Investment Rating - The report maintains an "Overweight" rating for the pharmaceutical and biotechnology industry [1]. Core Insights - The autoimmune disease sector is entering the era of bispecific antibodies, with significant market potential and unmet treatment needs, projected to reach USD 119.35 billion by 2027 [4][16]. - The report highlights the advantages of bispecific antibodies in treating autoimmune diseases, including improved efficacy through dual-targeting mechanisms and reduced toxicity [20][21]. - The report suggests focusing on companies with promising bispecific antibody candidates in clinical stages, such as ZhiXiang JinTai, KangNuoYa, and KangFang Biotech [4][11]. Summary by Sections Industry Trends - The A-share pharmaceutical index has increased by 4.0% this week and 16.59% year-to-date, outperforming the CSI 300 by 2.9% and 13.45% respectively [9]. - The H-share biotechnology index has shown a year-to-date increase of 81.80%, outperforming the Hang Seng Technology Index by 56.88% [9]. Autoimmune Diseases Entering the Bispecific Era - Bispecific antibodies can target two different antigens simultaneously, providing enhanced therapeutic effects and addressing treatment resistance [17][20]. - The report discusses the competitive landscape for bispecific antibodies in treating conditions like COPD and IBD, emphasizing the need for better treatment options [4][10]. R&D Progress and Company Dynamics - The report notes the approval of HeYuan Biotech's recombinant human serum albumin, marking a significant milestone in the domestic market [4]. - It provides a detailed overview of ongoing clinical trials and product approvals, highlighting key players in the innovation drug sector [4][11]. Market Insights and Regulatory Dynamics - The report tracks the performance of various pharmaceutical sub-sectors, noting significant gains in raw materials and chemical pharmaceuticals [9]. - It emphasizes the importance of regulatory developments and market dynamics in shaping the industry's future [4][10]. Specific Investment Recommendations - The report ranks preferred sub-sectors as follows: innovative drugs > research services > CXO > traditional Chinese medicine > medical devices > pharmacies [10]. - Specific companies to watch include ZhiXiang JinTai, KangFang Biotech, and KangNuoYa for innovative drugs, and WuXi AppTec and Aopumai for research services [11][12].