Core Insights - Recent comments from Trump have limited impact on the innovative drug sector, as his price demands target U.S. PBM intermediaries rather than the pharmaceutical companies themselves [1] - The decline in U.S. drug prices is accelerating the overseas expansion of competitively priced Chinese innovative drugs, primarily through licensing and business development (BD) agreements [1] - The BD transaction volume is projected to reach $66 billion in the first half of 2025, surpassing the total for 2024, reinforcing the "China R&D, global monetization" model [1] Policy Developments - On July 31, the National Healthcare Security Administration announced a new drug pricing mechanism, clarifying the price stabilization period and optimizing the listing process, which accelerates the clinical promotion of new drugs [1] - The introduction of 16 policies in July, aimed at supporting the high-quality development of innovative drugs, facilitates the entire chain from R&D to market access and application [1] - Institutions predict that the innovative drug sector is entering a new performance-driven cycle, with the reshaping of pricing power addressing the "investment difficulty and return" contradiction, while the expansion of commercial insurance creates a "second curve," signaling a profitability turning point for the industry [1]