Investment Rating - The report recommends a "Buy" rating for multiple companies in the pharmaceutical sector, including Junshi Biosciences, Hualan Biological Engineering-B, and others [3]. Core Insights - The pharmaceutical sector has shown a 1.90% increase this week, outperforming the CSI 300 index by 0.21 percentage points. Sub-sectors such as pharmaceutical outsourcing, vaccines, and medical consumables performed well, while innovative drugs lagged behind [6][42]. - The report emphasizes the potential of the 4-1BB target in cancer treatment, particularly the PD-L1/4-1BB bispecific antibodies, which may address the limitations of PD-1/PD-L1 monotherapy [5][16][17]. Summary by Sections Industry Viewpoints and Investment Recommendations - 4-1BB is recognized as a promising target for tumor therapy, enhancing T cell activation and survival, which is crucial for effective immune responses against cancer [16]. - Investment strategies focus on the innovative drug sector, driven by increased liquidity and risk appetite, with a recommendation to pay attention to companies with strong pipelines in bispecific antibodies and ADCs [6][38]. Pharmaceutical Industry Market Performance - The pharmaceutical sector's overall P/E ratio is reported at 30.67 times, with a premium of 40.37% compared to the overall A-share market excluding financials [42]. Company Dynamics - Notable company developments include: - LIZHU Group's successful Phase III trial for a monoclonal antibody for psoriasis [43]. - Baiyang Pharmaceutical's planned share reduction by its major shareholder [43]. - Mylab's new medical device approval, enhancing market competitiveness [44]. Industry Dynamics - The report highlights the increasing focus on innovative drug development and the potential for significant market opportunities in the context of upcoming patent expirations for key small molecule drugs [38].

Group 1 - The core viewpoint of the articles highlights the successful IPO of Valiant Biopharma, which saw its stock price surge by 91.7% on its debut, reaching a market capitalization of HKD 12.97 billion [1] - Valiant Biopharma's IPO was highly sought after, with a subscription multiple exceeding 3000 times and total subscription amounting to HKD 330 billion, making it the hottest IPO in Hong Kong for July [1] - The company raised a total of HKD 1.29 billion through the issuance of 36.86 million H-shares at an offer price of HKD 35 per share, with net proceeds of approximately HKD 1.18 billion [1] Group 2 - Valiant Biopharma currently has one core product, LBL-024, a dual-specific antibody targeting PD-L1 and 4-1BB, along with 13 other candidate drugs, including 5 in clinical stages and 8 in preclinical stages [2] - LBL-024 is the first PD-L1 and 4-1BB dual-specific antibody to enter the registration clinical trial phase, with potential to become the first marketed drug targeting 4-1BB globally if approved [2] - Despite being established for several years, Valiant Biopharma has not yet commercialized its products, reporting revenues of only HKD 8.865 million in 2023, with projected no revenue for 2024 and Q1 2025 [2]