Shanghai Securities·2025-11-28 13:29Investment Summary - The innovative pharmaceutical sector is entering a commercialization harvest period, with significant performance improvements in the first three quarters of 2025 [5] - The medical device bidding market shows a substantial growth trend, with a 62.75% year-on-year increase in the first half of 2025 [22] - The rise of health-conscious consumer behavior is driving rapid market growth and innovation in health consumption [5] - Supportive policies from the government are catalyzing high-quality development in the pharmaceutical industry [5] Sector Performance Review - As of November 27, 2025, the pharmaceutical and biotechnology sector has seen a 16.56% increase since the beginning of the year, outperforming the CSI 300 index by 1.81 percentage points [8] - The chemical pharmaceutical sub-sector led the gains with a 33.67% increase, while the medical services and biological products sectors also performed well [8][12] Innovative Pharmaceuticals - Policy support is enhancing the entire chain of high-quality development, with significant improvements in the approval process for innovative drugs [15] - The number of approved innovative drugs has surged, with 48 new first-class innovative drugs approved in 2024, a fivefold increase compared to 2018 [15] - The domestic innovative drug market is expanding rapidly, with a projected market size of 1 trillion yuan by 2035 [21] Medical Insurance Market - The commercial insurance system is gradually improving, with multi-channel payment mechanisms being explored to meet public demand [5] - The aging population is increasing demand in chronic disease and rehabilitation sectors, with over 310 million people aged 60 and above in China by 2024 [5] Medical Devices - The medical device bidding market is recovering, with a 29.8% year-on-year growth in the third quarter of 2025 [22] - The overall revenue for the medical device sector in Q3 2025 was 604.49 billion yuan, showing a positive growth trend [22] Brain-Computer Interface - The brain-computer interface industry is expected to see significant growth, with potential market sizes ranging from 400 to 1450 billion USD by 2030-2040 [23] - National and local policies are promoting innovation in the brain-computer interface sector, with plans to establish several influential enterprises by 2030 [23][25] AI in Healthcare - The AI+ healthcare market is rapidly expanding, with a projected market size of 315.8 billion yuan by 2033, reflecting a compound annual growth rate of 43% [27] - The AI pharmaceutical sector is also growing, with a market size increase from 0.7 million yuan in 2019 to 4.1 million yuan in 2023 [31] Traditional Chinese Medicine - The traditional Chinese medicine sector is experiencing revitalization through new consumption patterns, with a significant increase in the number of TCM clinics across the country [33] - The market for chronic disease management is expanding, with a projected size of 4 trillion yuan by 2024 [33] New Health Consumption - Policies promoting health consumption are driving rapid growth in the health consumption sector, with the total revenue of China's health industry reaching 9 trillion yuan in 2024 [34] - The health consumption market is characterized by rapid growth and continuous innovation in business models [34]