医药行业周报：政府工作报告再提支持创新药发展，关注低估值创新和业绩复苏机会

Industry Investment Rating - The report assigns a "Leading" investment rating to the pharmaceutical industry, indicating an expectation of attractive performance relative to the benchmark index over the next 12 months [1]. Core Insights - The government work report emphasizes support for the development of innovative drugs, highlighting opportunities in undervalued innovation and performance recovery [1][4]. - The report suggests that recent government policies regarding drug pricing, centralized procurement, and the establishment of an innovative drug catalog are expected to drive industry growth and improve investment sentiment [4][5]. - The pharmaceutical sector is currently viewed as having significant recovery potential due to its valuation being at historical lows, with expectations of further favorable policies [4]. Summary by Relevant Sections Valuation Overview - The report provides a detailed valuation summary for various companies, indicating a bullish outlook with "Buy" ratings for several firms, including AstraZeneca (AZN US), BeiGene (6160 HK), and others, with target prices significantly above current prices [3][26]. - The average price-to-earnings (P/E) ratio for the pharmaceutical sector is noted to be 11.1 times, suggesting a relatively low valuation compared to historical standards [17]. Market Performance - The Hang Seng Index fell by 0.8% during the week, with the healthcare index declining by 1.6%, indicating underperformance relative to the broader market [12]. - Sub-sectors such as healthcare technology showed positive growth (+4.7%), while pharmaceuticals and healthcare equipment experienced declines of -3.0% and -4.0%, respectively [12]. Government Policies - The government work report outlines several key initiatives, including optimizing drug procurement policies, enhancing quality assessments, and supporting the development of traditional Chinese medicine [4][5]. - Financial support for basic medical services is set to increase, with per capita fiscal subsidies for resident medical insurance and public health services raised by 30 RMB and 5 RMB, respectively [4]. Company Developments - Notable advancements include the initiation of clinical trials for innovative drugs by companies such as Kangfang Biopharma and Innovent Biologics, indicating a robust pipeline of new therapies [9][10][11]. - BeiGene's recent FDA approval for its drug in the treatment of advanced esophageal squamous cell carcinoma marks a significant milestone for the company [9].