Core Viewpoint - The innovative drug sector in the Hong Kong market faced unexpected declines, primarily due to concerns over clinical data from Kangfang Biotech, impacting overall market confidence in domestic innovative drugs [1][2][3]. Group 1: Market Performance - The innovative drug sector had been a market leader, with the Shenwan Pharmaceutical Index rising by 2.21% recently, outperforming both the ChiNext Index and the CSI 300 Index [2]. - As of May 30, 2023, several innovative drug ETFs in Hong Kong saw significant year-to-date gains, with the Huatai-PB Hang Seng Innovative Drug ETF up by 42.84%, and others also exceeding 40% [4]. Group 2: Clinical Trial Results - Summit Therapeutics released results from a global Phase III trial for ivonescimab, a PD-1/VEGF dual antibody, which showed statistically significant improvement in progression-free survival (PFS) but did not achieve statistical significance for overall survival (OS) [2][3]. - The lack of statistical significance for OS raised uncertainties regarding the drug's approval in the U.S., leading to a significant drop in Summit's stock price by over 30% [3]. Group 3: Future Outlook - Analysts believe that the innovative drug sector is poised for higher quality development by 2025, supported by ongoing policy backing, AI technology integration, and active licensing transactions [1][7]. - The Chinese innovative drug industry is transitioning from imitation to original innovation, with the number of self-developed first-in-class (FIC) drugs entering clinical trials increasing significantly from 9 in 2015 to 120 in 2024 [6]. - The total amount of licensing out transactions for Chinese innovative drugs is expected to exceed $50 billion in 2024, indicating strong international market potential [6]. Group 4: Investment Recommendations - Analysts suggest that the innovative drug sector has completed the initial phase of development and is now entering a rapid growth phase, with expectations for continued investment and market interest [6][7]. - The pharmaceutical sector is anticipated to experience a comprehensive recovery, with potential for significant upward movement in both performance and valuation [7].

Core Viewpoint - The company reported a significant improvement in revenue and profit in Q1 2025, driven by stable core business performance and the recognition of upfront payments from Lp(a) and MAT2A small molecule BD transactions [1][2]. Group 1: Financial Performance - Q1 2025 revenue reached 7.015 billion yuan, representing a year-on-year decline of 21.9% but a quarter-on-quarter increase of 11% [1]. - Net profit attributable to the parent company was 1.48 billion yuan, down 8.4% year-on-year but up 169% quarter-on-quarter [1]. - The improvement in revenue and profit was attributed to the confirmation of upfront payments from BD transactions and a stabilization in core business revenue [2]. Group 2: Business Development and Pipeline - The company is optimistic about the EGFR ADC clinical trials, with five Phase III trials expected to be conducted domestically and internationally this year [2]. - Positive data from AACR regarding lung cancer overall response rate (ORR) and safety profiles were highlighted, indicating strong potential for market entry [2]. - The company is focusing on HER2-targeted therapies and anticipates the launch of GLP-1 products by 2026 [3]. Group 3: Cost Management and Future Outlook - The company has significantly reduced sales expenses, with a sales expense ratio of 24% in Q1 2025 compared to 33% in Q1 2024 [2]. - The company expects a gradual improvement in revenue and profit throughout 2025, with a conservative estimate of approximately 4 billion yuan in core business profit for the year [2]. - The target price for the company's stock is set at 10.12 HKD, based on a 19x PE ratio for 2025 [3].

Market Overview - The market continued its upward trend, with the Shanghai Composite Index rising by 0.21% to close at 3387.57 points. The total trading volume in Shanghai, Shenzhen, and Beijing exceeded 1.2 trillion yuan, showing a slight increase compared to the previous day [1]. Company News - Domestic innovative drug company, 3SBio, announced a licensing agreement with Pfizer for its self-developed PD-1/VEGF bispecific antibody "SSGJ-707," granting Pfizer exclusive global rights outside of mainland China. This deal includes a non-refundable upfront payment of $1.25 billion and potential milestone payments up to $4.8 billion, bringing the total potential deal value to $6.05 billion, which exceeds 43 billion yuan at current exchange rates [1]. Investment Competition - The 60th edition of the simulated stock trading competition, hosted by the Daily Economic News App, is currently ongoing. Participants have shown interest in innovative drug concept stocks, with some achieving a 20% limit-up on stocks like Shuyou Shen [1]. Market Sentiment - Some participants believe that as long as the Shanghai Composite Index remains above the key support level of 3350 points, the upward trend is considered normal. The pressure level for the index is around 3420 points, and a successful breakthrough could lead to a major upward wave. Additionally, a potential interest rate cut by the Federal Reserve in the second half of the year could benefit global markets [10]. Sector Opportunities - Participants in the competition are optimistic about opportunities in sectors such as innovative drug exports, banking, and infrastructure assets like highways and water supply [10].

Group 1 - The core point of the news is the significant rise in the stock price of CSPC Pharmaceutical Group, driven by potential high-value licensing deals, indicating a surge in the value of Chinese innovative drugs [3][5]. - CSPC Pharmaceutical is in deep discussions with multiple independent third parties regarding three potential licensing collaborations, which could yield up to $5 billion in total payments, making it one of the highest licensing amounts for Chinese innovative drugs in 2025 [5][6]. - The market is particularly focused on CSPC's EGFR-ADC drug SYS6010, which has shown promising clinical trial results, including a 39.2% objective response rate and a 93.1% disease control rate in patients with EGFR mutation non-small cell lung cancer [6]. Group 2 - The potential buyers for the licensing deals are expected to be large multinational pharmaceutical companies, with Johnson & Johnson identified as a strong competitor due to its lack of an EGFR-targeting ADC drug [8]. - CSPC's innovative drug business is positioned as a growth driver despite a 21.9% year-on-year decline in traditional drug revenue in Q1 2025, with expected upfront payments from business expansions totaling approximately $2.1 million [8][9]. - The industry is experiencing a record wave of innovative drug licensing deals, with 24 transactions completed in the first five months of 2025, and total amounts exceeding $15.5 billion [9].

Market Overview - The Hang Seng Index closed down 1.2% at 23,289.77 points, with a total turnover of HKD 271.56 billion. The Hang Seng Tech Index fell 2.48% to 5,170.43 points. For the month, the Hang Seng Index rose 5.29% [1] - Current valuations of the Hang Seng Index are considered moderately low, while the Hang Seng Tech Index is at historical lows, indicating high investment value in the Hong Kong stock market [1] Blue Chip Performance - CSPC Pharmaceutical Group (01093) led blue-chip stocks, rising 6.3% to HKD 8.1, contributing 6.53 points to the Hang Seng Index. The company is in discussions for three potential licensing collaborations, with total payments potentially reaching USD 5 billion [2][4] - Other notable blue-chip movements include Li Auto-W (02015) up 3.79%, CK Infrastructure Holdings (01038) up 2.11%, while BYD Electronic (00285) and Tingyi (00322) saw declines of 6.03% and 5.01% respectively [2] Sector Movements - Large tech stocks generally declined, with Alibaba down 3.56% and Tencent down 2.41%. Apple-related stocks also faced significant drops, with Cowell e Holdings (01478) down 6.61% [3][5] - The automotive sector continued its downward trend, with Xpeng Motors-W (09868) down 5.04% and Great Wall Motors (02333) down 3.03%. Price competition in the automotive industry is expected to intensify [6] Pharmaceutical Sector - The pharmaceutical sector saw gains, with China Antibody-B (03681) up 21.31% and other biotech stocks also performing well. The upcoming ASCO conference is expected to boost interest in innovative drugs [3][4] Notable Stock Movements - Dekang Agriculture (02419) reached a new high, rising 14.15% due to leading industry cost advantages [7] - Sany International (00631) reported a revenue increase of 14.6% year-on-year, with a net profit increase of 23.2% [8] - New World Development (00017) saw a 3.9% increase, with contract sales reaching HKD 24.8 billion, exceeding 95% of its annual target [9] - Li Auto-W (02015) reported a revenue of RMB 25.93 billion for Q1 2025, a 1.1% year-on-year increase [10] - Hand Return Group (02621) experienced a significant drop of 18.19% on its first trading day [11]

此外，5月30日-6月3日，2025年美国临床肿瘤学会（ASCO）年会将在美国芝加哥举行。今年ASCO年 会上，中国研究者共计70余项原创研究入选口头报告。太平洋证券表示，流动性和风险偏好提升，数据 和BD催化有望成为全年主线。交银国际研报指出，ASCO大会召开在即，LBA重磅数据即将揭晓，创 新药板块有望迎来关注热潮、并有望在未来推动更多出海交易达成，市场情绪与板块估值将进入正向修 复通道。 智通财经APP获悉，医药股再度走高，截至发稿，中国抗体-B(03681)涨18.85%，报1.45港元；宜明昂 科-B(01541)涨17.54%，报13.4港元；昭衍新药(06127)涨14.96%，报14.6港元；歌礼制药-B(01672)涨 12.25%，报7.97港元；和铂医药-B(02142)涨5.03%，报9.18港元。 消息面上，石药集团今日盘前公布，正与若干独立第三方就三项潜在授权合作进行磋商，涉及集团旗下 若干产品及基于其技术平台开发药品的开发、生产及商业化。每项交易可能带来的首付款、开发里程碑 付款及商业化里程碑付款总额最高可达约50亿美元。此前不久，三生制药宣布与辉瑞就PD-1/VEGF双抗 药物 ...

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 10.12 [8][9]. Core Views - The company reported a significant quarter-on-quarter improvement in 1Q25, with revenue of RMB 7.015 billion (-21.9% year-on-year, +11% quarter-on-quarter) and a net profit of RMB 1.48 billion (-8.4% year-on-year, +169% quarter-on-quarter) [1]. - The improvement is attributed to stable core business performance and the recognition of upfront payments from Lp(a) and MAT2A small molecule BD transactions [2]. - The company is expected to see quarterly revenue and profit growth throughout the year, with a conservative estimate of approximately RMB 4 billion in annual core profits [2]. - The EGFR ADC clinical trials are progressing rapidly both domestically and internationally, indicating strong potential for overseas expansion [3]. - The company has a robust pipeline with significant BD progress and innovative platforms, enhancing its potential for international collaboration [4]. Financial Forecast and Valuation - The company’s EPS is projected to be RMB 0.49, 0.50, and 0.57 for the years 2025, 2026, and 2027 respectively, with a target PE of 19 times for 2025 [5]. - The estimated revenue for 2025 is RMB 31.101 billion, with a net profit of RMB 5.694 billion [19]. - The report highlights a significant reduction in sales expense ratio from 33% in 1Q24 to 24% in 1Q25, indicating improved cost management [2]. Key Metrics - The company’s market capitalization is approximately HKD 87.769 billion, with a closing price of HKD 7.62 as of May 29 [9]. - The projected revenue growth rates for the upcoming years are 7.21%, 8.35%, and 8.10% for 2025, 2026, and 2027 respectively [20].

Group 1 - The core viewpoint of the news highlights the significant performance of the innovative drug sector, with the Tianhong Innovative Drug ETF (517380) showing a nearly 20% increase year-to-date as of May 29, 2023 [1] - The Tianhong Innovative Drug ETF, launched in 2021, tracks the "Hang Seng Shanghai-Shenzhen Hong Kong Innovative Drug Selected 50" index, providing comprehensive coverage of the innovative drug industry across A-shares and Hong Kong stocks [1] - On May 29, the National Medical Products Administration approved 11 new drugs, with five being from innovative companies listed on the Sci-Tech Innovation Board, covering various therapeutic areas including oncology and autoimmune diseases [1] Group 2 - The upcoming 2025 ASCO Annual Meeting in Chicago is expected to showcase significant data from domestic innovative drug companies, with 71 original research results from Chinese pharmaceutical companies selected for presentation [2] - The innovative drug sector is anticipated to gain increased attention and positive market sentiment, with institutional holdings currently at low levels and the sector's valuation significantly below historical averages [2] - The total amount of outbound transactions for innovative drugs has reached $45.5 billion since the beginning of 2025, indicating a strong trend towards internationalization and potential for future growth [3] Group 3 - The Chinese innovative drug industry has transitioned from imitation to rapid following and now to original innovation, marking a significant evolution in its development [3] - Most domestic innovative drugs currently in the U.S. are in clinical stages, with future milestones expected to validate the growth and internationalization of Chinese innovative drugs [3]

作者 | 哥吉拉 数据支持 | 勾股大数 据（www.gogudata.com） 5月29日，A股主要指数高开高走，截至收盘，沪指涨0.7%报3363点，深证成指涨1.24%，创业板指涨1.37%。全市场近4500股上涨，逾百 股涨停。 板块方面，金融科技、创新药、互联网、半导体等热门板块表现强势，市场情绪相比近日明显提振。 其中，创新药是涨幅最明显的板块之一，睿智医药、舒泰神、益方生物强势斩获20CM涨停，另有十多家医药股涨幅均超过10%，堪称又一轮 暴涨潮。 | 代码 | 名称 | 现价 | 1 9 mm a lond a rither more an a many 143 1994 (310 1 涨跌幅▼ | 年初至今涨跌幅 | 总市值1 | | --- | --- | --- | --- | --- | --- | | 300149 | 睿智医药 | 8.56 c | 20.06% | 33.33% | 43亿 | | 300204 | 舒泰神 | 23.04 c | 20.00% | 210.93% | 110亿 | | 688382 | 益元生物-U | 29.10 c | 20.00% | 11 ...

Core Viewpoint - The recent high-value transaction involving the innovative drug SSGJ-707 by 3SBio and Pfizer highlights the growing trend of Chinese biopharmaceutical companies expanding into international markets, despite challenges in the global pharmaceutical environment [2][4]. Group 1: Transaction Details - Pfizer has made a non-refundable upfront payment of $1.25 billion (approximately 9 billion RMB) for the rights to SSGJ-707 outside of China, with potential milestone payments totaling up to $4.8 billion (approximately 34.5 billion RMB) and an additional $100 million for equity subscription [2]. - This transaction sets a record for the upfront payment for a Chinese innovative drug going overseas, indicating a significant shift in the landscape of biopharmaceutical transactions [4]. Group 2: Company Background - 3SBio, established in 1993, is a well-established pharmaceutical company that went public on NASDAQ in 2007 and later privatized before listing on the Hong Kong Stock Exchange in 2015 [3]. - The subsidiary involved in the transaction, 3SBio Guojian, was formerly known as CITIC Guojian and is recognized as one of the earliest companies in China to engage in antibody drug research and sales [3]. Group 3: Market Trends - The trend of Chinese innovative drug companies seeking international partnerships has been growing, with a nearly 40% increase in outbound business development (BD) transactions since 2022, projected to reach around 120 deals worth approximately $63 billion in 2024 [6]. - The stock prices of 3SBio and 3SBio Guojian have surged over 200% and 130%, respectively, following the announcement of this transaction, reflecting strong market interest in innovative drug development [4]. Group 4: Strategic Implications - The increasing trend of "going overseas" is reshaping the clinical research strategies of domestic innovative drug companies, with many now considering international transactions as a key part of their development plans [4]. - The shift from a "me too" model to a focus on first-in-class (FIC) drugs is evident, as domestic companies are increasingly competing head-to-head with multinational pharmaceutical firms [4][5].