Core Viewpoint - The report highlights the performance of the China Europe Medical Health Mixed Fund, managed by Ge Lan and Zhao Lei, indicating a decline in total fund size and negative returns compared to benchmarks for the fourth quarter of 2025 [1][4]. Fund Performance - As of December 31, 2025, the total size of funds managed by Ge Lan decreased from 43.544 billion to 35.389 billion yuan [1]. - The net value growth rate for Class A shares of the China Europe Medical Health Mixed Fund was -14.81%, while the benchmark return was -8.21% [1]. - Class C shares experienced a net value growth rate of -14.98%, also underperforming the benchmark [1]. Holdings Overview - The top ten holdings of the China Europe Medical Health Mixed Fund include WuXi AppTec, Heng Rui Medicine, and Kanglong Chemical, with notable increases in holdings for Hai Si Ke and Tai Ge Medicine, while reductions were seen in stocks like Ke Lun Pharmaceutical and Xin Li Tai [1][2]. - The largest holding, WuXi AppTec, accounted for 10.11% of the fund's net value, with a market value of approximately 2.724 billion yuan [2]. Market Context - The CSI Medical Index fell by 12.7% in the fourth quarter of 2025, underperforming the Shanghai and Shenzhen 300 Index, which declined by only 0.2% [3]. - There was significant differentiation within sub-sectors, with the innovative industry chain entering a correction phase after previous gains, while traditional Chinese medicine and pharmaceutical commerce showed relative stability [3]. Future Outlook - Looking ahead to the first quarter of 2026, improvements in global liquidity are expected to boost investment and financing in innovative drugs, supported by domestic policy enhancements [4]. - The innovative drug and medical device industry chain is anticipated to maintain high levels of activity, with several key domestic drugs approaching critical data readout points [5]. - The CXO sector is expected to benefit from a recovery in biotechnology financing, leading to improved order conditions [5]. - The pharmaceutical sector is projected to experience structural trends driven by macroeconomic improvements, supportive industry policies, and ongoing innovation [5].

消息面上，商务部等九部门发布关于促进药品零售行业高质量发展的意见提出，优化药品营销体系。倡 导医药生产企业与全国或区域大型医药流通企业深度合作，以市场为导向规范药品购、销价格体系，促 进药品零售行业跨省、跨地区公平竞争，引导零售药品价格保持合理水平。鼓励创新药、参比制剂等药 品进零售药店销售渠道。鼓励医药电商平台开放数据接口，加强线上、线下药品零售价与省级医药采购 平台挂网价的联动监测，加强定点药店医保药品量价比较指数和药品比价小程序的推广应用。 江海证券表示，我们认为随着全球生物医药投融资环境逐步回暖，中国创新药企业出海已成为核心发展 趋势。新年首周，国内创新药领域便落地5项对外授权合作，涵盖小分子抑制剂、单抗、双抗、ADC和 RDC等多个技术领域，充分展现了中国在生物医药各技术领域的全球领先布局实力。 （文章来源：21世纪经济报道） 1月23日，A股三大指数集体上涨，中证创新药产业指数截至发稿上涨1.37%，该指数成分股中，昭衍新 药上涨超5%，贝达药业、君实生物-U、荣昌生物、泰格医药、沃森生物等跟涨。 相关ETF方面，创新药ETF（159992）截至发稿涨1.17%，成交额超1.5亿元，盘中交投活跃。 ...

Group 1 - The three major indices collectively rose, while the National Securities Biopharmaceutical Index (399441) fell by 0.84%. Among its constituent stocks, Kanglong Chemical rose over 1%, Hualan Biological increased by 0.59%, Tigermed gained 0.52%, and Jianfan Biological was up by 0.5% [1] - The Biopharmaceutical ETF (159859) had a trading volume of 100 million yuan yesterday, ranking first among similar products. According to Wind data, the ETF saw a net subscription of over 130 million shares yesterday [1] - As of January 21, the Biopharmaceutical ETF experienced a net inflow of 23.95 million yuan, marking three consecutive trading days of net inflows, with a cumulative net inflow of 116 million yuan [1] Group 2 - The Biopharmaceutical ETF closely tracks the Biopharmaceutical Index, which is based on A-share listed companies in the biopharmaceutical industry, selecting the top 30 stocks based on market capitalization and liquidity [1] - Nine departments, including the Ministry of Commerce and the National Development and Reform Commission, jointly issued opinions to promote high-quality development in the pharmaceutical retail industry, proposing 18 specific measures [1] - According to Pacific Securities, the biopharmaceutical industry will enter a critical phase of innovation realization and global layout by 2026, supported by the synergy of industry, policy, and capital [2]

Investment Rating - The industry investment rating is "Positive" [2] Core Insights - The report indicates a significant recovery in domestic innovative drug financing, with 512 events in 2025, a year-on-year increase of approximately 18%, and a total financing amount of $14.684 billion, up about 127% [3][14] - The report highlights that the secondary market played a crucial role in this recovery, with secondary market financing amounting to $9.466 billion, a year-on-year increase of approximately 317% [3][14] - The report notes that the overseas innovative drug financing events reached 754 in 2025, a year-on-year decrease of about 16%, with a total financing amount of $42.136 billion, down about 22% [4][23] - The report emphasizes the strong growth potential of companies like WuXi AppTec, WuXi Biologics, WuXi AppTec, and Tigermed, with each company showcasing impressive revenue growth forecasts and strategic initiatives [5][6][8][9] Summary by Sections 1. Domestic Innovative Drug Financing - In 2025, domestic innovative drug financing events totaled 512, with a financing amount of $14.684 billion, marking a 127% year-on-year increase [3][14] - The secondary market's contribution was significant, with financing amounting to $9.466 billion, reflecting a 317% increase [3][14] 2. Overseas Innovative Drug Financing - Overseas financing events reached 754 in 2025, with a total amount of $42.136 billion, representing a 22% decline [4][23] - The report notes that the Federal Reserve's interest rate changes have impacted financing costs, with a slight recovery observed in late 2025 [4][23] 3. Company Highlights - WuXi AppTec expects a revenue of approximately $45.456 billion in 2025, a year-on-year increase of about 15.84%, with adjusted net profit projected to grow by 41.33% [5][31] - WuXi Biologics reported a significant increase in dual-target antibody projects, contributing nearly 20% to total revenue, with a year-on-year growth exceeding 120% [6][35] - WuXi AppTec's acquisition of Easton Pharma is expected to enhance production capacity, with projected revenue growth exceeding 45% in 2025 [8][45] - Tigermed anticipates a robust demand in the clinical CRO sector, with a projected compound annual growth rate (CAGR) exceeding 12% from 2025 to 2028 [9][51]

Investment Rating - The report maintains a positive investment rating for the pharmaceutical sector [6] Core Insights - The pharmaceutical sector experienced a week-on-week decline of 0.68%, underperforming compared to the ChiNext and CSI 300 indices, ranking 17th among all industries [2][36] - The report emphasizes the importance of innovation, international expansion, and overcoming challenges as key themes for investment in 2026, with a focus on BD 2.0, small nucleic acids, and supply chain opportunities [3][4] - The upcoming adjustment of the National Essential Drug List is seen as critical, aiming to address clinical needs that have evolved since the last update in 2018, particularly in pediatrics, oncology, and rare diseases [5][14] Summary by Sections National Essential Drug List Adjustment Analysis - The current drug list has not been updated since 2018, leading to a disconnect with clinical needs, necessitating a systematic adjustment [14] - The adjustment will focus on filling gaps in disease coverage, particularly in pediatrics, oncology, and rare diseases, while also solidifying the integration of collective procurement and national negotiation outcomes [18][19] - The report identifies potential beneficiaries in traditional Chinese medicine, particularly in areas with previously weak coverage [28] JP Morgan Conference Overview - The 44th JP Morgan Health Conference highlighted strategic developments from major global pharmaceutical companies, showcasing their core pipeline advancements and key clinical milestones for 2026 [33] - Companies like Pfizer, Merck, and Eli Lilly presented their focus on innovative treatments and upcoming clinical trials, indicating a robust pipeline for future growth [34][35] Pharmaceutical Market Review and Hotspot Tracking - The pharmaceutical sector's performance in early 2026 has shown a 7.08% increase, outperforming both the CSI 300 and ChiNext indices [36] - The report notes a shift in market sentiment, with certain innovative sectors like AI healthcare and medical robotics showing strong performance, while traditional sectors faced adjustments [2][3]

Market Overview - On January 21, Hong Kong stocks experienced a slight adjustment in the morning but rebounded in the afternoon, with the Hang Seng Index rising by 97 points (0.4%) to close at 26,857 points[1] - The Hang Seng Tech Index increased by 62 points (1.1%), closing at 5,746 points, with total market turnover reaching HKD 250.5 billion[1] - Southbound capital inflow expanded to HKD 13.89 billion[1] Sector Performance - The semiconductor sector remained strong, driven by Micron's announcement of a potential memory shortage lasting until 2028, with Hua Hong Semiconductor and SMIC rising by 4%-6%[1] - TCL Electronics surged by 14.8% after announcing a joint venture with Sony, holding a 51% stake[1] - Skyworth Group's stock jumped by 37.5% following its announcement of a spin-off and share buyback[1] Geopolitical Impact - Gold stocks generally rose due to heightened geopolitical tensions, with Lingbao Gold and Zhaojin Mining increasing by 5%-8%[1] - The report suggests a short-term focus on strong sectors such as semiconductors and gold[1] U.S. Market Reaction - In the U.S., the Dow Jones Index rebounded by 588 points (1.5%) to 49,077 points, while the Nasdaq and S&P 500 indices rose by 270 points (1.2%) and 78 points respectively[2] - Gold prices remained strong, peaking at USD 4,888.4 per ounce[2] Macroeconomic Policy - The National Development and Reform Commission outlined policy directions for 2026, focusing on strengthening domestic circulation and expanding domestic demand strategies[3] Automotive Sector - China National Heavy Duty Truck Group saw a 7.5% increase in stock price after a major shareholder reduced their stake by 2%[4] - The company is expected to maintain strong export growth and a high dividend yield of approximately 7%[4] Energy and Utilities - Defensive sectors like environmental protection and gas utilities received support amid rising geopolitical risks, with stocks like Hong Kong and China Gas and CLP Holdings rising by 1.1%-3.2%[4] - Alibaba and China National Nuclear Corporation formed a joint venture for nuclear energy, potentially benefiting related companies[4] Healthcare Sector - The Hang Seng Healthcare Index rose by 0.7%, with WuXi Biologics increasing by 3.5%[5] - The CXO sector is expected to see a rebound in demand, with a projected 20.6% increase in clinical trial projects per company by 2025[5]

Investment Rating - The report maintains a "Hold" rating for the pharmaceutical sector [6] Core Insights - The pharmaceutical sector experienced a week-on-week decline of 0.68%, underperforming both the ChiNext Index and the CSI 300 Index, ranking 17th among all industries [2][36] - The report emphasizes a positive outlook for innovation, international expansion, and turnaround opportunities in the pharmaceutical industry, with a focus on BD 2.0, small nucleic acids, and supply chain [3][4] Summary by Sections 1. National Essential Drug List Adjustment Analysis - The adjustment of the National Essential Drug List is urgent as the current version has not been updated since 2018, leading to a disconnect with current clinical needs [14] - The new adjustments will focus on three main areas: addressing gaps in disease coverage, solidifying the integration of centralized procurement and national negotiation results, and enhancing the evidence-based standards for traditional Chinese medicine [5][14] - Potential beneficiaries from the adjustments include companies like Panlong Pharmaceutical, Guizhou Sanli, and Yiling Pharmaceutical, particularly in pediatrics, orthopedics, and cardiovascular fields [5][28] 2. JP Morgan Conference Overview - The 44th JP Morgan Health Conference highlighted strategic developments from major global pharmaceutical companies, showcasing their core pipeline progress and key clinical milestones for 2026 [33] - Companies such as Pfizer, Merck, and Eli Lilly presented their focus on advancing clinical trials and launching new products in various therapeutic areas [34][35] 3. Pharmaceutical Market Review and Hotspot Tracking - The pharmaceutical sector's performance from January 12 to January 16 showed a decrease of 0.68%, with a total trading volume of 916.83 billion yuan, accounting for 5.35% of the total market [2][36] - The report notes that the sector has shown a year-to-date increase of 7.08%, outperforming both the CSI 300 and ChiNext indices [36]

证券之星消息，1月21日，生物经济（970038）指数报收于2249.37点，涨0.3%，成交272.77亿元，换手 率2.27%。当日该指数成份股中，上涨的有28家，迪安诊断以5.59%的涨幅领涨，下跌的有22家，康弘药 业以1.78%的跌幅领跌。 生物经济（970038）指数十大成份股详情如下： | 代码 | 名称 | 主力净流入(元) | 主力净占比 游资净流入 (元) | | 游资净占比 散户净流入 (元) | | 散户净占比 | | --- | --- | --- | --- | --- | --- | --- | --- | | 000021 | 深科技 | 1.87亿 ﮯ | 3.06% | -9441.13万 | -1.55% | -9272.83万 | -1.52% | | 300142 | 沃森生物 | 6444.78万 | 8.62% | -3115.26万 | -4.16% | -3329.52万 | -4.45% | | 000930 | 中粮科技 | 5427.62万 | 9.84% | 491.65万 | 4 0.89% | -5919.27万 | -10.73% | | 002 ...

Summary of Hangzhou Tigermed Consulting Conference Call Industry Overview - The conference call focused on China's clinical Contract Research Organization (CRO) industry, highlighting significant trends and developments from 2019 to 2025 [2][3]. Key Points 1. **CRO Outsourcing**: Approximately 50% of clinical trials conducted in China were outsourced to CROs during the period from 2019 to 2025 [3]. 2. **Market Growth Rates**: The market's compound annual growth rate (CAGR) slowed from 25% during the COVID-19 period (2020-2022) to 4% in the post-COVID period (2023-2024). However, it is projected to accelerate to 13% from 2025 to 2028 according to Frost & Sullivan and the Human Genetic Resources Administration [3]. 3. **CRO Overcapacity**: The number of Chinese CROs decreased from 500 in 2024 to 480 in 2025, while the average number of annual trials conducted per CRO increased from 35.6 to 42.9 [3]. 4. **Clinical Trial Approvals**: In 2025, the number of clinical trial approvals (INDs) and Phase 1 trial starts in China rose by 19% and 13%, reaching 2,703 and 1,168 respectively [4]. 5. **Outlicensing Deals**: China executed 178 novel drug outlicensing deals to the US and Europe from 2024 to 2025, accounting for 14% of the world's total, an increase from 85 deals (9% of the total) from 2022 to 2023 [4]. 6. **Biotech Funding**: Chinese biotech companies raised $5.2 billion from private equity and venture capital in 2025, up from $4.2 billion in 2024. Total upfront payments from outlicensing also increased from $4.4 billion to $7.5 billion [4]. 7. **Global Drug Pipeline Contribution**: China now contributes approximately 30% to the global innovative drug pipeline [5]. 8. **Patient Enrollment Efficiency**: The average time to enroll a patient in China for an oncology trial is 60 days, compared to the global median of 150 days [5]. 9. **New Orders for Tigermed**: New orders for Tigermed increased across various customer types from January to November 2025, with biotech companies and multinational corporations (MNCs) being the largest contributors at 38% and 25% respectively. MNCs are responsible for 25-30% of Phase 3 trials in China [5]. 10. **Trial Pricing Trends**: Prices for Phase 1 and 2 trials reached their lowest point in 2024 and began to rise in 2025, aligning with levels similar to 2023 but remaining significantly below the peak levels seen during COVID-19 in 2022 [6]. Financial Metrics for Hangzhou Tigermed Consulting - **Stock Rating**: Overweight - **Price Target**: RMB 81.00, representing a 35% upside from the current price of RMB 60.03 as of January 20, 2026 [7]. - **Market Capitalization**: RMB 52.383 billion [7]. - **Revenue Projections**: Expected revenue growth from RMB 6.603 billion in 2024 to RMB 8.458 billion by 2027 [7]. - **Earnings Per Share (EPS)**: Projected EPS growth from RMB 0.46 in 2024 to RMB 1.85 in 2027 [7]. - **Return on Equity (ROE)**: Expected to increase from 1.9% in 2024 to 7.2% in 2027 [7]. Risks Identified - **Upside Risks**: Faster growth in clinical R&D outsourcing, accelerated recovery of domestic demand, and new collaboration deals [13]. - **Downside Risks**: Slower-than-expected recovery in clinical CRO demand, rising pricing pressure, geopolitical risks, and potential impairment of goodwill and intangible assets [13]. This summary encapsulates the critical insights from the conference call regarding the clinical CRO industry in China and the financial outlook for Hangzhou Tigermed Consulting.

Core Insights - The CRO industry in China is experiencing significant growth, with the market size expected to expand from 90 billion yuan in 2021 to 126 billion yuan by 2024, reflecting a compound annual growth rate (CAGR) of 28%, which is substantially higher than the global average of 10% [13][26] - The industry is characterized by a clear competitive landscape, with WuXi AppTec as the dominant player, achieving revenue exceeding 20 billion yuan, while other key players include Kanglong Chemical, Tigermed, and Kelun Pharmaceutical [17][20] Industry Overview - Contract Research Organizations (CROs) are specialized entities that undertake drug development responsibilities on behalf of pharmaceutical companies, helping to reduce costs and risks while ensuring compliance [1] - The CRO industry is divided into preclinical and clinical segments, with preclinical CROs focusing on drug discovery and safety evaluations, while clinical CROs handle clinical trials and data management [1] Industry Development History - The CRO industry in China began in 1996 with the establishment of the first joint venture, and has evolved from a lack of formal organizations to a competitive landscape dominated by local leaders [9] - The industry has undergone significant changes, including the implementation of Good Clinical Practice (GCP) in 2003 and the introduction of the Marketing Authorization Holder (MAH) system, which has facilitated the growth of CRO services [11] Market Demand and Growth - The number of New Drug Applications (NDA) in China has been increasing, from 210 in 2021 to an expected 320 by 2024, driving demand for CRO services [14] - The global CRO market is projected to grow from 71 billion USD in 2021 to 90 billion USD by 2024, driven by increased healthcare demands due to aging populations and the COVID-19 pandemic [13] Competitive Landscape - The competitive structure of the Chinese CRO industry is categorized into three tiers, with WuXi AppTec leading the first tier, followed by Kanglong Chemical and Tigermed in the second tier, and smaller firms in the third tier [17] - Most companies are diversifying their services to include both CRO and CDMO (Contract Development and Manufacturing Organization) capabilities, enhancing operational efficiency [20] Regional Market Dynamics - The Yangtze River Delta region dominates the CRO market in China, accounting for approximately 43% of the market share, followed by the Beijing-Tianjin-Hebei region at 23% and the Pearl River Delta at 19% [23] Future Outlook - The Chinese CRO market is expected to continue its growth trajectory, potentially exceeding 144 billion yuan by 2028, supported by favorable policies and increasing demand for innovative therapies [26] - Despite challenges such as rising compliance costs and market saturation, the overall outlook remains positive, with expectations of sustained double-digit growth over the next five years [26]