医药生物行业定期报告：回归产业趋势，看好创新药和创新转型Pahrma

Investment Rating - The report maintains an "Outperform" rating for the pharmaceutical industry [4]. Core Insights - The report emphasizes a strong trend in innovative drugs and the transformation towards innovation in the pharmaceutical sector, highlighting the resilience of the industry despite recent market downturns [2][11]. Summary by Sections 1. Market Review and Performance - The CITIC Pharmaceutical Index fell by 2.9% during the week of October 28 to November 1, 2024, underperforming the CSI 300 Index by 1.2 percentage points, ranking 29th among CITIC's primary industry classifications [18]. - Year-to-date, the CITIC Pharmaceutical Index has decreased by 10.2%, lagging behind the CSI 300 Index by 23.6 percentage points [18]. - The top five performing stocks for the week included Haooubo (+43.99%), Xiangxue Pharmaceutical (+30.54%), Hehua Co. (+28.22%), Hendi Pharmaceutical (+25.85%), and Huiyu Pharmaceutical (+25.04%) [18]. 2. Q3 Earnings Summary - For Q3 2024, the overall revenue growth for the pharmaceutical sector was +1% year-on-year, while net profit attributable to shareholders decreased by 10% [16]. - The fastest revenue growth in Q3 was seen in innovative drugs (+34%), followed by medical consumables (+14%) and raw materials (+13%) [16]. - The highest net profit growth was recorded in raw materials (+84%), with medical consumables (+14%) and chemical preparations (+9%) following [16]. 3. Investment Strategy and Recommendations - The report suggests gradually increasing allocations to the pharmaceutical sector, anticipating potential excess returns post semi-annual reports [11]. - Key investment themes include innovation, recovery, and supportive policies, with a focus on innovative biopharma and companies with competitive advantages in international markets [11]. - Recommended stocks for November include Heng Rui Pharmaceutical, Kangfang Biotech, and WuXi AppTec [3]. 4. Market Sentiment and Future Outlook - The report indicates that the pharmaceutical sector is currently in a phase of performance clearing and positive policy releases, suggesting that stocks under performance pressure may rebound [2]. - The upcoming results from the medical insurance negotiations are expected to favor innovative drugs, reinforcing the clear industry trend towards innovation [2]. - The report highlights the potential for recovery in the OTC market following recent policy clarifications regarding pricing autonomy for offline pharmacies [2].