医药行业周报：生物安全法案暂受阻，降息+催化剂落地推动板块投资情绪持续改善

Industry Rating - The report assigns a "Leading" investment rating to the industry, indicating an attractive outlook compared to the benchmark index [1]. Core Insights - The report highlights that the biopharmaceutical sector is experiencing improved investment sentiment due to the delay of the Biodefense Act and the initiation of interest rate cuts by the Federal Reserve. This has led to a marginal recovery in order volumes within the industry [2]. - The report emphasizes the importance of upcoming catalysts and the potential for valuation recovery, particularly for leading CXO companies, although further visibility on earnings recovery is needed for sustained improvement [2]. - Key recommendations include companies such as Xiansheng Pharmaceutical, Hutchison China MediTech, Legend Biotech, and CanSino Biologics, which are expected to benefit from rich short-term catalysts and high growth potential [2]. Summary by Sections Market Performance - The Hang Seng Index rose by 8.3% during the week of September 17-25, 2024, while the Hang Seng Healthcare Index increased by 4.3%, ranking 10th among 12 industry indices [2]. - Sub-sectors showed varied performance, with Healthcare Technology (+18.5%), Life Sciences Tools and Services (+7.4%), and Healthcare Services (+7.1%) leading the gains, while Biotech (+1.8%) lagged behind [2]. Legislative Developments - The Biodefense Act was not included in the NDAA, indicating a likely delay in its legislative process, which could impact companies mentioned in the report [2]. - A significant number of national procurement selected drug price adjustments have been initiated across several provinces, affecting numerous drugs and companies [2]. Company Updates - CanSino Biologics initiated a Phase III clinical trial for its PD-L1 monoclonal antibody, AK104, targeting advanced non-small cell lung cancer [5]. - The approval of CanSino's dual-target antibody, AK137, for clinical trials marks a significant milestone in the treatment of advanced malignancies [5]. - The report notes that the FDA granted fast-track designation to Elevation Oncology's EO-3021 for treating Claudin 18.2 expressing cancers, developed by a company mentioned in the report [6][7]. Valuation Overview - The report provides a valuation summary for various companies, with notable price targets and potential upside percentages. For instance, Legend Biotech has a target price of 76.00, representing a potential upside of 67.9% from its current price of 45.26 [3][21]. - The average TTM P/E ratios for the pharmaceutical sector are reported at 11.0x, with variations across sub-sectors such as Life Sciences Tools and Services at 12.0x and Biotech at 18.1x [13].