Core Insights - The Chinese innovative drug industry is entering a new prosperous era characterized by significant BD transactions and a focus on source innovation [1][10] - This revival not only leads to valuation recovery for innovative drug companies but also reshapes the entire innovative drug industry chain [1][10] - The CXO industry and internet distribution platforms are expected to benefit from this growth cycle, emerging as "invisible winners" in the innovative drug boom [1][10] CXO Industry - WuXi AppTec, as a leader in the CXO industry, possesses a unique logic of beta and alpha resonance during this innovative drug prosperity cycle [2][11] - WuXi AppTec is projected to achieve approximately 45.456 billion yuan in revenue for 2025, a year-on-year increase of about 15.84%, with adjusted net profit expected to reach approximately 14.957 billion yuan, up 41.33% [3][12] - The company's growth is attributed to its integrated CRDMO (Contract Research, Development, and Manufacturing) business model, which significantly reduces R&D costs and complexity [3][12] Innovative Drug Commercialization - The number and quality of innovative drugs approved in China are experiencing explosive growth, with 76 innovative drugs approved in 2025, a 58.3% increase from 48 in 2024 [5][15] - New commercial channels, particularly internet platforms like JD Health and Alibaba Health, are emerging as core strategic channels for innovative drug commercialization [5][15] - JD Health has established itself as the "first station for new specialty drugs," allowing innovative drugs to be launched online immediately after approval, enhancing accessibility for patients [5][15][16] Investment Opportunities - The industry’s growth is expanding from solely innovative drug R&D companies to the entire supply chain, creating significant investment opportunities [17] - Index theme funds are suggested as a means for ordinary investors to access the overall sector, with the Hong Kong Stock Connect Medical ETF (159137) covering about 70% of the core assets in the innovative drug supply chain [17][19] - The ETF includes leading companies in the medical AI sector and high-end medical devices, effectively covering industry hotspots [18][19]