Investment Rating - The report maintains a rating of "Buy" for the pharmaceutical and biotechnology industry [1] Core Insights - The innovative drug sector is experiencing significant funding support, with a total of approximately 700 billion RMB raised in the A-share and Hong Kong markets from January 1, 2024, to March 21, 2026, to support R&D investments [15] - The BD (Business Development) income has become a crucial funding source for innovative drug research, with total contracts reaching 57.1 billion USD as of March 21, 2026, indicating a strong trend in the Chinese innovative drug market [18] - The report highlights a positive outlook for the innovative drug sector, particularly in small nucleic acid therapies, and suggests a ranking of preferred sub-sectors: innovative drugs > research services > CXO > traditional Chinese medicine > medical devices > pharmacies [8] Summary by Sections Industry Performance - The A-share pharmaceutical index has seen a decline of 2.77% this week and 2.90% year-to-date, underperforming the CSI 300 by 0.59% and 1.54% respectively [8] - The Hong Kong biotechnology index has increased by 0.48% this week and decreased by 0.97% year-to-date, outperforming the Hang Seng Technology Index by 2.60% and 10.63% respectively [8] Funding and Investment - From January 1, 2024, to March 21, 2026, the A-share pharmaceutical sector raised 11.8 billion RMB through equity financing and 2.5 billion RMB through convertible bonds [15] - The Hong Kong pharmaceutical sector raised a total of 63.2 billion HKD during the same period [15] R&D Progress and Company Developments - Several companies have made significant advancements in their R&D, including KX-826 for hair loss treatment and ABSK061 for achondroplasia, which received orphan drug designation from the FDA [8] - The report emphasizes the importance of maintaining a robust financial foundation for ongoing clinical trials and pipeline expansion, with most companies having over one year of R&D funding coverage [18] Stock Recommendations - The report suggests focusing on specific companies based on various therapeutic areas, including innovative drugs, ADCs, small nucleic acids, and traditional Chinese medicine [11]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The report highlights the acceleration of domestic innovation in the pharmaceutical and biotechnology sector, showcasing a shift from "follow" to "first" in local innovation, particularly in areas such as second-generation immune combination therapies, single/double antibody ADCs, and AI-assisted diagnostics [5][14][15] - The report emphasizes significant survival benefits from ADC drugs in the treatment of EGFRm NSCLC and SCLC, indicating a paradigm shift in treatment approaches [6][21] Summary by Sections 1. Domestic Leadership in ADC Era - ELCC 2026 will focus on key areas such as second-generation immune combination therapies and targeted therapies for KRAS/HER2/EGFR [5][14] - Notable studies presented at ELCC 2026 include sac-TMT (Trop2 ADC) by Kelun-Biotech and Iza-bren (EGFR/HER3 ADC) by BaiLi Tianheng, among others [15][16] 2. Market Performance - The pharmaceutical and biotechnology sector experienced a decline of 2.77% in March, underperforming the CSI 300 index by 0.59 percentage points [24][27] - Among sub-sectors, the in vitro diagnostics segment had the smallest decline, while the hospital sector faced the largest drop [27][28] 3. Recommended Stocks - Monthly recommended stocks include WuXi AppTec, CSPC Pharmaceutical, Innovent Biologics, BaiLi Tianheng, and others [8] - Weekly recommended stocks include HengRui Medicine, Kelun-Biotech, and others [8]

Investment Rating - The report suggests a positive investment outlook for the innovative drug sector, highlighting potential opportunities due to upcoming clinical data and successful overseas clinical progress of pipelines [2][4]. Core Insights - The chemical products sector is experiencing significant price increases due to rising international oil prices and high overseas energy costs, particularly affecting solvent products which are difficult to stockpile [1][10]. - The raw material pharmaceutical products are expected to see price increases as upstream raw material costs rise, with downstream clients maintaining low inventory levels since April 2023, indicating a potential for sustained price increases and profit elasticity [1][10]. - The report emphasizes the importance of the PI3K/AKT/mTOR signaling pathway in cancer treatment, with renewed focus on PI3K inhibitors, particularly following Novartis's acquisition of Synnovation Therapeutics' PI3Kα inhibitor SNV4818 [34][35][36]. Summary by Sections Raw Materials - The report notes that the pharmaceutical raw material sector is poised for price increases due to rising upstream costs and low inventory levels among clients, which could lead to sustained profitability [1][10]. Pharmaceuticals - Novartis announced a $2 billion upfront payment and up to $1 billion in milestone payments to acquire Synnovation Therapeutics' PI3Kα inhibitor SNV4818, indicating a strategic focus on differentiated therapies in the HR+/HER2- breast cancer market [2][34]. Medical Devices - Innovative products in the medical device sector are expanding into international markets, with companies like MicroPort receiving CE certification for pediatric applications of their surgical robots, enhancing their global brand presence [3][11]. Biologics - The report highlights the promising results of the oral GLP-1 Aleniglipron, which showed significant weight loss in clinical trials, suggesting a shift towards oral formulations that improve patient compliance and reduce logistics costs [3][12]. Traditional Chinese Medicine - The report suggests monitoring undervalued high-dividend assets within the traditional Chinese medicine sector as companies begin to release their performance results [3][12]. Healthcare Services and Consumer Healthcare - The report discusses the upcoming release of the DRG/DIP 3.0 version by the National Healthcare Security Administration, expected to be published around July 2023, which will provide insights into the evolving healthcare payment landscape [3][12]. Investment Recommendations - The report recommends focusing on core sectors such as small nucleic acids, bispecific antibodies, and ADCs, while also identifying opportunities during earnings forecast windows and major clinical data release events [2][4].

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全部或任何部分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。 Jiangsu Hengrui Pharmaceuticals Co., Ltd. 江蘇恒瑞醫藥股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：1276） 海外監管公告 本公告乃根據香港聯合交易所有限公司證券上市規則第13.10B條刊發。 孫飄揚先生 中國上海 2026年3月20日 於本公告日期，董事會成員包括(i)執行董事孫飄揚先生、戴洪斌先生、馮佶女 士、張連山先生、江寧軍先生及孫杰平先生；(ii)非執行董事郭叢照女士；及(iii) 獨立非執行董事董家鴻先生、曾慶生先生、孫金雲先生及周紀恩先生。 证券代码：600276 证券简称：恒瑞医药 公告编号：临 2026-043 江苏恒瑞医药股份有限公司 关于获得药物临床试验批准通知书的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 近日，江苏恒瑞医 ...

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全部或任何部分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。 孫飄揚先生 Jiangsu Hengrui Pharmaceuticals Co., Ltd. 江蘇恒瑞醫藥股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：1276） 海外監管公告 本公告乃根據香港聯合交易所有限公司證券上市規則第13.10B條刊發。 根據中華人民共和國的有關法例規定，江蘇恒瑞醫藥股份有限公司（「本公司」）在 上海證券交易所網站( www.sse.com.cn )刊發了以下公告。茲載列如下，僅供參閱。 承董事會命 江蘇恒瑞醫藥股份有限公司 董事長 中國上海 2026年3月20日 於本公告日期，董事會成員包括(i)執行董事孫飄揚先生、戴洪斌先生、馮佶女 士、張連山先生、江寧軍先生及孫杰平先生；(ii)非執行董事郭叢照女士；及(iii) 獨立非執行董事董家鴻先生、曾慶生先生、孫金雲先生及周紀恩先生。 近日，江苏恒瑞医药股份有限公司（以下简称"公司"）子公司苏州盛迪亚 生物 ...

一、药物的基本情况 药物名称：SHR-3836 注射液 证券代码：600276 证券简称：恒瑞医药 公告编号：临 2026-043 江苏恒瑞医药股份有限公司 关于获得药物临床试验批准通知书的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 近日，江苏恒瑞医药股份有限公司（以下简称"公司"）子公司上海恒瑞医 药有限公司收到国家药品监督管理局（以下简称"国家药监局"）核准签发关于 SHR-3836 注射液的《药物临床试验批准通知书》，将于近期开展临床试验。现 将相关情况公告如下： SHR-3836 注射液是公司自主研发的创新型抗肿瘤药物，拟用于治疗多发性 骨髓瘤。经查询，目前国内外尚无同类药上市。截至目前，SHR-3836 注射液相 关项目累计研发投入约 3,170 万元(未经审计)。 三、风险提示 根据我国药品注册相关的法律法规要求，药物在获得药物临床试验批准通知 书后，尚需开展临床试验并经国家药监局审评、审批通过后方可生产上市。药品 从研制、临床试验报批到投产的周期长、环节多，药品研发及至上市容易受到一 些不确定性因素的影 ...

证券代码：600276 证券简称：恒瑞医药 公告编号：临 2026-042 江苏恒瑞医药股份有限公司 关于获得药品注册批准的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 近日，江苏恒瑞医药股份有限公司（以下简称"公司"）子公司苏州盛迪亚 生物医药有限公司收到国家药品监督管理局（以下简称"国家药监局"）的通知， 批准公司自主研发的 1 类创新药注射用瑞康曲妥珠单抗（SHR-A1811）新增适应 症。现将相关情况公告如下： 一、药品的基本情况 药品名称：注射用瑞康曲妥珠单抗 剂型：注射剂 规格：0.1g/瓶 注册分类：治疗用生物制品 2.2 类 受理号：CXSS2500094 处方药/非处方药：处方药 批准的适应症：本品适用于治疗既往接受过一种或一种以上抗 HER2 药物治 疗的局部晚期或转移性 HER2 阳性成人乳腺癌患者。 二、药品的已获批适应症情况 公司注射用瑞康曲妥珠单抗已于 2025 年 5 月在国内获批上市，适用于治疗 存在 HER2（ERBB2）激活突变且既往接受过至少一种系统治疗的不可切除的局 部晚期或转移 ...

Investment Strategy - The multi-level payment system supports the development of innovation in the pharmaceutical industry, with China's innovation beginning to shine [11][12][14] - The approval of innovative drugs and medical devices by the National Medical Products Administration has reached 204 and 265 respectively since the 14th Five-Year Plan, with 50 innovative drugs approved in the first seven months of 2025 [11][12] - The total amount of license-out transactions in China's pharmaceutical industry reached $92.03 billion in the first three quarters of 2025, indicating rapid growth and increased international competitiveness of Chinese innovative drugs [11][12] Medical Insurance and Payment Mechanisms - The commercial health insurance market is expected to grow, with a premium scale of CNY 977.3 billion in 2024, supporting the development of innovative drugs and devices [12][43] - The introduction of a commercial health insurance directory for innovative drugs in 2025 marks a shift towards a multi-payment model, enhancing the payment structure for innovative drugs [36][37] - The basic medical insurance system focuses on essential coverage, while commercial insurance emphasizes innovation and advanced treatments, facilitating the commercialization of leading-edge medical technologies [14][36] Pharmaceutical Industry Trends - Chinese innovative drugs are making significant strides in international markets, with a notable increase in license-out transactions, particularly in the oncology sector [48][49] - The global oncology drug expenditure is projected to grow from $144 billion in 2019 to $441 billion by 2029, driven by innovative therapies such as ADCs and bispecific antibodies [48][58] - The commercialization of biosimilars is steadily progressing, with opportunities arising from the expiration of original patents in the global market [48][49] Medical Devices and Services - The medical device sector is experiencing growth due to policy support and demand release, with a focus on high-end medical equipment and innovative medical consumables [15][23] - The trend of high-end customized medical consumables is gaining traction, with Chinese manufacturers increasingly integrated into the global supply chain [15][23] - The development of brain-computer interface technology and AI medical applications presents significant investment opportunities [15][23] CXO and Life Sciences - Chinese CXO companies are enhancing their global competitiveness through superior technology and cost efficiency, with a recovery in order volumes expected in 2026 [4][15] - The investment environment for innovative drugs is improving, leading to a resurgence in orders for CXO companies since 2025 [4][15]

Investment Rating - The report maintains an "Overweight" rating for the biopharmaceutical and chemical pharmaceutical sectors [6]. Core Insights - The Chinese innovative drug sector is at the beginning of a long cycle, with continuous global output of high-quality assets from Chinese companies. The potential of these assets is not fully reflected in A/H share pricing, leading to a recommendation for the innovative drug sector [1]. - The number and value of business development (BD) deals in the Chinese innovative drug industry have reached record highs in 2023, with 45 BD deals completed (+73% year-on-year) and a total disclosed amount of $57.5 billion (+135% year-on-year) [2]. - The report highlights a significant valuation gap between A/H shares and US stocks for similar innovative drug assets, indicating that A/H shares are systematically undervalued [4]. Summary by Sections Business Development Trends - The report notes that the Chinese innovative drug sector has achieved a global market share of approximately 20% in the number of BD projects and around 75% in the disclosed amount [2]. - There is a high predictability of continued growth in BD activities, driven by increasing interest from multinational corporations (MNCs) and private equity (PE) firms in Chinese assets [2]. Cash Flow Contributions - The report emphasizes that platform companies in China are expected to generate sustainable cash flows through ongoing BD activities, which have not been adequately valued in the market [3]. - It is projected that significant BD deals (with upfront payments exceeding $500 million) will contribute to continuous cash flow growth for companies like Heng Rui Medicine, Shiyao Group, and others [3]. Valuation Comparisons - The report compares the valuations of similar assets in A/H shares and US markets, revealing that Chinese innovative drug companies are undervalued relative to their US counterparts [4][19]. - Specific case studies illustrate the valuation discrepancies, such as between MSD and Kelun Biotech, and Insmed and Haizhi Pharmaceutical, highlighting the potential for significant upside in A/H share valuations [19][22]. Investment Recommendations - The report recommends focusing on large pharmaceutical and biopharmaceutical companies with sustained BD capabilities, including Heng Rui Medicine, Shiyao Group, and others [5]. - Companies that have completed large BD deals are expected to benefit from ongoing milestone cash flows, with specific recommendations for companies like Kelun Biotech and Rongchang Biopharmaceutical [5]. Target Prices and Market Outlook - Target prices for recommended stocks are provided, with specific price targets for companies such as Shiyao Group at HKD 19.25 and Heng Rui Medicine at HKD 98.43, indicating a bullish outlook for these stocks [26].

Investment Rating - The report indicates a positive outlook for the neurodegenerative disease drug market, with expectations for continued expansion driven by various factors such as aging population and innovative therapies [4][16]. Core Insights - Neurodegenerative diseases are characterized by progressive loss of neurons, significantly impacting memory, cognition, behavior, and motor control [4]. - The global and Chinese neurodegenerative disease drug markets are projected to grow, with the global market expected to reach $99.9 billion by 2033, and the Chinese market anticipated to grow to $6.5 billion [16]. - Companies are increasingly utilizing mergers and acquisitions to enhance their competitive edge in Alzheimer's treatment, focusing on diverse mechanisms and technologies [4][27]. Summary by Sections Industry Overview - The neurodegenerative disease market is expanding due to factors like increased patient numbers from aging, breakthroughs in targeted and gene therapies, and advancements in early screening technologies [4][16]. - The industry is characterized by a complex drug development process, with high barriers due to the intricate pathology of these diseases [9][10]. Alzheimer's Disease Market - The number of Alzheimer's patients globally is expected to rise from 38.4 million in 2024 to 43.5 million by 2033, with a compound annual growth rate (CAGR) of 1.5% [24]. - The report highlights a shift towards multi-target interventions in drug development, with a focus on both symptomatic relief and disease modification [29][32]. - Mergers and acquisitions in the Alzheimer's sector are frequent, with companies acquiring technologies to diversify treatment options [26][27]. Parkinson's Disease Market - The number of Parkinson's patients in China is projected to increase from 3.4 million in 2024 to 6.2 million by 2033, reflecting a CAGR of 6.0% [38]. - The treatment landscape for Parkinson's includes various stages and methods, from early-stage medication to advanced surgical interventions [36][38]. - Research continues to focus on optimizing traditional drug targets while exploring new avenues for treatment [5]. Multiple Sclerosis Market - The treatment options for multiple sclerosis (MS) are diverse, with various mechanisms of action, but there remains a significant unmet clinical need due to product shortages [6]. - The report emphasizes the need for innovative strategies to address the different subtypes of MS and their respective treatment challenges [6]. Market Dynamics - The report outlines a positive trend in the neurodegenerative disease drug market, driven by demographic changes and technological advancements in drug development [16][18]. - The industry is witnessing a shift towards collaborative efforts and international partnerships to enhance research capabilities and market presence [9][10].