Core Viewpoint - Hansoh Pharmaceutical reported double-digit growth in revenue and net profit for the first half of 2025, driven by the sales of innovative drugs and collaborative products [2][4]. Financial Performance - The company's revenue for the first half of 2025 was approximately 7.43 billion RMB, representing a year-on-year increase of about 14.3% [3]. - Sales revenue from innovative drugs and collaborative products was around 6.15 billion RMB, up approximately 22.1%, accounting for about 82.7% of total revenue [2][3]. - Net profit for the period was approximately 3.13 billion RMB, reflecting a year-on-year growth of about 15% [3]. Product Performance - The oncology segment contributed the most to revenue, generating approximately 4.53 billion RMB, which is about 60.9% of total revenue [4]. - The company has seven innovative drugs generating sales revenue in China, with key products including the first original third-generation EGFR-TKI inhibitor and a new second-generation TKI for chronic myeloid leukemia [4]. Business Development - Hansoh Pharmaceutical has been actively pursuing business development (BD) opportunities, including licensing agreements with multinational pharmaceutical companies [5][7]. - In June 2025, the company granted exclusive overseas rights for the GLP-1/GIP dual receptor agonist HS-20094 to Regeneron, with a potential total amount exceeding 2 billion USD [5]. - The company has secured high-value BD orders, including a global exclusive licensing agreement with Merck for HS-10535, with a potential total exceeding 2 billion USD [7]. Research and Development - The company is advancing over 70 innovative drug clinical trials across more than 40 projects, with 8 new candidate drugs approved for clinical trials in the first half of 2025 [8]. - R&D expenditure for the first half of 2025 was approximately 1.44 billion RMB, a year-on-year increase of 20.4%, representing 19.4% of total revenue [8]. Market Position - As of August 18, 2025, Hansoh Pharmaceutical's stock closed at 37.06 HKD per share, with a market capitalization of 220.4 billion HKD [9].

Investment Rating - The report does not explicitly state an investment rating for the pharmaceutical and biotechnology industry, but it indicates a positive outlook on the innovation drug sector, particularly regarding the international expansion of domestic innovative drugs [3][4]. Core Insights - The report highlights the continuous rise in the enthusiasm for innovative drugs going overseas, with significant collaborations such as the $9 billion partnership between Bristol-Myers Squibb and BioNTech for the development of a PD-L1/VEGF dual antibody [3][4]. - It notes that the domestic innovative drug pipeline is becoming increasingly competitive on a global scale, with a long-term positive outlook for the internationalization of innovative drugs [3][4]. - The report also discusses the recent peak of COVID-19 cases in China, with a positivity rate of 23.8% reported at the end of May, indicating a need for continued monitoring [3][4]. Market Weekly Review - The pharmaceutical and biotechnology sector rose by 1.13% from June 3 to June 6, underperforming compared to the Wind All A index, which increased by 1.61% [9][10]. - Among sub-sectors, raw materials and blood products both saw a rise of 2.89%, while in vitro diagnostics increased by 2% [10]. - Notable stock performances included Yiming Pharmaceutical with a 33.1% increase, while *ST Longjin experienced a significant decline of 36.3% [12]. Industry News and Key Company Announcements - Significant events include the presentation of clinical data for IBI363 by Innovent Biologics at the ASCO conference, showing promising efficacy in treating advanced non-small cell lung cancer [12][13]. - Stone Pharmaceutical received approval for its adenosylcobalamin capsules, expanding its product line in the blood and nervous system treatment areas [13]. - CanSino Biologics announced the approval of a new indication for its PD-1/CTLA-4 inhibitor, filling a gap in the treatment of cervical cancer in China [13]. - The report also mentions various other approvals and collaborations among companies, indicating a vibrant and active industry landscape [13][14].

Investment Rating - The report does not explicitly state an investment rating for the pharmaceutical and biotechnology industry, but it indicates a positive outlook on the global competitiveness of domestic innovative drugs and the trend of innovative drugs going abroad [3][4]. Core Viewpoints - The innovative drug sector is experiencing a surge in overseas collaboration, highlighted by the partnership between Bristol-Myers Squibb and BioNTech to jointly develop a PD-L1/VEGF dual antibody with a total package worth $9 billion [3][4]. - The report notes that the recent ASCO conference showcased significant advancements in dual antibodies and ADCs, indicating a differentiated layout in early clinical stages for domestic innovative drugs [3][4]. - The report mentions a peak in the current COVID-19 wave, with a positivity rate of 23.8% reported at the end of May, which is higher than the entire year of 2024, although it has started to decline slightly [3][4]. Weekly Market Review - The pharmaceutical and biotechnology sector rose by 1.13% from June 3 to June 6, underperforming the Wind All A index, which increased by 1.61% [9][10]. - Among sub-sectors, raw materials and blood products both increased by 2.89%, while in vitro diagnostics rose by 2% [9][10]. - Notable stock performances included Yiming Pharmaceutical with a rise of 33.1%, Wanbangde at 32.6%, and Anglikang at 30.3%, while *ST Longjin fell by 36.3%, Huason Pharmaceutical by 12.4%, and Maipu Medical by 9.3% [12][10]. Industry News and Key Company Announcements - On June 4, Innovent Biologics reported promising Phase I clinical data for IBI363 in treating advanced non-small cell lung cancer at the ASCO annual meeting [12][13]. - On June 6, CSPC announced that its adenosylcobalamin capsules received drug registration approval from the National Medical Products Administration [13][14]. - On June 5, CanSino Biologics announced the approval of a new indication for its PD-1/CTLA-4 inhibitor in first-line treatment for cervical cancer [13][14]. - On June 2, Bristol-Myers Squibb and BioNTech announced a collaboration to develop the PD-L1/VEGF dual antibody BNT327, with a significant financial commitment involved [13][14].

Group 1: Virtual Assets and Financial Policies - Hong Kong's Financial Secretary, Xu Zhengyu, announced that the Hong Kong Securities and Futures Commission is considering introducing virtual asset derivatives trading for professional investors, aiming to enhance product options while ensuring orderly, transparent, and secure trading [2] - The Financial Secretary will release a second policy declaration on virtual assets, outlining future policy visions, including integrating traditional financial services with technological innovations in the virtual asset sector [2] - The government plans to optimize tax incentives for funds, single-family offices, and related equity transactions, including allowing virtual assets to qualify for tax relief [2] Group 2: Energy Sector Developments - The National Energy Administration is initiating pilot projects for the construction of a new power system, focusing on advanced directions and typical projects to explore new technologies and models [3] - The pilot projects will emphasize seven key areas, including grid technology, system-friendly renewable energy stations, smart microgrids, and virtual power plants [3] - The initiative encourages the adoption of new technologies and models while supporting projects that utilize national technology major special projects and energy technology equipment [3] Group 3: Technology and Industrial Development - The Ministry of Industry and Information Technology is focusing on promoting the development of the artificial intelligence industry and its integration into new industrialization [3] - The meeting emphasized strengthening computing power supply and enhancing the intelligence level of key product equipment [3] Group 4: Market Performance - In the U.S. stock market, major indices showed mixed results, with the Dow Jones down 0.22% and the Nasdaq up 0.32% [4] - Large technology stocks had varied performances, with notable gains in companies like Google (up 1.65%) and Meta (up 3.16%), while Apple and Tesla saw declines [5] - In the Hong Kong market, the Hang Seng Index rose 0.60%, with the technology index also showing an increase [6] Group 5: Company News - Zhixing Technology received a notification for providing front-view integrated machines based on its Journey 3 model for nine commercial vehicles from leading automakers [8] - Zoomlion Heavy Industry announced an investment of approximately 723 million yuan to acquire a 36% stake in Zoomlion Heavy Industry Financing Leasing (Beijing) [9] - Jieli Trading reported a user base of approximately 854,000, reflecting a year-on-year growth of 4.6% [10] - China Vanke reported a cumulative contract sales figure of 4.139 billion yuan for the first five months, a year-on-year decrease of 44.83% [11] - Agile Group reported cumulative contract sales of 4.24 billion yuan for the first five months [12] - CIFI Holdings received the necessary support from the majority of plan creditors during its planned meeting [13] - Hansoh Pharmaceutical's Amivantamab has been approved for market launch by the UK Medicines and Healthcare products Regulatory Agency [14]

Group 1 - The core point of the article is that Hansoh Pharmaceutical has received approval from the UK Medicines and Healthcare products Regulatory Agency for the marketing of Amivantamab tablets [1]

Investment Rating - The report indicates a positive long-term outlook for the weight loss drug industry, particularly focusing on GLP-1 medications, suggesting to maintain a long-term focus on the weight loss drug industry chain [3]. Core Insights - The importance of weight loss drugs has been reaffirmed, with the WHO developing new guidelines for obesity prevention and treatment, expected to be finalized by August or September 2025. This is anticipated to standardize the use of GLP-1 drugs, enhancing their application in weight management [3][13]. - The FDA has expanded its inspections of overseas manufacturing facilities, which is expected to benefit leading CDMO companies in China that have established quality systems meeting global standards [3][16]. - The pharmaceutical and biotechnology sector saw a weekly increase of 1.5%, underperforming compared to the overall A-share market and the CSI 300 index, with offline pharmacies and medical devices showing the highest gains [3][8]. Summary by Sections Market Weekly Review - The pharmaceutical and biotechnology sector rose by 1.5% from April 28 to May 9, lagging behind the overall A-share market (2.32%) and the CSI 300 index (1.56%). Offline pharmacies (5.64%), medical devices (4.49%), and medical R&D outsourcing (2.78%) led the gains, while vaccines (-0.45%), blood products (-0.43%), and in vitro diagnostics (-0.17%) saw declines [3][8]. Industry News and Key Company Announcements - Significant events include the WHO's ongoing development of obesity guidelines, which will clarify the clinical applications of GLP-1 drugs [3][13]. - The FDA's announcement on May 6 regarding expanded inspections of foreign manufacturers aims to ensure equal regulatory oversight for foreign companies [3][16]. - Notable company announcements include the approval of new indications for various drugs and the financial performance of companies like BeiGene, which reported a 50.2% year-on-year revenue increase in Q1 [3][12][17].

Investment Rating - The report does not explicitly state an investment rating for the industry, but it suggests a long-term focus on the weight-loss drug industry chain due to the increasing importance of weight-loss medications [3]. Core Insights - The importance of weight-loss drugs has been reaffirmed, with the WHO developing new guidelines for obesity prevention and treatment, expected to be finalized by August or September 2025. This includes the use of GLP-1 medications for adult obesity management, which may standardize their application and increase their usage in weight-loss populations [3][13]. - The FDA has expanded surprise inspections of overseas manufacturing facilities, particularly in India and China, to ensure foreign companies meet the same regulatory standards as U.S. companies. This is expected to benefit leading CDMO companies in China that have established quality systems compliant with global standards [3][16]. Market Weekly Review - The pharmaceutical and biotechnology sector rose by 1.5% from April 28 to May 9, underperforming the Wind All A index (2.32%) and the CSI 300 index (1.56%). The best-performing segments included offline pharmacies (5.64%), medical devices (4.49%), and medical research outsourcing (2.78%), while vaccines (-0.45%), blood products (-0.43%), and in vitro diagnostics (-0.17%) lagged [3][8]. - Notable individual stock performances included Changshan Pharmaceutical (26.28%) and Haichuang Pharmaceutical (25.85%), both linked to the weight-loss drug concept [3][11]. Industry News and Key Company Announcements - On May 9, the NMPA approved a new indication for Hansoh Pharmaceutical's Amivantamab, targeting specific mutations in non-small cell lung cancer [12]. - The report highlights significant developments in the industry, including the approval of new drug applications and clinical trials by various companies, indicating a dynamic and evolving market landscape [16][17].

Core Viewpoint - The approval of the novel drug Amivantamab by Hansoh Pharmaceutical marks a significant breakthrough in the treatment of non-small cell lung cancer (NSCLC) in China, addressing a critical unmet medical need for postoperative patients with EGFR mutations [1][4]. Group 1: Drug Approval and Market Impact - On May 9, 2025, Hansoh Pharmaceutical announced that its self-developed class I new drug, Amivantamab, received approval from the National Medical Products Administration for use in adult patients with EGFR exon 19 deletions or exon 21 (L858R) substitution mutations after tumor resection [1]. - The approval allows Amivantamab to break the monopoly of imported drugs in this field, achieving parallel coverage with imported drugs and marking a significant advancement for domestic innovative targeted drugs in the comprehensive treatment of NSCLC [3]. Group 2: Clinical Significance and Expert Opinions - Professor Cheng Ying from the Chinese Society of Clinical Oncology highlighted that the high recurrence rate of operable NSCLC patients post-surgery indicates a substantial unmet treatment need, and the approval of Amivantamab provides new hope for long-term survival [4]. - The third-generation EGFR-TKI has become the standard treatment for EGFR-mutated NSCLC, and the rapid development of innovative targeted drugs in China has allowed them to catch up with international drugs [4]. - Since its approval in 2020, Amivantamab has made significant progress in the treatment of NSCLC, and the new indication expands its use from first-line and second-line treatments to adjuvant therapy, solidifying its position in the treatment landscape [4].

Industry Investment Rating - The report assigns a "Leading" investment rating to the pharmaceutical industry, indicating an expectation of attractive performance relative to the benchmark index over the next 12 months [1]. Core Insights - The strong foundation project in healthcare is expected to create new opportunities in the medical device sector, with a focus on innovative drugs, prescription drugs, and CXO during the annual report season [1][4]. - The report highlights the potential benefits of the healthcare strong foundation project, which aims to enhance grassroots medical services and infrastructure, thereby driving growth in the medical device market [4][6]. - The report suggests that the pharmaceutical sector still has significant room for recovery, given the favorable policies expected to be implemented in the second half of 2025, alongside the current low valuations of the sector [4]. Summary by Sections Market Performance - The Hang Seng Index fell by 3.2% during the week of March 6-12, 2025, while the Hang Seng Healthcare Index decreased by 2.8%, ranking 10th among 12 industry indices [4][8]. - Sub-sectors such as biotechnology, life sciences tools and services, and pharmaceuticals experienced declines of 1.1%, 1.3%, and 1.6% respectively [4]. Investment Recommendations - The report recommends focusing on sub-sectors with potential for above-expectation performance, including innovative drugs, prescription drugs, and CXO [4]. - Specific companies highlighted for their growth potential include 康方生物 (CanSino Biologics), 信达生物 (Innovent Biologics), and 传奇生物 (Legend Biotech), which are expected to benefit from short-term catalysts and high growth [4][6]. - The report also emphasizes the importance of AI in healthcare, suggesting investment in companies with clear applications in health management [4]. Company Updates - 康方生物 has completed patient enrollment for its Phase III clinical trial of 卡度尼 (AK104) for high-risk liver cancer [6]. - 云顶新耀 has initiated the first human trial for its mRNA personalized cancer vaccine EVM16 [7]. - 翰森制药 received approval for a new indication for 阿美替尼 (Amehtinib) for non-small cell lung cancer [7]. - 中国生物制药's injection of 甲磺酸艾立布林 has been approved by the FDA for metastatic breast cancer treatment [7]. Valuation Overview - The report provides a valuation summary indicating that the pharmaceutical sector has a TTM P/E ratio of 11.3, while other sectors like life sciences tools and services have a TTM P/E of 7.3 [13].