Investment Rating - The report maintains a "Market Weight" rating for the pharmaceutical and biotechnology industry [6][29]. Core Insights - The SW pharmaceutical and biotechnology industry underperformed the CSI 300 index, declining by 1.27% from August 22 to September 4, 2025, which is approximately 3.07 percentage points lower than the index [13][29]. - Most sub-sectors within the industry recorded negative returns during the same period, with the medical research outsourcing and chemical preparation sectors showing the highest gains of 12.17% and 5.45%, respectively. In contrast, the in vitro diagnostics and raw materials sectors experienced declines of 5.96% and 4.95% [16][19]. - Approximately 22% of stocks in the industry recorded positive returns, while around 78% experienced negative returns during the reporting period [17][19]. - The overall price-to-earnings (PE) ratio for the SW pharmaceutical and biotechnology industry was approximately 55.41 times, with a relative PE ratio of 4.23 times compared to the CSI 300 index, indicating little change in industry valuation [20][29]. Summary by Sections 1. Market Review - The SW pharmaceutical and biotechnology industry underperformed the CSI 300 index, with a decline of 1.27% from August 22 to September 4, 2025 [13]. - Most sub-sectors recorded negative returns, with medical research outsourcing and chemical preparations leading in gains [16]. - About 22% of stocks in the industry had positive returns, while 78% had negative returns [17]. 2. Industry News - The National Healthcare Security Administration announced the list of drugs for the 2025 National Basic Medical Insurance, with 718 submissions and 535 passing the initial review [27]. - The report highlights the upcoming national medical insurance negotiations and the analysis of 25 traditional Chinese medicine products [27]. 3. Company Announcements - Guangzhou Baiyunshan Pharmaceutical Group announced that its subsidiary received approval for a drug to pass the consistency evaluation for generic drugs [28]. 4. Industry Outlook - The report suggests focusing on investment opportunities in the innovative drug sector and related areas, including medical devices and traditional Chinese medicine [29][32].

Core Viewpoint - Guangzhou Baiyunshan Pharmaceutical Group Co., Ltd. announced that its subsidiary, Guangzhou Baiyunshan Tianxin Pharmaceutical Co., Ltd., received approval from the National Medical Products Administration for the consistency evaluation of the quality and efficacy of injectable Cefotaxime [1][2] Drug Basic Information - The drug is injectable Cefotaxime with specifications of 0.5g and 1.0g, classified as a chemical drug [1] - The approval notification numbers are 2025B04013 and 2025B04015, with acceptance numbers CYHB2350966 and CYHB2350965 [1] - The drug is produced by Guangzhou Baiyunshan Tianxin Pharmaceutical Co., Ltd., located at 808 Binhai East Road, Haizhu District, Guangzhou [1] Drug Related Information - Tianxin Pharmaceutical obtained the registration certificate for injectable Cefotaxime in September 2002 and submitted the consistency evaluation application in December 2023 [3] - Injectable Cefotaxime is a third-generation cephalosporin antibiotic used for treating various infections, including severe systemic infections and respiratory tract infections [3] - The sales revenue for injectable Cefotaxime in 2024 is projected to be RMB 1,431.78 million, with total sales in China expected to reach RMB 185,877 million [3] R&D Investment - As of the announcement date, Tianxin Pharmaceutical has invested approximately RMB 1,036 million in the R&D project for injectable Cefotaxime [4]

Core Viewpoint - Baiyunshan's subsidiary, Guangzhou Baiyunshan Tianxin Pharmaceutical Co., Ltd., has received approval from the National Medical Products Administration for its injectable Cefoperazone, indicating a successful evaluation of the drug's quality and efficacy consistency as a generic medication [1] Group 1 - Baiyunshan's announcement highlights the approval of injectable Cefoperazone (0.5g, 1.0g) as a third-generation cephalosporin antibiotic [1] - The drug is indicated for the treatment of infections caused by sensitive microorganisms, whether singular or multiple [1]

Core Viewpoint - Guangzhou Baiyunshan Pharmaceutical Holdings Company Limited's subsidiary, Guangzhou Baiyunshan Tianxin Pharmaceutical Co., Ltd., has received approval from the National Medical Products Administration for the injection of Cefoperazone (0.5g, 1.0g), which has passed the consistency evaluation of quality and efficacy for generic drugs [1] Group 1 - The approved product, Cefoperazone injection, is a third-generation cephalosporin antibiotic [1] - Cefoperazone is indicated for the treatment of infections caused by sensitive microorganisms, including severe systemic infections, lower respiratory tract infections (including pneumonia), ear, nose, and throat infections, urinary tract infections, skin and soft tissue infections, bone and joint infections, gynecological infections, gastrointestinal, biliary, and abdominal infections, blood/peritoneal dialysis and continuous ambulatory peritoneal dialysis (CAPD)-related infections, central nervous system infections (including meningitis), and prevention of perioperative urinary tract infections [1]

Core Viewpoint - The company has received approval for its injectable Cefoperazone, indicating a significant advancement in its pharmaceutical offerings and potential market impact [1] Group 1 - The company, Guangzhou Baiyunshan Tianxin Pharmaceutical Co., Ltd., a subsidiary of Baiyunshan, has received the "Drug Supplement Application Approval Notice" from the National Medical Products Administration [1] - The injectable Cefoperazone (0.5g, 1.0g) has passed the consistency evaluation of quality and efficacy for generic drugs [1] - Cefoperazone is a third-generation cephalosporin antibiotic, suitable for treating infections caused by sensitive microorganisms [1]

Core Viewpoint - Recently, the company announced that its subsidiary, Guangzhou Baiyunshan Tianxin Pharmaceutical Co., Ltd., received approval from the National Medical Products Administration for the supplementary application of injectable Cefotaxime (0.5g, 1.0g), which has passed the consistency evaluation of quality and efficacy for generic drugs [1] Group 1 - The company has a significant development in its pharmaceutical segment with the approval of injectable Cefotaxime [1] - The approval indicates the company's commitment to enhancing its product portfolio and meeting regulatory standards [1] - This development may lead to increased market competitiveness for the company's pharmaceutical products [1]

Core Viewpoint - Baiyunshan (600332.SH) announced that its subsidiary, Guangzhou Baiyunshan Tianxin Pharmaceutical Co., Ltd., received approval from the National Medical Products Administration for the injection of Cefoperazone (0.5g, 1.0g), which has passed the consistency evaluation of generic drug quality and efficacy [1] Group 1 - The approved drug, Cefoperazone, is a third-generation cephalosporin antibiotic [1] - Cefoperazone is indicated for the treatment of infections caused by sensitive microorganisms, including severe systemic infections, lower respiratory tract infections (including pneumonia), ENT infections, urinary tract infections, skin and soft tissue infections, bone and joint infections, gynecological infections, gastrointestinal, biliary, and abdominal infections, blood/peritoneal dialysis, and central nervous system infections (including meningitis) [1] - The drug is also used for the prevention of perioperative urinary tract infections [1]

Group 1: Company Overview - The company has seen significant revenue growth and steady profit improvement in its GNC China business, but there is still room for optimization in expense management [1] - The company plans to actively explore the potential of commercial contract promotion and implement various measures to reduce costs and improve efficiency, focusing on precise allocation of sales expenses [1] - The company aims to strengthen brand value and promote compliant, high-quality development of its GNC China business while closely monitoring market dynamics [1] Group 2: Market and Product Development - The orthopedic external patch market in China has exceeded 10 billion, with a compound annual growth rate of 9.55% driven by aging population and chronic disease management awareness [2] - The company is focusing on the development of traditional Chinese medicine combined with modern transdermal technology for its key prescription product, the wind-dispelling pain gel [2] - The company plans to continue digital and intelligent transformation of its traditional Chinese medicine production lines to enhance efficiency and responsiveness to national policy [2] Group 3: Future Product Pipeline - The company has received approval for a generic drug, lactulose oral solution, and is progressing with two other products through consistency evaluation [2] - Upcoming products expected to be approved in the next two years include oseltamivir phosphate dry suspension and iron protein succinate oral solution, among others [2] - The company will focus on major disease areas such as cardiovascular, digestive metabolism, respiratory, anti-infection, and anti-tumor, with an emphasis on developing medications for the elderly and children [2] Group 4: Financial Management - The company disclosed that its interest income comes solely from bank deposits, with no involvement in financial products or lending for interest income [3] - The company emphasizes a scientific and reasonable financial planning approach to maintain sufficient debt repayment capacity and a reasonable capital structure [3] - The company has established a budget management system to ensure that every expense has a responsible party and approval process, with regular evaluations and adjustments [3][4]