Soochow Securities·2026-03-15 10:45Investment Rating - The report maintains a "Buy" rating for the industry, focusing on companies involved in brain-computer interfaces and innovative pharmaceuticals [1]. Core Insights - The report highlights significant advancements in the brain-computer interface sector, particularly the approval of the world's first invasive brain-computer interface by BoRuiKang, marking a pivotal moment for commercialization in this field [18][24]. - The report emphasizes a favorable outlook for innovative drugs, particularly in the small nucleic acid segment, and suggests a diversified investment strategy across various sub-sectors within the pharmaceutical industry [3][11]. Summary by Sections Industry Performance - 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 [11]. - The report notes that the medical device sector has seen a positive performance, with raw materials and medical devices increasing by 1.32% and 0.60% respectively [11]. Brain-Computer Interface Developments - BoRuiKang's invasive brain-computer interface, NEO, has received approval from the National Medical Products Administration, representing a breakthrough in the commercialization of brain-computer interfaces [18][20]. - The product is designed for patients with cervical spinal cord injuries, utilizing a minimally invasive implantation technique that reduces risks associated with traditional methods [20][24]. Investment Recommendations - The report ranks sub-sectors in the following order of attractiveness: innovative drugs > research services > CXO > traditional Chinese medicine > medical devices > pharmacies [3][11]. - Specific companies to watch include: - PD1 PLUS: Sanofi Biopharma, Kangfang Biopharma, and others [14]. - ADC: YingEn Biopharma, Kelun Biotech, and others [14]. - Small nucleic acids: Frontier Biopharma, Fuyuan Biopharma, and others [14]. - CXO and research services: WuXi AppTec, Haoyuan Biopharma, and others [14]. - Medical devices: United Imaging Healthcare, Yuyue Medical, and others [14]. Regulatory and Market Insights - The report discusses the supportive regulatory environment for brain-computer interfaces, with policies aimed at facilitating research and commercialization [24]. - It also highlights the importance of technological breakthroughs in driving the industry forward, with BoRuiKang setting a benchmark for future product approvals [24].