Core Insights - The National Healthcare Security Administration has issued a notice to initiate pilot programs for real-world comprehensive value assessment of medical insurance in select regions including Haidian District of Beijing, Dalian City of Liaoning Province, and Shenzhen City of Guangdong Province [1] Group 1: Pilot Program Details - The pilot regions will focus on research directions such as comprehensive value assessment of drugs based on real-world data, unmet clinical needs research, and how healthcare data can support real-world studies [1] - The research outcomes will support healthcare decision-making and encourage pilot regions to prioritize the application of these findings for new or adjusted medical consumables charging directories and new medical service project approvals [1] Group 2: Future Goals - By the end of 2027, the pilot regions aim to establish a value-oriented, real-world research-based comprehensive value assessment system for medical insurance, which will be promoted nationwide [1]

Investment Rating - The industry investment rating is maintained at "Overweight" [2] Core Viewpoints - The initiation of the real-world comprehensive value evaluation pilot work by the National Medical Insurance Administration is expected to enhance the clinical evaluation system for traditional Chinese medicine (TCM) [8][9][10] - The TCM sector has shown a relative performance decline compared to the broader pharmaceutical sector, with a 1.95% drop last week [4][14] - The TCM sector's current Price-to-Earnings (PE) ratio is 27.38X, reflecting a slight decrease, while the Price-to-Book (PB) ratio stands at 2.32X [6] Market Performance - The TCM index closed at 6449.62 points, down 1.95% last week, while the overall pharmaceutical sector fell by 2.2% [4][14] - The performance of individual companies within the TCM sector varied, with notable gainers including Fangsheng Pharmaceutical and Tianmu Pharmaceutical, while companies like Zhongsheng Pharmaceutical and Zhendong Pharmaceutical lagged [5][20][22] Valuation Metrics - The TCM sector's PE (ttm) is at 27.38X, down 0.54X week-on-week, with a one-year range of 24.72X to 30.26X [6] - The PB (lf) is recorded at 2.32X, also showing a slight decrease, with a one-year range of 2.17X to 2.65X [6] Supply Chain Insights - The demand for TCM materials has increased, particularly for gift-giving purposes, leading to a slight rise in the price index [7] - The overall price index for TCM materials was 237.22 points, reflecting a 0.4% increase from the previous week [7] Investment Recommendations - The report suggests focusing on three main investment themes: price governance, consumption recovery, and state-owned enterprise reform [11][12] - Specific investment targets include companies with strong R&D capabilities and unique products, as well as those less affected by centralized procurement [11][12]

Core Viewpoint - The National Healthcare Security Administration (NHSA) has initiated a pilot program for a comprehensive value assessment of medical insurance based on real-world evidence, aiming to establish a value-oriented evaluation system by the end of 2027 [1] Group 1: Pilot Program Details - The pilot program will be implemented in designated regions under the unified deployment of the NHSA [1] - The program follows a structured approach of "top-level design, practical verification, and decision-making application" [1] - By the end of 2027, the program aims to complete research on ten selected topics [1] Group 2: Objectives and Framework - The initiative seeks to develop evaluation standards, technical methods, and application scenarios through practical exploration [1] - It emphasizes the construction of a supporting system involving relevant data and talent [1] - The ultimate goal is to promote a comprehensive value assessment system nationwide based on real-world research [1]

Policy Developments - The National Healthcare Security Administration (NHSA) has initiated a pilot program for real-world comprehensive value assessment of medical insurance, aiming to establish a value-oriented evaluation system by the end of 2027 [1] Drug and Device Approvals - Hengrui Medicine's application for a new indication of Adebeli monoclonal antibody injection has been accepted by the National Medical Products Administration (NMPA) for treating operable non-small cell lung cancer [2] - Yuan Da Pharmaceutical's new specification of Treprostinil injection has been approved, enhancing treatment options for pulmonary arterial hypertension (PAH) patients [3] - China National Pharmaceutical's Lincomycin injection has passed the consistency evaluation for generic drugs, with projected sales of approximately 0.77 million in 2024 [4] - Dongfang Ocean's subsidiary has received medical device registration for a fat-soluble vitamin testing kit, expanding its clinical testing product line [5] Capital Market Activities - Celltrion plans to invest nearly $330 million to acquire a biologics manufacturing facility from Eli Lilly in New Jersey, with additional investments expected for expansion [7] - Amgen Pharmaceuticals intends to raise up to 1.033 billion for daily R&D and operational expenses through a private placement [8] Industry Events - Novo Nordisk's oral GLP-1 weight loss drug, Semaglutide, has shown a 16.6% average weight reduction in a 64-week trial, marking a significant milestone in obesity treatment [9] - The Central China Center for Drug and Medical Device Review has been established to enhance the efficiency of drug and medical device evaluations in the central region [10] Company Developments - Yabao Pharmaceutical has terminated the clinical development of SY-009 capsules, resulting in a full impairment of 55.793 million in capitalized costs [11] - Merck has signed a new memorandum with Siemens to accelerate the use of artificial intelligence in drug development [12] - Baicheng Pharmaceutical's executives plan to reduce their shareholdings due to personal financial needs [13][14] - Tsinghua Pharmaceutical's president and vice president have resigned, with no further roles in the company [15]