Core Insights - The article discusses the introduction of Daliresp, a new generation insomnia treatment, at the 2025 China International Import Expo, highlighting its potential to reshape the insomnia treatment landscape in China, where nearly 48.5% of adults experience sleep issues [1][6]. Group 1: Traditional Insomnia Treatments - Traditional insomnia medications often lead to dependency and residual effects, causing patients to face a dilemma between sleeplessness and poor next-day performance [2][4]. - Long-term use of conventional sedatives can result in tolerance, requiring higher doses for the same effect, and about 30% of users may experience withdrawal symptoms upon cessation [2][4]. Group 2: Mechanism of Daliresp - Daliresp operates as a dual orexin receptor antagonist (DORA), targeting the orexin system that regulates wakefulness and sleep, thus promoting natural sleep without broadly suppressing brain activity [3][4]. - Clinical studies have shown that Daliresp significantly improves sleep onset and maintenance while not altering sleep structure, which distinguishes it from traditional sedatives [4][5]. Group 3: Clinical Data and Efficacy - In clinical trials, Daliresp reduced sleep onset time by 35 minutes and wake time after sleep onset by 30 minutes, extending total sleep time by one hour without increasing next-day drowsiness [5]. - The drug has shown consistency in effectiveness and safety in both Chinese and overseas clinical studies, with no evidence of dependency or rebound insomnia [5]. Group 4: Market Potential and Competitive Advantages - The Chinese sleep health market exceeds 300 billion yuan and continues to grow, presenting a significant opportunity for Daliresp to capture market share due to its unique mechanism and clinical advantages [6][7]. - Daliresp's safety profile, low dependency risk, and alignment with normal sleep cycles make it appealing to both doctors and patients, enhancing treatment adherence [6][7]. Group 5: Local Production and Accessibility - Local production of Daliresp is expected to reduce costs and improve patient accessibility, addressing the challenges of high prices and supply chain uncertainties associated with imported drugs [8][9]. - The production facility in Hainan is set to achieve an annual capacity of 600 million tablets, ensuring a stable supply for insomnia patients [9]. Group 6: Transformation in Insomnia Treatment - The introduction of Daliresp signifies a shift in insomnia treatment from forced sleep to natural sleep, emphasizing overall sleep health management rather than just symptom control [10]. - As awareness of sleep health increases, medications like Daliresp that target specific physiological mechanisms will play a crucial role in this evolving treatment paradigm [10].

Group 1 - The Hong Kong stock market for innovative drugs has seen significant gains, with companies like Bohan Bio rising over 17%, and other firms such as Sihuan Pharmaceutical and Sanofi Biotech also experiencing substantial increases [1] - Various ETFs related to innovative drugs have also performed well, with multiple funds rising over 2% and others over 1.5% [1][3] Group 2 - Recent updates from the National Healthcare Security Administration indicate that several new innovative drugs have been rapidly entering hospitals, with a focus on those included in the medical insurance directory by May 2025 [5][6] - Notable drugs showing fast hospital admission growth include those from Kangfang Biotech and Shanghai Yizhong, among others [6] Group 3 - Citigroup's research report highlights a significant increase in market interest in the healthcare sector, particularly in innovative drugs, with expectations for the CXO sector to gain attention due to improved fundamentals and attractive valuations [7] - The report also mentions that WuXi AppTec's revenue for fiscal year 2024 is projected to reach 39.24 billion RMB (approximately 5.4 billion USD), with a growth forecast of 10%-15% for 2025 [7] Group 4 - According to CICC's research, China's innovative drug sector is transitioning into a phase of gradual innovation, gaining international competitiveness [8] - The report emphasizes that the domestic innovative drug industry is expected to reach a turning point by 2025, shifting from capital-driven growth to profit-driven growth [8]

Investment Rating - The report maintains an investment rating of "Leading the Market - A" [9] Core Insights - The report highlights that several newly included innovative drugs in the medical insurance directory are rapidly entering hospitals, with significant growth in the number of drugs entering hospitals by the end of May 2025 compared to April 2025 [2][22] - The report notes that the new drug sector has shown a strong performance, with notable increases in stock prices for companies such as Beihai Kangcheng (114.5%), Frontier Biotech (41.4%), and Junsheng Tai (29.4%) during the week of July 7 to July 13, 2025 [1][18] Summary by Sections Weekly New Drug Market Review - From July 7 to July 13, 2025, the top five companies in the new drug sector by stock price increase were Beihai Kangcheng (114.5%), Frontier Biotech (41.4%), Junsheng Tai (29.4%), Kaituo Pharmaceutical (20.7%), and Yongtai Biotech (20.1%) [1][18] - The top five companies by stock price decrease were Yiming Anke (-19.4%), Shenzhou Cell (-13.4%), Ascentage Pharma (-10.0%), Lepu Biotech (-8.9%), and Rongchang Biotech (-8.8%) [1][18] Key Analysis of the New Drug Industry - The National Medical Insurance Administration updated the hospital admission data for innovative drugs included in the medical insurance directory as of the end of May 2025, indicating rapid hospital admissions for several newly included domestic innovative drugs [2][22] - Notable drugs with fast admission growth included Kangfang Biotech's Cardunilumab and Ivorisumab, Shanghai Yizhong's Paclitaxel Micelle, and Zecjin Pharmaceutical's Recombinant Human Thrombin [2][22] New Drug Approval and Acceptance Status - Four new drug or new indication applications were approved this week, including Ascentage Pharma's Lisatoclax tablets and Zhejiang Tianyuan's quadrivalent influenza virus split vaccine [26][27] - Ten new drug applications were accepted, including Dali Yingjie’s Docetaxel Injection and Zhaoke Pharmaceutical's Atropine Sulfate Eye Drops [26][28] Clinical Application Approval and Acceptance Status - This week, 43 new drug clinical applications were approved, and 20 new drug clinical applications were accepted [4][28]