Group 1 - Romoss Technology's fast-charging power bank 3C certifications have been largely revoked, with the status showing "suspended" [1] - Romoss power banks are no longer available on its official Douyin flagship store, with only charging plugs and cables remaining [1] - Anker Innovations announced a voluntary recall of certain batches of basic power banks due to quality issues with a common battery cell [3] Group 2 - iQIYI and Shanghai Film Technology Factory have established the "Yingqi AI Laboratory" to enhance the quality and efficiency of classic film digital restoration [2] - The laboratory will utilize advanced AI algorithms for audio and visual restoration of old films [2] Group 3 - Cathay Pacific Group has reached 100 global passenger destinations, with May passenger volume hitting a ten-year high, increasing by 36.1% year-on-year [6] - The airline's available seat kilometers increased by 31.2%, with a load factor of 84.7%, the highest since 2015 for the same month [6] Group 4 - Long Cable Technology plans to raise no more than 460 million yuan through a private placement to expand high and ultra-high voltage cable accessory production capacity [8] - Zhifei Biological has received approval for clinical trials of its adsorbed tetanus vaccine from the National Medical Products Administration [9] Group 5 - Tencent Cloud Development has launched "AI Builder," allowing users to generate complete applications from a simple sentence description [10] - The platform supports full project generation and code export for professional developers [10] Group 6 - The European Medicines Agency has given a positive opinion on Springworks' drug Ogsiveo for treating progressive fibromatosis in adults [11] - The Financial Supervisory Administration has issued guidelines to prevent conflicts of interest in market risk management staff compensation [12] Group 7 - The National Medical Products Administration is set to introduce new measures to support the innovation and development of high-end medical devices [13]

Core Viewpoint - SpringWorks Therapeutics has received a positive opinion from the European Medicines Agency's Committee for Medicinal Products for Human Use for its MEK inhibitor, mirdametinib, aimed at treating a rare genetic disorder [1][2]. Company Developments - The CHMP has recommended conditional marketing authorization for mirdametinib to treat symptomatic, inoperable plexiform neurofibromas in patients aged two years and older with neurofibromatosis type 1 [2]. - If approved, mirdametinib will be the first therapy authorized for treating NF1-PN in the European Union [3]. - The FDA approved mirdametinib under the brand name Gomekli in February 2025, generating sales of $4.9 million in the U.S. during Q1 2025 [3]. Financial Performance - Year-to-date, SpringWorks shares have increased by 28.6%, contrasting with a 5.5% decline in the industry [5]. - Merck KGaA announced plans to acquire SpringWorks for $47 per share, totaling approximately $3.9 billion, with the transaction expected to close in the second half of 2025 [6]. Product Pipeline - Ogsiveo, an oral gamma-secretase inhibitor, was approved in the U.S. for treating desmoid tumors in November 2023 and generated $172 million in sales in 2024, with $44.1 million in Q1 2025 [7][8]. - Ongoing label expansion studies for Ogsiveo are targeting various cancer indications, with the EMA's opinion on its MAA expected in Q2 2025 [8]. Market Position - The acquisition by Merck KGaA is anticipated to enhance SpringWorks' ability to reach global markets and support patients with rare tumors [9].

Investment Rating - The report maintains an investment rating of "Outperform the Market" for the pharmaceutical sector [2][5]. Core Views - The pharmaceutical sector has seen a 0.49% increase this week, outperforming the CSI 300 index by 0.93 percentage points, ranking 9th among 31 first-level industries [8][28]. - The report highlights the positive impact of favorable policies on the pharmaceutical sector, suggesting a gradual recovery in industry sentiment. It recommends focusing on high-quality targets in the formulation sector and emphasizes the potential of innovative therapies and domestic drug replacements [5][28]. Summary by Sections Industry Performance - The pharmaceutical sector's performance this week was a 0.49% increase, with sub-sectors such as pharmaceutical commerce rising by 3.12% and medical services by 1.69%. In contrast, biological products and traditional Chinese medicine II saw declines of 0.87% and 1.01%, respectively [8][28]. Key News - Baiyi Shenzhou's BCL-2 inhibitor "Sonrotoclax" has been submitted for market approval, targeting specific types of lymphoma and leukemia [28][29]. - Merck KGaA announced a $3.9 billion acquisition of SpringWorks, enhancing its portfolio in the oncology space [28][30]. Key Announcements - Baili Tianheng received approval for two Phase II clinical trials for its innovative drug BL-B01D1, aimed at treating recurrent or metastatic cervical cancer and advanced endometrial cancer [32][33].

Group 1 - WuXi AppTec reported a 20.96% year-on-year increase in revenue for Q1 2025, reaching 9.655 billion yuan, and a net profit of 3.672 billion yuan, reflecting an 89.06% growth [1] - The strong growth momentum highlights WuXi AppTec's competitive strength and leading position in the pharmaceutical research and development service sector [1] Group 2 - Paig Bio has passed the hearing for its upcoming IPO on the Hong Kong Stock Exchange, with a valuation of 4 billion yuan after 8 rounds of financing [2] - The company focuses on innovative therapies for chronic diseases, and despite a net loss of 283 million yuan in 2024, it has significant potential for its core products [2] Group 3 - Merck KGaA announced its acquisition of SpringWorks for approximately 3.9 billion USD, which is a strategic move to enhance its oncology portfolio [3] - SpringWorks specializes in developing drugs for cancer and rare tumors, with products like Ogsiveo and Gomekli, which will strengthen Merck's position in cancer treatment [3] Group 4 - The European Union has approved a Phase III clinical trial for HLX22, a novel anti-HER2 monoclonal antibody, in combination with trastuzumab and chemotherapy for HER2-positive gastric cancer [4] - This approval offers new hope for patients with HER2-positive gastric cancer, as there are currently no similar dual-target therapies approved globally [4] Group 5 - Likang Life Sciences has successfully administered the first dose of its AI-driven personalized mRNA tumor vaccine, marking a significant breakthrough in China's tumor immunotherapy field [5] - This development is expected to usher in a new era of personalized cancer treatment, providing new hope for patients with advanced solid tumors [5]

Core Viewpoint - Merck has agreed to acquire SpringWorks Therapeutics for $3.9 billion in equity value to enhance its oncology drug business [1][2] Group 1: Acquisition Details - The acquisition price is set at $47 per share, translating to an equity value of approximately $3.9 billion and an enterprise value of about $3.4 billion (30 million euros) after accounting for SpringWorks' cash [1] - The transaction will be funded through available cash and new debt, and is expected to increase Merck's adjusted earnings per share by 2027 [1] Group 2: Strategic Implications - This acquisition marks one of Merck's largest pharmaceutical deals in recent years, reinforcing its ongoing efforts to build a cancer treatment portfolio [2] - Analysts suggest that this deal could accelerate Merck's growth, especially as sales of its cancer drug Bavencio slow down and its multiple sclerosis treatment Mavenclad faces patent expiration [2]