药品行业周报：趋势向好，看好创新和恢复主线

Investment Rating - The industry rating is "Overweight" [6] Core Viewpoints - The pharmaceutical industry has shown a recovery trend, with a 6.4% increase last week, ranking 14th among all primary industries [3][9] - The overall performance of the pharmaceutical sector is stabilizing, with expectations for gradual improvement in the fourth quarter [4][18] - The report emphasizes the importance of selecting investment targets based on marginal improvements in performance and market sentiment [4][19] Summary by Sections Market Performance - The pharmaceutical sector's PE-TTM (excluding negative values) was 28.7X as of November 8, indicating a rise above the negative one standard deviation [3][9] - The sector's PB is at 2.7X, which is below the negative one standard deviation [3][9] - Global biotechnology sectors have rebounded, with A-share biotech up 7.4%, NASDAQ biotech up 4.1%, and Hang Seng biotech up 2.8% [3][17] Investment Strategies - Short to medium-term strategies focus on two main lines: 1. Recovery of innovative drugs driven by internationalization and product strength, suggesting a focus on clinical needs, technology platforms, and product capabilities [4][19] 2. Recovery line emphasizing demand rebound and efficiency improvements, particularly in the raw material drug sector, which is beginning to recover [4][19] Long-term Outlook - The report highlights that the domestic innovative drug industry has established a relatively complete innovation ecosystem during the 13th Five-Year Plan, with significant opportunities for transformation and upgrading in the 14th Five-Year Plan [4][19]