Core Insights - The pharmaceutical and chemical drug industry is experiencing multiple development trends as of Q3 2025, driven by policy optimization and ongoing reforms in drug procurement and medical service pricing [1] - The focus within the pharmaceutical supply chain is on procurement optimization and innovation transformation, with supply chain security becoming a priority [1] - The medical device sector is seeing opportunities in import substitution and mergers and acquisitions, while new technologies such as AI and brain-machine interfaces are gaining attention [1] - Innovative drug companies are accelerating their internationalization, with Chinese innovative drugs performing well on the global stage [1] - The CXO industry has completed its adjustments, and domestic investment and financing are rebounding, with demand gradually recovering [1] - The CDMO sector benefits from stable commercial demand [1] - The Guotai ETF (589720) focuses on innovative drug companies in the STAR Market, tracking 30 representative high-quality companies, and has shown strong performance compared to the Hang Seng Hong Kong Stock Connect innovative drug index [1] - From September 24, 2024, to September 30, 2025, the STAR Market innovative drug index increased by 117.04%, outperforming the Hang Seng index's 109.62% increase, indicating potential for better market performance during risk appetite recovery [1]