Hengrui Pharma(SH:600276) Mei Ri Jing Ji Xin Wen·2025-07-29 01:32Core Viewpoint - The biopharmaceutical sector is showing strong performance, with significant gains in innovative drug ETFs, driven by AI applications and substantial licensing agreements [1][3]. Group 1: Market Performance - The innovative drug ETF (517110) opened high and closed up by 3.2%, while the biopharmaceutical ETF (512290) also saw a closing increase of over 2% [1]. - Year-to-date, the innovative drug ETF has outperformed the CITIC Pharmaceutical Industry Index by 30 percentage points [1]. Group 2: Licensing Agreements - Leading innovative pharmaceutical companies have secured licensing agreements exceeding $10 billion, boosting industry optimism [3]. - Heng Rui Medicine announced a deal with GSK, involving a $500 million upfront payment and potential future milestone payments totaling approximately $12 billion [3]. Group 3: AI Applications in Drug Development - High task tolerance rates in AI applications are positively impacting innovative drug development [4]. - AI can generate new drug or protein structures based on disease target understanding and drug chemistry principles, enhancing early-stage drug development efficiency [4]. - AI technologies are expected to reduce costs and improve efficiency in drug activity prediction, target discovery, and pharmacokinetic analysis [5]. Group 4: Future Outlook - Continuous policy support is anticipated to lead to both profit and valuation increases in the sector [6]. - The innovative drug ETF (517110), covering high-quality listed innovative pharmaceutical companies, may have medium to long-term investment value [6].