医药生物行业周报：做好医药配置，静待机会

Investment Rating - The industry investment rating is "Overweight" [1] Core Views - The pharmaceutical and biotechnology sector has experienced a significant decline, with the index dropping 6.00% this week, underperforming the CSI 300 index by 2.75 percentage points and the Shanghai Composite Index by 2.44 percentage points, ranking 20th in terms of performance among industries [1][9] - As of October 11, the price-to-earnings (P/E) ratio for the pharmaceutical and biotechnology sector (TTM, excluding negative values) is 26X, which is below the historical average of 34X since 2012, indicating a potential undervaluation [1][9] - All 13 sub-industries within the pharmaceutical sector declined this week, with hospitals experiencing the largest drop of 9.85% [1][11] Summary by Sections Market Review - The pharmaceutical and biotechnology index has underperformed significantly, with a year-to-date decline of 12.76%, placing it 27th out of 31 sectors [1][14] - No sub-industry within the pharmaceutical sector saw an increase this week, with hospitals, offline pharmacies, blood products, in vitro diagnostics, and medical consumables facing the largest declines [1][14] Individual Stock Performance - Among 493 A-share pharmaceutical stocks, only 31 stocks (6.29%) increased in value this week [2][17] - The top-performing stocks included Saito Biological (+25.03%) and New Mileage (+13.48%), while the largest declines were seen in Xingqi Eye Medicine (-18.49%) and Yahui Long (-16.85%) [2][17][19] Future Trends - October is viewed as a critical observation period for pharmaceutical stock allocation, with several trends to monitor, including the upcoming Q3 earnings reports and year-end medical insurance negotiations that may influence market expectations for innovative drugs [1][14] - The report suggests that many small-cap pharmaceutical stocks may seek new growth avenues through mergers and acquisitions, given their strong cash positions amid the current market adjustments [1][16]