Group 1 - The core viewpoint of the article highlights a recent pullback in the innovative drug sector, with the Science and Technology Innovation Drug ETF (589720) declining nearly 1%, while funds have seen a net inflow of over 170 million yuan for four consecutive days, indicating a buying opportunity [1] - According to Zhongan International, the recent slight pullback in the pharmaceutical sector presents a bottom-fishing opportunity, driven by a recovery in capital market financing and an increase in overseas trading scale for innovative drugs [1] - The CXO industry is expected to experience performance recovery due to the combination of a recovering domestic demand for innovative drug research and development and the impact of interest rate cuts in the U.S. [1] Group 2 - Looking ahead, the innovative drug sector is primarily driven by expectations surrounding business development (BD), with the re-establishment of BD anticipated to be a key factor in stimulating sector recovery [1] - Data indicates that BD accounts for approximately 40% of the annual total in the fourth quarter, suggesting significant potential for large product expectations [1] - The Science and Technology Innovation Drug ETF focuses on innovative drug companies listed on the Science and Technology Innovation Board, tracking an index of 30 representative high-quality companies, primarily in the high-growth biotech sector [1]

Core Viewpoint - The innovative drug sector is experiencing fluctuations, with the ChiNext innovative drug ETF (589720) dropping over 3%. However, there has been a net inflow of over 110 million yuan in the past 10 days, indicating a buying opportunity as the sector's cost-effectiveness becomes apparent after significant adjustments [1]. Group 1: Market Trends - The innovative drug sector has undergone substantial adjustments in the past two months, leading to improved cost-effectiveness for investments [1]. - Recent slight corrections in the pharmaceutical sector are seen as potential bottom-fishing opportunities, driven by a recovery in capital market financing and an increase in the scale of innovative drug transactions abroad [1]. - The demand for domestic innovative drug research and development is showing signs of recovery, supported by the recent interest rate cuts in the U.S. which may lead to performance recovery in the CXO industry [1]. Group 2: Future Outlook - The innovative drug sector is expected to primarily focus on business development (BD) expectations, with the re-establishment of BD being a key factor for the sector's recovery [1]. - Data indicates that BD typically accounts for about 40% of the annual total in the fourth quarter, suggesting significant potential for growth during this period [1]. - Major products within the sector continue to hold strong expectations, contributing to the overall positive outlook [1]. Group 3: ETF Insights - The ChiNext innovative drug ETF (589720) focuses on innovative drug companies listed on the ChiNext board, tracking a representative index of 30 high-quality companies [1]. - The ETF is primarily composed of high-growth biotech firms and features a 20% limit on daily price fluctuations, making it more aligned with the sector's volatility [1].