Investment Rating - The investment rating for the pharmaceutical and biotechnology industry is "Positive" and the rating has been maintained [2] Core Viewpoints - The GLP-1 weight loss drugs are experiencing explosive growth globally and in China, with significant sales figures expected for the year [7] - The pharmaceutical and biotechnology industry index increased by 1.50%, ranking 16th among 31 primary industries, underperforming the CSI 300 index [5][15] - The industry PE (TTM) as of May 9, 2025, is 26.77x, showing an upward trend but still below the average [20] Industry Review - The pharmaceutical and biotechnology industry index increased by 1.50%, ranking 16th among 31 primary industries, underperforming the CSI 300 index which increased by 1.56% [5][15] - The medical equipment and pharmaceutical distribution sectors showed the highest gains, with increases of 3.92% and 2.38% respectively, while medical research outsourcing saw a decline of 0.65% [5][15] - As of May 9, 2025, the PE (TTM) for the pharmaceutical and biotechnology industry is 26.77x, up from 26.34x in the previous period, indicating a valuation increase [20] Investment Suggestions - The current trend in GLP-1 weight loss drugs indicates a golden development period for the industry, with significant sales growth expected both globally and in China [7] - The report suggests focusing on companies with solid clinical data, sufficient production capacity, and integrated supply chain capabilities [7] Important Industry News - The NMPA has released new regulations for the quality management of online sales of medical devices, effective from October 1, 2025 [25] - The approval of the first long-acting analgesic new drug in China, "Meloxicam Injection," marks a significant milestone in the industry [31] - Johnson & Johnson's "Guselkumab Injection" has been approved as the first IL-23 inhibitor for treating ulcerative colitis in China [33] - The investment of 2.04 billion RMB by Roche in a new biopharmaceutical production base in Shanghai highlights the ongoing commitment to local production and supply chain enhancement [43]

Policy Developments - The new draft of the "Further Optimization of Drug Procurement Policy" has circulated in the industry, emphasizing the procurement of medical consumables alongside drugs, enhancing policy flexibility [1] - Since the implementation of the "4+7" volume-based procurement in 2018, the government has organized 10 batches of drug procurement and 5 batches of high-value medical consumables procurement, successfully procuring a total of 435 types of drugs [1] Drug and Device Approvals - Johnson & Johnson's Guselkumab has received approval for a new indication in China for treating moderate to severe active ulcerative colitis in adults who have inadequate response to traditional therapies or biologics [2] - Fosun Pharma's subsidiary has received FDA approval to conduct clinical trials for LBP-ShC4, a live biotherapeutic product aimed at treating androgenetic alopecia, with a cumulative R&D investment of approximately 0.17 million yuan by April 2025 [3] - Reindeer Biologics announced that its CAR-T cell therapy product, Ikigai, has received orphan drug designation from the Saudi FDA for treating relapsed or refractory multiple myeloma in adults [4] Capital Markets - HAYA Therapeutics has completed a $65 million Series A financing round to accelerate the clinical development of its long non-coding RNA-targeted candidate drug HTX-001 for heart failure [5] Regulatory Actions - Pace Double Forest Biopharmaceuticals received administrative regulatory measures from the Shanxi Securities Regulatory Bureau due to internal control deficiencies and inaccurate information disclosure [6] - Maiwei Biotech's chairman received a notice of investigation from the China Securities Regulatory Commission for suspected short-term trading, which is not expected to significantly impact the company's daily operations [7] - Tibet Weixin Pharmaceutical's subsidiary has withdrawn its drug registration application for a pediatric compound amino acid injection, which is not yet marketed in China [8]