Core Viewpoint - The article discusses the journey of Liang Chun and his team in developing a novel anti-cancer drug targeting DNA replication initiation proteins, highlighting the challenges and milestones over more than 20 years of research and development [1][4][12]. Group 1: Research and Development Journey - Liang Chun's idea of inhibiting DNA replication to develop anti-cancer drugs originated during his doctoral studies at Brown University and postdoctoral work at Cold Spring Harbor Laboratory [1][2]. - The research progressed from basic studies at Hong Kong University of Science and Technology to the establishment of Enkang Pharmaceutical, which focuses on commercializing the findings [1][4]. - The first candidate drug, EN002, has completed preclinical studies and is currently undergoing Phase I/II clinical trials for non-melanoma skin cancer and precancerous lesions [4][12]. Group 2: Innovation and Market Potential - The drug development process for EN002 took over 10 years, with significant investments from various sources, including angel funding of 160 million CNY and 150 million CNY from different investors [4][6]. - EN002 has shown promising results in preclinical trials, demonstrating superior efficacy compared to many first-line anti-cancer drugs and effectively inhibiting over ten types of cancer cells in animal models [4][6]. - The drug is classified as a First-in-Class (FIC) innovation, targeting a new mechanism, which presents both high risks and potential for substantial market returns [5][12]. Group 3: Industry Insights and Future Directions - The article emphasizes the challenges of drug development, particularly the "valley of death" in transitioning from research to clinical trials, which typically requires significant time and financial resources [6][15]. - The Business Development (BD) model is highlighted as a strategy for companies to mitigate risks by licensing out drug candidates to international partners while retaining rights in key markets [7][13]. - The Chinese innovation drug industry is evolving, with increasing participation from overseas talent and advancements in drug types, although there remains a gap in discovering new targets compared to global standards [14][18].

Group 1 - The innovative drug sector has recently become a leader in both A-shares and H-shares, with significant market activity observed, particularly on June 9, where the STAR 200 Index rose by 1.79%, reaching a new high since March 24 [1][2] - The current market focus on innovative drug companies is primarily on those in clinical phases I and II, indicating that the profitability of some companies remains uncertain despite rising valuations [1][5] - The Wind Innovative Drug Index has increased by 27.62% year-to-date, with over 20 stocks in the sector rising more than 10% [2][5] Group 2 - Recent large-scale business development (BD) transactions and positive data from the ASCO conference have stimulated strong performance in the innovative drug sector, with significant cross-border collaborations reported [2][4] - The low interest rate environment is beneficial for innovative drug companies, as it reduces financing costs and allows for increased investment in research and development [4][5] - The majority of innovative drugs currently in development are in the clinical I phase, which accounts for 58% of the pipeline, suggesting a long timeline before potential market entry [5][6] Group 3 - Companies like HaiChuang Pharmaceutical and YiFang Bio have seen significant stock price increases, with HaiChuang's stock rising by 13.3% and YiFang reaching a historical high of 32.8 yuan [5][6] - The innovative drug sector's active market has led to increased trading volumes and a spillover effect into related sub-sectors such as in vitro diagnostics and raw materials [6][7] - Analysts note that while some non-innovative drug companies have experienced volatility due to the hype around individual innovative drug pipelines, core innovative drug stocks have remained relatively stable [7]