Di Yi Cai Jing·2025-06-09 13:09Core Viewpoint - The current "medication" market rally is distinct from previous ones, with leading gains concentrated in innovative pharmaceutical companies, particularly strong performance in the Hong Kong stock market [1][2] Group 1: Market Performance - On June 9, both Hong Kong and A-share innovative pharmaceutical sectors saw significant gains, with the Hang Seng Innovative Drug ETF rising by 4.08% and the Hong Kong Stock Connect Medical ETF increasing by 4.25% [3] - Notable individual stock performances included 3SBio (01530.HK) reaching a peak of 22.5 HKD, just shy of its historical high, and a 260% increase in its stock price since February [3] - The A-share innovative drug index rose by 31.5% and the Hong Kong innovative drug index surged by 61.54% since April 9, with several stocks doubling in value [4] Group 2: Catalysts for Growth - The surge in innovative drug stocks is attributed to multiple factors, including recent approvals for 11 innovative drugs from eight companies and promising clinical data for major diseases [5] - The upcoming 2025 ASCO annual meeting will feature 73 research studies from China, a 30% increase from the previous year [5] Group 3: Long-term Positive Factors - Many leading companies are approaching breakeven points, with significant revenue growth reported, particularly for Ascentage Pharma (332.31% growth) [7][8] - The overseas licensing deals have seen substantial increases, with a record-breaking deal of 6.05 billion USD for 3SBio's drug rights to Pfizer [9] - The overall licensing-out transactions in the innovative drug sector have surged, with 41 transactions in Q1 2024 alone, totaling 36.93 billion USD [9] Group 4: Policy Support - Recent policy changes are favorable for innovative drug companies, including optimized centralized procurement policies and increased support for innovative drugs in government reports [10] - The 2024 government work report includes 38 new innovative drugs in the medical insurance catalog, the highest ever, with plans for further optimization in 2025 [10] Group 5: Market Outlook - The valuation of the pharmaceutical sector remains relatively safe compared to other growth industries, with a current TTM P/E ratio of 27.1 times [11] - Some analysts suggest that the innovative drug sector is transitioning from following to leading in the global market, indicating a new era for domestic innovation [11] - However, there are concerns about potential short-term volatility due to rapid price increases and profit-taking by investors [11]