Hengrui Pharma(SH:600276) Shenwan Hongyuan Securities·2025-05-25 11:52Investment Rating - The report rates the pharmaceutical industry as "Overweight," indicating an expectation for the industry to outperform the overall market [2][21]. Core Insights - The pharmaceutical sector saw a weekly increase of 1.8%, outperforming the Shanghai Composite Index, which declined by 0.6% [2][3]. - The overall valuation of the pharmaceutical sector is at 28.4 times PE for 2025E, ranking 6th among 31 primary industries [4][9]. - Notable events include the IPO of 恒瑞医药 (Hengrui Medicine) on May 23, raising approximately 98.9 billion HKD, marking the largest IPO in the Hong Kong pharmaceutical sector in five years [10]. - The ASCO annual meeting highlighted impressive clinical data for several domestic innovative drugs, including those from 科伦博泰 (Kelun Biotech) and 荣昌生物 (Rongchang Biotech) [10]. - 三生制药 (3SBio) entered into a collaboration with Pfizer worth over 6 billion USD, which includes an upfront payment of 1.25 billion USD and potential milestone payments [11]. Market Performance Summary - The pharmaceutical sector's performance was the best among 31 sub-industries, with various segments showing different growth rates: - Raw materials (+4.0%) - Chemical preparations (+3.5%) - Other biological products (+4.1%) - Vaccines (-0.9%) [4][3]. Key Events Recap - The report emphasizes the significance of the collaboration between 三生制药 and Pfizer, which sets a new record for licensing deals in the industry [11]. - The U.S. Department of Health and Human Services announced the implementation of a "Most Favored Nation" pricing standard for prescription drugs, aiming to align U.S. prices with those in comparable economies [11]. Investment Recommendations - The report suggests focusing on domestic innovative drug companies such as 三生制药, 恒瑞医药, and 科伦药业, among others, due to their promising performance and potential for growth [2][11]. - It also highlights the potential for more unprofitable innovative drug companies to go public, which could provide further investment opportunities in the sector [2].