Core Viewpoint - The report from CMB International emphasizes a conservative investment approach, focusing on undervalued stocks in the healthcare sector, particularly in the context of recent market fluctuations and recovery in capital financing [1] Group 1: Market Performance - The MSCI China Healthcare Index has increased by 59.5% year-to-date, outperforming the MSCI China Index by 24.0% [1] - The healthcare sector has recently experienced a pullback, with the MSCI China Healthcare Index declining by 10% since October [1] Group 2: Investment Opportunities - CMB International identifies several stocks with attractive valuations, including Solid Biosciences (02273), Three-Sixty Biopharma (01530), Giant Biologics (02367), WuXi AppTec (02268), Innovent Biologics (01801), and China Biologic Products (01177) [1] - The report highlights a significant buyback plan from Solid Biosciences, which has repurchased HKD 350 million worth of shares this year, with a total expected return from buybacks and dividends reaching 7% [1] Group 3: Clinical Development and Regulatory Environment - The report stresses the importance of overseas clinical progress for authorized drug pipelines, which is expected to be a catalyst for stock price increases [2] - Three-Sixty Biopharma's collaboration with Pfizer is noted, with two global Phase 3 clinical trials for its drug 707 targeting non-small cell lung cancer and colorectal cancer [2] Group 4: Healthcare Policy and Market Dynamics - The recent healthcare negotiations and the 11th batch of centralized procurement have seen reduced market attention, with 127 drugs participating in negotiations and 55 drugs included in the procurement [3] - The new procurement rules focus on maintaining clinical stability and quality, indicating a shift towards rational price competition in the market [3] - Despite the reduced focus on procurement, the domestic market performance remains a critical variable for overall business performance [3]

Summary of the Conference Call on Weight Loss Drug Market in China Industry Overview - The weight loss drug market in China is projected to reach approximately 6 billion RMB in 2025, with significant contributions from major brands such as Novo Nordisk's semaglutide and Eli Lilly's tirzepatide [1][3] - The overall market size, including off-label uses, is expected to approach 6 billion RMB [3] Key Players and Sales Projections - **Novo Nordisk**: - Semaglutide under the "Nuohe Tai" brand is expected to generate around 4.5 billion RMB in total sales, with about half attributed to weight loss [3] - The "Nuohe Ying" brand is projected to achieve sales of 1.2 billion RMB [1] - **Eli Lilly**: - Tirzepatide is anticipated to reach sales of 1.5 billion RMB, primarily through online and pharmacy channels, accounting for 70-80% of sales [1][3] - The entry into the medical insurance system at the end of the year will significantly impact its pricing and competitiveness [1][2] - **Innovent Biologics**: - The sales of mazhutide, which began in July, are expected to reach 700-800 million RMB [1][3] Market Growth Expectations - The weight loss drug market in China is expected to grow rapidly in 2026, with total sales targets for Eli Lilly, Innovent, and Novo Nordisk estimated at around 7 billion RMB [4] - Including off-label uses, the market size could reach 8-10 billion RMB [4] Challenges Faced by Novo Nordisk - Novo Nordisk faces challenges in online sales due to restrictions on GLP-1 drugs for weight loss, while diabetes versions are allowed [5] - Global layoffs affecting 9,000 employees have also impacted the Chinese team, leading to inventory pressure and declining sales [5] Strategic Approaches of Key Players - **Novo Nordisk**: Focuses on hospital and pharmacy channels but struggles with online competition [6] - **Eli Lilly**: Relies on hospital edge stores, online, and pharmacy channels; plans to expand hospital sales after entering the insurance system [6] - **Innovent**: More flexible, focusing on online and pharmacy channels, with rapid growth in retail for tirzepatide and mazhutide [6] Consumer Behavior and Repurchase Trends - Average medication duration is about 3 months, with noticeable rebound effects after discontinuation, indicating a repurchase demand [2][7] - Some users stop after one month, while others may continue for longer periods [7] Key Focus Areas for 2026 - Monitor price changes for tirzepatide after entering the insurance system and its marketing strategies in the weight loss sector [8] - Watch for price competition following the introduction of generic semaglutide and its impact on overall demand [8] - Pay attention to industry penetration rates and the long-term effects of specific price changes [8] - The market potential could reach 30-50 billion RMB based on a monthly expenditure of 3,000 RMB per person [8]

Core Insights - Innovent Biologics and Sanegene Bio USA announced preliminary results from the Phase 1 clinical study of IBI3016, an experimental siRNA medicine targeting angiotensinogen mRNA, presented at the 2025 AHA scientific sessions [1][8] Study Overview - The Phase 1 study (NCT06501586/CTR20242500) was a randomized, double-blind, placebo-controlled trial assessing the safety, tolerability, pharmacokinetics, and pharmacodynamics of IBI3016 in healthy subjects and patients with mild hypertension [2] - As of July 1, 2025, 40 subjects were enrolled, with a median age of 37 years, 30% female, and a mean BMI of 25.2 kg/m² [3] Efficacy Results - IBI3016 achieved a maximum reduction of over 95% in serum AGT levels, with sustained inhibition for up to six months [7] - Blood pressure reductions were observed in all treated cohorts at three months post-administration, with changes in 24-hour mean ambulatory daytime systolic/diastolic BP ranging from 2.1/-5.5 mmHg to 16.7/-14.7 mmHg compared to placebo [7] Safety Profile - The safety profile of IBI3016 was favorable, with no severe or serious adverse events reported, and all adverse events were mild to moderate and reversible [5] - No hypotension events occurred during the study [5] Future Development - The Phase 1 results support the potential for biannual subcutaneous dosing for hypertension treatment, with next-step development scheduled to begin soon [6] - The collaboration between Innovent and SanegeneBio aims to address the unmet clinical need for hypertension therapies, particularly focusing on improving patient adherence and managing aldosterone escape [8][9] Industry Context - Hypertension affects approximately 1.4 billion people globally, with only about 20% effectively controlled through current treatments [9] - The increasing prevalence of hypertension is attributed to factors such as aging populations and lifestyle choices, highlighting the need for innovative treatment options [9] Product Information - IBI3016 is a GalNAc-conjugated RNAi-based medicine targeting AGT, designed to inhibit AGT synthesis in the liver, potentially leading to long-term blood pressure reduction [10] Company Background - Innovent Biologics, founded in 2011, focuses on developing high-quality biopharmaceuticals for various diseases, including oncology and cardiovascular conditions, with 16 products launched and multiple assets in clinical trials [11] - SanegeneBio, established in 2021, specializes in RNAi-based therapeutics and aims to develop innovative treatments for various diseases, including cardiometabolic conditions [13]

Investment Rating - The report maintains an "Accumulate" rating for the pharmaceutical and biotechnology industry [1]. Core Views - The report highlights a positive change in the specialty raw materials sector, recommending companies such as Aorite and Prolo Pharmaceuticals [1]. - The report suggests that the Q3 performance of raw material pharmaceutical companies has reached a bottom, indicating potential recovery in profitability as high-cost inventory is consumed [19][20]. Summary by Sections Investment Highlights - The recommended sub-industry rankings are: Innovative Drugs > Research Services > CXO > Traditional Chinese Medicine > Medical Devices > Pharmacies [3][12]. - Specific stock recommendations include: - From raw materials: Aorite, Qianhong Pharmaceutical - From Traditional Chinese Medicine: Zorui Pharmaceutical, Fangsheng Pharmaceutical, Dong'e Ejiao - From medical devices: United Imaging Healthcare, Yuyue Medical - From AI pharmaceuticals: Jingtai Holdings - From GLP-1 sector: Lianbang Pharmaceutical, Borui Pharmaceutical, Zhongsheng Pharmaceutical, and Innovent Biologics - From PD-1/VEGF dual antibodies: Sanofi Biopharmaceuticals, Kangfang Biologics, and Rongchang Biopharmaceuticals - From innovative drugs: Innovent Biologics, BeiGene, HengRui Medicine, Zai Lab, Baillie Tianheng, Kelun Pharmaceutical, Dize Pharmaceutical, and Haizheng Pharmaceutical [3][15]. Industry Trends - The A-share pharmaceutical index has seen a year-to-date increase of 18.2%, while the Hang Seng Biotechnology Index has increased by 76.6% [6][11]. - The report notes that the raw material pharmaceutical sector is under pressure due to high base effects and declining prices, with significant revenue impacts [19][20]. R&D Progress and Company Dynamics - Recent approvals include Novartis' radioligand therapy drug, which received dual indications for prostate cancer treatment [2]. - The report provides an overview of ongoing clinical trials and drug approvals, emphasizing the importance of innovation in the pharmaceutical sector [30]. Market Performance - The report indicates that the pharmaceutical sector has experienced adjustments, with notable stock performances including significant gains for companies like Hezhong China (+61%) and Wanze Shares (+30%) [11]. - The report also highlights the performance of various pharmaceutical stocks, noting both gains and losses in the market [16][17]. Raw Material Pricing Trends - The price of 6-APA has dropped significantly, from 370 RMB/kg in 2022 to 180 RMB/kg in October 2025, a decrease of 51% [23]. - The price of Amoxicillin has also decreased from 320 RMB/kg in January 2023 to 190 RMB/kg in October 2025, a decline of 41% [23]. Conclusion - The report suggests that as high-cost inventory is depleted, the gross margins for raw material producers are expected to improve, indicating a potential recovery in profitability for companies like Fuxiang Pharmaceutical and Lukang Pharmaceutical [19][23].

Core Insights - The article presents a ranking of 78 unprofitable biotechnology companies listed in Hong Kong, highlighting their market capitalizations and stock prices as of October 31, 2025 [1][2][3]. Market Capitalization Summary - The top three companies by market capitalization are: 1. 名要放田 (Ming Yao Fang Tian) with a market cap of HKD 286.26 billion 2. 信达生物 (Innovent Biologics) with a market cap of HKD 149.08 billion 3. 科伦博泰生物-B (Kintor Pharmaceutical) with a market cap of HKD 104.47 billion [1][2]. Price Performance Summary - The highest price increase for the year is observed in: 1. 北海康成-B (Beihai Kangcheng) with a price increase of 1381.20% 2. 药康安康 - B (Yao Kang An Kang) with a price increase of 1297.72% 3. 三叶草生物-B (San Ye Cao) with a price increase of 812.86% [3][4]. Additional Performance Insights - Other notable performers include: - 德棋医药-B (Deqi Pharmaceutical) with a 696.92% increase - 和铂失药-B (He Bo Shi Yao) with a 624.19% increase - 荣昌生物 (Rongchang Biologics) with a 525.00% increase [3][4]. Overall Trends - The article indicates a significant volatility in the biotechnology sector, with many companies experiencing substantial price fluctuations, reflecting investor sentiment and market dynamics [3][4].

Core Viewpoint - Cinda Biologics reported a year-on-year revenue growth of over 40% in Q3, exceeding expectations and indicating strong performance in the biopharmaceutical sector [1] Group 1: Financial Performance - Total product revenue for Cinda Biologics in Q3 surpassed 3.3 billion, with a quarterly growth of 22%, outpacing last year's 15% growth [1] - The company is expected to achieve an annual revenue of approximately 11.5 billion, primarily driven by the sales of Masituzumab and three recently licensed candidate drugs to Takeda [1] Group 2: Future Projections - The firm has raised its total product revenue forecasts for 2025 to 2027 by 1%, 2%, and 1% respectively, projecting revenues of 11.5 billion, 18.3 billion, and 23.3 billion [1] - Adjusted profit forecasts have also been increased to 1.7 billion, 10.3 billion, and 5.6 billion for the same period [1] Group 3: Market Position and Rating - Cinda Biologics is viewed as a leader in biopharmaceuticals for treating challenging chronic and fatal diseases in China [1] - The target price has been raised from 125 HKD to 128 HKD, corresponding to a projected price-to-sales ratio of 10.6 times for 2026, maintaining an "outperform" rating and listing it as a preferred stock in the industry [1]

Core Viewpoint - Jianyin International has raised the target price for Innovent Biologics (01801) by 2.4% from HKD 125 to HKD 128, maintaining a "Outperform" rating, citing the company's robust fundamentals as a preferred stock choice [1] Financial Performance - Innovent Biologics reported total product revenue exceeding RMB 3.3 billion in Q3, representing an annual increase of over 40%, surpassing the previous forecast of a 37% annual growth for total product revenue in 2025 [1] - The revenue forecasts for 2025, 2026, and 2027 have been adjusted upwards by 1%, 2%, and 1% respectively, reaching RMB 11.5 billion, RMB 18.3 billion, and RMB 23.3 billion [1] Strategic Developments - The company has reached an agreement with Takeda Pharmaceutical regarding an authorization deal, expecting to receive a prepayment of USD 1.1 billion by the end of 2026 [1] - As a result of this agreement, the adjusted profit forecasts for 2025, 2026, and 2027 have been increased to RMB 5.6 billion [1]

Core Viewpoint - Jianyin International has raised the target price for Innovent Biologics (01801) by 2.4% from HKD 125 to HKD 128, maintaining a "Outperform" rating, citing the company's robust fundamentals as a preferred stock choice [1] Financial Performance - Innovent Biologics reported total product revenue exceeding RMB 3.3 billion in Q3, representing an annual increase of over 40%, surpassing the previous forecast of a 37% annual growth for total product revenue in 2025 [1] - The revenue forecasts for 2025, 2026, and 2027 have been adjusted upwards by 1%, 2%, and 1% respectively, reaching RMB 11.5 billion, RMB 18.3 billion, and RMB 23.3 billion [1] Strategic Developments - The company has reached an agreement with Takeda Pharmaceutical regarding an authorization deal, expecting to receive an upfront cash reward of USD 1.1 billion by the end of 2026 [1] - As a result of this agreement, the adjusted profit forecasts for 2025, 2026, and 2027 have been increased to RMB 5.6 billion [1]

Group 1 - The core viewpoint of the news is that the Chongqing government has implemented strong policies to support the high-quality development of the innovative drug industry, aiming to accelerate the approval and commercialization of new drugs by 2027 [1] - The policy includes measures such as R&D subsidies, clinical acceleration, industrial clusters, and international cooperation, covering the entire chain from drug development to market entry [1] - The goal is to approve 1 to 3 innovative drugs annually, reach a total of 10 innovative drugs, cultivate 3 industrial innovation complexes, and establish 3 high-level innovation platforms by 2027 [1] Group 2 - In terms of product layout, the Heng Seng Innovative Drug ETF (520500) has seen continuous net inflows for six consecutive trading days, indicating strong investor interest [2] - As of November 6, 2025, the Heng Seng Innovative Drug ETF has a total scale of 1.872 billion yuan and an average daily trading volume of 1.197 billion yuan over the past five trading days [2] - The ETF tracks companies in the Hong Kong market related to innovative drug research, development, and production, focusing on firms with strong R&D capabilities [2] Group 3 - The innovative drug industry is experiencing positive trends in internationalization and R&D pipeline advancement, which may further enhance the industry's fundamentals [2] - According to Dongwu Securities, the innovative drug sector is expected to remain a key investment theme in 2026 due to its growing international status and market potential [2]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | | | 致：香港交易及結算所有限公司 公司名稱: 信達生物製藥 呈交日期: 2025年11月6日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | 是 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01801 | 說明 | 普通股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 5,000,000,000 | USD | | 0.00001 | USD | | 50,000 | | 增加 / 減少 (-) | | | 0 | | | | USD | | 0 | | 本月底結存 | | | 5,000,000,000 | USD | | 0.00001 | USD | | 50,000 | 本月底法定/註冊股本總額： USD 50,000 F ...