Investment Rating - The report maintains a "Market Weight" rating for the pharmaceutical and biotechnology industry, indicating that the industry index is expected to perform within ±10% of the market index over the next six months [4][27]. Core Insights - The SW pharmaceutical and biotechnology industry underperformed the Shanghai and Shenzhen 300 index, with a decline of 1.27% from August 22, 2025, to September 4, 2025, lagging behind the index by approximately 3.07 percentage points [1][11]. - Most sub-sectors within the industry recorded negative returns during the same period, with the medical research outsourcing and chemical preparation sectors showing the highest gains of 12.17% and 5.45%, respectively, while the in vitro diagnostics and raw materials sectors experienced declines of 5.96% and 4.95% [2][14]. - Approximately 22% of stocks in the industry recorded positive returns, while about 78% experienced negative returns during the reporting period [15]. Summary by Sections 1. Market Review - The SW pharmaceutical and biotechnology industry underperformed the Shanghai and Shenzhen 300 index, with a decline of 1.27% from August 22, 2025, to September 4, 2025 [11]. - Most sub-sectors recorded negative returns, with medical research outsourcing and chemical preparations leading gains [14]. - The industry saw about 22% of stocks with positive returns, indicating a challenging market environment [15]. - The overall industry valuation remained stable, with a PE ratio of approximately 55.41 times as of September 4, 2025, relative to the Shanghai and Shenzhen 300 index [18]. 2. Industry News - The National Healthcare Security Administration announced the results of the 2025 national basic medical insurance drug directory adjustments, receiving 718 submissions, with 535 passing the initial review [21][25]. - The report highlights the upcoming negotiations for the national medical insurance, which may impact the industry significantly [25]. 3. Important Company Announcements - Guangzhou Baiyunshan Pharmaceutical Group announced that its subsidiary received approval for a drug to pass the consistency evaluation for generic drugs [26]. 4. Industry Outlook - The report suggests focusing on investment opportunities in innovative drugs and related sectors, particularly those with expected business development catalysts [27][30]. - Specific companies to watch include Mindray Medical, Yifeng Pharmacy, and Aier Eye Hospital, among others, which are positioned for potential growth [30].

Group 1 - The core point of the article highlights that 恒瑞医药 (Hengrui Medicine) has entered into an agreement with Braveheart Bio for the licensing of its innovative drug HRS-1893, which includes a total payment of $75 million, consisting of an upfront payment of $65 million and a milestone payment of $10 million after technology transfer [1] - Following the announcement, 恒瑞医药's stock price increased by 4.18% to HKD 84.75, with a trading volume of HKD 400 million, and its latest H-share market capitalization reached HKD 562.5 billion [1] - The A-shares of 恒瑞医药 also saw a rise of 5.56%, closing at CNY 72.47, marking the highest closing price since April 14, 2021 [1] Group 2 - 恒瑞医药 is eligible to receive additional milestone payments related to clinical development and sales, which could total up to $1.013 billion [1] - Braveheart Bio will also pay 恒瑞医药 a sales commission based on the sales performance of the licensed drug [1]

Group 1 - Domestic pharmaceutical companies are gaining confidence in international markets, with a significant revaluation of Chinese innovative drug projects underway [1] - Heng Rui Medicine announced an exclusive licensing agreement with Braveheart Bio for an upfront payment of $65 million, with potential milestone payments reaching up to $1.013 billion [1] - As of the end of August, the number of license-out transactions for domestic innovative drugs reached 83, a year-on-year increase of 57%, with a total disclosed amount of $84.531 billion, up 185% year-on-year [1] Group 2 - The World Conference on Lung Cancer (WCLC) will take place from September 6 to 9 in Barcelona, where several leading innovative drug companies will present significant new products [1] - The European Society for Medical Oncology (ESMO) conference will be held in mid-October in Berlin, focusing on advancements in oncology and featuring many Chinese pharmaceutical companies [2] Group 3 - Relevant ETFs include the Hang Seng Medical ETF (159892), which focuses on Hong Kong innovative drugs and supports T+0 trading [3] - The Hong Kong Stock Connect Medical ETF (520510) targets the innovative drug industry chain with leading CXO content and supports T+0 trading [3] - The Biotechnology ETF (516500) focuses on A-share innovative drugs, highlighting leading companies in the sector [3]

公司名稱： 江蘇恒瑞醫藥股份有限公司 呈交日期： 2025年9月5日 FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | --- | --- | --- | --- | --- | --- | | 1. 股份分類 普通股 | 股份類別 A | | 於香港聯交所上市 | 否 | | | 證券代號 (如上市) 600276 | 說明 | A股（於上海證券交易所上市） | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | 已發行股份（不包括庫存股份）變動 | | 庫存股份變動 | | | | 事件 | 已發行股份（不包括庫存股份）數 目 | 佔有關事件前的現有已發 行股份（不包括庫存股 份 ...

Core Viewpoint - Heng Rui Medicine has announced a new collaboration with Braveheart Bio for the global development and commercialization of its heart disease drug HRS-1893, marking its second NewCo transaction aimed at expanding its international presence [1][3]. Group 1: Transaction Details - Heng Rui Medicine will receive a total of $65 million in upfront payments, consisting of $32.5 million in cash and $32.5 million in equity from Braveheart Bio [1]. - After the technology transfer, Heng Rui will receive an additional $10 million milestone payment, along with potential milestone payments and sales royalties that could total up to $1.013 billion, bringing the maximum potential revenue from this deal to $1.088 billion [1]. - A joint management committee will be established to coordinate the global development and commercialization of the licensed product, with equal representation from both companies [1]. Group 2: Product Development Status - HRS-1893 is currently undergoing a Phase III clinical trial in China for obstructive hypertrophic cardiomyopathy, which is a common hereditary heart disease and a leading cause of sudden cardiac death among adolescents and athletes [2]. Group 3: Previous Transactions and Company Background - This is Heng Rui Medicine's second NewCo model transaction; the first involved licensing three GLP-1 innovative drugs to a newly established U.S. company, Kailera, for an upfront payment of $100 million and a potential total deal value of $6 billion [3]. - Braveheart Bio was established in 2024 in Delaware, USA, with major investors including Forbion Capital and OrbiMed, and is led by CEO Travis Murdoch, who has a history of successful clinical project management [3][4]. - As of September 5, Heng Rui Medicine's A-shares rose by 3.35%, with a market capitalization of 470.9 billion yuan, while its Hong Kong shares increased by 3.07%, with a market capitalization of 555.9 billion HKD [4].

Investment Rating - The report maintains a "Market Weight" rating for the pharmaceutical and biotechnology industry [6][29]. Core Insights - The SW pharmaceutical and biotechnology industry underperformed the CSI 300 index, declining by 1.27% from August 22 to September 4, 2025, which is approximately 3.07 percentage points lower than the index [13][29]. - Most sub-sectors within the industry recorded negative returns during the same period, with the medical research outsourcing and chemical preparation sectors showing the highest gains of 12.17% and 5.45%, respectively. In contrast, the in vitro diagnostics and raw materials sectors experienced declines of 5.96% and 4.95% [16][19]. - Approximately 22% of stocks in the industry recorded positive returns, while around 78% experienced negative returns during the reporting period [17][19]. - The overall price-to-earnings (PE) ratio for the SW pharmaceutical and biotechnology industry was approximately 55.41 times, with a relative PE ratio of 4.23 times compared to the CSI 300 index, indicating little change in industry valuation [20][29]. Summary by Sections 1. Market Review - The SW pharmaceutical and biotechnology industry underperformed the CSI 300 index, with a decline of 1.27% from August 22 to September 4, 2025 [13]. - Most sub-sectors recorded negative returns, with medical research outsourcing and chemical preparations leading in gains [16]. - About 22% of stocks in the industry had positive returns, while 78% had negative returns [17]. 2. Industry News - The National Healthcare Security Administration announced the list of drugs for the 2025 National Basic Medical Insurance, with 718 submissions and 535 passing the initial review [27]. - The report highlights the upcoming national medical insurance negotiations and the analysis of 25 traditional Chinese medicine products [27]. 3. Company Announcements - Guangzhou Baiyunshan Pharmaceutical Group announced that its subsidiary received approval for a drug to pass the consistency evaluation for generic drugs [28]. 4. Industry Outlook - The report suggests focusing on investment opportunities in the innovative drug sector and related areas, including medical devices and traditional Chinese medicine [29][32].

Group 1 - The core viewpoint is that the Innovation Drug ETF (159622) has seen a rebound with a 3.1% increase, driven by strong performance from constituent stocks, particularly Zai Lab which rose over 16% [1] - The ETF has received 88 million subscriptions as of September 5, 2025, indicating strong investor interest [1] - The market anticipates a 99% probability of a 25 basis point rate cut by the Federal Reserve due to weak employment data, which is expected to support economic growth through looser monetary and fiscal policies [1] Group 2 - The Innovation Drug ETF consists of 50 leading innovative drug companies, with 40% from Hong Kong stocks and 60% from A-shares [2] - The top ten constituent stocks include major players such as Heng Rui Medicine, BeiGene H-shares, and WuXi Biologics, highlighting the ETF's focus on leading firms in the sector [2]

Market Performance - The Hang Seng Healthcare Index increased by 2.69% as of September 5, 2025, with notable gains from stocks such as Eucan Vision Bio-B (+13.93%), 3SBio (+11.67%), and CanSino-B (+10.58%) [3] - The Hang Seng Healthcare ETF (513060) rose by 2.36%, closing at 0.74 CNY, and has seen a 5.57% increase over the past week [3] - The Hang Seng Innovation Drug Selection Index surged by 3.33%, with 3SBio and CanSino-B also showing significant increases [5] - The Innovation Drug Selection ETF (520690) increased by 2.61%, reaching 1.06 CNY, and has recorded a 6.60% rise over the past week [5] Liquidity and Trading Activity - The Hang Seng Healthcare ETF had a turnover rate of 25.37% with a trading volume of 1.917 billion CNY, indicating active market participation [3] - The average daily trading volume for the Hang Seng Healthcare ETF over the past week was 3.088 billion CNY, ranking it first among comparable funds [3] - The Innovation Drug Selection ETF had a turnover rate of 34.1% with a trading volume of 124 million CNY, also reflecting active trading [5] - The average daily trading volume for the Innovation Drug Selection ETF over the past week was 237 million CNY [5] New Drug Developments - A new pediatric influenza treatment, the Mavirovir granules, developed by Xiansheng Pharmaceutical and Antikang Bio, has had its market application accepted, targeting children aged 2-11 [6] - The HRS-4729 injection by Heng Rui Pharmaceutical has received clinical trial approval, aiming to be a first-in-class triple receptor agonist for weight loss and liver fat reduction [6][7] Institutional Insights - The introduction of the first domestic pediatric influenza drug is expected to address the seasonal demand for pediatric medications, potentially boosting sentiment in the anti-infection and pediatric channels [7] - The clinical approval of Heng Rui's triple receptor agonist is anticipated to enhance the long-term outlook for local companies in the GLP-1 expansion mechanism, increasing interest in related CRO/CDMO and metabolic pipeline companies [7][8] ETF Overview - The Hang Seng Healthcare ETF has a current size of 7.463 billion CNY, ranking it among the top third of comparable funds [10] - The ETF closely tracks the Hang Seng Healthcare Index, which reflects the performance of healthcare-related securities listed in Hong Kong [10] - The top ten weighted stocks in the Hang Seng Healthcare Index account for 62.87% of the index, including companies like BeiGene and Innovent Biologics [10] - The Innovation Drug Selection Index also has a significant concentration, with its top ten stocks representing 78.87% of the index [10]

Core Insights - HengRui Pharma has entered into an exclusive licensing agreement with Braveheart Bio for its proprietary Myosin small molecule inhibitor HRS-1893, aimed at treating Hypertrophic Cardiomyopathy (HCM) [1][2] - The agreement grants Braveheart Bio exclusive rights to develop, manufacture, and commercialize HRS-1893 globally, excluding Greater China, with an upfront payment of $65 million and potential milestone payments totaling up to $1.013 billion [1][2] - HRS-1893 is a significant innovation in HengRui's cardiovascular portfolio, currently in Phase III clinical trials, with over 10 innovative products in clinical research stages targeting cardiovascular diseases [3] Financial Terms - Braveheart Bio will pay HengRui a total of $75 million, which includes $32.5 million in cash and $32.5 million in equity, along with a $10 million milestone payment upon successful technology transfer [1] - The potential milestone payments related to clinical development and sales could reach up to $1.013 billion, in addition to sales royalties [1] Market Potential - The CEO of Braveheart Bio expressed confidence in HRS-1893's potential as a best-in-class Myosin inhibitor, highlighting the significant unmet needs in the cardiovascular disease market [2] - HengRui's recent licensing of GLP-1 class innovative drugs to a newly established U.S. company could yield up to $6 billion in total payments, indicating a strong focus on expanding its innovative drug portfolio [2]

Core Viewpoint - HengRui Pharma has entered into an exclusive licensing agreement with Braveheart Bio for its Myosin small molecule inhibitor HRS-1893, marking a strategic move to leverage international capital through the NewCo model [1][2] Group 1: Licensing Agreement Details - HengRui Pharma will receive a total of $75 million from Braveheart Bio, which includes a $65 million upfront payment and a $10 million milestone payment upon technology transfer [1] - The agreement allows Braveheart Bio to develop, produce, and commercialize HRS-1893 globally, excluding China, with potential milestone payments reaching up to $1.013 billion related to clinical development and sales [1][4] Group 2: NewCo Model Advantages - The NewCo model allows HengRui to separate R&D risks and commercialization execution, enabling quicker cash flow recovery through upfront and milestone payments [2][6] - This model is particularly suitable for large pharmaceutical companies like HengRui, which have a rich early pipeline but limited overseas clinical and commercialization capabilities [2][5] Group 3: HRS-1893 and Clinical Development - HRS-1893 is a highly selective Myosin small molecule inhibitor aimed at normalizing myocardial contractility and reducing left ventricular hypertrophy [4] - The drug has already initiated Phase III clinical trials for obstructive hypertrophic cardiomyopathy, with multiple clinical trials ongoing in HengRui's cardiovascular portfolio [4][5] Group 4: Strategic Implications - The involvement of reputable investors like Forbion and OrbiMed provides funding and international operational resources, enhancing the credibility of HengRui's technology platform [4][9] - The NewCo model is emerging as a preferred strategy for Chinese pharmaceutical companies to navigate international markets while retaining core regional rights [7][9] Group 5: Market Trends and Future Outlook - The NewCo model has gained traction since 2024, with several companies, including HengRui, exploring this approach to overcome barriers in the global biopharmaceutical market [6][9] - Future pipelines with first-in-class or best-in-class potential are likely to utilize this model for international expansion, necessitating strong collaboration among legal, financial, and medical teams during negotiations [9]