Investment Rating - The report maintains a "Positive" outlook for the pharmaceutical and biotechnology industry in China [6] Core Insights - The ASCO conference showcased significant breakthroughs in both foreign and domestic innovative drugs, highlighting the competitive strength of domestic companies [4][9] - A total of 73 research data entries from domestic companies were included in this year's ASCO, marking a historical high [9][13] - The report emphasizes the potential of dual antibodies and antibody-drug conjugates (ADCs) in the treatment of non-small cell lung cancer (NSCLC) and small cell lung cancer (SCLC) [9][39] Summary by Sections Dual Antibodies - Domestic research is leading globally in dual antibodies, with products like PD-1/VEGF and PD-1/IL-2 showing promise as major drugs in the post-PD-1 era [9][10] - SSGJ-707 from Sanofi has shown impressive efficacy in treating advanced NSCLC, with a clinical data showing a cORR of 64.7% and DCR of 97.1% in specific patient groups [15][16] - IBI363, a first-in-class PD-1/IL-2 dual-specific antibody, has demonstrated significant efficacy in advanced NSCLC, with a median PFS of 9.3 months in squamous cell carcinoma patients [18][19] Antibody-Drug Conjugates (ADCs) - ADCs are expected to gradually replace existing standard of care (SOC) treatments, with domestic products poised to take a significant market share [10][39] - The TROP2 ADC combined with PD-(L)1 therapy has shown promising results in first-line treatment of advanced NSCLC, with an ORR of 55% and mPFS of 11.2 months [27][28] - Sac-TMT from Kelun Biotech has demonstrated superior efficacy compared to Dato-DXd, particularly in patients with high PD-L1 expression [30][31] Small Cell Lung Cancer (SCLC) - DLL3-targeted therapies have made significant progress, with domestic products showing international competitiveness [9][39] - Tarlatamab has achieved breakthroughs in both second-line and first-line maintenance treatment for SCLC, with promising clinical data [9][39] - The report highlights the potential of DLL3-targeted therapies to evolve from dual antibodies to ADCs, enhancing treatment options for SCLC patients [9][39]

Core Insights - Bristol-Myers Squibb (BMS) acquired BioNTech's PD-L1/VEGF dual antibody BNT327 for $9 billion, highlighting the increasing interest in Chinese biotech firms and their innovative drug pipelines [1][2] - The rapid financial success of BioNTech, which earned over $8 billion from the initial $55 million licensing deal with Chinese firm Pumice Biologics, raises questions about the pricing strategies of Chinese pharmaceutical companies in the global market [1][2][3] - The trend of multinational corporations (MNCs) aggressively acquiring Chinese dual antibodies is reshaping the global landscape of innovative drugs, with significant deals such as the $6.05 billion agreement between 3SBio and Pfizer [1][4] Group 1: Major Transactions - BMS's deal with BioNTech includes a $1.5 billion upfront payment, a record for oncology licensing agreements, along with additional milestone payments totaling $76 billion [2] - 3SBio's licensing of its PD-1/VEGF dual antibody SSGJ-707 to Pfizer for $6.05 billion, with an upfront payment of $1.25 billion, sets a new record for domestic innovative drug licensing [4][5] - Other notable transactions include Merck's $3.3 billion investment in LianBio and the anticipated $5 billion deal involving Shijiazhuang Yiling Pharmaceutical [5][6] Group 2: Market Dynamics - The surge in MNCs acquiring Chinese dual antibodies is driven by the expiration of patents for existing blockbuster drugs and the need for new products [6][7] - Chinese innovative drug companies benefit from lower development costs and a large patient pool, making them attractive targets for MNCs seeking to enhance their product pipelines [6][7] - The total value of outbound licensing deals for Chinese innovative drugs reached $45.5 billion since early 2025, with 42% of high-value projects coming from China [5][6] Group 3: Future Outlook - The ongoing trend of MNCs partnering with Chinese biotech firms is expected to bolster the confidence of domestic companies in pursuing research and development [7][8] - The ability of Chinese innovative drug companies to negotiate higher prices in licensing deals will depend on their negotiation skills and market positioning [8] - The need for a "pricing power revolution" in the Chinese pharmaceutical industry is emphasized, as companies face challenges from rising R&D costs and stringent domestic pricing policies [9]

Core Viewpoint - The cell immunotherapy sector has shown significant growth, with a 3.87% increase, ranking second among concept sectors, driven by strong performances from several stocks [1][2]. Group 1: Sector Performance - As of June 3, the cell immunotherapy concept saw 51 stocks rise, with notable gainers including Shutaishen and Guanhao Biological, both reaching a 20% limit up [1]. - Other top performers in the sector included Hainan Haiyao, Rui Zhi Pharmaceutical, and Zuo Li Pharmaceutical, with increases of 9.97%, 13.15%, and 10.66% respectively [1][2]. - Conversely, stocks like Xue Rong Biological, *ST Biological, and Fosun Pharmaceutical experienced declines of 1.76%, 1.14%, and 0.39% respectively [1]. Group 2: Capital Flow - The cell immunotherapy sector attracted a net inflow of 269 million yuan, with 34 stocks receiving significant capital inflows [2]. - Leading the net inflow was Huahai Pharmaceutical, which saw 266 million yuan enter, followed by Guanhao Biological and Hainan Haiyao with inflows of 159 million yuan and 64.85 million yuan respectively [2][3]. - The highest net inflow ratios were recorded for ST Zhongzhu, Hainan Haiyao, and Huahai Pharmaceutical, at 15.16%, 13.79%, and 12.53% respectively [3]. Group 3: Stock Specifics - Huahai Pharmaceutical had a daily increase of 7.63% with a turnover rate of 7.71% and a net capital flow of 266.08 million yuan [3]. - Guanhao Biological surged by 19.97% with a turnover rate of 28.68% and a net capital flow of 159.24 million yuan [3]. - Hainan Haiyao also performed well, increasing by 9.97% with a turnover rate of 6.18% and a net capital flow of 64.85 million yuan [3].

Investment Rating - The report assigns an "Overweight" rating to the pharmaceutical and biotechnology industry, indicating that the industry index is expected to outperform the CSI 300 index by 10% or more over the next six months [2][37]. Core Insights - The pharmaceutical and biotechnology sector saw an overall increase of 2.21% in the week from May 26 to May 30, ranking second among 31 industries in the Shenwan index and outperforming the CSI 300 index by 3.29 percentage points. Year-to-date, the sector has risen by 6.61%, ranking sixth among the 31 industries and outperforming the CSI 300 index by 9.02 percentage points [4][13][15]. - The current PE valuation for the pharmaceutical and biotechnology sector is 27.98 times, which is at the historical median level, with a valuation premium of 137% compared to the CSI 300 index. The top three sub-sectors in terms of growth are chemical pharmaceuticals, biological products, and medical services, with increases of 3.83%, 3.14%, and 2.46% respectively [4][22][15]. - A total of 373 stocks (77.9%) in the sector rose last week, while 97 stocks (20.3%) declined. The top five gainers were Shuyou Shen (60.41%), Huason Pharmaceutical (41.97%), Changshan Pharmaceutical (35.91%), Huana Pharmaceutical (32.62%), and Yifang Biological (30.51%) [4][27]. Market Performance - The pharmaceutical and biotechnology sector's performance is highlighted by the approval of 11 innovative drugs by the National Medical Products Administration (NMPA) on May 29, which enhances treatment options for patients and showcases the increasing innovation capability of China's pharmaceutical industry [5][29]. - The 2025 American Society of Clinical Oncology (ASCO) annual meeting showcased several domestic innovative drug projects, indicating that local companies are gaining international recognition for their innovative capabilities [5][32]. Investment Recommendations - The report suggests focusing on the innovative drug sector as it is the most certain and leading sub-sector within the pharmaceutical and biotechnology industry. Additionally, it recommends exploring investment opportunities in medical devices, traditional Chinese medicine, chain pharmacies, and medical services [6][35]. - Recommended stocks include Beida Pharmaceutical, Te Bao Biological, Qianhong Pharmaceutical, Ling Rui Pharmaceutical, and Lao Bai Xing. Stocks to watch include Kelong Pharmaceutical, Rongchang Biological, Kaili Medical, Huaxia Eye Hospital, and Baipu Sais [6][35].

Group 1 - The core viewpoint highlights the positive market reaction to the collaboration between Bristol-Myers Squibb and BioNTech regarding the new cancer drug BNT327, with milestone payments potentially reaching $11.1 billion, which has boosted the performance of innovative drug concept stocks [1] - The performance of the Kexin Biopharmaceutical ETF (588250.SH) increased by 1.23%, with its associated index Kexin Biopharmaceutical (000683.SH) rising by 0.96%, indicating a favorable market sentiment towards the biopharmaceutical sector [1] - Notable increases in major component stocks include Microchip Biotech rising by 9.44%, Huaxi Biotech by 7.63%, and Rongchang Biotech by 4.92%, reflecting strong investor interest in innovative drug companies [1] Group 2 - Guosen Securities reported significant advancements in domestic innovative drugs, particularly focusing on bispecific antibodies and ADC technologies, with promising clinical data from Innovent Biologics and Mingji Biotech in pancreatic cancer treatments [2] - Shenwan Hongyuan highlighted Huaxi Biotech as a key player in the recombinant collagen market, benefiting from the domestic beauty trend and strong brand recognition, suggesting potential for consumer recovery [2] - Both research institutions' insights align with the performance of innovative drug and medical beauty leading companies within the Kexin Biopharmaceutical ETF [2]

Group 1 - The core viewpoint of the news highlights the significant performance of the innovative drug sector, with the Tianhong Innovative Drug ETF (517380) showing a nearly 20% increase year-to-date as of May 29, 2023 [1] - The Tianhong Innovative Drug ETF, launched in 2021, tracks the "Hang Seng Shanghai-Shenzhen Hong Kong Innovative Drug Selected 50" index, providing comprehensive coverage of the innovative drug industry across A-shares and Hong Kong stocks [1] - On May 29, the National Medical Products Administration approved 11 new drugs, with five being from innovative companies listed on the Sci-Tech Innovation Board, covering various therapeutic areas including oncology and autoimmune diseases [1] Group 2 - The upcoming 2025 ASCO Annual Meeting in Chicago is expected to showcase significant data from domestic innovative drug companies, with 71 original research results from Chinese pharmaceutical companies selected for presentation [2] - The innovative drug sector is anticipated to gain increased attention and positive market sentiment, with institutional holdings currently at low levels and the sector's valuation significantly below historical averages [2] - The total amount of outbound transactions for innovative drugs has reached $45.5 billion since the beginning of 2025, indicating a strong trend towards internationalization and potential for future growth [3] Group 3 - The Chinese innovative drug industry has transitioned from imitation to rapid following and now to original innovation, marking a significant evolution in its development [3] - Most domestic innovative drugs currently in the U.S. are in clinical stages, with future milestones expected to validate the growth and internationalization of Chinese innovative drugs [3]

Group 1 - The pharmaceutical sector in A-shares has experienced a prolonged bear market lasting over three years, with the Shenwan Pharmaceutical and Biological Index declining by 54% during this period [1] - Approximately two-thirds of the existing 600 pharmaceutical funds have a net value below 1 as of May 28, 2023, with the lowest at 0.35 [1] - However, more than half of the pharmaceutical funds achieved positive returns in 2025, with top performers yielding between 47% and 56% [1][2] Group 2 - The core factors driving the recovery of pharmaceutical funds include marginal improvements in the pharmaceutical sector's performance, despite ongoing revenue and profit declines [2][5] - The pharmaceutical sector's revenue is projected to decrease by 0.5% in 2024, with net profit expected to drop by 11% [2] - The overall performance of the pharmaceutical sector showed signs of stabilization in Q1 2025, with a revenue decline of 3.4% and a net profit decrease of 4% [2][5] Group 3 - The pharmaceutical sector's valuation has reached historical lows, making it attractive for investors, with a price-to-earnings ratio of 29x at the beginning of the year [5] - The Shenwan Pharmaceutical and Biological Index has increased by 3.76% from the beginning of the year to May 28, 2023, with notable fluctuations in its performance [6][8] - The recovery in the pharmaceutical sector is driven by investor expectations of stabilization, supported by the release of quarterly reports [8] Group 4 - Innovative drugs are currently the main source of alpha in the pharmaceutical sector, with top-performing funds achieving returns exceeding 40% through active stock selection [9][12] - The top holdings of the Zhongyin Great Health A fund include several leading innovative pharmaceutical companies, all of which saw significant price increases in Q1 2025 [10][12] - The long-term investment strategy of the Zhongyin Great Health A fund focuses on domestic innovative drugs, despite the sector's previous downturn [12] Group 5 - The pharmaceutical sector is expected to benefit from favorable policies supporting innovation, with the domestic innovative drug market entering a harvest phase [18] - The chemical pharmaceutical sub-sector has outperformed due to the market entry of innovative drugs and favorable policy expectations [14][17] - The performance of various pharmaceutical sub-sectors has shown significant differentiation, with innovative drugs presenting clearer investment opportunities [17][19]

| 证券代码：688331 | 证券简称：荣昌生物 公告编号：2025-032 | | --- | --- | | 港股代码：09995 | 港股简称：榮昌生物 | 荣昌生物制药（烟台）股份有限公司 关于完成发行 H 股的公告 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。 荣昌生物制药（烟台）股份有限公司（以下简称"本公司"）于2025年5月22 日发布了《荣昌生物制药（烟台）股份有限公司关于根据一般授权发行H股的公告》 （公告编号：2025-025），内容有关配售本公司19,000,000股新H股（以下简称"本 次配售"）。除另有界定外，本公告所用词汇与该公告所定义者具有相同含义。 二、配售事项完成后的股本变动 因发行配售股份，本公司已发行股份总数由544,608,243股增加至563,608,243 股。本次配售完成后，本公司已发行H股总数由189,581,239股H股增加至 208,581,239股H股，而A股数目维持不变，仍为355,027,004股A股。 董事会欣然宣布，配售协议中规定的所有先决条件均已达成（包括取 ...

Core Viewpoint - Rongchang Biologics (688331.SH) successfully issued a total of 19 million new H-shares at a placement price of HKD 42.44 per share, raising approximately HKD 806.36 million in total proceeds [1] Group 1 - The new H-shares represent about 9.11% of the enlarged total issued H-shares after the placement [1] - The total issued shares after the placement will increase by approximately 3.37% [1] - The net proceeds from the placement, after deducting commissions and estimated expenses, will amount to approximately HKD 796 million [1]

Group 1: Market Performance - Major indices experienced a strong rebound, with the Shanghai Composite Index rising by 0.7%, Shenzhen Component Index by 1.24%, and ChiNext Index by 1.37% [2] - Over 4,200 stocks in the two markets saw gains, with a total trading volume of approximately 1.19 trillion yuan [2] Group 2: Digital Currency and Software Sector - The digital currency and software sectors led the market rally, with notable stocks like Lakala (300773.SZ) and Sifang Jingchuang (300468.SZ) hitting the daily limit with a 20% surge [2] - New Guodu (300130.SZ) rose over 14%, while Feitian Chengxin (300386.SZ) and Shenzhou Information (000555.SZ) also saw significant increases of 12.84% and 10%, respectively [2] Group 3: Autonomous Driving and Intelligent Connected Vehicles - Stocks related to autonomous driving and intelligent connected vehicles surged, with companies like Fulongma (603686.SH) and Jintour Environment (001230.SZ) hitting the daily limit [3] - A strategic cooperation agreement was signed between Xiaoma Zhixing and Guangzhou Public Transport Group, focusing on autonomous vehicle services [3] Group 4: Innovative Pharmaceuticals - The innovative pharmaceutical sector remains active, with companies like Sanofi Guojian (688336.SH) rising over 12% [4][3] - The sector is supported by policy backing, global competitiveness, and improving fundamentals, with a focus on "innovation + internationalization" [4] Group 5: Automotive Sector - The automotive sector showed strong performance, with Jinlong Automobile (600686.SH) and Dongfeng Co. (600006.SH) both increasing by 10% [5] - The launch of new models by XPeng and supportive government policies in Fujian province are contributing factors to the sector's growth [5] Group 6: Weak Sectors - The precious metals and food processing sectors experienced declines, with companies like Western Gold (601069.SH) and Laiyifen (603777.SH) seeing significant drops [5]