Core Insights - The Hang Seng Hong Kong Stock Connect Innovative Drug Index has seen a remarkable increase of over 60% year-to-date, highlighting the significant development of China's innovative drug sector and attracting interest from overseas pharmaceutical companies [1][8] - The index has revised its compilation scheme to exclude CXO companies, focusing solely on innovative drug companies, thus becoming the first index with a "purity" of 100% in tracking innovative drugs [1][2] Index Revision Details - Five CXO companies will be removed from the Hang Seng Hong Kong Stock Connect Innovative Drug Index, resulting in a composition entirely made up of innovative drug firms [2] - The previous weight of the excluded CXO companies was approximately 20%, and their performance lagged behind the overall index [3][5] Performance Metrics - The revised index has shown better performance since its announcement, with an annualized return exceeding 30% and a higher Sharpe ratio compared to the original index [5][7] - The annualized volatility of the revised index is 37.7%, while the original index had a volatility of 40.0% [7] Market Trends - Multinational pharmaceutical companies have significantly increased their procurement of innovative drug patents from China, with procurement amounts nearing the total for the entire year of 2024 within the first five months of this year [8] - The trend of multinational companies sourcing innovative drug patents from China is expected to continue, driven by pressures such as drug price reductions and patent expirations [8] Investment Opportunities - The Hang Seng Innovative Drug ETF (159316) is currently the only product tracking the Hang Seng Hong Kong Stock Connect Innovative Drug Index, providing investors with a convenient way to access leading innovative drug companies in Hong Kong [9] - Other investment products, such as the E Fund Innovative Drug ETF (516080), also cover the entire innovative drug industry chain, including major players like Hengrui Medicine and Fosun Pharma [9][10]

Core Insights - Domestic pharmaceutical companies are rapidly entering international markets, leveraging enhanced R&D capabilities to provide more "Chinese solutions" globally [1][2] - International pharmaceutical giants are increasingly looking to external sources for innovative drug pipelines, aiming to minimize risks and achieve stable returns through global commercialization [1] - China's share of the global drug pipeline is projected to rise from 23.6% in 2023 to 26.7% in 2024, second only to the United States [1] Group 1 - The global pharmaceutical landscape is shifting, with over 50% of new drug research applications approved by the FDA in 2024 expected to come from China [1] - Concerns exist regarding the "selling seedlings" notion, as Chinese companies receive a limited share of sales profits compared to multinational corporations [1] - The transition from imitation to innovation in China's pharmaceutical industry is reshaping global competition, with a focus on high-quality development [2] Group 2 - The collaboration between innovative drug companies and international firms is seen as a necessary phase for the development of China's pharmaceutical industry [2] - Companies like BeiGene and Zai Lab are making strides in global commercialization, which is expected to create a talent spillover effect in clinical development and regulatory processes [2] - Despite existing challenges in global distribution networks, the Chinese innovative drug sector is increasingly recognized for its contributions to international markets [2]

Core Viewpoint - The article emphasizes the unstoppable rise of Chinese innovative pharmaceutical companies, highlighting their ability to provide life-saving products and the significant growth potential in the industry [2][3][22]. Group 1: Company Performance - BeiGene's revenue is projected to grow from 9.5 billion in 2022 to 38 billion in 2025, showcasing a substantial annual increase [3]. - Other companies like Kintor Pharmaceutical, YaoPharma, and Diligent Pharma are also mentioned as having significant product potential and market impact [5][7]. - The article notes that innovative drugs have undergone rigorous scientific validation, ensuring their efficacy and safety [9]. Group 2: Industry Growth - China's medical insurance expenditure has increased from approximately 2 trillion to 3 trillion, indicating a net increase of 1 trillion over five years, which supports the growth of the pharmaceutical sector [14]. - The article argues that innovative drugs are not subject to centralized procurement, allowing companies to negotiate prices while considering their profitability [14]. - The global market for Chinese innovative drugs is expanding, with the potential for these products to meet the needs of various countries [19][22]. Group 3: Investment Opportunities - The innovative drug sector is expected to produce numerous tenfold and hundredfold stocks due to the rapid growth of companies like BeiGene, Innovent Biologics, and others, which are maintaining growth rates of over 50% [30][32]. - The article suggests that the pharmaceutical industry has multiple distinct tracks, allowing companies to grow without directly competing against each other [32]. - The potential for high returns in the innovative drug sector is highlighted, with the expectation of significant sales growth in the coming years [30][31].

从全球投资者到产业赋能者。 本文为IPO早知道原创 作者｜Stone Jin 微信公众号｜ipozaozhidao 据IPO早知道消息，在第七届进博会期间，凯辉基金与全球制药巨头赛诺菲（Sanofi）签订合作备忘 录深化医疗领域的创新合作。这一合作项目不仅是双方长期合作关系的进一步深化，更是对推动中法 合作以及中国医药产业转型与升级的积极响应。 此次合作在为中国创新医药提供创新生态圈的支持之外，更结合了赛诺菲在全球制药行业的技术积累 与凯辉基金的行业洞察和跨境投资经验，从研发、临床实验到市场推广、监管合规等多个维度提供全 方位的解决方案，帮助中国医药创新生态发展，实现技术突破和商业化成功，从而释放中国创新的全 球化潜力。 目前，凯辉基金已在全球范围内投资超47家医疗健康相关企业，积极促进全球医疗合作与发展。凯 辉基金创始人及董事长蔡明泼表示："此次合作备忘录的签订不仅是双方在战略上的深度共鸣，更是 共同致力于推动中国医疗健康事业的重要里程碑。 我们期待通过这一合作实现全球领先医药企业与 本土创新力量的双向赋能，并推动更多优秀的中国创新药企实现可持续发展，为患者带来更好的治疗 选择，同时为社会创造更大的价值。" ...