Investment Rating - The report maintains a rating of "Buy" for the pharmaceutical and biotechnology industry [1]. Core Insights - GLP-1 drugs have emerged as leading products, with recommendations to focus on companies such as BoRui Pharmaceutical, Innovent Biologics, and Federated Pharmaceutical [1][15]. - The global GIP-1 market shows significant potential, with Q1 2025 sales surpassing PD-1 antibodies. The WHO is developing guidelines for the use of GLP-1 in adult obesity, expected to be released in August-September 2025 [1][15]. - The report highlights a shift in R&D trends from single-target to multi-target drugs, with a focus on oral formulations and both peptide and small molecule drugs [1][16]. Summary by Sections Industry Performance - The A-share pharmaceutical index has increased by 1.0% this week and 1.2% year-to-date, underperforming the CSI 300 by 1.0% and outperforming by 3.4% respectively [9]. - The H-share biotechnology index has decreased by 4% this week but increased by 27% year-to-date, outperforming the Hang Seng Technology Index by 19% and 29% respectively [9]. GLP-1 Drug Market - Sales of semaglutide reached 78.64 billion USD in Q1 2025, surpassing Keytruda's 72.05 billion USD [15]. - The WHO is expected to finalize guidelines for GLP-1 RA use in obesity treatment by late 2025, which could significantly boost sales [15]. R&D Trends - The report notes a transition from single-target to multi-target drug development, with multi-target drugs showing superior clinical efficacy [16][17]. - Clinical data indicates that semaglutide and dual-target drugs like tirzepatide are leading in weight loss efficacy, with ongoing trials for multi-target drugs showing promising results [17]. Investment Recommendations - The report ranks preferred sub-sectors as follows: innovative drugs > CXO > traditional Chinese medicine > medical devices > pharmacies > pharmaceutical commerce [10]. - Specific stock recommendations include BoRui Pharmaceutical, Innovent Biologics, Federated Pharmaceutical, and others based on growth potential and valuation metrics [10].