Soochow Securities·2026-03-15 10:26Investment Rating - The report maintains a "Buy" rating for the pharmaceutical and biotechnology industry, focusing on brain-machine interface technologies and companies like Microinvasive Brain Science, Xiangyu Medical, and Aipeng Medical [1]. Core Insights - The report highlights significant advancements in the brain-machine interface sector, particularly the approval of the first product, which marks a pivotal moment for the industry. This approval is expected to facilitate further commercialization and development within the sector [18][24]. - The report ranks sub-industries in the following order of attractiveness: innovative drugs > research services > CXO > traditional Chinese medicine > medical devices > pharmacies. It emphasizes high elasticity in innovative drugs, especially in small nucleic acid therapies, and high dividend yields in traditional Chinese medicine and pharmacies [3][11]. Summary by Sections Industry Trends - The A-share pharmaceutical index has shown a slight decline of -0.22% this week and -0.13% year-to-date, underperforming the CSI 300 index by -0.41% and -0.97% respectively. The Hang Seng Biotechnology Index has also decreased by -4.00% this week [11]. - Notable stock performances include Yingke Medical (+35.18%), Zhonghong Medical (+25.26%), and *ST Jingfeng (+15.64%) for gains, while Yifang Biological (-11.59%) and Huakang Clean (-10.79%) faced significant losses [11]. R&D Progress and Company Dynamics - The report details the approval of several innovative drugs, including HSK31679 for non-alcoholic fatty liver disease and the GLP-1 receptor agonist Enoglutide, which has received approval in China [2][3]. - Companies to watch include: - From the PD1 PLUS perspective: Sanofi Biopharma, Kangfang Biopharma, and others - From the ADC perspective: Ying'en Biopharma and others - From the small nucleic acid perspective: Frontier Biopharma and others - From the CXO and upstream research services perspective: WuXi AppTec and others [3][14]. Brain-Machine Interface Developments - The report emphasizes the approval of the NEO brain-machine interface by the National Medical Products Administration, which is the first of its kind globally. This product is designed for patients with cervical spinal cord injuries and offers a minimally invasive solution with high signal quality and low tissue damage [18][20]. - The approval is seen as a breakthrough that sets a standard for future products in the brain-machine interface space, supported by government policies and funding initiatives aimed at fostering industry growth [24][25].