医药生物行业周报：新一轮国谈启动，关注创新药链

Investment Rating - The report rates the pharmaceutical and biotechnology industry as "Overweight" [2]. Core Insights - The pharmaceutical and biotechnology sector saw an overall increase of 3.11% from October 18 to October 25, outperforming the CSI 300 index by 2.32 percentage points. However, year-to-date, the sector has declined by 9.11%, lagging behind the CSI 300 index by 24.42 percentage points. The current PE valuation for the sector stands at 27.2 times, which is at a historical low, with a valuation premium of 122% compared to the CSI 300 index [3][11][12]. - The National Healthcare Security Administration (NHSA) announced that the 2024 medical insurance directory negotiations will take place from October 27 to 30, focusing on 162 generic drugs, including PD-1, CAR-T, and ADC drugs. Over the past six years, the NHSA has added 446 drugs to the insurance directory, with total expenditures exceeding 340 billion yuan, benefiting 800 million people and driving related drug sales close to 500 billion yuan [4][27]. - The report emphasizes the increasing support for innovative drugs from both central and local governments, highlighting the importance of innovation in the pharmaceutical sector. The NHSA is expected to favor drugs with genuine innovation and higher clinical value during negotiations [5][27]. Market Performance - As of October 25, the total market capitalization of the pharmaceutical and biotechnology sector in A-shares was 6.35 trillion yuan, accounting for 6.53% of the total A-share market capitalization. The sector's trading volume for the week was 551.6 billion yuan, representing 7.54% of the total A-share trading volume, with a week-on-week increase of 24.17% [4][18]. - The report notes that 413 stocks in the sector rose last week, accounting for 87.1% of the total, with the top five gainers being Koyuan Pharmaceutical (107.4%), Changyao Holdings (38.8%), Changshan Pharmaceutical (32.1%), Shuangcheng Pharmaceutical (31.8%), and Aopumai (30.4%) [3][18]. Investment Recommendations - The report suggests focusing on investment opportunities in innovative drug chains, medical devices, medical services, chain pharmacies, second-class vaccines, and specialty raw materials. Recommended stocks include Betta Pharmaceuticals, Teva Biopharmaceuticals, Kangtai Biological, Kaili Medical, International Medical, and Yifeng Pharmacy. Stocks to watch include Kanglong Chemical, Huaxia Eye Hospital, Haier Biomedical, Laobaixing Pharmacy, Qianhong Pharmaceutical, and Boya Biological [5][29].