Core Viewpoint - The flu season is experiencing a surge in demand for antiviral medications, with a notable shift towards domestic innovative drugs entering the market, leading to a competitive landscape between traditional imported drugs and new local offerings [1][4][10]. Group 1: Market Dynamics - The flu drug market in China is projected to grow at a compound annual growth rate of 20.2%, potentially reaching a market size of 26.9 billion yuan by 2028 [10]. - The introduction of multiple new domestic antiviral drugs has diversified treatment options for patients, enhancing their ability to respond to the flu [4][6]. - The traditional flu drug, Oseltamivir, has seen its price drop to under 2 yuan per pill due to collective procurement, while new innovative drugs are priced significantly higher, around 200 yuan per pill [7][8]. Group 2: New Drug Developments - Several new antiviral drugs have been approved for clinical use, including innovative RNA polymerase inhibitors like Marbofloxacin and others targeting different mechanisms [5][6]. - The first domestic RNA polymerase PB2 protein inhibitor, Anglave, has been developed, marking a significant advancement in flu treatment options [9][10]. - The market is witnessing a mix of classic and innovative flu medications, with sales of Oseltamivir increasing by 237% recently, while new drugs like Marbofloxacin have also seen substantial sales growth [6][8]. Group 3: Consumer Behavior and Trends - There is a growing awareness and demand for new generation flu medications, although the penetration rate remains low, with less than 5% of patients opting for the new PA-targeted flu drugs [8][9]. - The pediatric market for flu medications is underdeveloped, despite children being significantly more susceptible to flu infections compared to adults [11]. - E-commerce platforms are increasingly playing a crucial role in the distribution of flu medications, providing comprehensive services from home testing to online consultations and drug delivery [11].

Group 1: General Information - The research was conducted on Zhongshan Biovalley Pharmaceutical Co., Ltd. in the traditional Chinese medicine industry on June 9, 2025. The company was represented by board secretary Yang Wei and securities affairs representative Chen Zimin [1][2][8] - Participating research institutions included Ping An Securities Co., Ltd., Shenzhen Chuanghua Qisheng Consulting Co., Ltd., and Far East Horizon [2][9] Group 2: R & D Pipeline - The company has established a multi - mode R & D ecosystem, focusing on metabolic and respiratory diseases. It has 2 approved innovative drugs and multiple projects in clinical trials [14] - In metabolic diseases, ZSP1601 for MASH is in Phase IIb clinical trials. RAY1225 for type 2 diabetes and obesity has completed Phase II trials and is entering Phase III [14][23][24] - In respiratory diseases, oral anti - COVID drug Lairetrievir and anti - influenza drug Enlatavir have been approved. Enlatavir granules for children are in Phase II trials [14][15][16] Group 3: R & D Results - ZSP1601 showed potential in reducing liver inflammation and fibrosis in Ib/IIa trials, with results published in Nature Communications [14] - Lairetrievir's research results are published in top journals, and it is included in the expert consensus for COVID treatment [15] - Enlatavir outperformed placebo and Oseltamivir in Phase III trials, and Enlatavir granules showed positive results in Phase II trials for children [16][17][18] - RAY1225 significantly outperformed placebo in weight loss, blood sugar control, and improving cardiovascular - kidney - metabolic risk factors in Phase II trials [25][26][27] Group 4: Marketing Strategy - The company deepens marketing innovation in three dimensions: academic ecosystem construction, digital service upgrade, and key project implementation for Enlatavir sales [19] Group 5: Asset Impairment - In 2024, the company recorded total asset impairment losses of 546.68 million yuan, reducing net profit and equity by 484.10 million yuan. The main reasons were inventory, goodwill, intangible assets, and R & D project impairments [20] Group 6: Equity Redemption - The company redeemed 13.15% of the equity in its subsidiary Zhongshan Biovalley Innovation from other shareholders for 546 million yuan, increasing its stake to 74.26% [29][30] Group 7: Change of Fund Use - The company plans to change the use of 103.08 million yuan of unused raised funds for the "New Drug R & D Project" of its subsidiary Zhongshan Biovalley Innovation, subject to shareholder approval [30][31]