医药生物行业定期报告：牛市医药不会缺席，坚持创新、复苏和政策三主线

Investment Rating - The report maintains an "Outperform" rating for the pharmaceutical industry [4]. Core Views - The report is optimistic about the long-term high-quality development of Chinese innovative drugs, emphasizing the importance of innovation, recovery, and policy support as the three main lines of investment [2][3]. Summary by Sections 1. Market Review and Short-term Investment Thoughts - The pharmaceutical sector saw a significant increase, with the A-share pharmaceutical index rising by 15.4% in the week of September 23-27, 2024, although it underperformed the CSI 300 index by 0.3 percentage points [3]. - The report suggests increasing allocations to the pharmaceutical sector, focusing on innovation, recovery, and policy support [3][9]. 2. Positive Outlook on Chinese Innovative Drugs - The aging population in China presents a substantial demand for innovative drugs, which is crucial for addressing domestic needs [22]. - The report highlights a clear policy direction since 2015 that encourages the development of innovative drugs with clinical value, indicating a "replacement" trend where savings from generic drug procurement are redirected to support innovative drugs [25][32]. - Chinese companies are becoming globally competitive in areas such as CAR-T, bispecific antibodies, and ADC technology, with bispecific antibodies leading globally [36][38]. 3. Investment Strategy and Recommended Stocks - The report outlines a mid-term investment strategy that includes increasing allocations to the pharmaceutical sector, with a focus on companies that are well-positioned for recovery and innovation [9][10]. - Recommended stocks include Heng Rui Pharmaceutical, WuXi AppTec, XinNuoWei, Changchun High-tech, Kangfang Biotech, and King’s Ray Biotech [3][19]. 4. Key Trends and Future Directions - The report identifies three key investment themes: adjusting existing stock (due to aging and import substitution), seeking new growth (through international expansion and major products), and capturing variables (such as state-owned enterprise reform) [10][11]. - The report emphasizes the importance of innovative technologies and the potential for domestic companies to achieve profitability through international recognition and product launches [39][41].