Core Viewpoint - Huadong Medicine (000963) has confirmed that its products Biomee1 and Biomee2 creams are not yet launched overseas and will be registered as imported cosmetics in China, bypassing the drug registration approval process [1] Group 1 - The products Biomee1 and Biomee2 are currently not available in international markets [1] - In China, these products will be registered as imported cosmetics rather than through the drug registration pathway [1] - The registration process for these products does not require clinical trials in China [1]

Group 1 - The core viewpoint of the article is that Huadong Medicine has clarified the registration status of its products Biomee®1 and Biomee®2, indicating they are not yet launched overseas and will be registered as imported cosmetics in China rather than through drug approval pathways [2] Group 2 - Biomee®1 and Biomee®2 will not require clinical trials in China, simplifying the registration process for these products [2]

Core Viewpoint - East China Pharmaceutical's new veterinary drug for weight management in obese cats has been approved for market release, addressing a significant gap in the pet weight management sector in China [2][3] Group 1: Product Development and Market Potential - The newly approved drug can lead to an average weight loss of 9.26% in obese cats within six weeks at the recommended dosage, with over 70% of trial cats losing more than 5% of their weight [2] - The pet medical market in China has reached a scale of 80 billion yuan, making it one of the fastest-growing pet markets globally [2] - There is a notable absence of weight management solutions for pets, particularly in the area of pharmaceutical interventions, which presents a significant market opportunity [2] Group 2: Industry Challenges and Consumer Concerns - Current methods for managing pet obesity primarily involve calorie control and increased exercise, which face challenges such as long duration, hunger stress, and low compliance from pets [2] - The development of veterinary drugs often follows a "human drug/animal drug for pets" model, requiring strict regulatory frameworks to ensure safety and efficacy [2] - Pet owners express concerns about the safety of new weight management drugs, indicating a cautious approach to adopting pharmaceutical solutions despite the demand [3] Group 3: Health Implications and Recommendations - Obesity in pets can lead to serious health issues, including insulin resistance, abnormal blood lipids, hypertension, diabetes, and can directly damage joints, cardiovascular, and respiratory systems [3] - Preventive measures are emphasized as crucial, with recommendations for scientific feeding, calorie control, adequate exercise, and regular weight monitoring to prevent obesity and its complications [3]

Core Viewpoint - Huadong Medicine has entered into a strategic partnership with MC2 Therapeutics to commercialize the Biomee skincare series in Greater China, enhancing their collaboration following the successful introduction of the Wynzora ointment for psoriasis treatment [1][2]. Group 1: Partnership and Product Development - Huadong Medicine's subsidiary, Hangzhou Zhongmei Huadong Pharmaceutical, has secured exclusive commercialization rights for the Biomee series in Greater China [1]. - The partnership builds on previous successful collaborations, particularly the introduction of the Wynzora ointment, and aims to expand into the dermatological market [2][3]. - A Phase III clinical trial for the MC2-01 ointment, which combines calcipotriol and betamethasone, has commenced, marking a significant milestone in product development [1][3]. Group 2: Market Potential and Product Features - The Biomee series, developed using MC2's PAD technology, addresses common skin issues such as dryness and discomfort, with a focus on providing effective and safe relief [2][3]. - The Chinese dermatological skincare market has shown rapid growth, increasing from 8.52 billion yuan in 2017 to 31.17 billion yuan in 2023, with projections to reach 65 billion yuan by 2028 [3]. - The Biomee series targets widespread skin concerns, making it appealing across various age groups and enhancing market potential [3]. Group 3: Strategic Positioning and Future Outlook - The introduction of the Biomee series is part of Huadong Medicine's comprehensive strategy in the dermatological sector, combining partnerships and in-house development [5][6]. - The company has established a leading product portfolio in the psoriasis treatment space, including biologics and topical prescription drugs, ensuring comprehensive patient care [5]. - Huadong Medicine's collaboration with MC2 on the Biomee series signifies a strategic advancement in the skin health sector, aiming to meet the growing and diverse demands for skin health solutions in Greater China [6].

Investment Rating - The report maintains an "Outperform" rating for the following A-share targets: Jiangsu Heng Rui Medicine, Sichuan Kelun Pharmaceutical, Huadong Medicine, Jiangsu Nhwa Pharmaceutical, Xiamen Amoytop Biotech, Zhejiang Jingxin Pharmaceutical, Innovent Biologics, WuXi AppTec, Hangzhou Tigermed Consulting, Lepu Medical, MicroPort EP MedTech [5][36][8] - The report also maintains an "Outperform" rating for the following H-share targets: Hansoh Pharmaceutical Group, 3SBio, PATEO Biotech, Akeso, and related targets: Innovent Biologics, WuXi AppTec [8][36] Core Insights - The report continues to recommend the innovative drug and device industry and its supply chains, indicating a positive outlook for this sector [1][36] - In December 2025, the pharmaceutical sector underperformed the market, with the SW Pharmaceutical and Biological index falling by 4.1%, while the SHCOMP rose by 2.1%, ranking 26th among Shenwan primary industries [15][37] - The report highlights that the premium level of the pharmaceutical sector relative to all A-shares is currently at a normal level, with a relative premium rate of 63.2% as of the end of December 2025 [25][37] Summary by Sections A-Share Targets - The report includes a monthly portfolio of A-share targets that outperformed the pharmaceutical index, with a monthly average decline of 1.8% compared to the overall pharmaceutical index decline of 3.9% in December 2025 [11][36] - The top three stock gains in December 2025 were Luyan Pharma (+118.8%), CareRay Digital Medical Technology Co., Ltd. (+36.6%), and Hubei Hongyuan Pharmaceutical Technology Co., Ltd. (+34.0%) [24][37] H-Share Targets - The report notes that the Hong Kong stock pharmaceutical sector also underperformed the market, with the Hang Seng Healthcare index falling by 9.5% and the Hong Kong Biological Technology index falling by 10.6% in December 2025 [26][38] U.S. Market Performance - In December 2025, the U.S. pharmaceutical sector underperformed the market, with the S&P 500 Healthcare Select Sector declining by 1.5% while the S&P 500 fell by only 0.1% [26][39]

Investment Rating - The report maintains an "Overweight" rating for the innovative pharmaceutical and medical device industry chain [4][8]. Core Viewpoints - The report continues to recommend the innovative pharmaceutical and medical device industry chain, highlighting a selection of A-share and H-share stocks with an "Overweight" rating [2][8][11]. - The performance of the pharmaceutical sector in December 2025 was weaker than the broader market, with the SW Pharmaceutical Biotechnology index declining by 4.1% compared to a 2.1% increase in the Shanghai Composite Index [18][30]. - The report notes that the premium level of the pharmaceutical sector relative to the entire A-share market is currently at a normal level, with a relative premium rate of 63.2% as of December 31, 2025 [29][32]. Summary by Sections A-Share Recommendations - The report lists the following A-share stocks with an "Overweight" rating: - 恒瑞医药 (Hengrui Medicine) - 科伦药业 (Kelun Pharmaceutical) - 华东医药 (East China Pharmaceutical) - 恩华药业 (Enhua Pharmaceutical) - 特宝生物 (Tebao Biological) - 京新药业 (Jingxin Pharmaceutical) - 益方生物 (Yifang Biological) - 药明康德 (WuXi AppTec) - 泰格医药 (Tigermed) - 乐普医疗 (Lepu Medical) - 联影医疗 (United Imaging) - 微电生理 (Microelectrophysiology) [8][9]. H-Share Recommendations - The report maintains an "Overweight" rating for the following H-share stocks: - 翰森制药 (Hansoh Pharmaceutical) - 三生制药 (3SBio) - 科伦博泰生物 (Kelun-Botai Biological) - 康方生物 (CanSino Biologics) - 映恩生物 (InnoCare Pharma) - 百济神州 (BeiGene) [11][12]. Performance Analysis - The report indicates that the 国泰海通医药 monthly portfolio outperformed the pharmaceutical index in December 2025, with an average decline of 1.8% compared to a 3.9% decline in the overall pharmaceutical index [14][15]. - The report highlights the best-performing stocks in December 2025, with 泰格医药 (Tigermed) increasing by 11.2%, 特宝生物 (Tebao Biological) by 7.5%, and 惠泰医疗 (Huitai Medical) by 3.9% [15][18].

Core Insights - The GLP-1 (Glucagon-Like Peptide-1) drug class is evolving from a simple diabetes treatment to a comprehensive metabolic therapy, showing potential in weight loss, cardiovascular benefits, and fatty liver disease, leading to intensified competition among pharmaceutical companies [1][2]. Industry Developments - The GLP-1 drug development has transitioned from single-target to multi-target approaches, with drugs like Eli Lilly's Tirzepatide (GLP-1/GIP dual-target) and Innovent's Ma Shidu (GLP-1/GCG dual-target) gaining approval, enhancing metabolic control across various indicators [2][3]. - Chinese pharmaceutical companies are emerging as significant players, with Innovent's Ma Shidu showing promising Phase III clinical trial results for weight loss and liver fat reduction, while other companies like Hengrui and Zhongsheng are advancing their own dual-target and oral formulations [3][4]. Market Expansion - The future growth of the GLP-1 market is shifting from traditional Type 2 diabetes and obesity treatments to broader disease areas, including metabolic dysfunction-related fatty liver disease (MASH), with drugs like Semaglutide already approved for MASH treatment [4][5]. - The concept of "high-quality weight loss" is gaining traction, focusing on preserving muscle mass while reducing fat, with several companies developing combination therapies that include GLP-1 and muscle-preserving agents [5]. Competitive Landscape - The GLP-1 market is dominated by Novo Nordisk and Eli Lilly, with their combined revenue expected to grow from approximately $2.9 billion in 2015 to about $49.4 billion by 2024, indicating a robust growth trajectory [43]. - The sales of Tirzepatide are projected to surpass those of Semaglutide, with significant revenue growth observed in both diabetes and weight loss indications [46][48]. Clinical Advancements - Innovent's Ma Shidu achieved a 20.08% average weight reduction in a Phase III trial, significantly outperforming the placebo group, and demonstrated a 71.9% reduction in liver fat content among non-diabetic participants [32][33]. - Hengrui's dual-target drug HRS9531 has shown positive results in its Phase III trials, with its application for market approval accepted by the NMPA [37]. Future Trends - The GLP-1 industry is at a pivotal point of rapid technological iteration and expanding indications, with a clear trajectory towards more comprehensive, convenient, and personalized metabolic disease management solutions [6].

Group 1 - The core focus of the article is the entry of Huadong Medicine into the pet weight management market with its new veterinary drug HDM7006, a GLP-1R/GIPR dual agonist, which has received acceptance for registration by the Ministry of Agriculture and Rural Affairs in China [1][3] - HDM7006 is designed specifically for weight management in obese cats, showing a significant weight reduction of 9.26% relative to baseline after six weeks of treatment in clinical trials, with 72.31% of the treated cats losing more than 5% of their body weight [1][3] - The company anticipates a review period of approximately one year for the drug's approval and is actively seeking opportunities for expedited review to shorten this timeline [1][3] Group 2 - Huadong Medicine has multiple GLP-1 drug developments, including another candidate, Poterepatide (HDM1005), which is currently in phase 3 clinical trials for human use [2] - The pet pharmaceutical market is seeing a trend where human drug companies are shifting towards animal health, with a specific focus on addressing obesity in pets, as evidenced by the unique design of HDM7006 tailored for cats [3] - The pet cat population in urban China is projected to reach 71.53 million, with an obesity rate of 28.1%, indicating a significant market opportunity for weight management solutions [3] Group 3 - The article notes that the pet obesity management market is largely untapped, with no similar GLP-1 targeted drugs currently available for weight management in cats [3][4] - Previous attempts to introduce weight management drugs for pets, such as Pfizer's Slentrol, faced challenges due to a lack of perceived need among pet owners, highlighting potential market education challenges for new products [4][6] - The introduction of GLP-1 weight loss drugs into the pet market may require substantial market education efforts, and the potential scale of success remains uncertain [6] Group 4 - The article mentions that this is not the first instance of GLP-1 drugs targeting the animal health market, as Fosun Pharma has licensed a GLP-1R agonist for both human and animal indications to Pfizer, indicating growing interest in this area [7]

Core Viewpoint - The company emphasizes that innovation and transformation are its core strategic directions, with a focus on developing its product pipeline and enhancing core competitiveness through a dual approach of "independent research and external collaboration" [1] Group 1: Innovation Strategy - The company’s core product pipeline is entering a phase of intensive harvest, with multiple core products expected to launch in the next 2-3 years, providing sustained momentum for revenue growth [1] - The company is committed to focusing on differentiated innovation areas, continuously strengthening its core competitiveness [1] Group 2: Resource Allocation and Management - The company has fully aligned its resource allocation and assessment mechanisms towards innovative business, ensuring that management and all employees are clear on objectives and united in consensus [1] - The company recognizes the importance of trust and is dedicated to delivering solid progress to reward shareholders [1]

Group 1 - The pharmaceutical sector showed weakness on December 30, with the Hang Seng Hong Kong-Shanghai Innovation Drug Select 50 Index down by 0.56% [1] - Among the constituent stocks, Gan Li Pharmaceutical, Hao Yuan Pharmaceutical, and Junshi Biosciences saw the highest gains, while Baijia Shenzhou, WuXi AppTec, and Kailai Ying experienced declines [1] - The Tianhong Innovation Drug ETF (517380), which tracks the Hang Seng Hong Kong-Shanghai Innovation Drug Select 50 Index, has a total fund size of 1.381 billion yuan and has seen a share increase of over 308% year-to-date, with the latest share count at 1.848 billion [1] Group 2 - Huadong Medicine announced that its subsidiary received a notice from the Ministry of Agriculture and Rural Affairs regarding the acceptance of a new veterinary drug registration application for HDM7006, aimed at weight management in adult obese cats [1] - Xinda Securities believes that the spring market is about to start, recommending attention to emerging pharmaceutical industries such as brain-computer interfaces, surgical robots, and AI applications, with a long-term focus on innovation and international expansion in the medical investment sector [1] - Huaxi Securities points out that the innovation drug industry chain will be the main line of the pharmaceutical sector by 2026, highlighting two key trends: marginal improvement in overseas demand and reversal of domestic demand challenges [2]