Core Viewpoint - The announcement from Haizheng Pharmaceutical indicates that the European Union has lifted the non-compliance status of the company's Taizhou factory, which is expected to positively impact the company's product sales in the EU and other markets [1] Group 1 - Haizheng Pharmaceutical received official communication from the EU regarding the withdrawal of the non-compliance declaration for its Phase II project (Y20, Y36, Y37, Y38, and Y39) on October 17, 2025 [1] - The lifting of the GMP non-compliance status is a significant development for the company, enhancing its ability to sell products in the EU market [1] - This change is anticipated to have a positive effect on the company's overall market presence and sales performance [1]

Core Viewpoint - The report by Zhiyan Consulting highlights the growth trends in China's chemical pharmaceutical industry, projecting a production increase in raw chemical drugs by 3.4% year-on-year in April 2025, with a cumulative growth of 3.9% from January to April 2025 [1] Industry Summary - In April 2025, China's production of raw chemical drugs reached 332,000 tons, marking a year-on-year increase of 3.4% [1] - The cumulative production of raw chemical drugs from January to April 2025 totaled 1,257,000 tons, reflecting a cumulative growth of 3.9% [1] - The report provides insights into the supply and demand dynamics of the chemical pharmaceutical industry in China from 2025 to 2031 [1] Company Summary - Listed companies in the report include Heng Rui Medicine, East China Pharmaceutical, Lijun Group, Baiyunshan, North China Pharmaceutical, Haizheng Pharmaceutical, Fosun Pharmaceutical, Kelun Pharmaceutical, Enhua Pharmaceutical, and Xianju Pharmaceutical [1] - Zhiyan Consulting is recognized as a leading industry consulting firm in China, specializing in in-depth industry research and providing comprehensive consulting services for investment decisions [1]

Core Insights - The total value of licensing and strategic cooperation transactions by Chinese pharmaceutical companies reached a historic high of $48.5 billion in the first half of 2025, driven by internationalization, technological breakthroughs, and strategic transformations [1] Group 1: Company Overview - Zhejiang Huazhong Pharmaceutical Co., Ltd. (Huazhong Pharma) has been actively promoting its internationalization strategy, entering a deeper phase of internationalization 2.0, and establishing a more robust global value chain [1] - In 2025, Huazhong Pharma's wholly-owned subsidiary, Huazhong USA, successfully launched three new products in the U.S. market, achieving net profitability in the first year of launch, validating the effectiveness of its internationalization strategy [1] Group 2: Huazhong USA's Development - Established in November 2009 in Princeton, New Jersey, Huazhong USA initially served as a front-line observation window for the international pharmaceutical market, leveraging local geographical and talent advantages [2] - In 2018, Huazhong USA underwent a strategic transformation to build a formulation sales platform, successfully pushing the parent company's oral and injectable products into the U.S. market, achieving significant business transformation [2] - Huazhong USA has developed a mature generic drug formulation sales platform, with complete registration, sales, and service capabilities, covering North America, South America, Europe, the Middle East, Africa, Southeast Asia, and Russia [2] Group 3: Internationalization Strategy - Huazhong Pharma's internationalization process emphasizes a global perspective of "bringing in and going out," seeking cooperation with advanced overseas platforms while actively expanding into international markets [3] - After establishing a foothold in the U.S. market, Huazhong Pharma announced plans to invest in a subsidiary in Brazil in August 2025, further expanding its business reach in the Americas [3] - The company’s core product in the animal health sector, "Hailiwang," successfully entered the Vietnamese market, while its active pharmaceutical ingredient business continues to expand in South America, the CIS, and the Middle East [3] Group 4: Industry Empowerment - Huazhong Pharma is gradually transforming into a comprehensive service platform for Chinese pharmaceutical companies going abroad, having signed exclusive licensing and cooperation agreements for four products with three large domestic pharmaceutical companies in 2024 [4] - The company has accumulated nearly 40 ANDA approvals in key therapeutic areas since obtaining its first U.S. ANDA in 2009, showcasing its systematic international registration capabilities [4] - In April 2025, Huazhong Pharma became the first Chinese pharmaceutical company to complete an FDA submission under the eCTD 4.0 international standard, significantly improving submission efficiency and quality [5] Group 5: Service System and Quality Management - Huazhong USA has built a comprehensive service capability covering the entire lifecycle of drug export, providing complete solutions that comply with local regulations [5] - The company’s internationalization strategy is supported by a quality management system built to the highest global standards, with production bases passing audits from global authorities like the FDA, EMA, and WHO [5] - Huazhong Pharma's development model signifies a shift from "product export" to "empowering outbound," establishing a mature international pathway for Chinese pharmaceutical companies [5]

Core Insights - The animal vaccine sector has seen a rise of 1.93%, ranking fourth among concept sectors in terms of growth, with 17 stocks increasing in value, led by TianKang Biological, BioShares, and Hengtong Holdings, which rose by 7.52%, 4.42%, and 4.24% respectively [1][2] - The sector experienced a net inflow of 178 million yuan from main funds, with 14 stocks receiving net inflows, and 6 stocks exceeding 10 million yuan in net inflows, with BioShares leading at 64.02 million yuan [2][3] - The top three stocks by net inflow ratio were HaiZheng Pharmaceutical, KeQian Biological, and TianKang Biological, with net inflow ratios of 13.58%, 10.61%, and 8.79% respectively [3][4] Sector Performance - The animal vaccine sector's performance is highlighted by the significant gains of key stocks, with TianKang Biological showing the highest increase at 7.52% and BioShares following closely at 4.42% [1][2] - The overall market sentiment for the animal vaccine sector appears positive, as indicated by the net inflow of funds and the number of stocks experiencing gains [2][3] Fund Flow Analysis - The main funds have shown a strong interest in the animal vaccine sector, with a total net inflow of 178 million yuan, indicating robust investor confidence [2][3] - The stocks with the highest net inflow include BioShares, TianKang Biological, and HaiZheng Pharmaceutical, suggesting these companies are currently favored by investors [3][4]

Core Viewpoint - Pfizer voluntarily canceled the drug registration certificate for injectable piperacillin-tazobactam, which may positively impact the sales of the product "Tezhixing" by Haizheng Pharmaceutical [1] Group 1: Company Actions - Haizheng Pharmaceutical confirmed that the technology and rights for "Tezhixing" have been transferred to Hanhui Pharmaceutical, which is now the legal holder of the drug's market license in China [1] - The product "Tezhixing" has achieved local production under Pfizer's guidance, ensuring that its quality is consistent with the original product [1] Group 2: Market Impact - The product has already completed the market replacement of the original imported product and has established a continuous supply capability [1] - Haizheng Pharmaceutical's second-phase expansion project for "Tezhixing" is expected to achieve commercial production in the first half of next year [1]

Investment Rating - The report maintains a "Market Weight" rating for the pharmaceutical and biotechnology industry [2][24]. Core Viewpoints - The SW pharmaceutical and biotechnology industry underperformed the Shanghai and Shenzhen 300 index, declining by 0.23% from September 26, 2025, to October 9, 2025, lagging behind the index by approximately 2.76 percentage points [9][24]. - Most sub-sectors within the industry recorded negative returns during the same period, with the medical research outsourcing and in vitro diagnostics sectors showing gains of 1.99% and 0.55%, respectively, while the raw materials and chemical preparations sectors fell by 2.23% and 1.73% [10][24]. - Approximately 54% of stocks in the industry achieved positive returns, with the top performer, Zhendemedical, increasing by 21.43%, while the largest decline was seen in Guangshentang, which fell by 21.86% [11][14]. - The overall price-to-earnings (PE) ratio for the SW pharmaceutical and biotechnology industry was approximately 55.04 times as of October 9, 2025, indicating a decrease in industry valuation [15][24]. Summary by Sections 1. Market Review - The SW pharmaceutical and biotechnology industry underperformed the Shanghai and Shenzhen 300 index, with a decline of 0.23% from September 26, 2025, to October 9, 2025 [9]. - Most sub-sectors recorded negative returns, with medical research outsourcing and in vitro diagnostics performing better than others [10]. - About 54% of stocks in the industry recorded positive returns, with significant variations in individual stock performance [11]. 2. Industry News - The 11th batch of national procurement will begin accepting applications on October 21, 2025, with 55 major varieties included [22]. - The National Medical Products Administration issued guidelines for the quality management of medical device online sales [20][21]. 3. Company Announcements - Zhejiang Haizheng Pharmaceutical announced that its product achieved Self-GRAS certification in the U.S., allowing it to enter the U.S. market [23]. 4. Weekly Industry Perspective - The report suggests focusing on investment opportunities in innovative drugs and sectors with expected business development catalysts, including medical devices and pharmaceutical commerce [24][26].

Group 1 - The core point of the article is the announcement by Zhejiang Haizheng Pharmaceutical Co., Ltd. regarding the progress of its fourth share repurchase plan through centralized bidding [1] Group 2 - The key information of the repurchase plan includes a total repurchase fund of no less than 50 million yuan and no more than 100 million yuan, with a maximum repurchase price of 13 yuan per share, and the repurchase period from May 12, 2025, to May 11, 2026 [2] Group 3 - As of the end of September 2025, the company has repurchased a total of 5.535 million shares, accounting for 0.46% of the total share capital, with an actual repurchase price range between 8.92 yuan and 9.40 yuan per share, totaling 50,891,385 yuan paid (excluding transaction fees) [3] - The company did not conduct any share repurchases in September 2025, but it stated that it will strictly follow relevant regulations and make repurchase decisions based on market conditions within the repurchase period [3]

Core Points - The company, Haizheng Pharmaceutical (600267.SH), has successfully completed the Self-GRAS (Self-affirmed Generally Recognized as Safe) scientific evaluation for its product, 1,4-butanedisulfonic acid adenosylmethionine, in accordance with FDA GRAS guidelines [1] Group 1 - The product has received unanimous approval from the expert panel, marking a significant milestone for the company [1] - The successful Self-GRAS certification allows the company to enhance its product portfolio and potentially expand its market presence in the United States [1]

Core Viewpoint - Haizheng Pharmaceutical (600267.SH) has successfully completed the Self-GRAS certification for its product 1,4-butanedisulfonic acid adenosylmethionine, allowing it to enter the U.S. market as a safe dietary ingredient [1] Group 1 - The product has undergone a scientific evaluation process and received unanimous approval from an expert panel [1] - The Self-GRAS certification signifies that the product can be marketed and used safely in the U.S. and other international markets that recognize U.S. GRAS certification [1] - This achievement enhances the company's profit structure and lays a crucial foundation for the global expansion of its dietary business [1]

Core Viewpoint - Haizheng Pharmaceutical (600267.SH) has successfully completed the Self-GRAS scientific evaluation for its product 1,4-butanedisulfonic acid adenosylmethionine, receiving unanimous approval from the expert panel, thus achieving Self-GRAS certification in the U.S. market [1] Group 1 - The product 1,4-butanedisulfonic acid adenosylmethionine has passed the Self-GRAS certification, indicating it has undergone a scientific evaluation process and is now recognized as safe for use in the U.S. market [1] - This certification allows the product to be sold and used as a safe dietary ingredient in the U.S. and other international markets that recognize U.S. GRAS certification [1] - The successful certification is expected to enrich the company's profit structure and lay a crucial foundation for the global expansion of its dietary business [1]