Investment Rating - The report maintains a "Recommended" investment rating for the pharmaceutical industry [1] Core Insights - The value of innovative drugs going overseas is continuously validated, with an upward trend in valuations expected to persist. The collaboration between Chinese biotech firms and multinational corporations (MNCs) is increasing, particularly in the area of PD-1 and VEGF dual antibodies [2][3] - The recent approval of Vuxin Qibai monoclonal antibody marks the beginning of a new era in biological treatment for gout, highlighting the significant market potential for gout treatments in China and globally [4] - The trend towards more effective and scientific weight loss solutions is emerging, with new clinical data and partnerships in the GLP-1 and other related drug classes [5] - The focus on autoimmune diseases is growing, with significant breakthroughs in drug development and international collaborations [7] Summary by Sections 1. Pharmaceutical Market Tracking - The pharmaceutical industry index increased by 3.64% in the week from June 28 to July 4, 2025, outperforming the CSI 300 index by 2.10 percentage points, ranking 4th among 31 primary industry indices [20] 2. Pharmaceutical Sector Trends and Valuation - The pharmaceutical industry index's current PE (TTM) is 35.12, above the historical five-year average of 32.30 [46] 3. Recent Research Achievements - The report highlights various recent research outputs from the Huaxin pharmaceutical team, including deep reports on the growth trends in blood products and inhalation preparations [52] 4. Recent Industry Policies and News - A recent policy from the National Healthcare Security Administration supports the high-quality development of innovative drugs, emphasizing increased support for R&D and clinical applications [54] - Notable news includes the approval of new drug applications and significant clinical trial advancements by various companies, indicating a vibrant pipeline in the pharmaceutical sector [55][56]