Group 1 - The core viewpoint of the news is that the national centralized procurement of medicines is expected to stabilize production and sales expectations in the pharmaceutical industry, with a high selection rate of 93% for the involved drugs [1] - The procurement involves 316 commonly used drugs across 26 treatment areas, including anti-infection and anti-tumor [1] - The procurement process is led by the National Healthcare Security Administration and will follow a unified national rule, with the procurement period extending until the end of 2028 [1] Group 2 - The stock price of Medisi has shown significant volatility in the recent trading days, with a peak increase of 7.20% on February 6, closing at 70.00 yuan [2] - On February 9, the stock price dropped by 4.29% to 67.00 yuan, influenced by market sentiment, followed by a slight increase of 0.28% on February 12, closing at 67.19 yuan [2] - The trading range for the stock during this period reached 21.97%, indicating active trading, with fluctuations in financing balance observed [2]

Core Viewpoint - Medicy's ongoing expansion and operational capabilities in drug research and development are aimed at enhancing its service scale and quality in the pharmaceutical industry [2] Group 1: Company Operations - Medicy has operational research laboratories located in Shanghai Zhangjiang Hi-Tech Park, Chuansha Economic Park, and the South Shanghai Medicy New Drug Innovation Center, as well as a research center in Boston, USA [2] - The main building of the fundraising project "Laboratory Expansion Project for Drug Discovery and Pharmaceutical Research and Application" in the South Shanghai area has completed acceptance, which will further enhance the scale and level of new drug research and development services [2] Group 2: Future Development Strategy - The company will continue to improve the utilization rate of existing production capacity and will advance the construction and use of new capacity in a scientific and orderly manner based on business development and strategic planning [2] - This approach aims to ensure steady future business development and the smooth implementation of projects [2]

Core Viewpoint - The company, Medici, is positioning itself as a leading Contract Research Organization (CRO) by focusing on innovative drug development technologies and enhancing its research capabilities through AI integration [2] Group 1: Innovation and Technology Development - The company is developing a three-in-one innovative technology service platform that includes human cell models, AI predictions, and organoids to enhance drug research [2] - Medici is building a one-stop preclinical research service platform based on AI technology to streamline the drug development process [2] - The company has developed an AI ADMET prediction model to improve the efficiency and success rate of drug development [2] Group 2: Collaboration and Resource Integration - Medici is collaborating with multiple AI-driven drug development companies to establish an AI drug discovery service platform, integrating external technological resources with internal research capabilities [2] - The company's AI-based one-stop preclinical research service platform project has received government approval and is already providing services to clients [2] Group 3: Competitive Advantage - The company aims to continuously enhance its research service capabilities and competitive advantages by exploring the application of relevant technologies in its research business [2]

Core Insights - The price of experimental monkeys in the market is on the rise, indicating a growing demand and potential supply constraints for this specific type of laboratory animal [2] Company Actions - The company is actively taking measures to ensure a stable supply of experimental monkeys by diversifying procurement channels and deepening cooperation with laboratory animal suppliers [2]

Core Viewpoint - Medisi plans to enhance its competitive advantage in preclinical integrated research through continuous development and integration strategies [2] Group 1: Business Strategy - The company aims to deepen its integrated research strategy in preclinical studies [2] - Medisi intends to explore suitable opportunities for expanding its upstream and downstream industry chain based on actual business conditions [2] - The company seeks to align its expansion efforts with its internationalization strategy while strengthening its existing research and development technology platform [2] Group 2: Future Plans - Medisi will supplement or enhance its existing business chain as part of its growth strategy [2] - Any future merger and acquisition plans will be executed in accordance with relevant laws and regulations, ensuring timely decision-making and information disclosure [2]

Core Viewpoint - The company is advancing its globalization strategy by establishing a research and development office in Boston, covering approximately 2,000 square meters, which has already begun generating revenue [2] Group 1: Global Expansion Strategy - The company aims to increase the proportion of overseas customer revenue to about 47% by 2025, with a positive year-on-year growth in new overseas orders [2] - The Boston laboratory will collaborate with domestic research centers to share resources and achieve differentiated development, focusing on meeting the growing demands of overseas clients [2] - The company is enhancing its laboratory capabilities and business team configurations in key overseas regions, including Europe and Asia-Pacific [2] Group 2: Business Development and Market Engagement - The company has established a business development (BD) team of over ten members overseas and plans to strengthen the BD team in Europe [2] - There will be improved communication and collaboration between the overseas BD teams and domestic research teams, along with the establishment of a customer information intelligence system [2] - The company intends to actively participate in international industry conferences and increase the frequency of research team outreach to expand its overseas market presence [2]

Core Viewpoint - The company emphasizes the importance of technical talent in the CRO industry and is committed to building a strong team of professionals and management to support its strategic goals and long-term development [1] Group 1: Talent Acquisition and Development - The company will dynamically formulate recruitment plans based on business development needs, focusing on attracting professional technical and management talents that align with its business [1] - There is a continuous effort to strengthen internal talent training and promotion mechanisms to support the implementation of the company's strategy [1] - The recruitment plan will ensure that talent supply is synchronized with project demands to facilitate future business growth and project execution [1] Group 2: Employee Incentives - The company employs long-term incentive measures such as employee stock ownership and equity incentives to attract and retain outstanding talent [1] - These measures aim to enhance the motivation and creativity of employees, effectively improving team cohesion and the company's core competitiveness [1] - The focus on talent retention is crucial for achieving the company's development strategy and operational objectives [1]

Group 1 - The company disclosed its 2025 annual performance forecast on January 31, 2026, indicating adherence to accounting standards [2] - The company emphasized compliance with the "Enterprise Accounting Standards" and related regulations in its financial reporting [2] - Investors are advised to refer to the company's publicly disclosed periodic reports for accurate financial information [2]

Investment Rating - The report maintains an "Outperform" rating for the pharmaceutical industry, indicating a positive outlook for investment opportunities in this sector [3]. Core Insights - The commercialization of Antibody-Drug Conjugates (ADC) is accelerating, with 20 ADC drugs approved globally, and 6 of them consistently generating over $1 billion in revenue for two consecutive years. The competition in the ADC market is entering a new phase, with approximately 60 ADC drugs currently in clinical phase 3 or awaiting market approval [6][30]. - Domestic innovative pharmaceutical companies are adopting various strategies for ADC capacity layout, with companies like Rongchang Biopharma transitioning from outsourcing to in-house production, while others like Kelong Biotechnology are building their own production bases [6][31]. - The recent revision of the "Regulations on the Implementation of the Drug Administration Law of the People's Republic of China" supports segmented contract manufacturing and commercial-scale drug sales, providing a foundation for ADC commercialization partnerships [6][32]. Market Performance - The pharmaceutical index rose by 0.14% this week, outperforming the CSI 300 index by 1.47 percentage points, ranking 15th in industry performance [10]. - Since the beginning of 2026, the pharmaceutical index has increased by 3.28%, again outperforming the CSI 300 index by 2.99 percentage points, ranking 23rd [10]. - The best-performing sub-sector this week was Traditional Chinese Medicine, which increased by 2.56%, while Chemical Pharmaceuticals and Biological Products saw declines of 0.62% and 1.82%, respectively [15][17]. Stock Performance - Among A-share pharmaceutical stocks, the top five performers this week were Guangshengtang (+29.83%), Haixiang Pharmaceutical (+18.64%), and Meidixi (+18.04%) [20]. - In the Hong Kong market, the top performers included Yiteng Jiahe (+14%) and Kedi-B (+9.96%), with 38 out of 116 pharmaceutical stocks rising, representing 32.76% [24][25]. Industry News and Policies - The inclusion of implantable brain-machine interfaces in the category of Class III medical devices marks a significant regulatory development, indicating a focus on innovative medical technologies [27]. - Novartis has submitted an application for the marketing of Ianalumab in China, a drug targeting various autoimmune diseases, which has shown promising results in clinical trials [27]. - Johnson & Johnson announced the approval of Daratumumab injection for a new combination therapy in China, providing a new treatment option for multiple myeloma patients [28].

Investment Rating - The report maintains an "Outperform" rating for the pharmaceutical industry [3] Core Insights - The commercialization of ADC (Antibody-Drug Conjugates) is accelerating, with 20 ADC drugs approved globally, and 6 of them have been in the "billion-dollar club" for two consecutive years [30][31] - The report highlights the increasing competition in the ADC sector, with approximately 60 ADC drugs currently in clinical phase 3 and application stages [30] - Domestic innovative pharmaceutical companies are adopting various strategies for ADC capacity layout, with companies like Rongchang Biopharma transitioning from outsourcing to in-house production, while others like Kelong Biotechnology are building their own production bases [31][32] Summary by Sections Market Review - The pharmaceutical index rose by 0.14% this week, outperforming the CSI 300 index by 1.47 percentage points, ranking 15th in industry performance [10] - Year-to-date, the pharmaceutical index has increased by 3.28%, also outperforming the CSI 300 index by 2.99 percentage points, ranking 23rd [10] Individual Stock Performance - In the A-share market, 255 out of 479 pharmaceutical stocks rose, with the top five performers being Guangshengtang (+29.83%), Haixiang Pharmaceutical (+18.64%), and Meidixi (+18.04%) [20] - In the Hong Kong market, 38 out of 116 pharmaceutical stocks rose, with the top performers including Yiteng Jiahe (+14%) and Kedi-B (+9.96%) [24] Industry News and Policies - The newly revised "Regulations on the Implementation of the Drug Administration Law" supports segmented contract manufacturing and commercial-scale drug sales, providing a foundation for ADC commercialization cooperation [32] - Notable industry developments include Novartis's application for Ianalumab in China and Johnson & Johnson's approval of Daratumumab injection for multiple myeloma treatment [27][28] Weekly Insights - The ADC commercialization battle has begun, with a significant increase in demand for ADC production capacity, leading to a supply-demand imbalance [30] - Major CXO companies are expanding ADC production capacity, with companies like WuXi AppTec acquiring East Yao Pharmaceutical to meet rising orders [31]