The Zhitong Finance App learned that pharmaceutical stocks rallied and strengthened in the afternoon. As of press release, Laikai Pharmaceutical-B (02105) rose 13.67% to HK$6.07; Conoa-B (02162) rose 13.21% to HK$33; Pharmaceutical Syndicate (02268) rose 7.52% to HK$20.15; Cansino Biotech (06185) rose 6.29% to HK$18.6; Kangfang Biotech (09926) rose 5.52% to HK$46.8.

According to the news, recently, the Beijing Municipal Health Insurance Administration issued “Certain Measures to Support the High-Quality Development of Innovative Medicines in Beijing (2024)”. The measures mainly cover eight aspects: 1) focusing on improving the quality and efficiency of clinical research of innovative pharmaceuticals; 2) helping to accelerate the review and approval of innovative pharmaceutical devices; 3) vigorously promoting pharmaceutical trade facilitation; 4) strengthening clinical application of innovative pharmaceuticals; 5) striving to expand payment channels for innovative pharmaceuticals; 6) encouraging healthcare data to enable innovation; 7) strengthening investment and financing support for innovative pharmaceutical companies; and 8) safeguard measures.

A recent research report by Donghai Securities pointed out that since this year, including clear support for innovative drugs and continuous optimization of procurement renewal terms, etc., there has been a clear positive trend in industry policy; the overall sector is expected to continue to warm up after the second quarter. In the medium to long term, we continue to be optimistic about investment opportunities such as innovative drugs and specialty devices representing the development direction of new quality productivity; in the short to medium term, we will focus on investment opportunities in undervalued, high-dividend, and steady growth related sectors and individual stocks, such as branded traditional Chinese medicines, pharmacy chains, and blood products.