HISUN(SH:600267) 2 1 Shi Ji Jing Ji Bao Dao·2025-09-17 09:24Core Viewpoint - The collaboration between Haizheng Pharmaceutical and Aixin Dawei marks a significant step in China's innovative drug development, reflecting the rapid growth of China's innovative drug business development (BD) transactions from less than 1% of the global share in 2016 to nearly 35% today [1][4]. Company Summary - Haizheng Pharmaceutical has entered into a partnership with Aixin Dawei to introduce a potential first-in-class small molecule conjugate drug, HSE-001 (AST-3424), with a total investment of up to 240 million yuan [1][2]. - The drug AST-3424 targets the AKR1C3 enzyme in tumor cells, selectively activating and releasing a potent DNA damaging agent, showing low toxicity to normal tissues [2]. - This partnership allows Haizheng to fill a gap in its pipeline for innovative drugs targeting solid tumors, enhancing its transition from a generic drug leader to an innovative pharmaceutical company [2][6]. Industry Summary - The innovative drug BD landscape in China is evolving, with a notable increase in the number of BD transactions, reaching 95 by September 2025, which represents 11% of global BD transactions, up from 2% in 2016 [4][5]. - The total transaction value of China's innovative drug BD events reached $89 billion by 2025, accounting for 33% of the global total, a significant increase from less than 1% in 2016 [5]. - The number of heavyweight BD transactions in China has also surged, with 21 transactions by 2025, representing 28% of global heavyweight BD transactions, compared to 0% in 2016 [5]. - The collaboration trend indicates a shift in the pharmaceutical industry from a "large and comprehensive" model to a "specialized and precise" approach, with biotech firms focusing on early-stage research and traditional pharmaceutical companies leveraging their commercialization capabilities [7][8]. - China's biopharmaceutical market is projected to grow significantly, reaching $2,911 billion by 2026 and $3,732 billion by 2030, with approximately 30% of global innovative drugs under development [8].