Southwest Securities·2026-01-26 00:45Investment Rating - The report indicates a "Buy" rating for several companies within the pharmaceutical sector, including 恒瑞医药 (Hengrui Medicine), 百济神州-U (BeiGene), and others [22]. Core Insights - The pharmaceutical industry has seen a significant increase in BD (business development) activities, with Chinese pharmaceutical companies securing upfront payments exceeding $7.03 billion in 2025, marking a year-on-year growth of over 226.8% [15][20]. - The industry has a total market capitalization of approximately 544.85 billion yuan, with a TTM (trailing twelve months) P/E ratio of 38.5, significantly higher than the 14.1 P/E ratio of the CSI 300 index [3][6]. - The best-performing sub-sectors this week include offline pharmacies, hospitals, and medical R&D outsourcing, with year-to-date increases of 17.2%, 14.8%, and 10.7%, respectively [6][31]. Summary by Sections Industry Performance - The pharmaceutical index decreased by 0.39% this week, outperforming the CSI 300 index by 0.23 percentage points. Year-to-date, the pharmaceutical sector has risen by 6.66%, surpassing the CSI 300 index by 5.10 percentage points [6][24]. - The current valuation level (P/E-TTM) for the pharmaceutical industry stands at 30.31 times, with a premium of 65.36% over the entire A-share market [6][26]. Business Development Trends - In 2025, the domestic dual-antibody BD projects achieved upfront payments of $3.5 billion, a staggering increase of 414.7%, accounting for 49.8% of all BD upfront payments for the year [16]. - The ADC (Antibody-Drug Conjugates) sector has also seen substantial growth, with upfront payments reaching $1.63 billion, a 676.2% increase year-on-year [17]. - The GLP-1RA (Glucagon-Like Peptide-1 Receptor Agonists) segment reported upfront payments of $470 million, reflecting a 109.8% increase compared to 2024 [18]. Notable Collaborations - The report highlights significant collaborations, such as 舶望制药 (Bohua Pharmaceutical) partnering with Novartis to explore the potential of siRNA in hypertension treatment, securing an upfront payment of $160 million [19]. - The MNC (Multinational Corporation) procurement model remains dominant, with local companies securing $4.71 billion in upfront payments from MNCs, representing 67.0% of total BD upfront payments [20]. Recommended Companies - The report suggests a robust investment strategy focusing on companies like 恒瑞医药 (Hengrui Medicine), 百济神州-U (BeiGene), and others, which are expected to benefit from innovation and international expansion [20][21].