SINOLINK SECURITIES·2025-06-22 13:51Investment Rating - The report maintains a strong confidence in the pharmaceutical sector, predicting a reversal trend in 2025, with innovative drugs and left-side sector reversals being the biggest investment opportunities [5][12]. Core Views - The recent adjustment in the pharmaceutical sector does not reflect any substantial changes in the industry's fundamentals. The report anticipates continued growth in the innovative drug sector, driven by upcoming academic conferences and seasonal changes in medical services and consumption [2][12]. - The report highlights significant advancements in chronic disease treatments, particularly with Eli Lilly's oral weight-loss drug Oforglipron, which has shown promising results in clinical trials [2][22]. - The report emphasizes the potential of high-end medical devices, supported by government policies aimed at fostering innovation in this area, suggesting that leading companies in specific segments are likely to benefit [33][36]. Summary by Sections Pharmaceutical Sector - Eli Lilly's Oforglipron has demonstrated significant efficacy in reducing A1C levels and weight in type 2 diabetes patients during its Phase 3 trial, with a notable average weight loss of 16.0 pounds (7.9%) [2][22]. - The report notes that the domestic market is seeing continuous progress in chronic disease treatments, with several innovative drugs being prioritized for review by regulatory authorities [20][41]. Biologics - Sanofi and Regeneron reported positive results from the EVEREST Phase 4 trial for Dupixent, which outperformed Xolair in treating adults with chronic rhinosinusitis with nasal polyps (CRSwNP) and asthma [24][29]. - The report suggests ongoing attention to the development of IL-4α targeted drugs, as multiple domestic companies are making strides in this area [24][32]. Medical Devices - The National Medical Products Administration (NMPA) has initiated measures to support the innovation of high-end medical devices, which is expected to accelerate the development of domestic medical robots and advanced imaging equipment [33][36]. - The report indicates that the medical device sector is at an upward turning point, driven by an aging population and increasing healthcare demands [37]. Medical Services & Consumer Healthcare - The report discusses the initiation of a pilot program for medical service price reform in Sichuan, which aims to optimize the pricing system and reflect the value of healthcare professionals' labor [38][40]. - The report highlights the establishment of a comprehensive eye health management system by Aier Eye Hospital, showcasing advancements in healthcare service delivery [38]. Traditional Chinese Medicine - The report notes that since 2025, the Center for Drug Evaluation (CDE) has accepted 41 new drug IND applications for traditional Chinese medicine, indicating a supportive policy environment for innovation in this sector [41][42].