Group 1 - The overall market sentiment for innovative drug overseas BD transactions has shifted from extreme optimism to a more rational understanding, leading to significant stock price declines for many small companies in the A-share and H-share markets [1] - The driving logic for the innovative drug industry in 2026 will rely on tangible overseas clinical advancements and increased certainty in overseas commercialization, moving away from transient BD transactions [1] - Major companies in the innovative drug sector, including industry leaders and quality second-tier companies, are beginning to stabilize and show upward trends in stock prices [1] Group 2 - Two significant oncology drugs, AK112 from Kangfang Biotech and SKB264 from Kelun-Biotech, are expected to have major impacts in their respective fields, with ongoing clinical trials and potential breakthroughs [3] - Kangfang Biotech's AK112 has seen a series of clinical advancements that have sparked global interest in second-generation IO development, leading to multiple impactful BD transactions [3] - SKB264 is positioned as a potential global first-in-class drug in the ADC category, with ongoing clinical trials and a significant focus on its efficacy in various cancers [5] Group 3 - Kangfang Biotech is expected to read out three major Phase III clinical results in 2026, including two first-line lung cancer trials, with potential approval timelines set for 2025 and 2027 [4] - Kelun-Biotech's SKB264 is anticipated to read out important clinical results for two major indications in 2026, which could validate its market potential outside of China [7] - The innovative drug industry is expected to see significant clinical progress from various companies that have engaged in substantial BD transactions in 2024-2025, enhancing the long-term value of their overseas projects [7][9]