Group 1 - The core point of the article is that Dongcheng Pharmaceutical has not yet disclosed sales data for its Sodium Fluoride Injection since its approval in May 2025, and future disclosures will be made in regular reports as required by regulations [1][2]. Group 2 - Investors inquired about the sales data, including volume, revenue contribution, and main sales regions/channels for the Sodium Fluoride Injection [1]. - Dongcheng Pharmaceutical confirmed that there is currently no available sales data for the product [1]. - The company advised investors to pay attention to future regular reports and announcements for updates on the product's operational status [1].

Group 1 - Dongcheng Pharmaceutical's stock price decreased by 1.03% to 13.49 yuan per share, with a total market capitalization of 11.12 billion yuan as of the report date [1] - The company, established on December 31, 1998, specializes in the research, production, and sales of heparin sodium raw materials and chondroitin sulfate, with revenue composition as follows: 44.16% from raw materials, 36.38% from nuclear medicine products, 13.17% from formulations, and 6.30% from other sources [1] Group 2 - Xinyi Fund holds a significant position in Dongcheng Pharmaceutical, with its fund "Xinyi Healthcare A" owning 1.2349 million shares, representing 4.65% of the fund's net value, making it the sixth-largest holding [2] - The fund has a total scale of 261 million yuan and has achieved a year-to-date return of 22.12%, ranking 4110 out of 8087 in its category [2] Group 3 - The fund manager of Xinyi Healthcare A is Chen Xu, who has been in the position for nearly 5 years, with the fund's total assets amounting to 404 million yuan [3] - During Chen Xu's tenure, the best fund return was -20.35%, while the worst return was -22.24% [3]

Investment Rating - The report maintains an "Accumulate" rating for the pharmaceutical and biotechnology industry [1] Core Insights - The number of innovative drugs listed in China continues to grow, with domestic products accounting for approximately half of the total market share. The R&D capabilities for innovative drugs in China are also increasing, attracting global attention. Notably, the number and value of domestic innovative drug business development (BD) transactions have reached new highs, with ADC, bispecific antibodies, small nucleic acids, and CAR-T being the four key R&D directions to watch in 2026 [15][21][22] - The Chinese innovative drug market has seen a significant increase in the number of new drug applications (NDA), with domestic products making up a growing proportion. From 2017 to 2024, the number of innovative drugs listed in China rose from 41 to 92, with domestic products accounting for 50% of the total by 2024 [17][21] - The report highlights that the license-out transaction volume and total amount for Chinese companies reached $92.03 billion in the first three quarters of 2025, a 77% increase compared to the total for 2024. The upfront payment for license-out transactions has also surpassed the total financing amount in the primary market for the same period [22][25] Summary by Sections Industry Trends - The A-share pharmaceutical index has shown a year-to-date increase of 14.29%, while the Hang Seng Healthcare Index has surged by 62.29% [3][8] - The report notes that the pharmaceutical sector has experienced fluctuations, with raw materials and medical devices showing positive growth [8] R&D Progress and Company Dynamics - The report provides an overview of the R&D progress for innovative and modified drugs, including approvals and clinical applications [5] - It lists key companies to watch in various sub-sectors, including innovative drugs, research services, and medical devices, with specific recommendations for companies like Innovent Biologics, Hengrui Medicine, and WuXi AppTec [11][12] Market Insights and Regulatory Observations - The report tracks the price-to-earnings ratio of the pharmaceutical index, noting that it is currently lower than historical averages [5] - It emphasizes the importance of the regulatory environment and market dynamics in shaping the future of the pharmaceutical industry [5]

Core Viewpoint - Dongcheng Pharmaceutical's stock price has been declining, causing concern among investors despite recent advancements in nuclear medicine research, product approvals, and inclusion in medical insurance [1] Group 1: Company Response - The company acknowledges that stock price fluctuations are influenced by various factors including macroeconomic conditions, market sentiment, and industry changes [1] - Dongcheng Pharmaceutical commits to fulfilling its information disclosure obligations and enhancing communication with investors [1] - The company emphasizes its strategy of high-quality development, aiming to improve operational efficiency and profitability to strengthen its core competitiveness and achieve long-term value growth [1]

Group 1 - The company Dongcheng Pharmaceutical (002675.SZ) clarified on the investor interaction platform that it has no relevant cooperation with TAE Technologies and its affiliates [1]

Group 1 - The company is a shareholder in Zhongborun Kang Medical and is responsible for the pharmaceutical research related to its BNCT drug BPA [1] - There is no collaboration between the company and TAE Life Sciences, a subsidiary of TAE Technologies in the United States [1]

Core Viewpoint - The company is actively preparing for the NDA submission of Fluorine-18 labeled Somatostatin Injection, with an expected submission in the first half of 2026, although the approval timeline remains uncertain [1] Group 1 - The company is currently working on the NDA submission preparations for the Fluorine-18 Somatostatin Injection [1] - The expected timeline for NDA submission is the first half of 2026 [1] - The approval timeline is uncertain and will depend on regulatory requirements [1]

Core Viewpoint - Dongcheng Pharmaceutical aims to strengthen its core business, enhance public opinion monitoring, optimize development quality, and improve long-term investment value [2] Group 1 - The company is committed to solidifying its main business operations [2] - The company plans to focus on public opinion monitoring to better manage its reputation [2] - The company is working towards optimizing its development quality to enhance overall performance [2] - The company is dedicated to increasing its long-term investment value for stakeholders [2]

Core Viewpoint - The company is actively engaged in the development of Yttrium-90 (Y-90) radiopharmaceuticals and is currently organizing preclinical projects related to this initiative [1] Group 1 - The company has received inquiries from investors regarding its layout in the Yttrium-90 radiopharmaceutical treatment field [1] - The company confirmed that it is in the process of organizing relevant preclinical projects for the Y-90 initiative [1]

Core Insights - The report emphasizes the continuous improvement of the global competitiveness of Chinese innovative pharmaceutical companies, focusing on innovation from both "therapeutic areas" and "technology platforms" [5][6] - The growth of commercial health insurance premiums is expected to provide new payment sources for medical expenses, as the scale of commercial health insurance is projected to reach 977.4 billion yuan by 2024 [29][30] - The report identifies potential therapeutic areas such as metabolic diseases (e.g., weight loss), chronic diseases (e.g., hypertension, hyperlipidemia), and central nervous system diseases (e.g., Alzheimer's, Parkinson's) as key focus areas for innovation [5][38] - Emerging technology platforms like small nucleic acid drugs, radioactive drugs (RDC), and CAR-T therapies are highlighted as significant areas for investment [5][38] Market Review - As of November 15, 2025, the pharmaceutical sector has outperformed the market, with the pharmaceutical index rising by 22.09% compared to a 17.62% increase in the CSI 300 index, resulting in a 4.47 percentage point outperformance [11] - The chemical preparation sector showed the best performance, increasing by 40.52%, followed by medical services (+36.98%) and chemical raw materials (+25.34%) [20] - The overall PE valuation of the pharmaceutical sector is at 30.89 times, which is relatively low compared to historical averages, indicating potential for future growth [22][23] Innovative Drugs - The report notes that the growth of health expenditures in China, which reached 9.06 trillion yuan in 2023, is outpacing GDP growth, indicating a robust market for innovative drugs [26][27] - The analysis of multinational corporations (MNCs) reveals that innovation is a core competitive advantage, with companies like Eli Lilly and Novartis showing significant growth driven by innovative products in advanced technology fields such as GLP-1 and ADC [31][32] - The report highlights the strong sales performance of GLP-1 drugs, with Eli Lilly's Mounjaro generating $6.515 billion in revenue in Q3 2025, reflecting a 109% year-on-year increase [44] CXO and Upstream - The report indicates a slight increase in pharmaceutical financing, with a recovery in business development transactions and H-share IPOs, which is expected to stimulate innovation [5] - The demand for external CXO services is growing, particularly in emerging fields such as peptides and small nucleic acids, while internal CXO orders are also showing signs of recovery [5][39] Medical Devices - The domestic medical device market is currently under pressure due to policy impacts, but improvements are anticipated as companies continue to innovate and expand internationally [5] - The report suggests that the industry fundamentals are expected to improve, with a focus on companies like Mindray Medical and Microelectrophysiology [5][39]