Shenwan Hongyuan Securities·2025-10-19 06:10Investment Rating - The report indicates a current investment rating for the pharmaceutical sector, with the overall valuation at 30.1 times earnings, ranking 10th among 31 primary industries [3][5]. Core Insights - The report highlights a decline of 2.5% in the Shenwan Pharmaceutical and Biological Index, which underperformed compared to the Shanghai Composite Index's decline of 1.5% and the overall A-share market's decline of 4.2% [3][5]. - Key events include BMS's acquisition of Orbital Therapeutics for $1.5 billion, which includes a candidate drug for CAR-T therapy and proprietary RNA platform technology [4][13]. - The report emphasizes the importance of the 2025 ESMO conference, where multiple Chinese pharmaceutical companies are expected to present clinical data, suggesting a focus on innovative drug sectors and companies with improving performance in medical devices and upstream sectors [4][18]. Market Performance Summary - The Shenwan Pharmaceutical and Biological Index fell by 2.5%, ranking 16th among 31 Shenwan primary sub-industries [3][5]. - The performance of various sub-sectors includes: - Raw materials (-2.3%) - Chemical preparations (-1.7%) - Traditional Chinese medicine (+0.4%) - Blood products (-1.6%) - Vaccines (-3.3%) - Other biological products (-3.6%) - Medical equipment (-5.4%) - Medical consumables (-1.7%) - In vitro diagnostics (-0.4%) - Pharmaceutical distribution (-1.5%) - Offline pharmacies (+0.6%) - Medical R&D outsourcing (-6.5%) - Hospitals (-1.5%) [3][8][5]. Key Events Review - BMS's acquisition of Orbital Therapeutics includes a candidate drug for CAR-T therapy and advanced RNA technology [4][13]. - The approval of a new indication for Peginterferon by Teva Biopharma enhances its market competitiveness in hepatitis B treatment [4][14]. - Mindray Medical announced plans to issue H shares and list on the Hong Kong Stock Exchange to support its international strategy [4][15]. - The report suggests monitoring companies presenting at the 2025 ESMO conference, particularly those in the innovative drug sector and those with improving performance metrics [4][18].