Core Insights - The report from Pacific Securities highlights the significance of VEGF dual antibodies in the treatment of PD-L1 positive non-small cell lung cancer (NSCLC), emphasizing the need for efficacy (ORR ≥ 50%) and safety as key selection criteria for multinational corporations (MNCs) [2] - The market for PD-(L)1 therapies is projected to exceed $50 billion in 2024 and reach $90 billion by 2028, with core drug patents expiring in 2028, making dual antibodies a potential solution to mitigate the patent cliff for MNCs [2] - There is a growing demand for business development (BD) collaborations among MNCs to fill pipeline gaps, enhance therapeutic efficacy through combination therapies, and secure positions in large indication markets like lung cancer [3] Summary by Sections PD-(L)1 Dual Antibodies - The PD-(L)1 market is vast, with a significant patent cliff approaching, prompting interest in dual antibodies as a means to address this challenge [2] - PD-(L)1 monotherapy has a low overall response rate (ORR) of 10-20%, with limited efficacy in cold tumors and low PD-L1 expressing populations, highlighting the unmet clinical needs that dual antibodies aim to fulfill [2] Business Development and Collaboration - MNCs are actively seeking BD opportunities to address their lag in PD-(L)1 dual antibody development, with a focus on technical synergies and market positioning [3] - The first tier of companies has established itself in the market, while the second tier, which includes PD-(L)1/VEGF dual antibodies in phase II trials, is expected to generate early data in the second half of 2025 [4] Clinical Advancements - Innovative therapies such as IBI363, a PD-1/IL2α dual antibody, have shown promising results in treating IO-resistant populations and cold tumors, with a median progression-free survival (mPFS) of 9.3 months in IO-resistant lung squamous carcinoma [4] - The TIGIT dual antibody is advancing in multiple cancer types, with ongoing phase III trials exploring its efficacy in combination with ADCs [4] - The 4-1BB dual antibodies are entering registration trials, indicating a robust pipeline for IO-resistant lung cancer and other indications [4]

Core Viewpoint - The report emphasizes the significance of VEGF dual antibodies in the treatment of PD-L1 positive non-small cell lung cancer (NSCLC), highlighting the need for effective therapies due to the limitations of current PD-(L)1 treatments and the impending patent cliff for key drugs [1][2]. Group 1: Market Potential and Challenges - The PD-(L)1 market is projected to exceed $50 billion in sales by 2024 and reach $90 billion by 2028, with core drug patents expiring in 2028, creating a demand for dual antibodies as a potential solution to mitigate the patent cliff [1]. - Current PD-(L)1 therapies have an objective response rate (ORR) of only 10-20%, with limited efficacy in cold tumors and low PD-L1 expressing populations, indicating a significant unmet clinical need that dual antibodies could address [1]. Group 2: Business Development (BD) Opportunities - Major pharmaceutical companies (MNCs) have a strong need for BD collaborations to fill pipeline gaps, enhance therapeutic efficacy through combination therapies, and secure positions in large indication markets such as lung cancer [2]. - The first tier of companies has established itself with successful clinical trials, while the second tier is gaining attention as they progress through early clinical data readouts [3]. Group 3: Clinical Advancements and Innovations - Companies like CanSino Biologics with AK112 have shown promising results in head-to-head trials against PD-1, with multiple phase III clinical trials underway [3]. - Innovations in dual antibodies, such as IBI363 from Innovent Biologics, demonstrate effectiveness in treating IO-resistant populations and cold tumors, with significant progression-free survival (mPFS) rates reported [3]. - The development of tri-antibodies is in early exploration stages, with potential for multi-target synergistic effects [3].

Investment Rating - The investment rating for the pharmaceutical industry is "Recommended" (maintained) [1] Core Insights - Significant transactions are driving the revaluation of innovative value in the pharmaceutical sector, with major deals such as a $60 billion transaction by 3SBio and a $50 billion forecasted deal by CSPC Pharmaceutical Group [3] - The 2025 ASCO conference highlighted ADC, bispecific antibodies, and tri-specific antibodies as key areas of focus, with promising clinical results reported by Chinese companies [4] - Chinese innovative pharmaceutical companies are leading breakthroughs in CAR-T technology, with significant advancements expected in 2025 [6] - The gout treatment market presents substantial potential, with a projected increase in patients in China from 170 million in 2020 to 240 million by 2030 [8] - The oral weight-loss drug market is seeing increased activity from leading companies, with notable collaborations and clinical advancements [10] - The approval of the world's first flu RNA polymerase PB2 protein inhibitor offers new treatment options for flu resistance [12] Summary by Sections 1. Pharmaceutical Market Tracking - The pharmaceutical industry outperformed the CSI 300 index by 2.21% over the past week, with a weekly increase of 3.30% [28] - Over the past month, the pharmaceutical sector also outperformed the CSI 300 index by 4.57%, with a monthly increase of 6.42% [31] 2. Pharmaceutical Sector Trends and Valuation - The pharmaceutical industry index currently has a PE (TTM) of 34.03, slightly above the five-year historical average of 32.54 [45] 3. Recent Research Achievements - The research team has published several in-depth reports on various segments of the pharmaceutical industry, highlighting growth trends and market opportunities [48] 4. Recent Industry Policies and News - Recent policy changes include adjustments to tariffs on imported goods from the U.S. and guidelines for the construction and management of geriatric medicine departments [51] - Notable news includes the approval of multiple innovative drugs and clinical trials by various pharmaceutical companies [52][53]