BIOKIN PHARMACEUTICAL(SH:688506) Soochow Securities·2025-11-16 14:30Investment Rating - The report maintains an "Overweight" rating for the pharmaceutical and biotechnology industry, specifically recommending companies like BaiLi Tianheng [1]. Core Insights - The pharmaceutical sector has shown significant performance, with the A-share pharmaceutical index increasing by 3.3% this week and 22.1% year-to-date, outperforming the CSI 300 by 4.4% and 4.5% respectively [4][9]. - BaiLi Tianheng has developed a comprehensive pipeline of innovative drugs targeting major cancer types, with 17 clinical candidates, including 6 in trials in the United States [20]. - The report highlights the approval of the first generic version of Enzalutamide by Kelun Pharmaceutical and the initiation of Phase III trials for a KRAS G12D inhibitor by Jinfang Pharmaceutical [4]. Summary by Sections Industry Performance - The A-share pharmaceutical index has outperformed the CSI 300 index, with significant gains in various sub-sectors, including pharmaceutical commerce (+5.7%) and chemical pharmaceuticals (+4.5%) [4][9]. - Notable stock performances include JinDike (+62%), Renmin Tongtai (+61%), and Chengda Pharmaceutical (+58%) [4][9]. Company Focus: BaiLi Tianheng - BaiLi Tianheng's pipeline includes innovative drug platforms such as HIRE-ADC, GNC, and HIRE-ARC, with a focus on EGFR×HER3 ADC as a cornerstone treatment [20]. - The company has initiated three global pivotal Phase III trials and ten critical Phase III trials in China for its lead candidate, iza-bren [20]. Recommendations - The report suggests a ranking of preferred sub-industries: innovative drugs > research services > CXO > traditional Chinese medicine > medical devices > pharmacies [4][9]. - Specific companies to watch include BaiLi Tianheng, BeiGene, Kelun Pharmaceutical, and others in various therapeutic areas such as PD1/VEGF dual antibodies and GLP1 [4][10][11][12][13][14][15].