Investment Rating - The report assigns a "Buy" rating to several companies including Asymchem, Weigao, AngelAlign, and Hygeia, while Tigermed is rated as "Neutral" [28]. Core Insights - The momentum in the CDMO sector continues into Q2 2025, with a focus on opportunities arising from China biotech licensing and GLP-1 developments, although revenue potential remains unclear due to technical complexities [2][10]. - The MedTech and Services sectors are experiencing a muted recovery, with ongoing policy headwinds affecting pricing and volumes, but some companies are showing resilience through new product launches and overseas expansion [3][14]. Summary by Sections CDMO/CRO - Q2 order momentum has sustained from Q1, with most companies reporting qualitative trends, while quantitative updates are expected in July/August [9]. - Top-tier CDMOs derive only 10-20% of their revenue from China, limiting the earnings impact from recent biotech licensing deals [2][9]. - Asymchem is favored for margin improvement in FY25, driven by emerging services, particularly in obesity-related modalities [2]. MedTech & Services - Recovery in device and service volumes remains subdued, with DRG/DIP reforms continuing to pressure pricing and volumes, though minimally invasive surgeries are less affected [3][14]. - Weigao is highlighted for its attractive valuation and new product contributions, while AngelAlign is on track for global expansion [3][14]. - Surgical volumes showed mild recovery in 1H25, with expectations for stronger growth in 2H due to easing policy headwinds [14][16]. Services - Ongoing reimbursement and regulatory pressures are challenges, but there are signs of improvement in reimbursement efficiency [17]. - Companies like Gushengtang are shifting towards self-pay services to align with rising demand from the "silver economy" [20]. - M&A sentiment is improving, with companies like Hygeia exploring partnerships for capacity expansion [20]. Guidance - WuXi Apptec expects FY25 revenue growth of 10-15%, while Asymchem anticipates double-digit growth alongside margin improvements [21]. - Weigao projects FY25 revenue growth of 10-15%, and Gushengtang aims for over 25% growth [21].

Core Insights - The dialogue at the CPHI China exhibition highlighted the green transformation of the CDMO industry in China, emphasizing the shift from "manufacturing" to "intelligent manufacturing" through technological innovation and cost efficiency [1][3]. Group 1: Technological Innovations - Dr. Yang Minmin discussed the challenges of safety and environmental risks in the organic chemistry industry, leading to the exploration of new technologies like continuous flow and micro-packed bed [3]. - Drug Stone Technology has applied micro-packed bed technology in hydrogenation reactions for over a decade, enhancing selectivity and addressing the complexity of traditional process approvals [3]. - The company has accumulated experience in over 50 continuous flow technology projects, with more than 30% of R&D projects utilizing this technology, resulting in improved production efficiency and cost reduction [3]. Group 2: Cost and Efficiency Dynamics - Dr. Chen Zhihong highlighted that the continuous flow technology reduced the production cycle of drug intermediates from 40 days to 10 days, decreasing the footprint by 95% and solvent usage by over 50% [4]. - Over 60% of Drug Stone's Building Block business and 30%-40% of its CDMO business leverage new technologies, creating a positive cycle through standardized reactions that lower equipment costs [4]. - The Chinese pharmaceutical industry is projected to have an API export value of nearly $50 billion in 2024, facing pressures from domestic competition and carbon tariffs from Europe and the U.S. [4]. Group 3: Global Competitiveness and Challenges - Dr. Zhang Yantao noted that the focus of the industry has shifted from hardware construction to process management, reflecting improvements in green manufacturing capabilities [5]. - Drug Stone's overseas strategy involves a "local R&D + global delivery" model based on continuous flow technology, significantly reducing labor requirements and overcoming cost and environmental challenges in Europe and the U.S. [5]. - The total value of innovative drug license outs in China is expected to reach approximately $50 billion in 2024, urging Chinese CDMOs to accelerate their global expansion [5]. Group 4: Industry Insights and Future Vision - Dr. Yang Minmin envisioned transforming fine chemical plants into intelligent office environments, indicating a shift in industry paradigms [6]. - Dr. Zhang Yantao emphasized that advanced manufacturing technologies will inevitably take root in the largest manufacturing countries [6]. - The dialogue underscored the importance of embedding sustainability throughout the product development lifecycle to enhance business communication and competitiveness in the global pharmaceutical landscape [6].

Core Viewpoint - Shanghai Haoyuan Pharmaceutical Co., Ltd. received an inquiry letter from the Shanghai Stock Exchange regarding its 2024 annual report, prompting a detailed response about its business operations and financial performance. Group 1: Main Business Operations - The company reported a total revenue of 2,253.67 million yuan from its research and experimental development sector in 2024, with a year-on-year growth of 32.41% in the front-end molecular building blocks and tool compounds business, generating 1,499.07 million yuan [1][4] - The product sales revenue in this segment was 1,363.90 million yuan, reflecting a 36.01% increase, while the gross profit margin stood at 63.74% [1][4] - The back-end raw materials and intermediates development business generated 754.61 million yuan, with a modest year-on-year growth of 2.49%, but product sales in this segment saw a decline of 30.45% [1][4] Group 2: Revenue and Profitability Analysis - Domestic and overseas business revenues were 1,391.69 million yuan and 861.99 million yuan respectively, with gross profit margins of 38.82% and 46.8% [1][4] - The company provided a detailed breakdown of its four business segments, including revenue, gross profit margins, and year-on-year changes, indicating a comprehensive analysis of market size and competitive landscape [1][4][6] Group 3: Market Trends and Growth Potential - The global pharmaceutical R&D expenditure is projected to grow at a rate of 4.2% annually, reaching 254 billion USD by 2026, which is expected to positively impact the life sciences reagent market [6][7] - The Chinese research reagent market has expanded from approximately 25 billion yuan in 2018 to about 48 billion yuan in 2022, with a compound annual growth rate of around 18% [6][7] - The global CDMO market is also on a growth trajectory, with expectations to reach 124.3 billion USD by 2025, indicating a robust demand for innovative drug development services [9][10] Group 4: Competitive Positioning - The company has established itself as a competitive player in the life sciences reagent sector, particularly in the molecular building blocks and tool compounds market, which is characterized by strong customization capabilities and a growing customer base [2][4] - The company’s tool compounds business is positioned favorably compared to peers, with higher revenue growth and gross profit margins, reflecting its strong international influence [11][12] - The company’s performance in the generic drug intermediates and raw materials sector aligns with industry trends, with a notable increase in the market for high-end pharmaceutical intermediates [13][14]

Group 1: Company Overview and Investment Activities - The company is Hangzhou Baicheng Pharmaceutical Technology Co., Ltd., with stock code 301096 and abbreviation Baicheng Pharmaceutical [1] - The investor relations activities include online meetings and strategy sessions held from June 9 to June 20, 2025 [2] - Key participants include the Chairman and General Manager, Lou Jinfang, and the Financial Director and Board Secretary, Cheng Dandan [2] Group 2: Drug Development Progress - The company has multiple new drug pipelines, with 2 IND approvals for Class 1 new drugs targeting areas such as the nervous system and oncology [3] - The global market for central nervous system drugs exceeded $500 billion in 2023, with China's market at approximately ¥173.4 billion, indicating significant growth potential [3] - The central nervous system drug market in China is projected to grow from about ¥40 billion in 2025 to ¥200 billion by 2030 [3] Group 3: Specific Drug Projects - BIOS-0623 is a novel pain relief drug with advantages such as rapid onset and lower effective doses, showing superior efficacy compared to pregabalin [4] - BIOS-0632 is a strong AAK1 kinase inhibitor that demonstrates faster onset and better efficacy in diabetic neuropathic pain models compared to existing treatments [4] - BIOS-0629, a potential Best-in-Class second-generation XPO1 inhibitor, shows significant anti-tumor efficacy in various cancer models [5][6] Group 4: Market Trends and Opportunities - The global market for anti-tumor drugs reached $235.7 billion in 2023, with China's market at approximately ¥280 billion, driven by increasing cancer incidence [5] - The autoimmune disease drug market is expected to grow from $113.7 billion in 2018 to $176.7 billion by 2030, with a CAGR of 3.7% globally and over 20% in China [6][7] Group 5: Improved Drug Development - The company has over 20 projects in the improved drug category, with 11 receiving clinical approval, indicating a robust pipeline [10] - The market for improved drugs in China is expected to reach ¥560 billion by 2025, suggesting a favorable investment return [11][12] Group 6: Subsidiary Development - The subsidiary, Saimer Pharmaceutical, aims to become a global supplier of raw materials and formulations, with a production area of over 260 acres and 16.3 million square meters of GMP-compliant facilities [13][14] - Saimer has successfully registered 435 projects and has 49 products approved, showcasing its strong production capabilities [14] Group 7: CRO Business Status - The CRO/CDMO industry is experiencing a downturn due to cautious investment and increased competition, leading to a decline in orders [15][16] - Recent regulatory changes are expected to positively impact the CRO/CDMO sector, potentially restoring investment enthusiasm [16][17] Group 8: International Expansion Plans - The company is accelerating its internationalization efforts, establishing partnerships to enhance global resource connectivity [19] - Saimer has obtained the EU CEP certificate for minoxidil, marking a significant step in international business expansion [19]

段一 我国 CDMO 行业:核心优势突出,已迈入新阶 -医疗与消费周观点(2025.6.9-2025.6.13) 投资要点: > 近期观点 1、医药指数本周关注的6个子行业一半录得正收益,表现一般。 2、CDMO 行业是制药企业的重要合作伙伴,提供工艺开发和生产 服务。中国拥有超 2.2 亿人才资源,为 CDMO 行业提供强大竞争力。 根据沙利文《中国医药 CDMO 行业发展洞察蓝皮书》,2018-2023年, 中国医药 CDMO市场规模年复合增长率达 39.9%,预计 2033年将达 到 5.369 亿人民币。行业进入新阶段,面临地缘政治、产能过剩等挑战, 头部企业通过全球化和技术壁垒构建,有望提升全球地位。 2025年06月18日 容定期知 风险提示 A 团队成员 赵月(S0210524050016) 分析师: zy30563@hfzq.com.cn 相关报告 技术研发不及预期;宏观需求变化;地缘政治影响 1、波浪式前进的慢牛新格局 -- 2025年下半年 中国资本市场展望 -- 2025.06.17 2、如何看待美股下跌? -- 2025.06.16 3、更大力度推动房地产市场止跌回稳 -- 国内宏 观 ...

华福证券 2025 年 06 月 18 日 策 略 研 究 我国 CDMO 行业：核心优势突出，已迈入新阶 段——医疗与消费周观点（2025.6.9—2025.6.13） 投资要点： 近期观点 1、医药指数本周关注的 6 个子行业一半录得正收益，表现一般。 策 略 定 期 报 告 2、CDMO 行业是制药企业的重要合作伙伴，提供工艺开发和生产 服务。中国拥有超 2.2 亿人才资源，为 CDMO 行业提供强大竞争力。 根据沙利文《中国医药 CDMO 行业发展洞察蓝皮书》，2018-2023 年， 中国医药 CDMO 市场规模年复合增长率达 39.9%，预计 2033 年将达 到 5,369 亿人民币。行业进入新阶段，面临地缘政治、产能过剩等挑战， 头部企业通过全球化和技术壁垒构建，有望提升全球地位。 团队成员 分析师： 赵月(S0210524050016) zy30563@hfzq.com.cn 相关报告 风险提示 技术研发不及预期；宏观需求变化；地缘政治影响 证 券 研 究 报 告 诚信专业 发现价值 1 请务必阅读报告末页的声明 华福证券 1、波浪式前进的慢牛新格局——2025 年下半年 中国资本市场展望— ...

Investment Rating - The report maintains a "Buy" rating for several companies in the healthcare sector, including Asymchem, InnoCare, Samsung Biologics, Shandong Weigao Group, United Imaging, and Zai Lab [29][30]. Core Insights - The China biotech sector has seen a significant re-rating, with a year-to-date increase of 72%, driven by a surge in licensing-out deals, particularly in PD-1/VEGF bispecifics, which has validated asset quality and innovation [1][2]. - Investors are optimistic about the sustainability of this momentum, with expectations for more licensing deals to follow, including potential major deals from CSPC and Sino Biopharma [2]. - The CRO/CDMO sector has also benefited from increased licensing activity, with a 25% year-to-date growth, and companies like Tigermed and WuXi AppTec are highlighted for their resilience [8]. - Medtech is showing signs of recovery, with equipment tendering up 91% year-over-year in May, although revenue recognition remains a challenge due to inventory digestion and centralized procurement processes [8][10]. Summary by Sections China Biotech Licensing and Global Pharma Engagement - The rebound in China biotech is largely attributed to licensing deals with global pharma, enhancing confidence in the quality and innovation of Chinese biotech assets [2]. - Notable licensing deals include Akeso to Summit and 3S Bio to Pfizer, which have allowed companies to monetize global market valuations through royalties [2]. CDMO/CRO Implications - The CRO/CDMO sector has seen a 25% increase year-to-date, with Tigermed reporting a 20% year-over-year increase in new orders for Q1 [8]. - WuXi AppTec and Asymchem are expected to deliver resilient earnings due to their focus on late-stage and commercial manufacturing [8]. Medtech Recovery and Tendering Trends - Medtech has faced challenges, with a year-to-date decline of 4%, but there are signs of recovery in equipment tendering, which increased by 91% year-over-year in May [8][10]. - Companies like United Imaging and Mindray are expected to turn positive in their growth trajectories in the coming quarters [8]. Global Pharma Engagement - Global large pharma continues to recognize the importance of China in their business development strategies, particularly in the context of biopharma innovation cycles [10]. - Companies like GE Healthcare and Philips remain cautious about the capital equipment procurement environment in China, despite positive tendering momentum [10].

ab 10 June 2025 Powered by YES UBS Evidence Lab Global Research China CRO Sector Biopharma survey: the rising BD, R&D budget and outsourcing rate to benefit CRO/CDMO Wave 2 survey points to rising BD activities and R&D budget UBS Evidence Lab conducted the second wave of the China Biopharma Executive Survey (first wave in 2024), to gauge the biopharma industry's attitude to obtaining further funding, expanding R&D and investment, as well as their willingness to outsource R&D to contract research/development ...

Investment Rating - The report indicates a positive outlook for the China healthcare sector, with a recovery underway and improving investor sentiment, particularly in the biotech segment, which has seen a year-to-date performance increase of 37% [1]. Core Insights - The report highlights a significant recovery in the China healthcare sector, driven by improving investor sentiment and bottoming valuations, with offshore healthcare stocks up 21% year-to-date [1]. - Biotech companies are expected to benefit from licensing-out themes and resilience to geopolitical uncertainties, with key events like ASCO in June serving as potential catalysts for individual stock performance [1]. - There is a growing interest in domestic demand, particularly in capital expenditures and hospital traffic, with robust equipment tendering observed [1]. - The report anticipates a consumption recovery in areas such as refractive surgeries and orthodontics, although the sustainability of this recovery is contingent on the broader macroeconomic outlook [6]. - The report emphasizes the importance of global collaboration and licensing opportunities for pharmaceutical companies, with a focus on upcoming data releases at ASCO to enhance business development visibility [16]. Summary by Relevant Sections Biotech - The biotech sector is focusing on global licensing deals and achieving break-even points, with significant catalysts expected from the upcoming ASCO conference [13][14]. - Companies like Zai Lab and Innovent are highlighted for their innovative drug pipelines and potential for global collaboration [14][15]. Pharma - The pharmaceutical industry experienced soft growth in Q1 2025, but companies with strong product cycles, such as Hengrui, are showing better earnings trends [16]. - Collaboration opportunities are expected to increase, particularly with data releases at ASCO [16]. CDMO - CDMO companies reported better-than-expected results in Q1 2025, with strong order growth and maintained guidance for FY25 [17]. - Companies like WuXi Apptec and Asymchem are noted for their resilience in earnings delivery [17]. Medical Consumables - The report indicates challenges in inpatient surgeries due to reimbursement controls, but opportunities exist in the obesity and GLP-1 segments [19]. - Surgical volumes are expected to remain challenging, with ongoing pricing pressures [19]. Capital Equipment - Strong tendering activity was noted, but pricing pressures from value-based purchasing (VBP) are leading to longer revenue realization timelines [21]. - Companies like United Imaging and Mindray are expected to see positive growth in the coming quarters [21]. Retail Pharmacy - The retail pharmacy sector is undergoing a market clearing process, with a net decrease in drugstores for the first time, indicating a consolidation trend [26]. - Yifeng is highlighted as a resilient player in this space, benefiting from operational efficiency [26].

-Ends- Enquiries: OXB: Sophia Bolhassan, Head of Investor Relations – T: +44 (0) 1865 509 737 / E: ir@oxb.com Oxford, UK – 11 June 2025: OXB (LSE: OXB) ("the Company"), a global quality and innovation-led cell and gene therapy CDMO, provides an update to coincide with its Annual General Meeting being held at 3pm BST today at Windrush Court, Oxford, UK. OXB has demonstrated strong commercial momentum and made good operational and commercial progress in the year 2025 to date, as it continues to provide viral ...