Shenwan Hongyuan Securities·2025-10-12 11:13Investment Rating - The report maintains a positive outlook on the innovative drug sector, suggesting it will continue to show high revenue growth and reduce losses [4][16]. Core Insights - The pharmaceutical sector experienced a decline of 1.2% this week, ranking 25th among 31 sub-industries [5][7]. - The overall valuation of the pharmaceutical sector is at 30.9 times earnings, placing it 10th among 31 primary industries [8][15]. - Notable transactions include the licensing agreement between Innovent Biologics and Zenas BioPharma, valued at over $2 billion, which includes a $100 million upfront payment [4][14]. - The report highlights the importance of monitoring the performance of innovative drug companies in the upcoming quarterly reports, particularly those showing consistent high growth [4][16]. Market Performance - The pharmaceutical index decreased by 1.2%, while the Shanghai Composite Index increased by 0.4% during the same period [5][7]. - The performance of various sub-sectors includes: - Raw materials: -0.7% - Chemical preparations: -2.5% - Traditional Chinese medicine: +1.5% - Blood products: +1.4% - Vaccines: +0.7% - Other biological products: -1.7% - Medical devices: -0.2% - Medical consumables: +0.2% - In vitro diagnostics: -0.6% - Pharmaceutical distribution: +0.8% - Offline pharmacies: +0.3% - Medical R&D outsourcing: -5.3% - Hospitals: +1.8% [8][12]. Key Events - The National Medical Products Administration released a draft for further promoting post-marketing research and evaluation of traditional Chinese medicine injections [4][16]. - The report notes the upcoming IPOs in the sector, including He Yuan Biology and Biotech [19].