Core Viewpoint - A technological revolution in the global pediatric eczema treatment field is being led by Chinese pharmaceutical companies, exemplified by Shanghai Zedman Pharmaceutical Technology Co., Ltd. with its innovative non-hormonal eczema medication, Zeli Mei Cream, which sets a new benchmark for Chinese innovative drugs globally [1][4]. Company Summary - Shanghai Zedman Pharmaceutical Technology Co., Ltd. has developed Zeli Mei Cream, the world's first non-hormonal eczema medication suitable for children aged 2 to 12, addressing a significant gap in the safety of pediatric medications [4]. - The company has invested over 350 million yuan in the development of Zeli Mei and has secured 12 domestic and international patents [4]. - Zedman is recognized as a rising star among local innovative pharmaceutical companies, with its chairman, Dr. Chen Genghui, being a prominent figure in the AhR field and the inventor of the globally first innovative drug in this area [3][4]. Industry Summary - The Chinese innovative drug sector is transitioning from a follower to a leader in the global pharmaceutical landscape, with the value of domestic pharmaceutical companies accelerating [2]. - In 2024, the external licensing transaction value of Chinese innovative drugs is projected to reach $12.7 billion, with a growth rate exceeding 40% for three consecutive years [2]. - The success of Zeli Mei Cream is indicative of a broader trend in the Chinese pharmaceutical industry, where local companies are making significant breakthroughs across various therapeutic areas, including oncology and dermatology [3]. Market Demand - There are approximately 35 million children suffering from eczema in China, with the condition significantly impacting their physical and mental well-being [5]. - The treatment landscape for pediatric eczema has been limited, with about 65% of mild to moderate eczema patients relying on hormonal ointments, which can lead to adverse effects in 42% of cases [6][8]. - A significant majority (80%) of parents prefer non-hormonal medications for their children, highlighting a strong market demand for alternatives like Zeli Mei Cream [9]. Clinical Value - Zeli Mei Cream has demonstrated rapid efficacy, with clinical data showing an 83.9% response rate in children and significant improvement in eczema severity within eight weeks of treatment [8]. - The medication offers a safe alternative to traditional hormonal treatments, with most adverse reactions being mild and transient [8].

Group 1 - The Hang Seng Biotechnology ETF (159615) opened with a gap up, rising over 4% during the day, reaching a high of 1.008 yuan, marking a new high for the year [1] - The fund saw a turnover of 18.97% with a transaction volume of 61.0632 million yuan, indicating active market trading [1] - The Hang Seng Biotechnology Index surged by 3.83%, with constituent stocks such as Innovent Biologics rising over 16%, Zai Lab increasing by 7.66%, and Tigermed up by 6.42% [1] Group 2 - The National Medical Products Administration recently approved 11 new drugs for market launch, covering areas such as oncology and endocrinology, with several being the "first in China" or "first domestic" in their respective fields [1] - Among the 11 new drugs, 7 are classified as Category 1 drugs, representing the highest level of drug innovation in China's registration classification [1] - Guotai Junan Securities reported that the number of oral presentations for Chinese innovative drug assets at ASCO reached a historical high of 73, reflecting the growing demand for Chinese innovative drug assets from multinational corporations [2] Group 3 - The Hang Seng Biotechnology Index aims to reflect the overall performance of the largest 50 biotechnology companies listed in Hong Kong, with the top ten weighted stocks including Innovent Biologics, WuXi Biologics, BeiGene, and others [2]

Core Insights - The Chinese innovative drug industry is undergoing a significant transformation, moving from a catch-up phase to a leading position in certain areas, particularly in liver disease research [1][2] - At the recent EASL Congress 2025, 13 research teams from China presented findings on various aspects of liver disease, showcasing the country's advancements in this field [1] - The clinical trial results for the hepatitis B drug Hepalapide have shown promising outcomes, achieving sterilizing cure standards, which has garnered significant attention from experts [2] Industry Overview - The global transaction value involving Chinese innovative drug companies reached $51.9 billion in 2024, with upfront payments totaling $4.1 billion, indicating increasing international interest [4] - The proportion of molecules introduced by global pharmaceutical companies from Chinese innovative drug firms rose from 0% in 2019 to 31% in 2024, highlighting the growing importance of Chinese innovation in the global pharmaceutical landscape [4] - Hepalapide is expected to enter Phase III clinical trials, potentially becoming the first drug capable of clearing cccDNA, offering new hope for chronic hepatitis B patients [4] Government Support - The rapid development of Chinese innovative drugs is supported by a series of government policies since 2015, facilitating a shift from generic to innovative drug development [5] - Reforms in drug review and approval processes have accelerated the market entry of innovative drugs, while the establishment of various stock exchanges has provided crucial financing channels for unprofitable innovative drug companies [5] - The successful development of drugs like Hepalapide aligns with the goals set out in the "Healthy China 2030" initiative, indicating a strong market outlook for these innovations [5]

Core Insights - The recent investments by multinational pharmaceutical companies in China highlight the growing importance of the Chinese market for global players [1][4][5] - The establishment of new production facilities by Roche and AstraZeneca signifies a strategic move to enhance local production capabilities and supply chains [2][3] Investment Projects - Roche has launched a new biopharmaceutical production base in China with a total investment of 2.04 billion yuan, covering approximately 53 acres and 25,000 square meters, aimed at localizing the production of its innovative drug [2] - AstraZeneca's new small molecule drug factory in Wuxi has a total investment of 475 million USD (approximately 3.44 billion yuan) and will enhance production capacity for cardiovascular innovative drugs, expected to be operational by Q4 2028 [2] Market Dynamics - The Chinese pharmaceutical market is experiencing significant growth, driven by an aging population and increasing healthcare demands, with projections indicating that by 2035, nearly 30% of the population will be over 60 years old [4] - In 2024, AstraZeneca reported a revenue of 6.413 billion USD from the Chinese market, accounting for 12% of its global market share, while Novartis achieved 3.9 billion USD from China, reflecting a 21% year-on-year growth [4] Policy Support - The Chinese government is actively promoting foreign investment in the biopharmaceutical sector through policies aimed at facilitating the entry of foreign companies and expediting the approval process for innovative drugs [5] - The rise of Chinese innovative drugs and a favorable research environment are key factors attracting foreign investments, with 31% of new innovative drug candidates introduced by multinational companies in 2024 originating from China [5]