Investment Rating - The investment rating for the pharmaceutical and biotechnology industry has been downgraded from "Positive" to "Neutral" [2][52] - The rating for 恒瑞医药 (Hengrui Medicine) is maintained at "Buy" [2][52] Core Insights - The National Medical Security Work Conference was held to summarize the work during the 14th Five-Year Plan and deploy key tasks for 2026, focusing on high-quality development of medical insurance [9][10] - The new drug directory and commercial health insurance innovation drug directory are expected to be implemented, suggesting potential growth for pharmaceutical companies whose products enter the medical insurance system [52] - The report highlights the importance of optimizing the payment structure for pharmaceutical companies and the investment opportunities arising from this [52] - Recent advancements in AI healthcare applications are noted, with a recommendation to focus on related medical services and pharmaceutical commercial sectors [52] Industry News - The National Medical Security Bureau has issued a three-year action plan to improve the quality and efficiency of medical insurance fund settlement [11][12] - The second-generation cardiac muscle troponin inhibitor, 星舒平® (Afikaytai), has been approved in China for treating obstructive hypertrophic cardiomyopathy [13] - The AI health application "蚂蚁阿福" (Ant Health) has entered the first tier of AI applications, reflecting strong demand for health management [13] Industry Data - The price of vitamin raw materials as of December 18, 2025, remains stable, with Vitamin B1 at 238 RMB/kg and Vitamin D3 at 160 RMB/kg [14] - The Chinese herbal medicine market price index has decreased by 16% year-on-year, with specific herbs like 连翘 (Forsythia) and 党参 (Codonopsis) showing significant price drops [18] Company Announcements - 和铂医药-B (HaploMed) has signed a global strategic cooperation and licensing agreement with Bristol-Myers Squibb, potentially receiving up to 1.125 billion USD in milestone payments [30] - 翰森制药 (Hansoh Pharmaceutical) has entered a licensing agreement with Glenmark for the drug 阿美替尼 (Amivantamab) for non-small cell lung cancer [31] - 诺诚健华 (Innovent Biologics) has received approval for the III phase clinical trial of 奥布替尼 (Orelabrutinib) for systemic lupus erythematosus [33] Market Review - The Shanghai Composite Index rose by 0.08%, while the Shenzhen Component Index fell by 0.71%, with the SW pharmaceutical and biotechnology index declining by 1.23% [45] - The SW pharmaceutical and biotechnology industry has a TTM P/E ratio of 50.11, with a valuation premium of 259% compared to the CSI 300 [47]

Core Viewpoint - The first Import Expo Quality Products Trade Fair in Shanghai showcased over 700 companies from more than 60 countries, emphasizing the importance of quality products and consumer engagement in the post-Expo period [3][10]. Group 1: Event Overview - The trade fair took place from December 19 to 21 at the National Exhibition and Convention Center in Shanghai, serving as a key extension of the Import Expo [3]. - The event featured a variety of products, including health foods from Oceania, home appliances from Europe, personal care items from the Americas, and beauty products from Asia, all popular among consumers [5]. Group 2: Innovative Sales Approach - New Zealand's New Zealand Dairy Company transformed its booth into an immersive 360-degree live streaming space, allowing for real-time interaction and purchases, effectively merging online and offline sales [9][10]. - The company's star product, colostrum milk powder, sold out its initial batch of 25,000 cans within a month of its global debut at the previous Import Expo, highlighting its popularity [9][10]. Group 3: Consumer Engagement and Education - The trade fair served as a platform for companies to educate consumers about their products, with Medtronic showcasing advanced medical technologies aimed at enhancing health consumer choices [14]. - The event included a special area for health education, where innovative medical products were displayed, emphasizing the importance of consumer awareness in health technology [16]. Group 4: Brand Participation and Market Impact - Companies like Sanofi and Boston Scientific presented products that had previously debuted at the Import Expo, demonstrating a successful transition from exhibition to market availability [15][16]. - Shiseido adopted a direct sales model at the trade fair, allowing consumers to experience products firsthand and make immediate purchases, reflecting a shift towards consumer-centric marketing strategies [17][18].