Core Viewpoint - The collaboration between Maiwei Biotech's subsidiary Taikang Biotech and Qilu Pharmaceutical has garnered significant attention, focusing on the licensing agreement for the injectable drug Agrelistat α (brand name: Maili Sheng®) [1] Group 1: Collaboration Details - The licensing agreement grants Maiwei Biotech exclusive rights for Qilu Pharmaceutical to develop, produce, improve, utilize, and commercialize the licensed product in Greater China, including mainland China, Hong Kong, Macau, and Taiwan [1] - Taikang Biotech is set to receive a total of up to 500 million RMB in upfront and milestone payments, along with royalties of up to double-digit percentages of net sales from the licensed product [1] Group 2: Product Information - Agrelistat α is a recombinant human serum albumin-granulocyte colony-stimulating factor (G-CSF) fusion protein, designed to reduce the incidence of infections in adult patients with non-myeloid malignancies undergoing chemotherapy that may cause febrile neutropenia [1] - This product represents a new generation of long-acting G-CSF with independent intellectual property rights, utilizing gene fusion technology to combine high-activity modified G-CSF with human serum albumin (HSA) [2] - The fusion with HSA increases molecular weight and significantly inhibits the clearance pathway mediated by G-CSF receptors, thereby extending the drug's half-life and reducing dosing frequency, which enhances treatment compliance [2] - HSA, being a natural component of human blood, provides a high level of safety as a carrier protein, and the product is produced using a Pichia pastoris expression system, simplifying the manufacturing process compared to chemically modified long-acting products [2]

Core Viewpoint - Recently, Maiwei Biotech announced two significant licensing agreements, potentially exceeding a total value of 4.7 billion RMB, which could enhance the company's operational strength and support its long-term development strategy [2][3][5]. Group 1: Licensing Agreements - Maiwei Biotech signed an exclusive licensing agreement with CALICO, a subsidiary of Alphabet, for the IL-11 targeted therapy, which includes the product 9MW3811. The agreement allows CALICO to develop, produce, and commercialize the product outside of China [3][4]. - The agreement with CALICO includes an upfront payment of 25 million USD (approximately 250 million RMB) and potential milestone payments totaling up to 571 million USD (approximately 4.095 billion RMB), along with royalties based on net sales [3][4]. - The second agreement with Qilu Pharmaceutical involves the product 8MW0511, which is an injectable drug for treating febrile neutropenia in cancer patients. This agreement includes an upfront payment of 3.8 billion RMB and potential sales milestone payments, as well as royalties based on net sales [4][6]. Group 2: Company Background and Financials - Founded in 2017, Maiwei Biotech focuses on the research, production, and sales of innovative drugs and biosimilars, primarily in oncology and other therapeutic areas [3][6]. - As of the end of 2024, the company has three products on the market but has not yet achieved profitability, with accumulated losses [3][6]. - In Q1 2025, the company reported revenue of 44.79 million RMB, a year-on-year decline of 33.7%, and a net loss of 292 million RMB, indicating an increase in losses due to high R&D expenditures [7]. - The company is preparing for an IPO on the Hong Kong Stock Exchange to alleviate financial pressures and enhance its international presence [7].

Group 1 - The board of directors of Maiwei (Shanghai) Biotechnology Co., Ltd. held its 19th meeting of the second session on June 26, 2025, with all 9 directors present, ensuring compliance with legal and regulatory requirements [1][2]. - The board approved a share repurchase plan via centralized bidding, aimed at enhancing investor confidence and promoting the stock price's return to its intrinsic value [1][2]. - The board also approved an exclusive licensing agreement with CALICO LIFE SCIENCES LLC, which aligns with the company's strategic development goals and is expected to positively impact its ongoing operations [2][3]. Group 2 - The board approved a technical licensing agreement for the new drug project involving injectable Agrestin α, which is expected to leverage mutual strengths and resources between the company and its partner, promoting long-term development [3]. - The board agreed to convene the company's first extraordinary general meeting of 2025 for further deliberation on the approved proposals [3].

Core Viewpoint - Maiwei Biotech has signed a new drug project technology licensing agreement with Qilu Pharmaceutical for the injectable drug Agresten α, which includes exclusive rights for development, production, improvement, utilization, and commercialization in Greater China [1] Group 1: Licensing Agreement Details - The agreement grants Maiwei Biotech exclusive licensing rights for Agresten α in Greater China, which encompasses mainland China, Hong Kong, Macau, and Taiwan [1] - The total payment and sales milestones can reach up to 500 million RMB, including a non-refundable upfront payment of 380 million RMB [1] - The licensing agreement also includes royalties based on net sales of the licensed product, which can reach a maximum of double-digit percentages [1] Group 2: Product Information - Agresten α, also known as Mai Li Sheng®, is a next-generation long-acting G-CSF (Granulocyte Colony-Stimulating Factor) developed by Maiwei Biotech [1] - The product utilizes gene fusion technology to combine high-activity modified G-CSF with human serum albumin (HSA) [1] - It is noted as the first drug in China approved for marketing that employs albumin long-acting fusion technology [1]

Core Viewpoint - The National Medical Products Administration has approved 11 innovative drugs for market launch, with 5 of them coming from Jiangsu province, indicating a strong focus on promoting local pharmaceutical innovation [1][2]. Group 1: Approved Innovative Drugs - Jiangsu province has received approval for 7 domestic Class 1 innovative drugs this year, with the latest batch including 5 drugs from Suzhou (3), Lianyungang (1), and Taizhou (1) [1]. - The approved drugs include: - Injection of Rukang Qumai (瑞康曲妥珠单抗) for treating HER2 mutated non-small cell lung cancer (NSCLC) patients [1]. - Hydrochloride of Jikaxitini tablets for patients with primary myelofibrosis and related conditions [1]. - Injection of Zenidatuzumab for HER2 high-expressing cholangiocarcinoma patients who have received prior systemic therapy [1]. - Malic acid of Famitinib capsules for recurrent or metastatic cervical cancer patients who failed platinum-based chemotherapy [2]. - Injection of Agrestin α for adult patients undergoing chemotherapy that may cause febrile neutropenia [2]. Group 2: Regulatory and Supportive Measures - The Jiangsu Provincial Drug Administration is implementing comprehensive reforms to enhance the pharmaceutical and medical device regulatory environment, aiming to create a high-quality development policy landscape [2][3]. - The administration has established a service mechanism to support innovative drug development, focusing on personalized guidance throughout the clinical trial and approval processes [2][3]. - Ongoing efforts include building a competitive strategic emerging industry cluster and promoting open innovation across the entire biopharmaceutical industry chain [3].

Investment Rating - The report assigns an "Overweight" rating to the pharmaceutical and biotechnology industry, indicating that the industry index is expected to outperform the CSI 300 index by 10% or more over the next six months [2][37]. Core Insights - The pharmaceutical and biotechnology sector saw an overall increase of 2.21% in the week from May 26 to May 30, ranking second among 31 industries in the Shenwan index and outperforming the CSI 300 index by 3.29 percentage points. Year-to-date, the sector has risen by 6.61%, ranking sixth among the 31 industries and outperforming the CSI 300 index by 9.02 percentage points [4][13][15]. - The current PE valuation for the pharmaceutical and biotechnology sector is 27.98 times, which is at the historical median level, with a valuation premium of 137% compared to the CSI 300 index. The top three sub-sectors in terms of growth are chemical pharmaceuticals, biological products, and medical services, with increases of 3.83%, 3.14%, and 2.46% respectively [4][22][15]. - A total of 373 stocks (77.9%) in the sector rose last week, while 97 stocks (20.3%) declined. The top five gainers were Shuyou Shen (60.41%), Huason Pharmaceutical (41.97%), Changshan Pharmaceutical (35.91%), Huana Pharmaceutical (32.62%), and Yifang Biological (30.51%) [4][27]. Market Performance - The pharmaceutical and biotechnology sector's performance is highlighted by the approval of 11 innovative drugs by the National Medical Products Administration (NMPA) on May 29, which enhances treatment options for patients and showcases the increasing innovation capability of China's pharmaceutical industry [5][29]. - The 2025 American Society of Clinical Oncology (ASCO) annual meeting showcased several domestic innovative drug projects, indicating that local companies are gaining international recognition for their innovative capabilities [5][32]. Investment Recommendations - The report suggests focusing on the innovative drug sector as it is the most certain and leading sub-sector within the pharmaceutical and biotechnology industry. Additionally, it recommends exploring investment opportunities in medical devices, traditional Chinese medicine, chain pharmacies, and medical services [6][35]. - Recommended stocks include Beida Pharmaceutical, Te Bao Biological, Qianhong Pharmaceutical, Ling Rui Pharmaceutical, and Lao Bai Xing. Stocks to watch include Kelong Pharmaceutical, Rongchang Biological, Kaili Medical, Huaxia Eye Hospital, and Baipu Sais [6][35].

Market Overview - The last trading day before the Dragon Boat Festival saw a volume contraction in the two markets, with the pharmaceutical sector experiencing a broad rally, particularly in Alzheimer's, innovative drugs, and CROs [1] - Several stocks, including Ruizi Pharmaceutical, Wanbangde, and Hainan Haiyao, hit the daily limit up [1] - The pork and chicken sectors also saw a rise, while bank stocks remained active, with Hangzhou Bank and Chengdu Bank reaching new historical highs [1] Banking Sector - Despite the strong performance of bank stocks, a sell-off occurred in multiple bank stocks towards the end of the trading session, indicating a potential profit-taking behavior ahead of the holiday [8] - Regional banks like Hangzhou Bank and Chengdu Bank attracted end-of-day funds due to their earnings elasticity, but this was not enough to offset the selling pressure from larger state-owned banks [8] - The banking sector has been a focus for investors this year, driven by increasing risk aversion, and is expected to remain a key market theme post-holiday [8] Pharmaceutical Sector - On May 29, the National Medical Products Administration approved 11 innovative drugs for market entry, a notably rare occurrence [10] - Among these, five were from innovative companies listed on the Sci-Tech Innovation Board, indicating a supportive policy environment for the innovative drug sector [10] - The current valuation of the innovative drug industry stands at a price-to-earnings ratio (TTM) of 27.74, with a 150% premium over the CSI 300 index, suggesting a stable growth outlook despite recent net outflows from the sector [10] Social Security Fund Holdings - A summary of the latest holdings by the Social Security Fund highlights several pharmaceutical stocks, including Wo Wu Biological, Jiuzhou Pharmaceutical, and others, with varying market capitalizations and price-to-earnings ratios [12] - The data indicates a focus on companies with strong growth potential and established market positions within the pharmaceutical sector [12]