Haitong Securities International·2025-04-20 13:30Investment Rating - The report assigns an "Outperform" rating to multiple companies in the Hong Kong healthcare sector, indicating an expected total return over the next 12-18 months that exceeds the relevant market benchmark [1][19][25]. Core Insights - The report highlights President Trump's executive order aimed at lowering prescription drug prices through various measures, including optimizing federal healthcare programs and enhancing regulatory transparency [4][6]. - Key aspects of the executive order include standardizing negotiation timelines for drug prices, promoting competition through accelerated approvals for generics and biosimilars, and increasing transparency in pharmacy benefit manager (PBM) fees [7][4]. Summary by Sections Investment Focus - Companies rated "Outperform" include JD Health, WuXi Biologics, Alibaba Health, and many others, reflecting a positive outlook for the healthcare sector in Hong Kong [1]. Policy Developments - The executive order includes provisions for negotiating drug prices after a uniform timeline of 13 years for both small-molecule and large-molecule drugs, which aims to balance innovation incentives [4][7]. - The order also emphasizes the need for Congressional cooperation for full implementation, suggesting a prolonged timeline for these changes [6]. Market Trends - The report notes the importance of monitoring the evolution of U.S. tariff policies and domestic demand as they relate to the pharmaceutical industry [3]. - It also discusses the recovery of domestic consumption demand policies, which could positively impact the healthcare sector [3].