Group 1 - The core viewpoint of the article highlights the steady growth of Lee's Pharmaceutical Holdings Limited, with a revenue of HKD 695 million for the first half of 2025, representing a 5.5% increase compared to the same period last year [1] - The company's profit attributable to shareholders for the first half of 2025 was HKD 67.185 million, reflecting a year-on-year increase of 7.5%, indicating a sustainable growth trajectory and strengthened operational capabilities [1] - Earnings per share for the company stood at HKD 0.1141 [1] Group 2 - The company holds a 65% stake in its subsidiary, China Oncology Medical Limited (COF), which focuses on research and development in oncology, particularly in the field of immuno-oncology therapies [1] - COF has established a robust pipeline of oncology assets, including six innovative assets and four generic drugs, developed through a combination of internal research and licensing agreements [1] - In July 2025, the injection of Socazoli was approved by the National Medical Products Administration for a new indication, marking its second approved indication after initial conditional approval for the treatment of recurrent or metastatic cervical cancer [1]

Core Insights - The adjustment of the medical insurance drug catalog for 2025 has seen a significant increase in the number of drugs passing the formal review, with a new commercial insurance innovative drug catalog introduced, attracting high industry attention [1][3][5] Summary by Sections Medical Insurance Drug Catalog - The National Healthcare Security Administration (NHSA) received 718 applications for the basic medical insurance catalog, with 534 passing the initial review, including 472 applications from outside the catalog, marking a notable increase from 249 in 2024 [3] - The approved drugs cover various fields such as oncology, chronic diseases, and rare diseases, with a significant number of monoclonal antibody injections passing the review [3][4] Commercial Insurance Innovative Drug Catalog - The newly established commercial insurance innovative drug catalog received 141 applications, with 121 passing the initial review, resulting in a pass rate of approximately 85.82% [5] - This catalog also includes drugs for oncology, chronic diseases, and rare diseases, primarily focusing on Western medicine, with some traditional Chinese medicine included [5][6] Dual Track Submission - Several drugs have simultaneously passed the reviews for both the basic medical insurance catalog and the commercial insurance innovative drug catalog, indicating a strategy to cater to different patient payment capabilities [7][8] - The dual submission approach allows for broader market coverage and addresses the needs of high-value innovative drugs that may not be included in the basic insurance catalog [8] Industry Implications - The increase in the number of drugs passing the reviews reflects the growing investment in innovative drug research and development in China, with a focus on enhancing patient access to essential medications [4][6] - The establishment of the commercial insurance innovative drug catalog signifies the government's commitment to building a multi-tiered medical security system, providing supplementary coverage for high-value drugs not included in the basic insurance [6][8]

Investment Rating - The report maintains an investment rating of "Outperform the Market - A" [4] Core Insights - The innovative drug sector has seen a significant increase in institutional interest, with the total heavy positions in Biotech innovative drugs reaching 80.371 billion yuan, a quarter-on-quarter growth of 39% [7][18] - The proportion of heavy positions in Biotech innovative drugs relative to the overall market has increased to 2.39%, up by 0.49 percentage points, indicating sustained enthusiasm from institutions towards the innovative drug sector [19][25] - The heavy positions in Biotech innovative drugs account for 24.93% of the total heavy positions in the pharmaceutical industry, reflecting a rise of 5.49 percentage points [19][25] Summary by Sections Weekly Review of New Drug Market - From July 28 to August 1, 2025, the top five companies in the new drug sector by stock price increase were: Zhongsheng Pharmaceutical (29.53%), WuXi AppTec (17.72%), CSPC Pharmaceutical Group (14.60%), Maiwei Biotech (12.08%), and Haizhi Pharmaceutical (11.76%) [14][15] - The top five companies by stock price decrease were: Kintor Pharmaceutical (-19.09%), Hualing Pharmaceutical (-16.19%), Junsheng Pharmaceutical (-13.24%), Kintor Pharma (-12.70%), and Yunding New Drug (-11.29%) [14][15] Key Analysis of New Drug Industry - The report analyzed the latest heavy positions of all funds in the innovative drug sector as of June 30, 2025, focusing on A-share and Hong Kong Biotech companies [18] - The heavy positions in Biotech innovative drugs accounted for 7.05% of the total market capitalization, an increase of 0.93 percentage points [23][28] New Drug Approval and Acceptance - This week, 13 new drug or new indication applications were approved, including drugs such as Risperidone orally disintegrating film and Nivolumab injection [33][34] - Additionally, 6 new drug or new indication applications were accepted, including drugs like Eptinezumab injection and Edaravone tablets [35][36] Clinical Application Approval and Acceptance - A total of 50 new drug clinical applications were approved this week, while 44 new drug clinical applications were accepted [37]

Core Insights - Guangdong Province has approved a list of 107 innovative drug and medical device products, including 46 innovative drugs, to enhance the application of these products in public medical institutions [1][5] - Among the approved innovative drugs, 10 are anti-cancer drugs, representing 22% of the total, showcasing Guangdong's strength in cancer treatment research and manufacturing [3][5] Summary by Category Innovative Drug List - The list includes 107 innovative products, with 46 classified as innovative drugs [1] - The anti-cancer drugs cover various prevalent malignant tumors, indicating significant research capabilities in this area [3] Anti-Cancer Drugs - The 10 anti-cancer drugs listed include: - Aorebatinib for chronic myeloid leukemia - Sapalizumab for cervical cancer and Hodgkin lymphoma - Socazolimab for cervical cancer - Sidabenzamide for diffuse large B-cell lymphoma - Cardunilimab for cervical cancer and gastric adenocarcinoma - Acetate injection for prostate cancer - Trelizumab for multiple cancers including Hodgkin lymphoma and non-small cell lung cancer - Panitumumab for multiple cancers including non-small cell lung cancer - Obinutuzumab for adult lymphomas - Ivorilumab for lung cancer [4] Industry Development - Guangdong pharmaceutical companies are accelerating their internationalization, exemplified by the approval of Panitumumab for the U.S. market [5] - The integration of industry, academia, and research has been pivotal in the development of these innovative drugs, with local scholars leading significant research efforts [5] - The comprehensive innovation capability from research to clinical application is being established, enhancing Guangdong's competitive edge in the global biopharmaceutical industry [5]