market sentiment in the healthcare sector [1][4]. Group 1: Market Performance - As of April 1, 2025, the HSHCI rose by 2.09%, with notable gains in stocks such as Genscript Biotech (8.36%) and Haijia Medical (7.74%) [1]. - The Hang Seng Healthcare ETF (513060) opened high and increased by 2.53%, with a latest price of 0.49 HKD and a trading volume of 1.28 billion HKD, achieving a turnover rate of 0.97% [1]. Group 2: ETF Growth and Performance Metrics - The Hang Seng Healthcare ETF has seen a significant growth of 2.648 billion HKD in size over the past year, ranking in the top third among comparable funds [4]. - The ETF's financing buy-in amount reached 322 million HKD, with a financing balance of 545 million HKD [4]. - Since its inception, the ETF recorded a highest monthly return of 28.34% and an average monthly return of 7.01% [4]. - The ETF's Sharpe ratio for the past year is 1.40, indicating strong risk-adjusted returns [4]. Group 3: Valuation and Industry Outlook - The latest price-to-earnings ratio (PE-TTM) for the HSHCI is 25.11, placing it in the 2.17% percentile over the past year, suggesting it is undervalued compared to historical levels [5]. - The National Medical Products Administration reported that 48 innovative drugs were approved in 2024, covering various therapeutic areas, indicating a robust pipeline for the pharmaceutical industry [5]. - Recent policies are shifting from cost control to encouraging innovation, with a focus on leading companies with strong international capabilities [5]. Group 4: Index Composition - As of March 31, 2025, the top ten weighted stocks in the HSHCI include WuXi Biologics, BeiGene, and Innovent Biologics, collectively accounting for 56.21% of the index [6].

Investment Rating - The investment rating for the company is "Outperform the Market" [6][20]. Core Insights - The company has demonstrated robust revenue growth, with projected revenue of 9.11 billion yuan in 2024, representing a 16.5% increase. Gross profit is expected to reach 7.83 billion yuan, up 17.9%, with a gross margin improvement to 86% [1][9]. - The core product, Tebentafusp, achieved sales of 5.062 billion yuan, a 20.4% increase, capturing 66.6% of the Chinese market for thrombocytopenia treatment. The company has also successfully renewed its medical insurance contracts [2][12]. - The innovative pipeline is progressing rapidly, with the dual antibody product 707 showing promising clinical results in lung cancer and colorectal cancer trials, achieving an overall response rate (ORR) of 70.8% in monotherapy for PD-L1 positive NSCLC [3][14][17]. Financial Performance and Projections - The company is expected to achieve a net profit of 2.09 billion yuan in 2024, a 34.9% increase, with adjusted operating net profit reaching 2.32 billion yuan, up 18.8% [1][9]. - R&D expenses are projected to rise significantly to 1.327 billion yuan in 2024, reflecting a 66.9% increase, indicating a strong commitment to innovation [1][9]. - The financial forecast for 2025-2027 includes net profits of 2.39 billion yuan, 2.71 billion yuan, and 3.07 billion yuan, respectively, with year-on-year growth rates of 14.1%, 13.7%, and 13.1% [4][20]. Market Position and Strategy - The company is actively expanding its commercial footprint through strategic collaborations in various therapeutic areas, including nephrology, oncology, and metabolic diseases. In 2024, three new drugs are expected to be approved, and four new drug applications are under review [15][19]. - The dual antibody 707 is positioned favorably in the market, with ongoing clinical trials and a strong potential for international licensing opportunities [19][20].

Core Viewpoint - Company maintains adjusted net profit forecast for 2025 at 2.407 billion and introduces 2026 adjusted net profit at 2.602 billion, with current stock price corresponding to 12.7/11.5 times adjusted P/E for 2025/2026 [1] Financial Performance - Company reported 2024 revenue of 9.108 billion, a year-on-year increase of 16.5%; net profit attributable to shareholders was 2.090 billion, up 34.9%; adjusted operating net profit reached 2.319 billion, reflecting an 18.8% increase, outperforming expectations due to stable growth of core products and increased income from joint ventures [2] Core Product Growth - Core product Terbinafine achieved revenue of 5.062 billion in 2024, a year-on-year increase of 20.4%, accounting for 55.6% of total revenue; EPO market leader with 42% share from Yibiao and Saibo, generating 1.018 billion, up 8.3%; Mandib achieved revenue of 1.337 billion, an 18.9% increase, with new foam agent enhancing competitiveness [3] R&D Pipeline - Company received approval for three new drugs including Aicoparib suspension in 2024 and submitted NDA for four products; R&D pipeline includes over 30 products across various therapeutic areas, with 10 in phase III clinical trials; 707 (anti-VEGF/PD-1 dual antibody) has entered phase III clinical trials, showing potential for BIC [4] Business Development Collaborations - Company completed several license-in collaborations in 2024, including partnerships for GLP-1, oral paclitaxel, and others, which are expected to provide revenue increments; anticipation for more business development collaborations, especially license-out projects, to enhance performance [5]

Investment Rating - The investment rating for the company is "Buy" (maintained) [3][9] Core Insights - The company reported a revenue of 9.11 billion yuan for 2024, representing a year-over-year growth of 16.5%. The net profit attributable to shareholders was 2.09 billion yuan, with a year-over-year increase of 34.9% [4][6] - The company is expected to achieve revenues of 10.20 billion yuan, 11.49 billion yuan, and 13.15 billion yuan for 2025, 2026, and 2027 respectively, with growth rates of 12%, 13%, and 14% [6][8] - The adjusted net profit for 2024 was 2.32 billion yuan, exceeding expectations with a year-over-year growth of 18.8% [4][6] Financial Performance Summary - The company’s total revenue for 2023 was 7.84 billion yuan, with a growth rate of 14% year-over-year [3] - The net profit attributable to shareholders for 2023 was 1.55 billion yuan, showing a decline of 19% year-over-year [3] - Earnings per share (EPS) for 2023 was 0.65 yuan, projected to increase to 0.87 yuan in 2024 and further to 1.26 yuan by 2027 [3][8] Pipeline and Market Potential - The company has several upcoming product approvals, including a license-in product for gastric cancer and new indications for existing drugs, which are expected to drive future growth [6] - The company is focusing on expanding its international market presence, particularly with its dual-antibody products [6]

Group 1 - The Hang Seng Biotechnology ETF has seen a cumulative increase of 8.31% over the past two weeks, ranking in the top third among comparable funds [1] - The latest scale of the Hang Seng Biotechnology ETF reached 255 million yuan, marking a three-month high [1] - The ETF's latest share count reached 299 million, achieving a one-month high [1] Group 2 - As of March 28, 2025, the Hang Seng Biotechnology Index surged by 3.29%, with constituent stocks like 02157 rising by 21.17% and 09688 by 13.87% [2] - The Hang Seng Biotechnology ETF (513280) increased by 3.72%, marking its third consecutive rise, with a latest price of 0.89 yuan and a trading volume of 44.81 million yuan [2] Group 3 - The National Medical Products Administration has announced enhanced support for innovative medical devices, indicating a favorable policy environment for the sector [3] - Several innovative pharmaceutical companies reported better-than-expected earnings, with notable increases in revenue and profit, indicating a high growth trend in the sector [3] - Companies like 09688 and 09995 reported significant revenue growth, with 09995 achieving a 58.5% year-on-year increase [3] Group 4 - Chinese companies are increasingly entering developed markets through licensing and international clinical trials, reflecting a positive trend in the innovative drug sector [4] - The 2025 Government Work Report highlights ongoing improvements in the pharmaceutical policy environment, including support for innovative drugs and quality assessments [4] - The Hang Seng Biotechnology ETF (513280) is noted for its low management fees, making it an attractive option for investors [4]