Summary of Hansoh Pharmaceutical Conference Call Company Overview - **Company**: Hansoh Pharmaceutical - **Industry**: Pharmaceutical Key Points Financial Performance - Hansoh Pharmaceutical reported a **13.2% growth** in internal revenue for the first half of 2025, with **23% growth** in innovative drug sales year-on-year [2][3] - The company achieved **1.6 billion RMB** in BD (business development) revenue, including **112 million RMB** from Merck's small molecule GLP-1 upfront payment [2][3] - Excluding BD upfront payments, innovative drug revenue still accounted for nearly **80%** of total revenue, with internal profit increasing by **15% to 20%** year-on-year [2][3] Product Pipeline and Innovation - The quality of the product pipeline is continuously improving, with a focus on areas such as **EGFR**, **CMET ADC**, and **P2X3 chronic cough** [2][3] - The company has a comprehensive layout in the lung cancer sector, covering both **EGFR mutations** and **wild-type lung cancer** [2][3] - Hansoh has successfully completed its transformation into an innovative company, with innovative revenue exceeding **80%** [2][6] Market Outlook and Valuation - Revenue is projected to reach **14.8 billion RMB** in 2025, with net profit expected to exceed **5 billion RMB** [5] - Future PE ratios are forecasted at **37x**, **34x**, and **29x** over the next three years, with a target PE of **45x** in 2026, corresponding to a market value of approximately **260 billion RMB** [5] - The company anticipates continued growth driven by high-quality product pipelines and overseas market expansion [2][15] Management and Operational Efficiency - The management team is experienced, with a concentrated ownership structure led by founder **Zhong Huijuan** [7] - Sales expense ratio is decreasing, with an absolute increase of about **100 million RMB** year-on-year, while R&D investment is increasing [8] - Internal management and operational efficiency have significantly improved, with internal profit growth exceeding **15%** in the first half of 2025 [8] Drug Approvals and Market Potential - Hansoh has **8 approved innovative drugs**, with the third-generation EGFR TKI **Amivantamab** being a key product [10] - Amivantamab is expected to achieve sales of **6 billion RMB** in 2025, with peak sales potential exceeding **8 billion RMB** [11] - The company is actively expanding into overseas markets, with significant collaborations leading to substantial upfront payments and future sales sharing [12] Future Growth Expectations - The company is expected to maintain high double-digit growth, supported by cost control and operational efficiency improvements [14] - The outlook for Hansoh Pharmaceutical is optimistic, with expectations for value realization on a global scale and consistent profit growth through BD contributions [15]

Core Insights - Over 90 A-share listed pharmaceutical companies have released their 2023 performance forecasts, with a predominant trend of positive expectations, as 64 out of 92 companies anticipate year-on-year net profit growth [1] - The recovery of the market and accelerated overseas sales are significant factors contributing to the performance increase of many pharmaceutical companies in 2023 [1] - The pharmaceutical industry is expected to maintain substantial potential and momentum in the long term, driven by an aging population and improvements in domestic production, investment, and research capabilities [1] Performance Forecasts - 22 pharmaceutical companies forecasted a doubling of net profits for 2023, with notable mentions including Purui Eye Hospital and Kangtai Biological, which expect net profit increases exceeding 500% [2] - Purui Eye Hospital anticipates a net profit of 260 million to 285 million yuan, representing a year-on-year growth of 1163.98% to 1285.51%, driven by a recovery in consumer demand and a surge in patient needs for eye health [2] - Kangtai Biological expects a net profit increase of 815.86%, with a focus on optimizing marketing networks and achieving at least a 16% growth in conventional vaccine sales [2] Sector Performance - Blood product companies, including Weiguang Biological, are also experiencing strong demand, with expected net profit growth of 69% to 111% [3] - Other biological product companies like Baike Biological and Jiukang Biological are also forecasting revenue and net profit increases [4] International Expansion - Many high-quality domestic pharmaceutical companies are now competitive globally, with overseas markets offering significant growth opportunities [5] - Huatai Medical, a cardiac electrophysiology and interventional medical device company, expects a net profit of 510 million to 565 million yuan, with overseas business growth exceeding 90% in the last quarter [6] - Kangtai Biological is actively expanding its overseas market presence, having achieved significant milestones in vaccine cooperation with countries along the Belt and Road Initiative [7] - The collaboration between domestic innovative drug companies and multinational firms is enhancing revenue and reducing losses, as seen with Kelun Pharmaceutical's partnership with Merck [7]

Core Viewpoint - The article discusses the strategic investments and developments of Suzhou Fund in the biopharmaceutical sector, highlighting its role in shaping the industry landscape and facilitating exits for investors through significant mergers and acquisitions [2][19]. Investment Landscape - Suzhou Fund has invested in over 20 sub-funds in the biopharmaceutical sector, with a cumulative paid-in capital exceeding 3 billion yuan (approximately 0.43 billion USD) [2][3]. - The fund's investment strategy includes a mix of established "blue-chip" funds and emerging "dark horse" funds, allowing it to cover various stages and segments of the biopharmaceutical industry [6][7]. Historical Context - The biopharmaceutical industry in Suzhou began to take shape in the 1990s with the establishment of international pharmaceutical companies in the Suzhou Industrial Park [4]. - The introduction of the American Cold Spring Harbor Laboratory's first Asian branch in 2006 marked a significant milestone in the development of Suzhou as a biopharmaceutical hub [5]. Fund Structure and Strategy - Suzhou Fund operates on a "mother fund + sub-fund" model, collaborating with top-tier general partners (GPs) to ensure stable performance and comprehensive coverage of the biopharmaceutical value chain [5][6]. - The fund has also established a direct investment team to enhance market sensitivity and understanding, with a direct investment fund of approximately 0.71 billion yuan (about 0.1 billion USD) launched in early 2021 [7][8]. Ecosystem Development - Suzhou Fund aims to create a unique industrial ecosystem by collaborating with various stakeholders across the biopharmaceutical value chain, including CROs and clinical research organizations [8][9]. - The fund actively assists portfolio companies in navigating local resources and securing financing, particularly during challenging market conditions [9][11]. Market Outlook - Despite recent market downturns, Suzhou Fund believes that the biopharmaceutical industry remains undervalued and presents significant investment opportunities [16][18]. - The resurgence of the Hong Kong stock market for biopharmaceutical companies indicates a potential recovery, with several companies successfully listing and raising substantial capital [17][18]. Conclusion - Suzhou Fund's strategic investments and ecosystem-building efforts position it as a key player in the biopharmaceutical industry, with a long-term vision of fostering innovation and growth in this critical sector [19].

国元证券指出，医保局座谈会明确了支持医疗器械行业"反内卷"、开放出海、差异化创新等原则，利好 行业高质量发展。集采价格有望进一步温和，促进企业盈利企稳提升；政策将激发医疗器械企业创新研 发积极性，新产品推出有望打开成长空间并加速国产替代；随着研发能力增强，政策助力中国创新药械 全球化发展，为企业开拓全球市场。医药生物行业方面，创新药进入成果兑现阶段，研发进展催化较 多，且不受贸易战影响，将持续作为投资主线；出海领域在新兴市场布局的企业发展潜力大。不同医药 领域的集采持续推进，部分细分赛道影响已出清，未来有望迎来新成长。 创业板医药ETF国泰（159377）跟踪的是创医药指数（399275），单日涨跌幅可达20%。该指数从创业 板市场中选取涉及生物医药、医疗器械等业务的上市公司证券作为指数样本，成分股覆盖创新药研发、 生物技术及医疗服务等行业，以反映创业板医疗健康相关上市公司证券的整体表现。 注：如提及个股仅供参考，不代表投资建议。指数/基金短期涨跌幅及历史表现仅供分析参考，不预示 未来表现。市场观点随市场环境变化而变动，不构成任何投资建议或承诺。文中提及指数仅供参考，不 构成任何投资建议，也不构成对基金业绩的 ...

每日经济新闻 没有股票账户的投资者可关注国泰中证生物医药ETF联接C（006757），国泰中证生物医药ETF联接A （006756）。 注：如提及个股仅供参考，不代表投资建议。指数/基金短期涨跌幅及历史表现仅供分析参考，不预示 未来表现。市场观点随市场环境变化而变动，不构成任何投资建议或承诺。文中提及指数仅供参考，不 构成任何投资建议，也不构成对基金业绩的预测和保证。如需购买相关基金产品，请选择与风险等级相 匹配的产品。基金有风险，投资需谨慎。 国元证券指出，医保局系列座谈会明确了政策支持企业"反内卷"、开放出海、差异化创新等原则，利好 医药生物行业高质量发展。集采价格有望进一步温和，促进企业盈利企稳提升；政策激发创新研发积极 性，新产品推动国产替代和成长空间打开；随着研发能力增强，政策助力中国创新药械全球化发展，为 企业开拓全球市场。创新药进入成果兑现阶段，研发催化较多，成为2025年投资主线；出海领域在新兴 市场布局的企业潜力大。集采影响出清的细分赛道如胰岛素、骨科等有望迎来新成长，行业集中度提升 加速，并购重组值得关注。政策持续优化，创新与出海企业有望受益。 生物医药ETF（512290）跟踪的是CS生 ...

Investment Rating - The investment rating for the pharmaceutical industry is "Positive" (maintained) [4][44] Core Views - The pharmaceutical sector is expected to experience a rebound in 2025, driven by innovation in drugs and medical devices, with a focus on low-valuation assets related to aging and overseas expansion [44] - The small nucleic acid drug market is entering a rapid development phase, with significant potential reflected in the performance of leading companies like Alnylam [4][8] - The report emphasizes the importance of innovation in the pharmaceutical industry, highlighting the successful transition of traditional pharmaceutical companies to innovative drug development [44] Summary by Sections Market Performance - From July 21 to July 25, the pharmaceutical index rose by 1.90%, outperforming the CSI 300 index by 0.21% [5][28] - Notable gainers included Haitai Biological (+46.93%), Zhendong Pharmaceutical (+42.89%), and Saily Medical (+31.73%) [5][28] Small Nucleic Acid Development - Small nucleic acid drugs, particularly siRNA and ASO, are gaining traction, with Alnylam leading the market [8][13] - Alnylam's market capitalization reached $42.8 billion as of July 24, 2025, reflecting its successful commercialization of siRNA therapies [13][20] Investment Recommendations - Key stocks to watch include innovative drug companies such as Heng Rui Pharmaceutical, Keren Pharmaceutical, and Xinlitai, as well as companies involved in overseas expansion like Mindray Medical and Yuyue Medical [4][44][45] - The report suggests focusing on sectors with low valuations, including medical devices and high-barrier industries like blood products and narcotics [44][45] Industry Trends - The report identifies several positive factors for the pharmaceutical industry, including the scaling of domestic innovation, increasing overseas capabilities, and the growing demand from an aging population [44] - The report also notes the ongoing development of a multi-layered payment system, which is expected to support industry growth [44] Valuation Insights - As of July 25, 2025, the overall PE valuation for the pharmaceutical sector is 37.98X, indicating that valuations are still relatively low compared to historical levels [37][44]

Investment Rating - The report maintains a "Recommended" investment rating for the healthcare sector [7]. Core Insights - The pharmaceutical sector outperformed the CSI 300 index, with the Shenwan Pharmaceutical and Biological Index rising by 4.00% from July 14 to July 18, 2025, surpassing the CSI 300 by 2.91 percentage points [2][12]. - Year-to-date, the Shenwan Pharmaceutical and Biological Index has increased by 16.59%, outperforming the CSI 300 by 13.45 percentage points, ranking third among 31 Shenwan primary industry indices [2][13]. - As of July 18, 2025, the valuation of the pharmaceutical sector stands at 29.88 times (TTM overall method, excluding negative values), with a premium of 153.54% compared to the CSI 300 [2][17]. Summary by Sections 1. Weekly Market Review - The pharmaceutical sector's performance from July 14 to July 18, 2025, showed a 4.00% increase, ranking second among 31 industry indices [2][12]. - The sector's valuation as of July 18, 2025, is 29.88 times, with a significant premium over the CSI 300 [2][17]. - Top-performing stocks included Borui Pharmaceutical (+42.35%), Lisheng Pharmaceutical (+41.68%), and Nanxin Pharmaceutical (+34.95%) [3][18]. 2. Important Events - On July 15, the National Healthcare Security Administration held a press conference to discuss the optimization of the national drug procurement policy, announcing the selection of 55 drug varieties for the 11th batch of national procurement [4][21]. 3. Industry Perspective - The 11th batch of national procurement will implement a "low-price declaration" system, requiring the lowest-priced selected enterprises to justify their pricing, ensuring it does not fall below cost [5][22]. - The procurement will continue to exclude new drugs and focus on ensuring quality, with enhanced scrutiny on low-priced selected drugs [5][22]. - The overall procurement policy is expected to gradually improve, balancing price reductions with the need to ensure enterprise profits and public healthcare needs [5][22]. - The report expresses optimism about innovative drugs, overseas expansion, and sectors benefiting from procurement reforms, particularly in insulin and orthopedic segments [5][23].

Core Insights - 康哲药业 successfully held a forum and appreciation dinner in Singapore to celebrate its secondary listing on the Singapore Exchange, gathering nearly 150 industry leaders and stakeholders [1][3] - The forum focused on the development of the pharmaceutical industry in Singapore and emerging markets, discussing strategies for internationalization and commercialization of innovative drugs [3][5] Industry Overview - Emerging markets, including Asia-Pacific, India, Africa & Middle East, and Latin America, are projected to reach a pharmaceutical market size of $336 to $384 billion by 2028, nearing the $410 billion expected for Western Europe [5] - Singapore is positioned as a hub for capital and innovation, with a shift from traditional third-party logistics to more integrated commercial strategies being essential for sustainable success in Southeast Asia [5] Company Strategy - 康哲药业 aims to expand its strategic vision across the Asia-Pacific market, leveraging its established resources in China and using Singapore as a regional hub to drive innovation through a comprehensive "research-production-sales-investment" model [6][8] - The company has introduced its international business cluster, highlighting its PharmaGend factory, which aims to become the largest and most trusted CMO/CDMO in Southeast Asia, with a production area of approximately 30,000 square meters and dual certifications from the FDA and HSA [8] Innovation and Development - 康哲药业 is establishing a global incubation platform for early-stage biopharmaceutical innovations through its HiGend initiative, enhancing the efficiency of global drug development [9] - The company is also setting up the CMS R&D Institute in 2024, focusing on early-stage innovative drugs, aiming to synchronize "China speed" with global standards [8][9] Market Exploration - Chinese pharmaceutical companies are increasingly exploring emerging markets, with over $10 billion in upfront payments from licensing deals in the past three years, primarily focused on mature markets [11] - The need for a comprehensive internationalization strategy that integrates research, production, and sales is emphasized for sustainable growth in new markets [12]

Summary of Conference Call Notes Industry or Company Involved - The discussion primarily revolves around the pharmaceutical industry, particularly focusing on the implications of U.S. drug pricing policies and U.S.-China trade negotiations on Chinese pharmaceutical companies and their market opportunities. Core Points and Arguments 1. **Positive Impact of U.S.-China Negotiations on Pharmaceuticals** The recent U.S.-China negotiations are viewed as a significant positive for the pharmaceutical sector, alleviating previous concerns regarding trade impacts on drug pricing and exports of innovative drugs and raw materials [1] 2. **U.S. Drug Pricing Policy Changes** Trump's announcement of an executive order to reduce prescription drug prices by 30% to 80% is highlighted. The U.S. drug pricing system, characterized by high list prices, is under scrutiny, with the potential for significant price reductions impacting the market [2][3] 3. **Global Drug Pricing Context** U.S. drug prices are noted to be among the highest globally, particularly for innovative drugs, which are approximately 300% higher than prices in countries like Japan and Germany. This pricing structure encourages innovation but also raises concerns about affordability [3] 4. **Encouragement of Competition** The U.S. policy aims to accelerate competition among high-priced drugs, encouraging the entry of biosimilars and generic drugs, which could benefit Chinese pharmaceutical companies that can offer lower-cost alternatives [4][6] 5. **Opportunities for Chinese Pharmaceutical Companies** The reduction in U.S. drug prices is expected to create opportunities for Chinese companies, particularly in the fast-follow and biosimilar segments, as they can provide high-quality, cost-effective alternatives [6][8] 6. **Long-term Trends Favoring Chinese Innovation** The inefficiencies in innovation among multinational pharmaceutical companies may lead to increased reliance on Chinese innovation and manufacturing capabilities, especially if U.S. companies face cost pressures [7][8] 7. **Market Dynamics and Export Opportunities** The easing of trade tensions is anticipated to enhance the macroeconomic environment in China, leading to improved domestic demand and potential export opportunities for medical devices and raw materials [10][9] 8. **Impact of Drug Price Reductions on Market Dynamics** The anticipated drug price reductions in the U.S. are not expected to significantly diminish the addressable market for Chinese companies, as their market share in the U.S. remains relatively small [11][12] 9. **Long-term Supply Chain Considerations** U.S. concerns regarding supply chain security may lead to a push for domestic manufacturing, which could have long-term implications for Chinese companies seeking to penetrate the U.S. market [14][15] 10. **Investment Recommendations** The call suggests focusing on three categories of companies: innovative leaders, those with strong business development (BD) expectations, and upstream suppliers with global advantages, as the market enters a new growth cycle [16][18] Other Important but Possibly Overlooked Content 1. **Sector-Specific Insights** The discussion includes insights into specific companies and their competitive advantages, such as the potential for certain drugs to achieve significant market penetration despite pricing pressures [31][33] 2. **Emerging Trends in Medical Devices** The call also touches on the medical device sector, emphasizing the importance of high-end equipment and the potential for growth in home healthcare products, which may offer higher profit margins compared to domestic markets [25][26] 3. **Long-term Growth Projections** There is an optimistic outlook for the pharmaceutical sector, with expectations of a gradual recovery in demand and performance improvements in the coming years, driven by policy support and market dynamics [29][40] 4. **Focus on Innovation and R&D** The emphasis on innovation and the need for companies to adapt to changing market conditions is reiterated, highlighting the importance of R&D in maintaining competitive advantages [19][20] 5. **Market Sentiment and Future Outlook** The overall sentiment is cautiously optimistic, with a belief that the current market conditions present opportunities for growth and investment in the pharmaceutical and medical device sectors [46][47]

Investment Rating - The investment rating for the pharmaceutical industry is "Positive" (maintained) [4] Core Viewpoints - The pharmaceutical sector is experiencing a transformation with traditional Big Pharma companies increasingly focusing on innovation and BD (business development) transactions, which are expected to become a regular source of income and profit [9][12] - The report highlights that the innovative drug segment is gaining momentum, with companies like 恒瑞医药 (Hengrui Medicine) and 翰森制药 (Hansoh Pharmaceutical) achieving significant growth in their innovative drug revenues [12][21] - The report anticipates that the pharmaceutical industry will benefit from multiple positive factors, including the aging population, steady growth in medical insurance revenue, and advancements in AI technology [45] Summary by Sections Industry Performance - From July 7 to July 11, the pharmaceutical index rose by 1.82%, outperforming the沪深 300 index by 1.00% [5] - The report notes that 350 stocks in the sector increased in value, while 131 stocks decreased [5][25] Business Development (BD) Insights - BD transactions are becoming a crucial strategy for traditional Big Pharma, with a focus on increasing international revenue and opening new growth avenues [9][12] - The report indicates that BD income is expected to contribute significantly to the profit growth of companies like 恒瑞医药 and 翰森制药, with numerous successful licensing agreements [18][21] Investment Recommendations - The report suggests focusing on innovative drugs and related sectors, particularly companies with strong BD capabilities and those positioned for international expansion [45][46] - Specific companies recommended for investment include 恒瑞医药, 科伦药业, and various CXO and supply chain firms [45][46] Market Trends - The report emphasizes the ongoing shift towards innovative drug development, with traditional pharmaceutical companies successfully transitioning to this model [12][21] - The aging population is expected to drive demand for chronic disease treatments, further supporting the growth of the pharmaceutical sector [45] Valuation Insights - As of July 11, 2025, the overall PE valuation for the pharmaceutical sector is 35.79X, indicating that the sector is still at a relatively low historical valuation [33][45]