Soochow Securities·2025-05-26 00:23Investment Rating - The report maintains an "Overweight" rating for the pharmaceutical and biotechnology industry [1] Core Insights - The A-share pharmaceutical index has increased by 1.8% this week and 4.3% year-to-date, outperforming the CSI 300 by 1.9% and 5.6% respectively [3][8] - The H-share biotechnology index has seen a rise of 6.7% this week and 36.4% year-to-date, outperforming the Hang Seng Technology Index by -7.4% and 19% [3][8] - The report highlights a significant increase in the number of domestic innovative drugs presented at the ASCO conference, with 25 oral presentations and 24 rapid oral presentations, marking a new high [14] Summary by Sections Industry Performance - A-share raw materials (+4.0%), chemical drugs (+3.6%), biological products (+1.7%), medical services (+1.4%), and pharmaceutical commerce (+1.2%) have shown notable price increases, while medical devices (+0.5%) and traditional Chinese medicine (+0.2%) have seen smaller gains [3][8] - Top performers in A-shares include Shengguojian (+100%), Haichen Pharmaceutical (+52%), and Shutaishen (+49%), while New Ganjing (-12%), Gongdong Medical (-10%), and Jinhao Medical (-9%) faced declines [3][8] R&D Progress and Corporate Developments - GSK's IL-5 monoclonal antibody has been approved for the treatment of COPD, marking a significant milestone as the first IL-5 drug approved for this indication [3] - The report notes strategic partnerships, such as Jingyin Pharmaceutical's collaboration with CRISPR Therapeutics to develop next-generation long-acting FXI-targeting siRNA therapies [3] Investment Strategy - Recommended sub-industry rankings are: Innovative drugs > CXO > Traditional Chinese medicine > Medical devices > Pharmacies > Pharmaceutical commerce [9] - Stock selection strategies include focusing on growth in innovative drugs, undervalued stocks in traditional Chinese medicine, high dividend stocks in traditional Chinese medicine, and left-side opportunities in raw materials and certain CXO and medical devices [9]