创新药行业周报：市场震荡，聚焦优质Biotech穿越周期投资机会

Investment Rating - The industry rating is maintained as "Buy" [4][26][29] Core Insights - The domestic and Hang Seng biotech sectors have experienced a pullback after significant gains, with declines of 6.3% and 8.4% respectively, while the NASDAQ biotech index remains in a consolidation phase, increasing by 1.3% last week [2][9] - Leading domestic biotech companies are gaining capital recognition due to their strong innovation capabilities, as evidenced by the successful placement of shares by Kangfang Biotech, raising approximately 1.924 billion HKD [3][4] - The biotech sector is expected to see a revaluation driven by improving fundamentals, supported by favorable macro policies and continuous growth in revenue and narrowing losses [4][26] Summary by Sections Market Overview - The global biotech sector has shown signs of correction, with A-share biotech and Hang Seng biotech indices experiencing significant declines after previous surges [2][9] - As of October 11, the Hang Seng biotech PB ratio stands at 2.1X, near one standard deviation below the mean [2][9] Investment Recommendations - The report suggests focusing on high-quality biotech stocks for long-term value investment opportunities, particularly in the context of improving fundamentals and market sentiment [4][26] - Two main investment themes are highlighted: 1. Pharma companies transitioning to innovation, which are expected to see performance and valuation uplift [26] 2. Biotech companies with potential for overseas product registrations [26] Policy and Performance - Continuous supportive policies for the innovative drug industry have been introduced in 2024, including measures from Beijing, Guangzhou, and Zhuhai to promote high-quality development [4][26] - The second quarter performance indicates rapid revenue growth and reduced losses, with a shift in focus from revenue growth to profitability in the biotech sector [4][26]