Investment Rating - The report maintains a "Buy" rating for several healthcare stocks, including Wuxi Apptec and Eyebright, based on their strong growth potential and market positioning [11]. Core Insights - The EU's planned restrictions on Chinese medtech firms' access to public procurements over EUR 5 million are expected to have limited impact on the covered companies, as most do not participate in such procurements and have manageable revenue exposure to the EU market [3]. - The healthcare indices in China showed positive performance, with HSHCI rising by 4.1% and HSHKBIO by 4.5% during the week of June 2-6, 2025, indicating a favorable market trend [2]. - Recent approvals in the drug sector include Akeso's cadonilimab for cervical cancer and Hansoh's aumolertinib for NSCLC in the UK, showcasing ongoing innovation and regulatory progress in the industry [4][5]. Summary by Sections Market Access and Regulatory Environment - The EU's International Procurement Instrument investigation concluded that China has limited EU medical device producers' access to government contracts, leading to the proposed restrictions [3]. - Companies like Mindray and MGI Tech have established local manufacturing facilities, which may help mitigate the impact of these restrictions [3]. Drug Approvals and Developments - Akeso's cadonilimab received approval for treating first-line cervical cancer, while Innovent and Hutchmed's sintilimab + fruquintinib application was accepted for renal cell carcinoma [4]. - Hansoh's aumolertinib has been approved in the UK for specific NSCLC patients, indicating a strong pipeline for innovative therapies [4]. Stock Performance and Recommendations - The report highlights top picks in the healthcare sector, including Wuxi Apptec and Eyebright, based on their expected solid fundamental recovery and market share potential [11]. - The report notes that the chemicals sector outperformed healthcare indices, with a 1.7% increase in A shares and a 3.8% increase in H shares [12].

Core Viewpoint - Innovent Biologics and HUTCHMED announced the acceptance of a New Drug Application (NDA) for the combination of sintilimab and fruquintinib for treating locally advanced or metastatic renal cell carcinoma (RCC) patients who have failed prior treatment with one tyrosine kinase inhibitor (TKI) [1][2][3] Company Overview - Innovent Biologics is a biopharmaceutical company focused on developing high-quality medicines for major diseases, including oncology, and has launched 15 products in the market [14] - HUTCHMED is committed to discovering and commercializing targeted therapies and immunotherapies for cancer and immunological diseases, with its first three medicines marketed in China [17] Product Details - Sintilimab, marketed as TYVYT®, is a PD-1 inhibitor that has received approval for multiple indications in China, including its recent NDA for advanced RCC [5][6] - Fruquintinib is a selective oral inhibitor of VEGFRs, co-developed by HUTCHMED and Eli Lilly, and is approved for treating metastatic colorectal cancer in China [7][9] Clinical Study Insights - The NDA is supported by data from the FRUSICA-2 study, which demonstrated significant improvements in progression-free survival (PFS), objective response rate (ORR), and duration of response (DoR) for the combination therapy [2][3] - The FRUSICA-2 study met its primary endpoint, and the safety profile of the combination was found to be tolerable with no new safety signals [2][3] Market Context - In 2022, approximately 435,000 new kidney cancer cases were diagnosed globally, with around 74,000 cases in China, indicating a significant unmet medical need for effective treatments [4] - The combination therapy aims to address the challenges faced by RCC patients who have limited treatment options after failing first-line therapies [3][12]

Core Insights - HUTCHMED is set to present new data on its compounds at the ASCO Annual Meeting from May 30 to June 3, 2025, in Chicago, USA [1] Group 1: Savolitinib - The SACHI Phase III study results of savolitinib in combination with osimertinib for EGFR mutation-positive NSCLC will be presented, showing that it met the primary endpoint of progression-free survival (PFS) [2] - Additional data from the SAVANNAH Phase II study indicates that the combination of savolitinib and osimertinib showed better efficacy outcomes compared to savolitinib plus placebo, with promising CNS activity [3] Group 2: Ranosidenib - Results from the Phase I study of ranosidenib (HMPL-306) indicate it was well tolerated, with target inhibition and durable responses, particularly in lower-grade glioma patients, showing an objective response rate (ORR) of 7.1% and a disease control rate (DCR) of 100% [4] Group 3: Fruquintinib - The FRUSICA-1 Phase II study results for fruquintinib plus sintilimab in advanced endometrial cancer patients showed an ORR of 37.0% and a DCR of 88.9%, with durable responses regardless of prior chemotherapy [5] - A Phase IV study involving 2,798 colorectal cancer patients demonstrated a manageable safety profile for fruquintinib, with Grade 3 or above treatment-emergent adverse events occurring in 23.94% for monotherapy and 26.06% for combination therapy [6]

Company Overview - HUTCHMED (China) Limited is an innovative, commercial-stage biopharmaceutical company focused on the discovery, development, and commercialization of targeted therapies and immunotherapies for cancer and immunological diseases [12]. Recent Developments - HUTCHMED announced new and updated data from studies of its compounds, including savolitinib, fruquintinib, and surufatinib, which will be presented at the American Association of Cancer Research (AACR) Annual Meeting 2025 [1]. - The company is actively involved in multiple clinical trials, including the SACHI and SAFFRON trials, assessing the combination of savolitinib with TAGRISSO® (osimertinib) for treating patients with advanced non-small cell lung cancer (NSCLC) [10][11]. Product Information - Savolitinib is a selective MET tyrosine kinase inhibitor developed by HUTCHMED and AstraZeneca, approved in China for treating adult patients with locally advanced or metastatic NSCLC with MET exon 14 skipping alterations [7][6]. - Fruquintinib is being studied in various treatment regimens for metastatic colorectal cancer (mCRC), with ongoing trials evaluating its efficacy in combination with other therapies [2][3]. Market Context - Lung cancer is the leading cause of cancer death globally, with NSCLC accounting for approximately 80% of cases. A significant portion of NSCLC patients in Asia have epidermal growth factor receptor (EGFR) mutations, which are targetable by therapies like savolitinib [4][5]. - The prevalence of MET aberrations in NSCLC patients who progress after EGFR TKI treatment is notable, with studies indicating that 15-50% of these patients may present with such mutations [8][9]. Clinical Trial Highlights - The SACHI trial met its primary endpoint of progression-free survival (PFS) during its interim analysis, leading to the acceptance of a New Drug Application (NDA) in China [10]. - The SAFFRON trial is ongoing, assessing the combination of savolitinib and TAGRISSO® against platinum-based chemotherapy in a specific patient population [11]. Future Prospects - HUTCHMED is focused on expanding the clinical development of its compounds, with promising data from ongoing trials expected to support potential regulatory filings in the US and other global markets [9][11].