Group 1 - UBS report indicates that the management of China Biopharmaceutical requires more time to finalize the guidance for its out-licensing (BD) business development this year [1] - Management is optimistic about the inclusion prospects of coagulation factor VIIa in the 2025 National Medical Insurance Drug List negotiations [1] - Penpulimab has successfully entered the medical insurance directory for the first time; anlotinib has been approved for expansion to first-line treatment of soft tissue sarcoma without any price reduction, while Yilishu benefits from an expanded reimbursement scope [1] Group 2 - UBS currently assigns a "Buy" rating to the company with a target price of HKD 12.2 [1]

Group 1 - UBS report indicates that China Biologic Products (01177) management requires more time to finalize guidance on the development of its out-licensing (BD) business for this year [1] - Expected data releases this year include Phase I clinical data for TQB3702 in blood cancer, Phase II clinical data for TQA3334, and Phase III clinical data for lanifibranor targeting metabolic-associated fatty liver disease [1] - The firm maintains a "Buy" rating on the company with a target price of HKD 12.2 [1] Group 2 - Management expresses optimism regarding the inclusion prospects of VIIa in the 2025 National Medical Insurance Drug List negotiations, as only three companies were selected [1] - Penpulimab has successfully entered the medical insurance directory for the first time; anlotinib has been approved for expansion to first-line treatment of soft tissue sarcoma without any price reduction, while Yilishu benefits from an expanded reimbursement scope [1]

Group 1 - UBS reports that China Biologic Products (01177) management indicates that more time is needed to determine the guidance for the external authorization (BD) business development this year [1] - The expected data results to be announced this year include Phase I clinical data for TQB3702 in blood cancer, Phase II clinical data for TQA3334, and Phase III clinical data for lanifibranor targeting metabolic-associated fatty liver disease [1] - UBS maintains a "Buy" rating for the company with a target price of HKD 12.2 [1] Group 2 - Regarding the 2025 National Medical Insurance Drug List negotiation results, management is optimistic about the inclusion prospects for VIIa, as only three companies were selected [1] - Penpulimab has successfully entered the medical insurance directory for the first time; Anlotinib has been approved for expansion to first-line treatment of soft tissue sarcoma without any price reduction, while Yilishu benefits from an expanded reimbursement scope [1]

Core Viewpoint - China Biologic Products (01177) has seen a stock increase of over 4%, currently trading at 7.09 HKD with a transaction volume of 431 million HKD, as reported by UBS [1] Group 1: Business Development - The management of China Biologic Products indicated that more time is needed to finalize the guidance for its out-licensing (BD) business for this year [1] - Key data results expected this year include Phase I clinical data for TQB3702 in blood cancer, Phase II clinical data for TQA3334, and Phase III clinical data for lanifibranor targeting metabolic-associated fatty liver disease [1] Group 2: Market Outlook - The management is optimistic about the inclusion prospects of VIIa in the 2025 National Medical Insurance Drug List negotiations, as only three companies are selected for inclusion [1] - Penpulimab has successfully entered the medical insurance list for the first time, while anlotinib has been approved for expansion to first-line treatment of soft tissue sarcoma without any price reduction [1] - Yilishu benefits from an expanded reimbursement scope [1] Group 3: Product Information - The VIIa product is the recombinant human coagulation factor VIIa N01 (brand name: Anqixin) developed by China Biologic Products' subsidiary, which received NMPA approval for market entry on July 3, 2025 [1] - This product is the first domestically produced recombinant human coagulation factor VIIa biological product, breaking the long-standing monopoly of imported products, improving drug accessibility for hemophilia patients, and reducing treatment costs [1]

Core Viewpoint - China Biologic Products (01177) has seen a stock increase of over 4%, currently trading at 7.09 HKD with a transaction volume of 431 million HKD. UBS reports that the management requires more time to finalize the guidance for the business development of external authorization (BD) this year [1] Group 1: Clinical Data and Product Development - The company is expected to announce clinical data results this year, including Phase I clinical data for TQB3702 in blood cancer, Phase II clinical data for TQA3334, and Phase III clinical data for lanifibranor targeting metabolic-associated fatty liver disease [1] - Management is optimistic about the inclusion prospects of VIIa in the 2025 National Medical Insurance Drug List negotiations, as only three companies have been selected for inclusion [1] Group 2: Recent Approvals and Market Impact - Penpulimab has successfully entered the medical insurance catalog for the first time, while anlotinib has been approved for expansion to first-line treatment of soft tissue sarcoma without any price reduction [1] - Yilishu benefits from an expanded reimbursement scope, enhancing its market accessibility [1] Group 3: Product Significance - The VIIa product, developed by the company's subsidiary, is the first domestically produced recombinant human coagulation factor VIIa (brand name: Anqixin), which received NMPA approval on July 3, 2025 [1] - This product breaks the long-standing monopoly of imported products, improving medication accessibility for hemophilia patients and reducing treatment costs [1]

Group 1: Industry Overview - In October, the total sales of pharmaceutical products in mainland China decreased by 3% year-on-year, a significant drop from the 6.8% growth in September [1] - Hospital channel sales fell by 3.3% year-on-year, compared to a 7.1% increase in the previous month [1] - Retail channel sales remained flat year-on-year, a slowdown from the 2.4% growth in September [1] Group 2: Company Performance - Hansoh Pharmaceutical (03692) recorded the highest year-on-year growth among peers in October at 8.6%, with most key products showing double-digit month-on-month growth, except for PEG-loxenatide [1] - The report maintains a "Buy" rating for Hansoh Pharmaceutical with a target price of HKD 45 [1] - Hengrui Medicine (01276) faced pressure on multiple key products, with total sample sales growing by only 2% year-on-year in October, and specific products like butorphanol, ioversol, and sevoflurane seeing declines of 49.1%, 0.5%, and 10.8% respectively [1] - Hengrui's A-share target price is set at RMB 57.7, with a "Underperform" rating [1] Group 3: Additional Company Insights - China Biologic Products (01177) showed a mixed performance in October, with core products anlotinib and glycyrrhizic acid growing by 6.5% and 4.4% year-on-year, while budesonide and esomeprazole saw declines of 28.5% and 39.4% respectively [2] - The revenue forecasts for 2026 and 2027 were lowered by 0.2% and 0.4% respectively due to the sales performance, with the target price adjusted from HKD 9.4 to HKD 8.3, while maintaining a "Buy" rating based on pipeline potential [2] - CSPC Pharmaceutical Group (01093) continued to experience low sales for several key drugs, maintaining an "Underperform" rating with a target price of HKD 7.2 [2]

Core Viewpoint - The report from Bank of America indicates a significant decline in the sales of the pharmaceutical industry in mainland China for October, with a year-on-year decrease of 3%, contrasting sharply with a 6.8% increase in September [1] Industry Summary - The hospital channel experienced a year-on-year decline of 3.3%, down from a previous growth of 7.1% [1] - The retail channel remained nearly flat year-on-year, showing a notable slowdown from a 2.4% increase in September [1] Company Performance - The performance of China's biopharmaceutical products in October showed a mixed trend, with core products anlotinib and glycyrrhizic acid seeing year-on-year sales growth of 6.5% and 4.4%, respectively [1] - Conversely, sales of budesonide and esomeprazole fell significantly, with year-on-year declines of 28.5% and 39.4%, respectively [1] Revenue Forecast Adjustments - Based on the sales performance, the company has revised its revenue forecasts for 2026 and 2027 downwards by 0.2% and 0.4%, respectively [1] - The target price has been adjusted from HKD 9.4 to HKD 8.3, while maintaining a "Buy" rating due to the substantial licensing potential of pipeline products [1] Specific Company Ratings - For CSPC Pharmaceutical, the report notes continued poor sales performance of several key drugs in October, leading to a maintained "Underperform" rating with a target price of HKD 7.2 [1]

Investment Rating - The report rates the China Healthcare industry as Attractive [4][47]. Core Insights - The NHSA and NHC have released measures to support the high-quality development of innovative drugs, including establishing a new drug list for commercial insurance and encouraging investment funds for innovative drug development [2]. - Sino Biopharma has received approval for anlotinib in combination with chemotherapy for the first-line treatment of advanced or metastatic soft tissue sarcoma, marking a significant milestone as the first combination therapy approved globally for this indication [2]. - Hengrui has gained approval for an additional indication for its JAK1 inhibitor, ivarmacitinib, now also indicated for severe alopecia areata [2]. Summary by Sections Regulatory Developments - New measures from NHSA and NHC include a drug list for commercial insurance that will not count towards DRG/DIP budgets and a commitment to ensure hospital access for newly listed drugs within three months [2]. Company Updates - Sino Biopharma has achieved multiple approvals, including for anlotinib and recombinant human coagulation factor VIIa N01, enhancing its product portfolio [2]. - Hengrui's ivarmacitinib has expanded its indications, showcasing the company's innovative capabilities in the biopharmaceutical sector [2]. Market Trends - The report highlights ongoing R&D progress among covered companies, indicating a robust pipeline and potential for future growth in the healthcare sector [10].