Core Viewpoint - The pharmaceutical sector is experiencing fluctuations, with a notable increase in the Medical Innovation ETF and several key stocks, indicating a positive trend in the market despite recent adjustments [1][2]. Group 1: Market Performance - As of October 24, the Medical Innovation ETF (516820.SH) rose by 0.26%, with significant gains in constituent stocks such as Kanglong Chemical (300759) up 3.34%, Xingqi Eye Medicine (300573) up 2.35%, and WuXi AppTec (603259) up 1.77% [1]. - Over the past five trading days, there have been net inflows into the Medical Innovation ETF for four days, totaling 14.06 million yuan, with an average daily net inflow of 2.81 million yuan [1]. Group 2: Upcoming Events and Innovations - The European Society for Medical Oncology (ESMO) conference in mid to late October 2025 will showcase research results from several domestic innovative drugs, including clinical trials from Kangfang Bio, Kelun Biotech, and others [1]. - The increasing competitiveness of domestic innovative drugs in global clinical data and progress is strengthening the trend of these drugs entering international markets [1]. Group 3: Industry Trends and Outlook - Historically, the fourth quarter is a peak period for business development (BD) activities, with major deals expected from companies like Kangfang Bio and Kelun Biotech [2]. - Despite recent market adjustments, the outlook for innovative drug companies remains positive, with multiple catalysts expected, including ESMO data and continued performance improvements in quarterly reports [2]. - The long-term trend for innovative drugs is upward, driven by both international expansion and domestic revenue growth, with the potential for significant market opportunities despite short-term disturbances [2].