Market Overview - The pharmaceutical and biotechnology index increased by 1.50% over the past two weeks, underperforming the CSI 300 index by 0.06 percentage points and the ChiNext index by 2.80 percentage points, ranking 16th among 31 sub-industries, indicating average performance [3] - The Hong Kong Hang Seng Healthcare Index decreased by 1.48%, underperforming the Hang Seng China Enterprises Index by 4.31 percentage points [3] Company R&D Progress Tracking - Recent clinical application advancements include: - BeiGene's BG-C9074 and East China Pharmaceutical's HDM2005 are in the new application stage - BeiGene's BGB-45035 tablet has a new IND application - Enhua Pharmaceutical's NH600001 and Baillie Tianheng's BL-M07D1 are in Phase III clinical trials - Yifang Biotech's D-2570 is in Phase II clinical trials - Haosen Pharmaceutical's HS-20118 is in Phase I clinical trials [4] Investment Outlook - The company is optimistic about the domestic substitution of high-end reagents in the upstream life sciences sector, driven by multiple factors including: - Strong product quality as a foundation for domestic substitution - Emerging downstream demands such as anti-tumor and CAR-T therapies providing opportunities for domestic and foreign competition - Policy support facilitating domestic substitution - The increasing emphasis on supply chain security amid rising de-globalization trends acting as a catalyst for domestic substitution [5] 2025 Annual Investment Strategy - The company emphasizes the need to reshape underlying logic and identify investment opportunities from a payment perspective, considering complex trends in population structure, policy frameworks, and economic environments - The core contradiction lies in the willingness to pay versus the ability to pay, leading to a structured selection of investment opportunities [6][7] Payment Channels Analysis - The company identifies three main payment channels within the pharmaceutical industry: - Hospital payments supported by policies (innovative drugs and devices) - Out-of-pocket payments driven by expanding public demand (blood products, home medical devices, weight loss drug supply chain) - Increasing overseas payment cycles (heparin, respiratory joint inspections) [7]