Pfizer(US:PFE) Century Securities·2025-05-26 00:45Investment Rating - The report provides a positive outlook on the pharmaceutical and biotechnology sector, indicating a systematic value reassessment for innovative drugs [2][3]. Core Viewpoints - The innovative drug sector is experiencing a systematic value reassessment, highlighted by a significant licensing agreement between Sanofi and Pfizer worth up to $60.5 billion, which includes an immediate investment of $100 million in Sanofi's stock [3][12]. - The report notes that since 2025, there has been a continuous stream of progress and business development (BD) news regarding innovative drug stocks, reflecting an increasing recognition of domestic innovative drugs by overseas pharmaceutical companies [3]. - The report anticipates that the COVID-19 situation is nearing its peak, with recent data showing a slight increase in the positivity rate of COVID-19 tests in Hong Kong, suggesting a potential stabilization in the near future [3][12]. Market Weekly Review - The pharmaceutical and biotechnology sector rose by 1.78% from May 19 to May 23, outperforming the Wind All A index (-0.63%) and the CSI 300 index (-0.18%) [8][10]. - Among sub-sectors, other biological products (4.09%), raw materials (4.03%), and medical research outsourcing (3.6%) showed the highest gains, while hospitals (-1.07%), vaccines (0.89%), and blood products (-0.07%) experienced declines [9][10]. - Notably, the stock of Sanofi's affiliate, Sanofi Guojian, surged by 100% during this period [8][11]. Industry News and Key Company Announcements - On May 22, the Hong Kong Health Department reported an increase in COVID-19 virus levels in wastewater monitoring, indicating a rising trend that is beginning to stabilize [12]. - Sanofi announced a significant licensing agreement with Pfizer for the PD-1/VEGF dual antibody SSGJ-707, which is currently in Phase III clinical trials, marking a notable achievement in the global innovative drug landscape [12][14]. - Other companies, such as Kelun Pharmaceutical and GSK, have also made significant advancements with new drug approvals and applications, further indicating a dynamic and evolving industry landscape [14][15].