Core Insights - The company is showcasing its innovative transformation in the pharmaceutical industry, particularly in the ADC drug sector and synthetic biology, establishing itself as a model for innovation-driven development in Chinese pharmaceutical enterprises [1]. ADC Drug Sector - The company has emerged as a representative player in the ADC drug field, achieving significant breakthroughs in technology research and industrialization [4]. - The company's subsidiary, Kelun Biotech, developed the first domestically approved ADC drug with global intellectual property rights, Lukanasatuzumab (Jiatailai®), which received its first indication approval in November 2024 and has since gained additional approvals in March and October of this year [4]. - In collaboration with Merck, the company has initiated 15 global Phase III studies for Lukanasatuzumab, targeting prevalent cancers such as lung and breast cancer, highlighting its global innovation potential [4]. - The company has multiple ADC drug pipelines, with SKB518, SKB500, and a bispecific ADC drug SKB571 entering Phase II clinical trials, while another ADC drug, Botuzumab (HER2 ADC Shuitailai®), received NDA approval in October for HER2-positive breast cancer [4]. - Phase III studies comparing Botuzumab to the traditional standard drug T-DM1 have shown significant efficacy advantages [4]. Synthetic Biology Sector - The company is leveraging breakthroughs in synthetic biology as a crucial pillar for accelerating its innovative transformation [5]. - Utilizing a robust biological fermentation technology platform and increasing R&D investments, the company has established a commercial system around synthetic biology, successfully applying research outcomes to high-value product development [5]. - The company is embracing AI technology to enhance synthetic biology research, optimizing production processes and achieving cost reductions, thereby strengthening market competitiveness [5]. - The company has successfully brought several products, including Red Methyl Alcohol, 5-Hydroxytryptophan, Ergothioneine, Ectoine, Squalane, Inositol, Plant Sphingosine, and PHA, into production and sales, becoming one of the first domestic companies to deliver products in synthetic biology [5]. - The company's continuous innovation in biopharmaceuticals is accelerating its high-quality development across various emerging sectors, earning recognition as an innovative enterprise in the 2025 annual case study by First Financial Capital Market [5].

Investment Rating - The report maintains an "Outperform" rating for several companies in the innovative drug and medical device industry, including Jiangsu Heng Rui Medicine, Hansoh Pharmaceutical Group, 3SBio, Sichuan Kelun Pharmaceutical, and Jiangsu Nhwa Pharmaceutical [5][6][25]. Core Insights - The report emphasizes the high prosperity in innovative drugs and continues to recommend companies with innovative pipelines that are entering a volume increase phase, maintaining "Outperform" ratings for various Biopharma/Biotech companies [5][25]. - The National Healthcare Security Administration announced the 2025 insurance drug list, which added 114 drugs, including 50 innovative drugs, further validating insurance support for innovation and indicating promising domestic demand [26][27]. Summary by Sections 1. Continuous Recommendation of Innovative Drugs and Industry Chain - The report highlights the ongoing recommendation of innovative drugs and the industry chain, with a focus on companies expected to see a revaluation due to their innovative pipelines [5][25]. - Specific companies mentioned include WuXi AppTec, WuXi XDC Cayman, Hangzhou Tigermed Consulting, and leading medical equipment companies like Beijing Chunlizhengda Medical Instruments and Lepu Medical, all rated "Outperform" [5][25]. 2. Performance of A-Shares Pharmaceutical Sector - In the second week of December 2025, the A-Shares pharmaceutical sector underperformed the market, with the SW Pharma and Biotech index falling by 1.0% compared to a 0.3% decline in the SHCOMP [8][27]. - The report notes that the premium level of the pharmaceutical sector relative to all A-Shares is at a normal level, with a current relative premium rate of 69.8% [16][27]. 3. Performance of Hong Kong and U.S. Pharmaceutical Sectors - The Hong Kong stock pharmaceutical sector underperformed the market, with the Hang Seng Healthcare index falling by 2.3%, while the U.S. stock pharmaceutical sector outperformed, with the S&P 500 Healthcare Select Sector Index rising by 0.4% [28][27].

Investment Rating - The report maintains a positive outlook on the pharmaceutical industry, recommending a focus on innovative drugs and sectors with improving performance, such as medical devices and upstream segments [3][4]. Core Insights - The pharmaceutical sector experienced a decline of 1.0% this week, ranking 17th among 31 sub-industries. The overall valuation of the pharmaceutical sector stands at 29.2 times earnings, placing it 10th among the primary industries [2][4][7]. - Key events include Fosun Pharma granting exclusive global rights for its oral GLP-1 drug to Pfizer, with potential total payments reaching $2.085 billion. Additionally, Eli Lilly's GLP-1/GIP/GCGR agonist Retatrutide showed promising Phase III clinical data, achieving a weight loss of 28.7% over 68 weeks [3][14][17]. - The report highlights significant mergers and acquisitions, such as Sobi's acquisition of Arthrosi for $950 million upfront and $550 million in milestone payments, and Zhaoli Pharmaceutical's planned acquisition of a multi-trace element injection asset group for approximately RMB 356 million [3][15][22]. Market Performance - The pharmaceutical index decreased by 1.0% this week, while the Shanghai Composite Index fell by 0.3%. The overall performance of the pharmaceutical sector was ranked 17th among 31 sub-industries [2][4][6]. - The report details the performance of various sub-sectors, with notable declines in medical circulation (-4.2%), offline pharmacies (-4.3%), and blood products (-4.1%), while medical R&D outsourcing saw an increase of 3.7% [7][11]. Recent Key Events - The report discusses recent business developments, including the approval of Shanghai Pharma's new drug, and the change of control at Tailong Pharmaceutical, which will now be under Jiang Pharmaceutical Holdings [20][22]. - It also notes the IPO application of Shiyao Innovation, which was accepted with a market value of RMB 47.9 billion, focusing on health-related sectors and innovative drugs [23]. Company Valuation - The report provides a valuation table for key companies in the pharmaceutical sector, indicating projected earnings per share (EPS) and price-to-earnings (PE) ratios for 2025 to 2027. For instance, Mindray Medical is projected to have a PE of 23 in 2025, while Hengrui Medicine is expected to have a PE of 48 [29].

Investment Rating - The report maintains an "Overweight" rating for the innovative pharmaceutical and medical device industry chain [3][5][6]. Core Insights - The report emphasizes the continuous recommendation of innovative drugs and medical devices, highlighting the high growth potential in the innovative pharmaceutical sector. It maintains "Overweight" ratings for companies such as Heng Rui Medicine, Hansoh Pharmaceutical, and others, indicating a potential for value re-evaluation [3][5]. - The report notes that the National Medical Insurance Administration has officially announced the 2025 medical insurance drug catalog, which includes 114 new drugs, 50 of which are first-class innovative drugs. This adjustment is seen as a validation of the support for innovation in the healthcare sector [3][5]. - The A-share pharmaceutical sector underperformed the broader market in the second week of December 2025, with the SW Pharmaceutical Biotechnology index declining by 1.0% compared to a 0.3% drop in the Shanghai Composite Index [7][18]. Summary by Sections Section 1: Continuous Recommendation of Innovative Drugs and Medical Devices - The report highlights the sustained recommendation of innovative drugs and medical devices, with a focus on companies that are expected to see performance growth and value re-evaluation [5][6]. Section 2: A-share Pharmaceutical Sector Performance - In the second week of December 2025, the A-share pharmaceutical sector's performance was weaker than the overall market, ranking 16th among the primary industries [7][18]. Section 3: Hong Kong and US Market Performance - The report indicates that the Hong Kong pharmaceutical sector also underperformed, while the US pharmaceutical sector showed stronger performance compared to the broader market [18].

Group 1 - The core point of the announcement is that Sichuan Kelun Pharmaceutical Co., Ltd. plans to implement a share incentive plan for its subsidiary, Kelun Biotech, to attract and retain core talent and align interests among shareholders, the company, and key personnel [1][10]. Group 2 - The incentive plan will grant restricted share units, with a maximum of 3,500,000 H-shares to be issued, representing approximately 1.5% of the total shares of Kelun Biotech on the date of approval [2]. - The plan aims to establish a long-term incentive mechanism to support the strategic and operational goals of Kelun Biotech [3]. - The plan will be effective for ten years from the adoption date, with no new share awards to be granted after the expiration [3]. Group 3 - Eligible participants include directors and employees of Kelun Biotech and its subsidiaries, with selection based on performance, tenure, and contributions [4]. - The purchase price for the shares is set at RMB 1.00 per share, with a vesting period of four years, and performance targets must be met for the shares to vest [6]. - The management of the incentive plan will be overseen by the board of directors or authorized representatives of Kelun Biotech [7]. Group 4 - The incentive plan has been approved by the board of directors of Kelun Biotech but requires shareholder approval and listing approval from the Hong Kong Stock Exchange [9]. - The implementation of the plan is expected to enhance the core competitiveness and sustainable development of Kelun Biotech without adversely affecting the financial status or operational results of the parent company [10].

证券代码：002422 证券简称：科伦药业 公告编号：2025-085 四川科伦药业股份有限公司 关于控股子公司拟实施 2025 年股份激励计划的公告 本公司及董事会全体成员保证信息披露内容的真实、准确和完整，没有虚假记载、误 导性陈述或重大遗漏。 为建立并完善长期激励机制，吸引并留住核心人才以推动控股子公司业务发 展及成功，有效协调股东、公司及核心人员的利益，促进共同关注长期发展，四 川科伦药业股份有限公司（以下简称"本公司"）控股子公司四川科伦博泰生物 医药股份有限公司（以下简称"科伦博泰"，股份代码：6990.HK）拟实施2025 年股份激励计划（以下简称"激励计划"）。 一、激励计划概述 激励计划授出的股份奖励为受限制股份单位形式，其对应的股份来源包括： （1）科伦博泰发行的新H股；（2）科伦博泰H股库存股（如有）；（3）科伦博 泰的受托人在公开市场购入的科伦博泰H股。 根据科伦博泰激励计划可授出的所有涉及发行新H股（包括使用库存股配发 及发行的股份）的股份奖励，所发行的最高股份数合计不超过3,500,000股H股， 预计占股东会审议通过激励计划当日科伦博泰股份总数（不包括库存股）的约 1.5%。不考 ...

Core Viewpoint - Kolun Pharmaceutical (002422.SZ) announced the implementation of a long-term incentive plan for its subsidiary, Sichuan Kolun Botai Biopharmaceutical Co., Ltd. (6990.HK), aimed at attracting and retaining key talent to drive business development and align interests among shareholders, the company, and core personnel [1] Group 1 - The incentive plan will grant restricted stock units, with shares sourced from new H-shares issued by Kolun Botai, existing treasury shares (if any), and shares purchased in the open market by a trustee [1] - The maximum number of shares to be granted under the incentive plan will not exceed 3,500,000 H-shares, which is approximately 1.5% of the total shares of Kolun Botai as of the date of the shareholders' meeting approving the plan [1] - The issuance of new H-shares under the plan will not significantly alter the company's ownership stake in Kolun Botai, which will remain a controlled subsidiary [1]

Investment Rating - The report maintains a "Positive" investment rating for the pharmaceutical and biotechnology industry, indicating an expected return that is stronger than the market benchmark by over 5% [5]. Core Insights - The National Medical Insurance Administration is strongly encouraging the high-quality development of innovative drugs, with clear policies supporting the payment side for innovative drugs. Domestic leading innovative drug companies are entering a commercial realization phase [3][7]. - The 2025 National Medical Insurance Drug List includes 127 products, with 114 successfully added, of which 50 are innovative drugs, marking a historical high. The overall negotiation success rate reached 90%, the highest in nearly seven years [7]. - The report highlights that the domestic innovative drug market is becoming increasingly concentrated, with leading companies like Heng Rui and Xin Da Biotech significantly benefiting from the new insurance policies [7]. Summary by Sections Investment Recommendations and Targets - Recommended stocks include Heng Rui Pharmaceutical (600276, Buy), Ke Lun Pharmaceutical (002422, Buy), Xin Li Tai (002294, Hold), Ao Sai Kang (002755, Buy), Jing Xin Pharmaceutical (002020, Buy), and others [3]. Market Dynamics - The report notes that the introduction of the commercial insurance directory marks the beginning of a "new golden decade" for Chinese innovative drugs, with a focus on high clinical efficacy and value innovation [7]. - The report emphasizes that the competition in the GLP-1 market remains clear, with the entry of new drugs not significantly altering the competitive landscape for existing treatments [7].

Core Insights - The conference "2025 Financial Empowerment of the Medical and Health Industry (Guangxi) Innovation Conference" was successfully held in Nanning, focusing on building a closed-loop ecosystem of "technology innovation + capital empowerment + industry landing" to support Guangxi in becoming a healthcare industry hub facing ASEAN [2] - The "2025 China Innovative Drug Industry Investment Blue Book" was jointly released, providing authoritative and practical development trend analysis and investment layout guidance for industry participants, investors, and policymakers [2] Industry Development Background - The demand for innovative drugs is shifting from "curative" to "long-term management" and "precision" due to population aging and chronic diseases [6] - The number of rare diseases is increasing, necessitating the development of effective treatments [6] - AI-driven drug development is shortening research cycles, and innovative biopharmaceutical technologies are flourishing [6] Global Innovative Drug Development Trends - The number of innovative drugs in the oncology field is steadily increasing, with its share rising from 35% in 2020 to 45% in 2024, driven by breakthroughs in targeted therapies and CAR-T cell therapies [8] - From 2015 to 2024, a total of 12,263 innovative drugs are expected to be developed globally, with 9,427 still active by the end of 2024 [10] - China has become the country with the most innovative drugs since 2020, reaching 704 by 2024, surpassing the U.S. [11] China’s Innovative Drug Industry Development - The Chinese innovative drug industry has evolved through four stages: initial stage, combination of imitation and innovation, rise of innovation, and globalization [19] - The policy environment has increasingly focused on supporting innovative drugs, with a systematic policy matrix established to accelerate their transition from laboratory to clinical application [17] Market Size and Financing Trends - The innovative drug market in China is projected to reach CNY 1,620 billion by 2024, with commercial health insurance accounting for only 7.7% of the payment market [25] - The financing landscape has shifted from a focus on quantity to quality, with a notable increase in the proportion of domestic companies' innovative drugs approved in China, rising from under 10% in 2015 to 50% in 2024 [23] Future Opportunities and Challenges - The aging population and the demand for innovative drugs in oncology and chronic diseases are expected to continue growing [69] - The industry faces challenges such as geopolitical tensions, regulatory tightening, and high-risk characteristics of drug development, which typically takes over 10 years and requires substantial investment [71][72]

Core Viewpoint - Sichuan Kelun Pharmaceutical Co., Ltd. has announced that five of its products have been included in the National Medical Insurance Directory for 2025, which is expected to enhance market expansion and sales scale for the company [1][2]. Group 1: Product Inclusion - Five products from the company and its subsidiaries have been included in the National Basic Medical Insurance, Maternity Insurance, and Work Injury Insurance Drug Directory for 2025 [1]. - The total sales of these products for the year 2024 are approximately 51.69 million yuan, and for the first half of 2025, the sales are approximately 309.75 million yuan, accounting for about 0.24% and 3.41% of the company's revenue during the respective periods [1]. Group 2: Impact on the Company - The inclusion of products in the 2025 Drug Directory is expected to facilitate the company's market network expansion and increase sales scale, although the exact impact on operating performance cannot be estimated at this time [2]. - The National Medical Insurance Directory will officially take effect on January 1, 2026, with further details on payment standards and reimbursement rules to be provided by relevant government departments [2].