Guoxin Securities·2026-02-12 12:27Investment Rating - The report maintains an "Outperform" rating for the pharmaceutical and biotechnology sector [5][39]. Core Insights - The pharmaceutical sector has shown resilience, outperforming the overall market, with traditional Chinese medicine leading the gains [1][28]. - Roche's oral BTK inhibitor Fenebrutinib has demonstrated non-inferiority to Ocrelizumab in a Phase III trial for primary progressive multiple sclerosis (PPMS), marking a significant advancement in treatment options for this condition [2][11]. - The global market for multiple sclerosis (MS) treatment exceeds $20 billion, with Roche's Ocrevus projected to generate CHF 7 billion in sales by 2025, indicating substantial unmet needs in the PPMS segment [3][25]. Summary by Sections Market Performance - The overall A-share market declined by 1.3%, while the biopharmaceutical sector increased by 0.1%, indicating a stronger performance relative to the market [1][28]. - Specific segments within the biopharmaceutical sector showed varied performance, with traditional Chinese medicine rising by 2.6% and medical services increasing by 1.3% [1][28]. Clinical Data and Drug Development - Roche's Fenebrutinib trial included 985 PPMS patients and achieved its primary endpoint, showing a 12% reduction in disease progression risk compared to Ocrelizumab [2][11]. - The trial results suggest potential benefits for upper limb function, reinforcing the viability of BTK inhibitors in MS treatment [3][25]. Company Earnings Forecast and Investment Recommendations - Key companies in the sector, such as Mindray Medical, WuXi AppTec, and Aier Eye Hospital, are rated as "Outperform" with projected earnings growth over the next few years [4][39]. - Mindray Medical is highlighted for its strong R&D and international expansion, while WuXi AppTec is recognized for its comprehensive drug development services [39]. Valuation Metrics - The TTM price-to-earnings ratio for the pharmaceutical and biotechnology sector stands at 37.31x, compared to the overall A-share market at 21.98x, indicating a premium valuation for the sector [35][36]. - Within the sector, chemical pharmaceuticals and biological products have higher valuations at 45.18x and 46.09x, respectively [35].