Core Viewpoint - The 2025 ASCO Annual Meeting will showcase significant research achievements of domestic innovative drugs, highlighting their potential in oncology treatment [1] Group 1: Innovative Drug Highlights - Several innovative drug molecules with first-in-class or best-in-class potential will present data, including IBI363 from Innovent Biologics, SKB264 from Kelun-Biotech, and others [1] - IBI363 is the world's first next-generation IO dual antibody designed with IL 2α bias, showing promising efficacy in treating IO-resistant tumors such as NSCLC, melanoma, and CRC [2] Group 2: Clinical Data and Efficacy - In a Phase I clinical study, IBI363 demonstrated an overall response rate (ORR) of 43.3% and a disease control rate (DCR) of 90.0% in squamous NSCLC patients at a 3 mg/kg dosage, with a median progression-free survival (mPFS) of 7.3 months [2] - For adenocarcinoma patients previously treated with PD-(L)1 therapy, the 3 mg/kg group showed an ORR of 76.0% and a DCR of 90.0%, with an mPFS of 4.2 months [2] Group 3: Comparative Efficacy - IBI363 exhibited significant clinical activity in IO-resistant lung squamous and adenocarcinoma patients, outperforming existing therapies such as docetaxel and various immune combination treatments [3] Group 4: Colorectal Cancer Potential - IBI363 also shows promise in late-line CRC treatment, with clinical studies indicating an overall survival (OS) of 16.1 months for patients treated with IBI363 monotherapy [5][6] - Compared to standard treatments like TAS-102 combined with bevacizumab, IBI363 demonstrated superior survival outcomes in patients with worse baseline characteristics [6]

Investment Rating - The report maintains an "Outperform" rating for the pharmaceutical and biotechnology sector [5][44]. Core Insights - The pharmaceutical sector has shown strong performance compared to the overall market, with a 1.16% increase in the biopharmaceutical sector [1][33]. - Multiple domestic innovative drug molecules are set to present important clinical data at the ASCO annual meeting, highlighting the growing global competitiveness of Chinese pharmaceutical companies [2][12]. - The report suggests focusing on companies with high-quality innovation capabilities, such as Innovent Biologics, Kelun Biotech, and others [2][12]. Summary by Sections Market Performance - The overall A-share market increased by 0.95%, with the biopharmaceutical sector outperforming the market [1][33]. - The TTM P/E ratio for the biopharmaceutical sector is 30.67x, which is at the 61.96% percentile of the past five years [1][40]. Fund Holdings Analysis - In Q1 2025, the total fund holdings in the pharmaceutical sector increased to 9.05%, up by 0.47 percentage points [3][20]. - The largest sub-sectors in terms of holdings are chemical preparations and CXO, with significant increases in their holdings compared to Q4 2024 [3][22]. Key Company Forecasts and Ratings - Major companies such as Mindray Medical, WuXi AppTec, and Innovent Biologics are rated as "Outperform" with projected net profits increasing over the next few years [4][46]. - For instance, Mindray Medical is expected to achieve a net profit of 115.8 billion in 2023, growing to 176.4 billion by 2026 [4]. Investment Strategy - The report emphasizes the acceleration of outbound licensing transactions for innovative drugs, suggesting that companies like Kelun Biotech and Innovent Biologics are well-positioned for growth [44][46]. - It also highlights the potential of the medical services sector, particularly in light of new policies supporting reproductive health and elderly care [45][46].