Core Insights - The PD-1/VEGF dual antibody is currently a hot topic in innovative drug development, with significant collaborations and financial transactions highlighting its potential [1][2][3] Group 1: Industry Dynamics - Chinese biotech companies are emerging as key players in the global PD-(L)1/VEGF dual antibody development race, demonstrating advanced research progress and achieving international recognition through high-value business development (BD) deals [2][3] - Major collaborations include 12.5 billion USD upfront payment and 60.5 billion USD total deal value between 3SBio and Pfizer for SSGJ-707, and BioNTech's 15 billion USD upfront payment for BNT327 licensed to BMS, totaling over 90 billion USD [1][2] Group 2: Clinical Developments - The PD-(L)1/VEGF target gained traction after Kangfang Biotech's AK112 outperformed the benchmark drug, Pembrolizumab (K drug), in head-to-head trials, leading to increased interest from multinational corporations (MNCs) [3][4] - AK112 demonstrated a higher objective response rate (ORR) of 50% compared to K drug's 38.5% and a disease control rate (DCR) of 89.9% versus 70.5% in late-stage non-small cell lung cancer (NSCLC) trials [4][6] Group 3: Competitive Landscape - The success of AK112 has intensified competition among MNCs, with companies eager to capitalize on the potential of PD-(L)1/VEGF dual antibodies, as evidenced by Pfizer's strategic investments [9][10] - As of May 2025, there are 14 PD-(L)1/VEGF dual antibodies in clinical stages globally, with half originating from Chinese biotech firms, indicating a robust pipeline and potential for further BD opportunities [15][24] Group 4: Future Prospects - Companies like Junshi Biosciences, I-Mab, and Hualan Biological Engineering are actively pursuing PD-(L)1/VEGF dual antibodies, with significant investments and clinical trials underway [15][20][22] - The shift from merely imitating existing drugs to innovating new targets and technologies marks a significant evolution in the Chinese pharmaceutical industry, enhancing its international competitiveness [24][25]

Core Viewpoint - The "pure pharmaceutical" funds have achieved the best performance among public QDII funds, highlighting a significant shift in investment focus away from popular AI and technology sectors towards undervalued pharmaceutical stocks [1][2][3] Group 1: Performance of Pharmaceutical Funds - As of March 5, the Huatai-PineBridge Hong Kong Advantage Select Fund achieved a year-to-date return of 23%, ranking first among Hong Kong and QDII funds, with a significant portion of its assets (89%) allocated to pharmaceutical stocks [2][3] - Other funds, such as the Jiashi Mutual Fund and Ping An Core Advantage Fund, also reported strong performances with returns of 22% and 20% respectively, focusing entirely on pharmaceutical stocks without exposure to AI or internet healthcare [4][5] Group 2: Market Dynamics and Trends - The shift towards pharmaceutical stocks by fund managers indicates a strong confidence in the recovery of this sector, despite the popularity of AI and technology stocks [4][6] - Non-pharmaceutical funds have begun to reallocate their portfolios towards pharmaceutical stocks, reflecting a trend of recognizing the potential for growth in this sector [6][12] Group 3: Technological Breakthroughs and Global Market Impact - Chinese pharmaceutical companies are experiencing significant breakthroughs, as evidenced by the collaboration between Kangfang Bio and Summit Therapeutics, which has led to a dramatic increase in stock prices [8][9][10] - The share of Chinese pharmaceutical companies in global drug transactions has increased from less than 5% in 2020 to over 20% in 2024, indicating a growing influence in the global pharmaceutical market [9][10] Group 4: Future Outlook for the Pharmaceutical Sector - The introduction of new drugs into the medical insurance system, with a majority being newly listed products, suggests a positive trend for domestic pharmaceutical innovation [12][13] - The anticipated role of commercial insurance in supporting innovative drugs is expected to enhance market dynamics and pricing strategies, further benefiting the pharmaceutical sector [13][14]