Shenwan Hongyuan Securities·2025-12-22 09:44Investment Rating - The report maintains a positive outlook on the pharmaceutical industry, indicating an "Overweight" rating, suggesting that the industry is expected to outperform the overall market [30]. Core Insights - The report highlights recent developments in the pharmaceutical sector, including significant business development (BD) transactions involving companies like Changchun High-tech, Hansoh Pharmaceutical, and Hengrui Medicine, with potential milestone payments reaching billions of dollars [10][12][14]. - The approval of NMN as a dietary supplement in the U.S. and the submission of a new drug application for CagriSema, a GLP-1+Amylin combination therapy, are noted as key advancements in the industry [15]. - The report emphasizes the potential investment opportunities arising from the recovery of the domestic innovative drug environment, particularly in the CRO sector, with specific companies highlighted for consideration [2]. Market Performance - The report states that the Shenwan Pharmaceutical and Biological Index decreased by 0.1% this week, while the Shanghai Composite Index increased by 0.03% [3]. - Within the pharmaceutical sector, various sub-sectors showed mixed performance, with notable increases in medical supplies (+2.3%) and offline pharmacies (+5.6%), while chemical preparations (-2.1%) and blood products (-0.3%) declined [5][9]. Recent Key Events - Changchun High-tech signed an exclusive licensing agreement for GenSci098, with potential milestone payments of up to $1.365 billion [10]. - Hansoh Pharmaceutical entered into a multi-regional exclusive licensing agreement for Amivantamab, with potential payments exceeding $1 billion [12]. - The approval of a brain-machine interface for treating addiction marks a significant technological advancement in the industry [16]. Valuation Metrics - The overall valuation of the pharmaceutical sector is reported at 29.2 times earnings, ranking it 10th among 31 primary sectors [5][13]. - Specific companies within the sector have varying projected earnings per share (EPS) and price-to-earnings (PE) ratios, indicating diverse investment profiles [24].