AstraZeneca(US:AZN) Shenwan Hongyuan Securities·2025-06-15 12:11Investment Rating - The report maintains a positive outlook on the pharmaceutical industry, rating it as "Overweight" [2][21]. Core Insights - The pharmaceutical sector saw a weekly increase of 1.4%, outperforming the Shanghai Composite Index, which decreased by 0.2% [3][4]. - The overall valuation of the pharmaceutical sector is at 30.0 times PE for 2025E, ranking fifth among 31 primary industries [4][9]. - Significant collaborations and developments include a strategic partnership between CSPC and AstraZeneca worth over $5.3 billion, focusing on the discovery and development of new oral candidates for various diseases [10]. - The NDA for the high-selectivity small molecule inhibitor Pimicotinib by HeYue Pharma has been accepted, marking a significant milestone for the company [10]. - A successful clinical trial for an invasive brain-machine interface in China indicates advancements in technology that could improve the quality of life for patients with spinal injuries and amputations [11]. Market Performance - The weekly performance of the pharmaceutical sector shows a 1.4% increase, ranking fifth among 31 sub-industries [3][4]. - The breakdown of performance across various sub-sectors includes: - Chemical preparations (+4.0%) - Medical R&D outsourcing (+4.8%) - Raw materials (+0.9%) - Vaccines (-3.3%) - Offline pharmacies (-2.5%) [4][5]. Key Events - CSPC and AstraZeneca's collaboration includes an upfront payment of $110 million, with potential milestone payments totaling up to $16.2 billion for R&D and $3.6 billion for sales [10]. - The acceptance of the NDA for Pimicotinib is a notable achievement for HeYue Pharma, as it is their first project entering the NDA approval process [10]. - The successful clinical trial of the brain-machine interface positions China as the second country globally to enter this clinical trial phase [11]. Investment Analysis - The report highlights the rapid growth in product revenue and licensing deals in the innovative drug sector over the past three years, suggesting a trend of expanding interest in innovative drug companies and related CXO companies [10]. - Companies to watch include: - HengRui Medicine - BeiGene - WuXi AppTec - Kelun Pharmaceutical [10].