Core Viewpoint - Lee's Pharmaceutical (00950) has shown significant stock price increase following the release of its interim results, indicating strong sales performance and growth in profit [1] Financial Performance - The company reported revenue of HKD 695 million, representing a year-on-year increase of 5.5% [1] - The profit attributable to shareholders for the first half of 2025 was HKD 67.185 million, reflecting a year-on-year growth of 7.5% [1] Product Development and Approvals - Lee's Pharmaceutical announced that its subsidiary, Zhaoke Pharmaceutical, received approval for the new indication of the anti-PD-L1 monoclonal antibody, Socazolimab [1] - The company is developing an aerosol inhalation fentanyl product, AZ003, which is aimed at effectively managing breakthrough cancer pain, with Phase II clinical results expected to be presented at ASCO 2024 [1] Industry Insights - According to Zhongtai Securities, recent advancements in dual antibodies, ADCs, small molecule targeted therapies (TKIs), and cell therapies are extending overall survival (OS) for cancer patients [1] - The focus on improving the quality of life (QoL) for cancer patients has become increasingly important, with fewer companies developing targeted medications for palliative care [1] - The report suggests that the market for palliative treatments addressing cancer cachexia and breakthrough pain is expected to see the emergence of several major products, highlighting investment opportunities [1]

此外，中泰证券发布研报称，近年来双抗、ADC、小分子靶向药（TKI）、细胞治疗等创新疗法推进肿 瘤患者OS逐步延长，荷瘤患者的生存质量（QoL）是临床实践中关注的重要问题，过去较少药企做针 对性的药物开发。肿瘤恶病质和爆发性癌痛的"姑息治疗学科"关注的重要问题。该行指出，李氏大药厂 研发的芬太尼气溶胶吸入剂AZ003，可有效控制癌痛爆发痛，其2期临床结果于2024年ASCO发表。该行 认为该赛道未来将出现多个大单品，值得投资者重视。 消息面上，李氏大药厂此前发布中期业绩，该集团取得收益6.95亿港元，同比增加5.5%；主要由集团产 品组合稳健的销售表现所带动。2025年上半年的公司拥有人应占纯利为6718.5万港元，同比增加7.5%。 值得注意的是，李氏大药厂7月底公告称，旗下子公司兆科肿瘤申报的抗PD-L1单克隆抗体索卡佐利单 抗新适应症上市申请已获得批准。 智通财经APP获悉，李氏大药厂(00950)午后涨超27%，截至发稿，涨20.9%，报2.43港元，成交额 4490.21万港元。 ...

Investment Rating - The report maintains an "Overweight" rating for the industry [6]. Core Insights - The report emphasizes the significant potential of innovative drugs in extending overall survival (OS) for cancer patients, with a growing focus on improving quality of life (QoL) through palliative care solutions [10][14]. - The pharmaceutical sector has shown resilience amid market fluctuations, with innovative drugs and their supply chains leading the performance [12][38]. - The report highlights the increasing competitiveness of domestic innovative drugs and the positive outlook for the innovation-driven industry chain [12][38]. Summary by Sections Industry Overview - The pharmaceutical industry consists of 494 listed companies with a total market capitalization of approximately 78,182.34 billion [3]. - The industry has demonstrated a 27.26% return since the beginning of 2025, outperforming the Shanghai Composite Index by 13.91 percentage points [38]. Market Dynamics - Recent market trends indicate a 1.40% increase in the pharmaceutical sector, while the broader market (CSI 300) decreased by 0.81% [12][38]. - The report notes a divergence in sub-sector performance, with chemical pharmaceuticals and biological products showing gains of 3.92% and 1.93%, respectively [12][38]. Innovative Drug Development - The report discusses the advancements in innovative therapies such as dual antibodies, antibody-drug conjugates (ADC), and small molecule targeted therapies, which are crucial for improving OS and QoL for cancer patients [10][14]. - Specific companies like Changchun High-tech and Lee's Pharmaceutical are highlighted for their innovative treatments targeting cancer cachexia and breakthrough cancer pain [10][29]. Investment Recommendations - The report recommends focusing on companies with strong innovative drug pipelines and those that are likely to benefit from upcoming data catalysts, particularly in the context of the WCLC conference [12][38]. - Key companies to watch include WuXi AppTec, Innovent Biologics, and others involved in the innovative drug supply chain [12][38]. Valuation Metrics - The current valuation of the pharmaceutical sector is approximately 28.1 times PE based on 2025 earnings forecasts, indicating a premium over the broader A-share market [41][42]. - The report notes that the sector's valuation is below its historical average, suggesting potential for growth [41][42].