Investment Rating - The report maintains a strong confidence in the pharmaceutical sector, anticipating a reversal trend in 2025, with innovative drugs and left-side sector recovery being the primary investment opportunities [4][11]. Core Insights - The pharmaceutical sector has shown strong performance, highlighted by the unexpected 1.25billionupfrontpaymentfromthesignificantdealbetweenSanofiandPfizer,whichenhancesmarketconfidenceinthequalityandmarketvalueofChineseinnovativedrugs[11][20].−TheASCOconferenceshowcasedawealthofclinicaldatafromdomesticinnovativepharmaceuticalcompanies,indicatingapotentialnewwaveofdata−driveninnovationinthedrugmarket[11][22].−Thereisnotablepotentialforrecoveryinsectorssuchaschainpharmacies,genericdrugs,traditionalChinesemedicine,andinvitrodiagnostics,withcompanieslikeYaoYaoPharmacyandChangchunHigh−techgainingmarketrecognitionfollowingimprovementsintheirfundamentals[11][20].SummarybySectionsPharmaceuticalSector−Sanofi′ssignificantdealwithPfizerincludesa1.25 billion upfront payment, reinforcing the market's recognition of the value of Chinese innovative drugs [20]. - At ASCO, 74 clinical studies from Chinese companies were presented, with 11 entries in the Late Breaking Abstracts (LBA) category, showcasing advancements in various cancer treatments [22]. Biopharmaceuticals - GSK's FDA approval of mepolizumab for COPD treatment is expected to generate €1.784 billion in global sales by 2024, with several domestic companies also developing IL-5 targeted drugs [2][9]. Medical Services & Consumer Healthcare - Alcon reported a slight decline in surgical sales but a 3% growth in vision care sales, driven by innovations in contact lenses [3][11]. Medical Devices - Johnson & Johnson launched the SOUNDSTAR CRYSTAL ultrasound catheter in the U.S., indicating a robust pipeline of innovative products in the medical device sector [3][12]. Pharmacies - The Chinese government has initiated policies to enhance the health promotion functions of retail pharmacies, suggesting a favorable environment for non-drug category expansion [3][12]. Investment Recommendations - The report suggests actively monitoring updates on innovative drug clinical data and the upcoming summer trends in traditional Chinese medicine, pharmacies, and healthcare services [4][11]. Key Targets - Notable companies to watch include Kelun-Botai, Renfu Pharmaceutical, East China Pharmaceutical, and Mindray Medical, among others [5][15].
