Group 1 - The Hong Kong innovative drug sector experienced significant growth, with notable stock increases for companies such as Sangfor Pharma (up 36%), CSPC Pharmaceutical (up over 8%), and others [1] - Various ETFs tracking the innovative drug sector also saw substantial gains, with increases ranging from 4.72% to 5.23% [1][3] Group 2 - Sangfor Pharma announced a licensing agreement with Pfizer for its PD-1/VEGF bispecific antibody SSGJ-707, which includes an upfront payment of $1.25 billion and potential milestone payments of up to $4.8 billion [5] - This licensing deal sets a new record for upfront payments for Chinese bispecific antibodies, indicating strong market interest [5][6] Group 3 - The trend of Chinese innovative drug companies expanding internationally continues, with multiple successful licensing deals occurring despite recent trade tensions [7] - Recent examples include CSPC Pharmaceutical's licensing of irinotecan liposome injection to Cipla USA for $15 million upfront and potential milestone payments exceeding $1 billion [8] Group 4 - Market analysts believe that multinational corporations' interest in acquiring Chinese innovative drug assets remains strong, which will drive further international expansion [11] - Upcoming ASCO conference will feature significant data releases from several innovative drug companies, including Sangfor Pharma and Innovent Biologics [11] Group 5 - The innovative drug sector is expected to enter a rapid growth phase, driven by commercialization efforts and licensing agreements, which will enhance revenue and accelerate profitability [12] - Sangfor Pharma holds a significant weight in various indices, with a 4.38% share in the Hang Seng Hong Kong Stock Connect Innovative Drug Index [12][17] Group 6 - Analysts predict that high-quality innovative drug companies are entering a profitability cycle, supported by continuous performance releases and favorable policies [19] - The overall supply-demand dynamics in the industry are improving, suggesting a favorable investment opportunity in the sector [19]

中国基金报记者卢鸰 中国创新药出海又有大消息。 5月20日早间，三生制药（01530.HK）发布公告称，公司及附属子公司沈阳三生、三生国健与辉瑞签署 协议，将向辉瑞独家授予公司自主研发的突破性PD-1/VEGF双特异性抗体SSGJ-707在全球（不包括中 国内地）的开发、生产、商业化权利。公司及沈阳三生将保留SSGJ-707在中国内地的开发、生产、商 业化权利，并基于届时商定的财务条款，授予辉瑞对SSGJ-707在中国内地开展商业化的选择权。 根据协议，三生制药将获得12.5亿美元不可退还且不可抵扣的首付款，以及最高可达48亿美元的开发、 监管批准和销售里程碑付款。公司还将根据授权地区的产品销售额收取两位数百分比的梯度销售分成。 此外，辉瑞将于协议生效日认购三生制药价值1亿美元的普通股股份。 国盛证券医药研究团队认为，此次三生制药与辉瑞的合作，其首付款、里程碑等均超预期；中国的第二 波创新药浪潮已经到来，这是中国创新药出海"从0到1"的浪潮。 SSGJ-707是三生制药基于CLF2专利平台开发的靶向PD-1/VEGF双特异性抗体，可同时抑制PD-1和 VEGF双靶点，具有同类最优（best-in-class） ...

Group 1 - The core viewpoint of the news highlights the strong performance of the Hong Kong technology sector, with the CSI Hong Kong Stock Connect Technology Index rising by 1.68% as of May 20, 2025, and notable increases in individual stocks such as 33.24% for 3SBio and 5.31% for Li Auto [1] - The Hong Kong Technology ETF has shown a weekly increase of 0.30% and ranks in the top 1/5 among comparable funds, indicating a positive trend in the technology sector [1] - The trading volume of the Hong Kong Technology ETF reached 48.54 million yuan, with a turnover rate of 8.09%, reflecting strong liquidity in the market [1] Group 2 - 3SBio has entered into an exclusive licensing agreement with Pfizer for the PD-1/VEGF bispecific antibody, which is expected to enhance its market position and revenue potential [2] - The pharmaceutical industry is anticipated to experience valuation recovery in 2025, driven by factors such as innovative drug exports, optimization of domestic procurement policies, and the implementation of new medical insurance directories [2] - The CSI Hong Kong Stock Connect Technology Index comprises 50 large-cap technology companies with high R&D investment and revenue growth, indicating a focus on leading firms in the sector [2][3] Group 3 - As of April 30, 2025, the top ten weighted stocks in the CSI Hong Kong Stock Connect Technology Index account for 71.55% of the index, with major players including Xiaomi, Alibaba, and Tencent [3]

Group 1 - The core viewpoint of the news highlights the positive performance of the Hong Kong Stock Connect Technology ETF (513860), which rose by 1.29% to a price of 0.71 yuan, with a trading volume of 20.75 million yuan as of May 20, 2025 [1] - Notable constituent stocks include 3SBio, which increased by over 29%, and other companies like Innovent Biologics, Zai Lab, and Li Auto, which saw gains of over 4% [1] - On May 19, 2025, 3SBio entered into an exclusive licensing agreement with Pfizer, granting Pfizer global rights to the PD-1/VEGF bispecific antibody (code: SSGJ-707) and commercialization rights in China [1] - CMB International anticipates that the pharmaceutical industry will experience valuation recovery in 2025, driven by factors such as innovative drug exports, optimization of domestic procurement policies, and the implementation of innovative drug insurance catalog [1] Group 2 - The latest scale of the Hong Kong Stock Connect Technology ETF reached 1.89 billion yuan [2] - Over the past 18 trading days, the ETF has attracted a total of 385 million yuan in inflows [2] - The ETF closely tracks the CSI Hong Kong Stock Connect Technology RMB Index, which selects 50 large-cap, high R&D investment, and high revenue growth technology leading companies from the Hong Kong Stock Connect universe [1]

Group 1 - The Hong Kong stock market opened strong on May 20, with the Hong Kong Innovation Drug ETF (159570) rising over 3.6% and quickly surpassing a transaction volume of 4 billion [1] - The Hong Kong Innovation Drug ETF has seen a net inflow of over 2.2 billion in the last 60 days, indicating strong investor interest in the innovative drug sector [1] - On May 20, 2023, 3SBio announced a partnership with Pfizer, granting exclusive rights for the global development, production, and commercialization of its proprietary PD-1/VEGF bispecific antibody SSGJ-707 outside of mainland China [1] Group 2 - According to the agreement, 3SBio will receive a non-refundable upfront payment of $1.25 billion and up to $4.8 billion in milestone payments related to development, regulatory approval, and sales [1] - 3SBio will also receive a tiered sales royalty based on product sales in the licensed territories, and Pfizer will purchase $100 million worth of common stock in 3SBio upon the agreement's effective date [1] - The majority of the popular component stocks in the Hong Kong Innovation Drug ETF saw gains, with 3SBio rising over 30% [3] Group 3 - The 2025 ASCO Annual Meeting, recognized as a major oncology conference, will take place from May 30 to June 3, 2025, in Chicago, Illinois [3] - Several innovative drug companies are expected to disclose significant data at the ASCO meeting, with 3SBio set to present Phase 2 data for SSGJ-707 in non-small cell lung cancer [3] - The recent U.S. drug price reduction executive order may lead to global pharmaceutical companies adjusting their pricing strategies, with China's innovative drugs potentially becoming a preferred choice for business development transactions [4][5] Group 4 - The U.S. executive order aims to provide the best price for prescription drugs, but its short-term impact on innovative drug prices is expected to be limited due to the lack of implementation details and potential legal challenges [5] - Long-term pressures on U.S. drug prices are anticipated as Medicare and Medicaid expenditures are projected to grow from $1.5 trillion to $2.0 trillion from 2020 to 2024, with an annual growth rate of 7.0% [5] - The Hong Kong Innovation Drug ETF (159570) has a high concentration in innovative drugs, with over 85% of its weight in innovative drug stocks, making it a prominent player in the market [6]

截至2025年5月20日 09:37，中证港股通医药卫生综合指数(930965)强势上涨3.03%，石药集团(01093)上涨6.90%，先声药业(02096)上涨6.67%，康哲药业 (00867)，诺诚健华(09969)等个股跟涨。 港股医药ETF(159718)上涨3.10%， 冲击3连涨。最新价报0.73元。拉长时间看，截至2025年5月19日，港股医药ETF近1周累计上涨3.50%。 截至2025年5月20日 09:37，中证医药及医疗器械创新指数(931484)强势上涨1.33%，成分股华海药业(600521)上涨10.00%，川宁生物(301301)上涨5.37%，科 伦药业(002422)上涨4.78%，神州细胞(688520)，智飞生物(300122)等个股跟涨。医疗创新ETF(516820)上涨0.87%，最新价报0.35元。拉长时间看，截至2025 年5月19日，医疗创新ETF近1周累计上涨1.48%。 流动性方面，医疗创新ETF盘中换手0.76%，成交1194.23万元。拉长时间看，截至5月19日，医疗创新ETF近1年日均成交4774.83万元。 流动性方面，港股医药ETF盘中换手4. ...

Investment Rating - The report maintains a positive outlook on the innovative drug sector within the healthcare industry [1]. Core Insights - The pharmaceutical sector outperformed the CSI 300 index slightly, with the Shenwan Pharmaceutical and Biological Index rising by 1.27% from May 12 to May 16, 2025, and by 2.48% year-to-date, ranking 11th among 31 Shenwan primary industry indices [1][12]. - The current valuation of the pharmaceutical sector stands at 26.80 times (TTM overall method, excluding negative values), with a premium of 141.06% compared to the CSI 300 index [15]. - The innovative drug segment is experiencing a pullback due to U.S. President Trump's announcement regarding drug price reductions, but the report suggests that the actual implementation of such policies will be challenging and will not significantly impact Chinese innovative drug companies' international expansion [3][20]. Summary by Sections 1. Market Review - The pharmaceutical sector's performance from May 12 to May 16, 2025, showed a 1.27% increase, outperforming the CSI 300 index by 0.15 percentage points [10]. - Year-to-date, the sector has increased by 2.48%, surpassing the CSI 300 index by 3.64 percentage points [12]. 2. Key Events - On May 12, 2025, President Trump announced plans to sign an executive order aimed at reducing prescription drug prices in the U.S., potentially lowering prices by 30% to 80% [19]. 3. Industry Perspective - The innovative drug sector is expected to continue as a key investment theme for 2025, with a focus on international expansion and emerging markets, particularly in companies like Kexing Pharmaceutical [4][21]. - The report highlights that the ongoing collection and procurement policies in various pharmaceutical fields are accelerating, with potential growth in segments like insulin and orthopedics [4][21].

Investment Rating - The report maintains a positive outlook on the innovative drug sector within the healthcare industry [1] Core Insights - The pharmaceutical sector outperformed the CSI 300 index slightly, with the Shenwan Pharmaceutical and Biological Index rising by 1.27% from May 12 to May 16, 2025, and by 2.48% year-to-date, ranking 11th among 31 Shenwan primary industry indices [1][12] - The current valuation of the pharmaceutical sector stands at 26.80 times (TTM overall method, excluding negative values), with a premium of 141.06% compared to the CSI 300 index [15] - The innovative drug segment is expected to continue as a key investment theme for 2025, driven by advancements in research and development, and the potential for international market expansion [4][21] Summary by Sections 1. Market Performance - The pharmaceutical sector showed a slight outperformance against the CSI 300 index, with a 1.27% increase during the specified week [10] - Year-to-date, the sector has increased by 2.48%, outperforming the CSI 300 by 3.64 percentage points [12] 2. Key Events - On May 12, 2025, U.S. President Trump announced plans to sign an executive order aimed at reducing prescription drug prices in the U.S., potentially decreasing prices by 30% to 80% [19] 3. Industry Perspective - The innovative drug sector is experiencing a pullback due to Trump's announcement regarding drug price reductions in the U.S. However, the report suggests that the actual implementation of such policies will be challenging and unlikely to significantly impact Chinese innovative drug companies' international expansion [20] - The report emphasizes that the future growth of Chinese innovative drug companies will rely heavily on entering international markets, particularly the U.S. [3][21] 4. Investment Recommendations - The report continues to favor innovative drugs, international expansion, and sectors where centralized procurement impacts are clearing, such as insulin and orthopedics [4][21] - Companies with a focus on emerging markets are highlighted as having significant growth potential [4]

Macro Commentary - The US economy shows signs of slowing down, with significant declines in retail and manufacturing output due to tariff impacts, particularly affecting durable goods like automobiles and electronics [2] - Despite the slowdown, unemployment claims remain stable, indicating that the service sector is less affected, and employment in this sector remains robust [2] - Inflation is expected to rebound temporarily from May to August, with the Federal Reserve likely to maintain interest rates until September, when a potential rate cut may occur [2] Industry Commentary - The Chinese pharmaceutical sector is experiencing a strong trend in innovative drug exports, with several significant business development transactions occurring despite recent tariff tensions [5][6] - The MSCI China Healthcare Index has risen by 14.9% since early 2025, although it has underperformed compared to the broader MSCI China Index [5] - The US innovative drug prices are unlikely to decrease in the short term due to recent executive orders, but long-term pressures on healthcare spending are anticipated [7] Company Initiation - The report covers Angelalign Technology (6699 HK), a leading provider of invisible orthodontic solutions in China, which has maintained a market share of 42% in the domestic market [9][10] - The company is expected to achieve a revenue compound annual growth rate (CAGR) of 23.8% from 2019 to 2024, with a projected CAGR of 18.0% from 2024 to 2027 [9] - Angelalign is expanding internationally, with a goal to cover over 50 countries and achieve significant revenue growth from overseas markets, which is expected to account for 30% of total revenue by 2024 [11][12]

Investment Rating - The report maintains a positive outlook on the pharmaceutical sector, particularly anticipating a recovery in performance in the second half of 2025 [2][5]. Core Insights - The pharmaceutical market is currently experiencing a mild upward trend, with expectations for a new round of market activity following adjustments in trading [2]. - The report highlights significant advancements in innovative drugs, particularly from domestic companies, which are expected to achieve international recognition and commercial success [2][12]. - The report emphasizes the importance of monitoring policy developments related to medical insurance and the resurgence of respiratory infectious diseases [4][46]. Summary by Sections Pharmaceuticals - Key developments include the clinical data release from KJ Pharma regarding its universal CAR-T therapy and the approval of a new analgesic by Haishi Pharmaceutical [2][25]. - The report notes that domestic innovative pharmaceutical companies are increasingly demonstrating their capabilities on the international stage [2][12]. Biopharmaceuticals - Huadong Medicine's DR10624 has shown promising results in clinical trials, with liver fat content reductions significantly higher than the placebo group [3][38]. - The report suggests continued attention to DR10624's potential for commercialization and external licensing opportunities [3][45]. Medical Devices - The minimally invasive orthopedic surgical robot from Micron Medical has been integrated into the UK's National Health Service, indicating strong international market expansion potential [3][51]. - The report encourages focus on leading companies with strong product competitiveness and overseas channel layouts [3][51]. Medical Services - A partnership between Gushengtang and Huawei aims to enhance traditional Chinese medicine through digital infrastructure and talent development [3][12]. - The report highlights the ongoing transformation of the healthcare industry towards digitalization and smart solutions [3][12]. Traditional Chinese Medicine & Pharmacies - The Yunnan provincial government is advancing policies for provincial-level coordination of basic medical insurance, which is expected to benefit compliant leading companies [4][46]. - The report notes a rise in respiratory infectious disease rates, necessitating ongoing observation of trends [4][47]. Investment Recommendations - The report suggests focusing on innovative drugs and certain generic drugs, with attention to policy changes and upcoming data releases from major conferences [5][16]. - It highlights potential investment opportunities in chain pharmacies, medical devices, and traditional Chinese medicine as the market begins to recover [5][16].