Core Viewpoint - The announcement of a 100% tariff on patented and branded drugs by the U.S. government is expected to impact pharmaceutical stocks in the short to medium term [1][9]. Group 1: Market Reactions - Major pharmaceutical stocks in Asia experienced declines following the tariff announcement, with the Topix Pharma Index in Japan dropping by 1.39% [3]. - Specific companies such as Daiichi Sankyo, Chugai Pharmaceutical, and Sumitomo Pharma saw declines of 3.34%, 2.18%, and 3.03% respectively [3]. - In South Korea, Samsung Biologics and SK Bio Pharmaceuticals fell by 1.66% and 2.66%, contributing to a 2.56% drop in the KOSPI index [3]. - Hong Kong's pharmaceutical sector was among the largest decliners, with the HSBIO index opening down approximately 2.58% [5]. Group 2: Economic Implications - Economists predict that the effective tariff rate will rise from about 10% in August to around 18% in the coming months, although the broader impact on economies like Japan and Australia is expected to be limited [7]. - The Indian stock market is particularly sensitive to these tariffs, as the U.S. accounts for over one-third of India's pharmaceutical exports, primarily generic drugs [7]. - The Nifty 50 index in India saw a decline of 0.38% shortly after the market opened, reflecting the negative sentiment [7]. Group 3: Investment Trends - The new tariffs are anticipated to exert pressure on the Indian stock market, which has already faced challenges this year due to U.S. tariff policies and new visa regulations [9]. - Foreign portfolio investors have sold over $17 billion worth of Indian stocks, with a recent sell-off of approximately $563 million [9]. - The Nifty 50 and Sensex indices have both dropped over 2% in the past five trading days, marking the longest decline in six months [9].

Group 1 - The Hong Kong pharmaceutical market experienced a significant decline, with the Hong Kong Stock Connect Innovative Drug ETF (520880) opening down over 2.5% on September 26, 2023, as 35 out of 37 constituent stocks fell, including major players like BeiGene and Innovent Biologics, which dropped over 3% [1][2] - The recent announcement by U.S. President Trump regarding a new round of high tariffs on various imported products, including a 100% tariff on pharmaceutical products, has negatively impacted pharmaceutical stocks in Japan, South Korea, and Australia [3] - Analysts suggest that the impact of the U.S. tariffs on Chinese innovative drug companies is relatively limited, as these companies primarily rely on domestic demand and do not directly export to the U.S. market [4] Group 2 - The Hong Kong Stock Connect Innovative Drug ETF (520880) has seen a surge in net subscriptions, with over 6.4 billion CNY in net inflows across 16 out of the last 20 trading days, indicating strong investor interest despite market volatility [5][6] - The ETF focuses exclusively on innovative drug research and development companies, excluding contract research organizations (CROs), which positions it as a pure play on the innovative drug sector [6][7] - The index tracked by the ETF has shown a year-to-date increase of 119.75% before the recent adjustments, outperforming other innovative drug indices, and is expected to demonstrate stronger performance as the innovative drug market evolves [7][8]

Core Viewpoint - The pharmaceutical sector in the Asia-Pacific market experienced a significant decline, with various indices showing notable drops, particularly in the weight loss drugs, innovative drugs, and CRO sectors [1][2]. Group 1: Market Performance - The A-share pharmaceutical and biotechnology sector saw a downturn, with weight loss drug index dropping by 1.56%, innovative drug index by 0.61%, and CRO index by 0.40% [2]. - Individual stocks such as Sunflower (向日葵) fell over 10%, while Aosaikang (奥赛康) and Guangshengtang (广生堂) also experienced significant declines of 9.02% and 6.56% respectively [3]. Group 2: Hong Kong and Japan Market Impact - The Hang Seng Biotechnology Index opened down nearly 2% and continued to decline, with companies like MicroPort Medical (微创医疗) and BeiGene (百济神州) showing notable drops of 5.47% and 4.75% respectively [4]. - In Japan, companies such as Sumitomo Pharma (住友制药) and Daiichi Sankyo (第一三共) also faced declines exceeding 4% and 3% respectively [4]. Group 3: External Factors - The recent announcement by U.S. President Trump regarding a new round of high tariffs on imported goods, including a punitive 100% tariff on patented and branded pharmaceuticals, is expected to impact the pharmaceutical industry significantly [5].

Major Events - China Railway (00390) recently won bids for 11 major projects, with a total contract value of approximately 50.215 billion yuan [1] - China Communications Technology (03969) secured four important projects in the railway market from July to August [1] - Chow Tai Fook (00659) plans to issue convertible bonds worth 2.218 billion HKD, converting approximately 10% of shares in First Journey Holdings (00697) [1] - Shanghai Pharmaceuticals (02607) transferred 40% equity of Shanghai Pharmaceuticals Group to Shanghai Shansi for about 6.7215 billion yuan [1] - Tianjin Port Development (03382) plans to invest 95.403 million yuan to acquire 5% equity in Eurasia International [1] - Tianjin Port Development (03382) intends to acquire 40% equity in Alliance International for 723 million yuan, increasing its stake to 100% [1] - First Journey Holdings (00697) received investment from Beijing Robotics Fund in Quan Zhi Bo, continuing to increase investment in the robotics industry [1] - Boleton (01333) signed a strategic cooperation agreement with Mingyang Mining to promote the electrification and intelligence of mining transportation [1] - China Biopharmaceutical (01177) completed the first patient enrollment in the Phase I clinical trial of LM-350 "CDH17 ADC" in Australia [1] - Xinjiang Xinmin Mining (03833) proposed to issue A-shares [1] - Jihong Co., Ltd. (02603) expects a year-on-year increase of 55%-65% in net profit attributable to shareholders for the first three quarters [1] Buybacks and Shareholding Changes - Tencent Holdings (00700) repurchased 844,000 shares for 550 million HKD on September 25 [1] - Midea Group (00300) repurchased 2.0 billion yuan worth of 2.7455 million A-shares on September 25 [1] - Anta Sports (02020) repurchased 99.819 million HKD worth of 106,500 shares on September 25 [1] - Guoquan (02517) plans to use up to 100 million HKD for further repurchase of H-shares [1] - Juzi Holding increased its stake by acquiring 1.15 million shares in Giant Bio (02367) [1] - Harmony Health, a shareholder of Goldwind Technology (02208), reduced its holdings by approximately 57.14185 million shares [1]

Industry Rating - The report rates the pharmaceutical industry as "Leading" [1] Core Insights - The adjustment of medical insurance and commercial insurance directories is accelerating, suggesting a favorable environment for undervalued quality stocks during market corrections [4][5] - The report emphasizes the importance of timing and stock selection in the current market, particularly after a broad rally in innovative drug stocks [4] - The upcoming ESMO conference in October is highlighted as a key event, with specific companies recommended for attention due to potential significant data releases [4] Summary by Sections Market Performance - The Hang Seng Index fell by 1.1% and the Hang Seng Healthcare Index decreased by 1.4% during the week of September 16-23, 2025, ranking 5th among 12 industry indices [4][6] - Sub-industry performance varied, with Internet medicine showing a slight increase of 0.9%, while sectors like medical devices and hospitals saw declines of 5.2% and 8.2%, respectively [4][6] Valuation Overview - The report provides a detailed valuation summary for various companies, with notable price-to-earnings (P/E) ratios for the pharmaceutical sector, such as 31.0x for prescription drugs and 14.1x for biopharmaceuticals [15] - The average P/E ratio across the sector is reported at 57.0, indicating a diverse valuation landscape [3] Institutional Holdings - As of September 23, 2025, domestic institutional holdings through Hong Kong Stock Connect remained stable at 22.2%, while foreign holdings slightly decreased to 38.7% [34][38] - The report notes a trend of increased foreign investment in innovative drug companies, with specific companies like InnoCare and Legend Biotech seeing significant increases in holdings [38][40] Regulatory Developments - The report discusses the recent adjustments to the national basic medical insurance directory and commercial insurance innovative drug directory, with a low approval rate for submitted drugs [5] - The 11th batch of national drug procurement has been announced, with new rules aimed at stabilizing clinical practices and ensuring quality [5]

中国生物制药(01177)发布公告，公司全资附属公司礼新医药科技(上海)有限公司("礼新医药")自主研发 的国家1类创新药LM-350"CDH17抗体偶联药物(ADC)"在澳洲开展的I期临床试验已顺利完成首例患者入 组，标志着这一创新疗法正式进入临床开发阶段。 LM-350是基于礼新医药新一代ADC技术平台LM-ADCTM开发的一款靶向CDH17的ADC，能够高度选 择性地结合CDH17，具有很强的内化能力。LM-350采用IgG1野生型构型，同时具备抗体依赖细胞介导 的细胞毒性作用(ADCC)活性。临床前研究显示，LM-350在多个异种移植模型中表现出显著的抗肿瘤活 性，尤其在对MMAE耐药或伊立替康耐药的结直肠癌细胞中效果突出。 CDH17在多种肿瘤侵袭转移中发挥重要作用，并在约99%的结肠癌、86%的胃腺癌、79%的食管腺癌、 50%的胰腺导管腺癌中高表达。消化道肿瘤(包括结直肠癌、胃癌、胰腺癌、食管癌等)是全球发病率和 死亡率最高的癌症种类之一，2022年全球新发患者数量超过400万人，存在巨大的尚未被满足的临床需 求。 本次临床研究为一项LM-350在晚期实体肿瘤患者中的安全性、耐受性、药代动力学特 ...

LM-350是基于礼新医药新一代ADC技术平台LM-ADC开发的一款靶向CDH17的ADC，能够高度选择性 地结合CDH17，具有很强的内化能力。LM-350采用IgG1野生型构型，同时具备抗体依赖细胞介导的细 胞毒性作用(ADCC)活性。临床前研究显示，LM-350在多个异种移植模型中表现出显著的抗肿瘤活性， 尤其在对MMAE耐药或伊立替康耐药的结直肠癌细胞中效果突出。 CDH17在多种肿瘤侵袭转移中发挥重要作用，并在约99%的结肠癌、86%的胃腺癌、79%的食管腺癌、 50%的胰腺导管腺癌中高表达。消化道肿瘤(包括结直肠癌、胃癌、胰腺癌、食管癌等)是全球发病率和 死亡率最高的癌症种类之一，2022年全球新发患者数量超过400万人，存在巨大的尚未被满足的临床需 求。 格隆汇9月25日丨中国生物制药(01177.HK)公告，公司全资附属公司礼新医药科技(上海)有限公司("礼新 医药")自主研发的国家1类创新药LM-350"CDH17抗体偶联药物(ADC)"在澳洲开展的I期临床试验已顺利 完成首例患者入组，标志着这一创新疗法正式进入临床开发阶段。 ...

Core Viewpoint - China Biopharmaceutical's subsidiary, Lixin Pharmaceutical Technology, has successfully completed the first patient enrollment in the Phase I clinical trial of its innovative drug LM-350, marking the entry of this therapy into clinical development [1][2] Group 1: Product Development - LM-350 is a Class 1 innovative drug developed based on Lixin's next-generation ADC technology platform, targeting CDH17 with high selectivity and strong internalization capability [1] - The drug utilizes an IgG1 wild-type configuration and exhibits antibody-dependent cellular cytotoxicity (ADCC) activity [1] - Preclinical studies have shown significant anti-tumor activity of LM-350 in various xenograft models, particularly in colorectal cancer cells resistant to MMAE or irinotecan [1] Group 2: Clinical Need and Market Potential - CDH17 is highly expressed in approximately 99% of colorectal cancers, 86% of gastric adenocarcinomas, 79% of esophageal adenocarcinomas, and 50% of pancreatic ductal adenocarcinomas, indicating its critical role in tumor invasion and metastasis [1] - Gastrointestinal tumors, including colorectal, gastric, pancreatic, and esophageal cancers, represent one of the highest incidence and mortality rates globally, with over 4 million new patients reported in 2022, highlighting a significant unmet clinical need [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 自願公告 LM-350「CDH17 ADC」完成澳洲I期臨床首例患者入組 中國生物製藥有限公司（「本公司」，連同其附屬公司統稱「本集團」）董事會（「董事會」）宣佈，本公司全 資附屬公司禮新醫藥科技（上海）有限公司（「禮新醫藥」）自主研發的國家1類創新藥LM-350「CDH17抗 體偶聯藥物(ADC)」在澳洲開展的I期臨床試驗已順利完成首例患者入組，標誌著這一創新療法正式進 入臨床開發階段。 LM-350是基於禮新醫藥新一代ADC技術平台LM-ADCTM開發的一款靶向CDH17的ADC，能夠高度選 擇性地結合CDH17，具有很強的內化能力。LM-350採用IgG1野生型構型，同時具備抗體依賴細胞介 導的細胞毒性作用(ADCC)活性。臨床前研究顯示，LM-350在多個異種移植模型中表現出顯著的抗 腫瘤活性，尤其在對MMAE耐藥或伊立替康耐藥的結直腸癌細胞中效果突出。 CDH17在多種腫瘤侵襲轉移中發揮重要作 ...

Core Viewpoint - The BD (Business Development) transactions in China's innovative pharmaceutical sector have surged, with upfront payments exceeding 30 billion RMB from January to August 2025, surpassing the financing amounts in the primary market during the same period. This trend has led to a second peak in market capitalization for innovative drug companies [1]. Group 1: BD Market Dynamics - The BD transactions have significantly influenced the stock market and propelled several innovative drug companies to new market capitalization heights [1]. - Recent controversies surrounding U.S. administrative orders and clinical data disputes for some overseas drugs have created uncertainty in the BD market, leading to mixed sentiments among market participants [1]. - A notable increase in local BD transactions has been observed, with many biotech companies actively seeking BD partnerships, indicating a competitive landscape [6][10]. Group 2: Company Strategies and Advantages - China Biopharmaceutical has positioned BD transactions as a core strategy, with a strong pipeline of over 100 clinical products and a focus on high-quality, cost-effective therapies [5][6]. - The company has invested nearly 30 billion RMB in innovative drug development since 2015, enhancing its competitive edge in the BD landscape [6]. - The company aims to complete its first BD transaction by the end of the year, reflecting optimism about its ongoing progress [5]. Group 3: Industry Trends and Future Outlook - The current BD wave is seen as a pivotal moment for China's innovative drug sector, with expectations for continued growth and increased transaction volumes in the coming years [10][19]. - The U.S. government's recent focus on BD transactions is expected to have limited impact on the overall market, as multinational corporations (MNCs) continue to benefit from engaging in BD deals with Chinese companies [11][15]. - The trend of Chinese companies becoming more competitive in the global market is attributed to their strong innovation capabilities and efficient clinical trial processes [26][29]. Group 4: Clinical Development and Regulatory Environment - MNCs are increasingly interested in early-stage clinical trials conducted in China due to the high efficiency and lower costs associated with these trials [13][11]. - The regulatory environment in China is evolving, with a focus on supporting innovative drug development and enhancing the commercial viability of new therapies [19][32]. - The collaboration between local companies and MNCs is expected to foster knowledge transfer and improve global operational capabilities in clinical development and sales [23][39].