Investment Rating - The report maintains a "Buy" rating for certain stocks in the CXO sector, indicating a positive outlook for the industry [58]. Core Insights - The global market is showing signs of recovery, with domestic financing on the rise, particularly in the healthcare sector. In Q3 2025, global financing reached $20.6 billion, marking a 39% increase and the highest in nearly four years. Domestic financing also surged to 18.2 billion yuan, up 97% [2][21]. - The IPO landscape is experiencing a divergence, with overseas markets facing challenges while domestic IPOs are rebounding. The domestic biotech IPOs have seen significant growth, with a 665% year-on-year increase in fundraising [30][34]. - The research and development sector is under pressure globally, but domestic R&D is showing rapid improvement, with new clinical trials reaching historical highs. In the first eleven months of 2025, the number of new clinical trials in China increased by 20% [41][52]. Summary by Sections Financing Sector - Global financing in the healthcare sector is recovering, with Q3 2025 showing a significant rebound. The total financing for the first ten months of 2025 has already surpassed the entire year of 2024 [14][21]. - Domestic financing trends mirror global patterns, with a notable increase in Q3 2025, indicating a clear upward trajectory [21][22]. IPO Trends - The overseas IPO market is stabilizing after a downturn, while domestic IPOs are experiencing a resurgence, particularly in the biotech sector, driven by a favorable secondary market [30][34]. - The first eleven months of 2025 saw a dramatic increase in fundraising from domestic biotech IPOs, highlighting a strong recovery [34][36]. R&D Developments - Globally, the number of new clinical trials is declining, but the domestic market is witnessing a significant turnaround, with new drug IND applications showing stability and growth [41][47]. - The number of new clinical trials in China has reached a historical high, with a notable increase in Phase II trials, indicating a robust pipeline for future drug development [52][53].

Core Insights - The global and US innovative drug VC&PE financing amounts are expected to grow by 1.93% and 5.29% respectively in 2024, indicating a recovery in the innovative drug financing environment [1] - The demand for research and development in fields such as peptides and ADCs is strong, leading to an increase in outsourcing needs in these areas [1][2] Macro Perspective - The global innovative drug financing environment is recovering, with significant growth in the demand for innovative research in specific fields like peptides and ADCs, which is expected to enhance the CXO industry's outlook [1] - According to Crunchbase, the VC&PE financing for innovative drugs in 2024 shows positive growth, marking an improvement in the financing environment [1] Micro Perspective - CXO listed companies are seeing a recovery in new orders, with many companies like WuXi AppTec, WuXi Biologics, and others reporting a year-on-year increase of over 20% in new orders [3] - The production capacity of domestic CXO companies is mature, ensuring timely delivery of orders, which is expected to lead to double-digit revenue growth for several companies in 2025 [3] Target Companies - Recommended companies to watch include WuXi AppTec (603259.SH, 02359), WuXi Biologics (02269), WuXi AppTec (02268), Kelun Pharmaceutical (002821.SZ, 06821), and others [4]