Sunshine Guojian Pharmaceutical(SH:688336) Xuan Gu Bao·2025-05-21 02:41Core Viewpoint - The innovative pharmaceutical sector experienced a significant surge, with multiple companies achieving substantial stock price increases, indicating a positive market sentiment towards domestic innovative drugs and their international expansion opportunities [1][2]. Group 1: Market Performance - On May 21, the innovative drug sector saw a broad increase, with companies like Sanofi Guojian and Shuyou Shen reaching their daily price limits, while others like Saiseng Pharmaceutical and Ruizhi Pharmaceutical rose over 10% [1]. - Specific stock performances included Sanofi Guojian (688336.SS) achieving a price of 47.24 with a 19.99% increase, and Shuyou Shen (300204.SZ) reaching 14.15 with a 20.02% increase [2]. Group 2: International Expansion of Domestic Innovative Drugs - On May 19, Sanofi Guojian and its affiliates granted Pfizer exclusive rights for the development, production, and commercialization of a product, with an upfront payment of $12.5 billion and potential milestone payments up to $4.8 billion [3]. - On May 15, Shiyao Group announced an exclusive licensing agreement with Cipla for the commercialization of a drug in the U.S., with an upfront payment of $15 million and potential total payments nearing $1.1 billion [3]. - Data from Yao Medicine Cube indicated that in 2024, China completed 94 transactions for innovative drug licensing abroad, totaling $51.9 billion, a 26% year-on-year increase [3]. Group 3: Institutional Insights - Following a recent executive order by former U.S. President Trump aimed at lowering drug prices, the impact on China's innovative drug exports is expected to be minimal [4]. - The domestic innovative drug policy is anticipated to undergo significant changes, with 2025 expected to be a pivotal year for policy implementation, including the introduction of a new insurance directory and support for innovative drug pricing mechanisms [5]. - Projections indicate that the net profit for A/H innovative drug companies in 2024 will reach 11.67 billion, a substantial increase from 670 million in 2023, reflecting improved industry profitability [5].