Core Insights - The Federal Reserve has initiated a rate-cutting cycle, which is favorable for the pharmaceutical and biotechnology sectors, particularly for innovative drugs and devices [1] - By September 2025, further rate cuts are expected, leading to a more accommodative macro environment and an increase in valuation premiums for innovative assets [1] Industry Focus - Investment in the pharmaceutical industry should concentrate on the intrinsic logic of clinical value, which addresses the needs of patients and healthcare providers, as both domestic and international policies are assigning higher premiums to clinical value [1] - The reduction in interest rates will improve the financing environment for pharmaceutical companies, particularly benefiting biotech firms, which will increase R&D investments and positively impact the demand for CXO services [1] Market Performance - The Guotai Innovation Pharmaceutical ETF (159377) tracks the Innovation Pharmaceutical Index (399275), which saw a daily fluctuation of 20%. This index includes listed companies involved in biomedicine, medical devices, and related services, reflecting the overall performance of the pharmaceutical sector on the Growth Enterprise Market [1]