Soochow Securities·2025-09-14 12:11Investment Rating - The report maintains an "Accumulate" rating for the pharmaceutical and biotechnology industry [1] Core Insights - The 2025 World Conference on Lung Cancer (WCLC) highlighted the promising clinical data of domestic lung cancer drugs, particularly the innovative drug iza-bren developed by BaiLi Tianheng, which demonstrated a 100% objective response rate (ORR) in first-line patients with EGFR mutation non-small cell lung cancer (NSCLC) [2][17] - The report suggests a favorable outlook for the pharmaceutical sector, particularly in innovative drugs, research services, and CXO [3][12] Summary by Sections Industry Performance - The A-share pharmaceutical index has seen a year-to-date increase of 26.8%, while the Hang Seng Biotechnology Index has surged by 103.3% [11] - Notable stock performances include Zhend Medical (+41.3%) and Haooubo (+28.0%), while Yuekang Pharmaceutical (-18.4%) and Maiwei Biological (-14.4%) faced significant declines [11] New Drug Developments - Novartis' lung cancer drug, Capmatinib, received approval for a new indication in China, and Johnson & Johnson initiated a Phase III clinical trial for its KLK2/CD3 dual antibody [2] - BaiLi Tianheng's iza-bren showed a 100% ORR in a Phase II study for EGFR mutation NSCLC, with a median progression-free survival (mPFS) of 12.5 months [17][21] Investment Recommendations - The report ranks preferred sub-sectors as follows: innovative drugs > research services > CXO > traditional Chinese medicine > medical devices > pharmacies [3][12] - Specific companies to watch include: - From GLP-1 perspective: BoRui Pharmaceutical, GeLi Pharmaceutical, and XinDa Biologics - From PD-1/VEGF dual antibody perspective: Kangfang Biologics and Shenzhou Cell - From AI drug development perspective: JingTai Holdings and Chengdu XianDao [3][12] Clinical Research Updates - The HARMONi study by Kangfang Biologics showed improved overall survival (OS) with a hazard ratio (HR) of 0.78, indicating a significant benefit for patients, especially in North America [25] - The report emphasizes the ongoing clinical trials for innovative drugs, including the registration Phase III study for iza-bren [20][24]