Core Insights - Gout is a significant health issue in China, with over 30% of the world's gout patients residing in the country, projected to reach nearly 18 million by 2025 [1] Group 1: Gout Prevalence and Treatment - China accounts for 17.4% of the global population but has over 30% of the world's gout patients, indicating a high prevalence of the disease [1] - The prevalence of hyperuricemia among Chinese adults reached 14% according to 2018-2019 data, with some progressing to gout [1] Group 2: Treatment Approaches - Gout treatment is divided into acute phase relief and chronic uric acid lowering therapy, with first-line medications including colchicine and NSAIDs for acute treatment [2] - Common medications for uric acid lowering include xanthine oxidase inhibitors (allopurinol, febuxostat), uricosuric agents (benzbromarone, probenecid), and uricase agents (pegloticase, rasburicase) [2] Group 3: Research and Development in Uric Acid Lowering - Research on uric acid lowering treatments is focused on URAT1 inhibitors, with drugs like Molnupiravir showing promising efficacy and safety, potentially becoming first-line treatments [3] - The competition in the URAT1 inhibitor space remains intense, with several candidates still awaiting further clinical efficacy data [3] Group 4: Acute Phase Relief Innovations - Research for acute phase relief is centered on IL-1β inhibitors, with the approval of Vusirikumab, the first IL-1β inhibitor in China, which significantly reduces the risk of recurrence by over 90% [4] - Vusirikumab's pain relief efficacy is comparable to that of combination betamethasone, marking a significant advancement in gout treatment [4]

Economic Growth - Jilin Province's industrial added value increased by 7.8% year-on-year in the first half of the year, with all eight key industries showing positive growth [1] - The equipment, pharmaceutical, and electronic manufacturing industries achieved double-digit growth rates of 19.5%, 16.8%, and 21.5% respectively [1] Industry Development - The province is implementing policies to support industrial development, including "two heavies" and "two new" initiatives, promoting intelligent and digital transformation, and fostering new productive forces [1] - Major technological equipment industries, represented by advanced rail transit equipment, are expanding in scale, accelerating innovation, and broadening application scenarios [3] Technological Advancements - CR450 trainsets from CRRC Changchun Railway Vehicles Co., Ltd. have completed prototype rollout and testing, while the first hydrogen-powered tourist tram has been launched [3] - Long光卫星技术股份有限公司 has completed four iterations of its satellite design and manufacturing technology, and two medium-sized drones from 长春长光博翔无人机有限公司 have received special airworthiness certificates [3] Pharmaceutical Sector - The province is leveraging various support policies to guide enterprises in product innovation and structural adjustment, with companies like 金赛药业 and 迪瑞医疗 focusing on key technologies [3] - 金赛药业's monoclonal antibody "伏欣奇拜单抗" has been approved for market, becoming the first domestic monoclonal antibody for acute gout attacks in adults [3] Electronics and Display Technology - Jilin Province is advancing the establishment of high-end CMOS image sensor production lines and initiating OLED new display material projects [4] - Companies like 富赛电子 and 华微电子 are being supported to fully release production capacity, contributing to new economic growth [4]

Group 1 - The core viewpoint is that the value reassessment of innovative drugs is driven by overseas expansion and clinical breakthroughs, with significant growth in transaction volume and quantity in the first half of 2025 [1] - The total transaction amount related to innovative drugs in China reached $60.8 billion in the first half of 2025, a year-on-year increase of 129%, with 144 transactions, up 67% year-on-year [1] - The recognition of the value of innovative drugs by overseas multinational corporations (MNCs) is rapidly increasing, particularly in areas such as PD-1 bispecific antibodies, where Chinese companies have gained a leading edge [1] Group 2 - The focus is on the three-antibody combination, such as CD3/CD38/BCMA, which shows positive efficacy in hematological and solid tumors, with domestic three-antibody SIM0500 already authorized [1] - GLP-1 class drugs are reshaping the market with global sales revenue exceeding $50 billion, and the transaction volume in the weight loss sector in the first half of 2025 is 1.5 times that of the entire year of 2024 [1] - Breakthroughs in the autoimmune field, such as the international market development of Tai Tasi Pi through MG clinical data advantages, are highlighted [1]

Group 1 - The core viewpoint is that the innovation-driven overseas expansion is a significant factor in the revaluation of innovative drug value, with a total transaction amount of $60.8 billion in the first half of 2025, representing a 129% year-on-year increase, and the number of transactions reaching 144, up 67% year-on-year [1] - There is a rapid increase in the value recognition and transaction amounts for PD-1 bispecific antibodies by overseas multinational corporations (MNCs), with Chinese companies maintaining a leading edge in bispecific antibodies and antibody-drug conjugates (ADCs) [1] - The focus on tri-antibody combinations has significantly increased, with CD3/CD38/BCMA tri-antibodies showing positive clinical data in hematological malignancies and solid tumors, presenting a strong challenge to PD-1 in first-line treatment for non-small cell lung cancer [1] Group 2 - GLP-1 class drugs are reshaping the market with over $50 billion in global sales revenue, and the transaction volume in the weight loss sector in the first half of 2025 has reached 1.5 times that of the entire year of 2024, with differentiated competitive strategies focusing on oral administration, muscle gain, and lower side effects [1] - Breakthroughs in the autoimmune field have been achieved, such as the international market development of TaiTasiP, leveraging clinical data advantages, while small molecule targets like TYK2 and IL-23 are becoming differentiated competitive directions [1] - The treatment of gout has entered the era of biological therapy, with the launch of Vusincumab significantly delaying recurrence time, indicating the gradual emergence of domestic new drugs in overseas markets [1]

Investment Rating - The report maintains a "Recommended" investment rating for the pharmaceutical industry [1] Core Insights - The domestic new drug market is expected to continue its growth momentum, driven by the synchronization of commercial insurance and medical insurance directories, which is likely to establish a differentiated pricing mechanism for innovative drugs [3] - The focus on tri-specific antibodies (tri-Abs) is increasing, with significant developments expected in 2025, particularly in the field of solid tumors [4] - The trend towards more effective and scientifically-backed weight loss solutions is gaining traction, with GLP-1 drugs projected to generate over $50 billion in global sales in 2024 [5] - The self-immune direction in biopharmaceuticals is seeing increased business development (BD) activity, with notable collaborations and advancements in clinical trials [6] - The approval of Vuxinib (伏欣奇拜单抗) marks a new era in biological treatments for gout, with significant market potential anticipated due to the rising prevalence of hyperuricemia and gout in China [7] Summary by Sections 1. Pharmaceutical Market Tracking - The pharmaceutical industry outperformed the CSI 300 index by 1.00 percentage points in the last week, with a weekly increase of 1.82% [18] - Over the past month, the pharmaceutical sector lagged behind the CSI 300 index by 1.36 percentage points, with a monthly increase of 1.73% [21] 2. Pharmaceutical Sector Trends and Valuation - The pharmaceutical sector's recent performance shows a 1.73% increase over the last month, underperforming the CSI 300 index [34] - The current price-to-earnings ratio (PE) for the pharmaceutical index is 35.79, above the five-year historical average of 32.22 [37] 3. Recent Research Achievements - The research team has published several in-depth reports highlighting trends in the pharmaceutical industry, including the growth of blood products and the impact of policies on inhalation formulations [41] 4. Recent Industry Policies and News - The National Healthcare Security Administration released measures to support the high-quality development of innovative drugs, enhancing their market access and payment capabilities [43] - Recent collaborations and licensing agreements among major pharmaceutical companies indicate a robust trend in the industry, with significant advancements in clinical trials and product approvals [44][46]

Industry Investment Rating - The industry investment rating is "Outperform" [2] Core Views - The report highlights that the PD-(L)1/VEGF bispecific antibody business development (BD) expectations are driving a sustained surge in the innovative drug market. AstraZeneca is in talks for a potential deal worth up to $15 billion with Summit Therapeutics for the PD-1/VEGF bispecific antibody AK112, indicating strong recognition from multinational corporations (MNCs) for this class of drugs [5][14] - The successful launch of Vuxin Qibai monoclonal antibody marks a harvest period for innovative drugs in the gout field, with the market for anti-gout drugs in China expected to grow from 2.2 billion yuan in 2024 to over 10 billion yuan by 2030 [6][32] - The pharmaceutical and biotechnology sector has seen a 3.64% increase, outperforming the CSI 300 index by 2.1 percentage points, ranking 4th among 31 sub-industries [7][41] Summary by Sections Weekly Insights - The report discusses the ongoing excitement in the innovative drug market driven by the PD-(L)1/VEGF bispecific antibody BD expectations and the successful market entry of Vuxin Qibai monoclonal antibody [5][6][14] Subsector Performance - The pharmaceutical and biotechnology sector rose by 3.64%, with other biopharmaceuticals showing the highest increase of 8.28%. The medical device sector experienced the largest decline at 0.21% [7][41][44] Recommended and Benefiting Stocks - Recommended stocks include: - Innovative drugs: Xinda Biopharma, Kangfang Biopharma, and others - Medical devices: Yingke Medical, Maipu Medical, and others - Benefiting stocks: Innovative drugs in H-shares and A-shares, including Zai Lab, Yifang Biopharma, and others [8][40][51]

Investment Rating - The investment rating for the pharmaceutical and biotechnology industry is "Positive" and the rating has been maintained [2] Core Insights - The pharmaceutical and biotechnology industry index increased by 5.30%, outperforming the CSI 300 index which rose by 3.52% during the reporting period [3][14] - The PE ratio (TTM, excluding negative values) for the pharmaceutical and biotechnology industry as of July 4, 2025, is 28.52x, up from 27.28x in the previous period, indicating an upward trend in valuation [3][19] - Notable sub-industries include "Other Biological Products" and "Medical R&D Outsourcing," which saw increases of 11.20% and 9.37% respectively, while "Medical Equipment" and "Blood Products" lagged with increases of only 0.98% [3][14] Industry Trends - The report highlights significant policy measures from the National Healthcare Security Administration and the National Health Commission aimed at supporting the high-quality development of innovative drugs [5][6] - The introduction of a commercial health insurance innovative drug directory is a key breakthrough, facilitating better pricing and reimbursement mechanisms for high-value drugs [6] - The report emphasizes the importance of the innovative drug industry chain, particularly focusing on platform pharmaceutical companies, clinical CROs, and high-barrier CDMOs [6] Important Industry News - The approval of several innovative drugs, including "ZEGFROVY" by Dize Pharmaceutical and "TQG203" by Zhengda Tianqing, marks significant advancements in the industry [41][42][46] - The report notes that the global number of hemophilia patients is expected to increase by 25% by 2025, highlighting the growing market for innovative treatments [42] - The approval of "Mastrudep" by Innovent Biologics for weight management in adults showcases the expanding therapeutic applications of GLP-1R/GCGR dual agonists [49][50] Investment Recommendations - Continuous attention is recommended for the innovative drug industry chain, particularly for companies that can navigate the new dual directory system and have international expansion capabilities [6] - The report suggests that the recent policy changes and the successful IPO of a biotech company signal a positive outlook for the innovative drug sector [6]

Investment Rating - The report maintains an investment rating of "Outperform the Market - A" for the biopharmaceutical sector [7]. Core Insights - The National Healthcare Security Administration has initiated the adjustment work for the 2025 National Basic Medical Insurance, Maternity Insurance, and Work Injury Insurance Drug Catalog, which is expected to include multiple new drugs for negotiation [2]. - From July 1, 2024, to June 30, 2025, approximately 19 oncology drugs and 23 non-oncology drugs are anticipated to be approved and may participate in the 2025 medical insurance negotiations [2]. Summary by Sections 1. Weekly New Drug Market Review - From June 30, 2025, to July 4, 2025, the top five companies in the new drug sector by stock price increase were: - Zai Lab (45.00%) - Sanofi (36.30%) - Frontier Biopharma (30.60%) - Micron Biomedicine (30.50%) - Kangfang Biopharma (25.50%) - The top five companies with the largest declines were: - Oconview (-12.90%) - Kexin Pharmaceuticals (-9.10%) - Dongyao Pharmaceuticals (-6.70%) - Lepu Biopharma (-6.40%) - Yifang Biopharma (-3.60%) [1][16]. 2. Weekly New Drug Industry Analysis - The adjustment work for the 2025 medical insurance catalog has begun, allowing new generic drugs approved between January 1, 2020, and June 30, 2025, to apply for inclusion [2]. - The expected new drugs for negotiation in 2025 will primarily be those approved between July 1, 2024, and June 30, 2025 [2]. 3. Weekly New Drug Approval & Acceptance Status - This week, 22 new drugs or new indications received approval for market entry, while one new drug application was accepted [3][26]. 4. Weekly New Drug Clinical Application Approval & Acceptance Status - A total of 46 new drug clinical applications were approved this week, and 31 new drug clinical applications were accepted [4][32]. 5. Key Domestic Market Events - Key events included the approval of a MET inhibitor by Hutchison China MediTech for treating advanced non-squamous non-small cell lung cancer and the approval of an anti-IL-1β monoclonal antibody by Junshi Biosciences for treating acute attacks of gouty arthritis [5][12]. 6. Key Overseas Market Events - Notable overseas events included Moderna's positive progress in its seasonal flu mRNA vaccine study, Regeneron's accelerated approval of a dual antibody for multiple myeloma, and Pfizer's announcement of a significant reduction in bleeding rates in hemophilia patients [13].

Investment Rating - The report maintains a strong confidence in the pharmaceutical sector, particularly in innovative drugs, predicting a reversal trend in 2025 [4] Core Viewpoints - The innovative drug sector is experiencing strong performance driven by multiple factors, including the completion of quarterly portfolio adjustments, increased policy support from the National Healthcare Security Administration (NHSA) and the National Health Commission, and significant collaborations in the industry [1][11] - The NHSA and the National Health Commission have jointly released measures to support the high-quality development of innovative drugs, which will accelerate the commercialization of domestic innovative products and create a positive cycle of profitability and strong R&D investment [20][21] - The report highlights the potential of dual/multi-target antibodies in cancer treatment and innovative drugs addressing unmet clinical needs in chronic diseases as key investment opportunities [1][4] Summary by Sections Innovative Drugs - The innovative drug sector remains the main investment line, with a focus on dual/multi-target antibodies for various cancers and chronic diseases [1][11] - AstraZeneca is in talks for a collaboration worth up to $15 billion for the AK112 drug, which has catalyzed strong performance in related stocks [1] Pharmaceutical Sector - The NHSA's new measures will direct more healthcare resources towards innovative drugs, enhancing their commercialization and profitability [20][21] - The report notes that since 2018, 149 innovative drugs have been included in the healthcare insurance directory, significantly increasing the proportion of new drugs covered [22] Biologics - Changchun High-tech's new drug, Vuxin Qibai monoclonal antibody, has been approved for treating acute gout arthritis, marking a significant advancement in biologics [29][34] - The drug shows rapid onset of action and a substantial reduction in recurrence risk, highlighting its clinical significance [33][34] Traditional Chinese Medicine - Lingrui Pharmaceutical's new indication for its nasal spray is expected to boost sales, with ongoing efforts to expand hospital coverage and OTC sales [38][41] Medical Devices - The report emphasizes policy support for high-end medical devices, predicting accelerated commercialization in various segments such as medical robots and AI [3][4] Medical Services - Recent policies to enhance maternity benefits are expected to stimulate demand in related services [3][4]

Group 1 - The company has established a partnership with Tianlu Technology to create a new AI pharmaceutical company, Saiwu Jianfei, to enhance collaboration and expand related business [1] - The management highlighted that Meishiya possesses significant advantages in technology, clinical needs, and commercialization capabilities, with minimal competition in the short term as the only nano-formulation in a blue ocean market [1] - The company is actively promoting the approval process for its products, with the powder formulation expected to be approved this year, while similar products from competitors are still in clinical stages [2] Group 2 - The company has implemented a series of compliance management systems for recruitment and assessment over its 30-year development, addressing concerns about hiring practices and employee experiences [3] - The company plans to optimize a small portion of its workforce while ensuring the stability of its core team, aiming to enhance efficiency and reduce costs in alignment with its strategic planning [3] - The company is committed to responding to industry trends by increasing innovation investments and introducing cutting-edge pharmaceutical products and technologies across various sectors [2]