According to the information obtained by Securities Times APP, medical stocks continued to strengthen. As of press time, Yimin Oncology-B (01541) rose by 22.76%, to 7.65 Hong Kong dollars; zai lab (09688) rose by 15.25%, to 25.7 Hong Kong dollars; Hoyo-B (02256) rose by 8.82%, to 4.32 Hong Kong dollars; tigermed (03347) rose by 11.65%, to 41.2 Hong Kong dollars; wuxi bio (02269) rose by 6.68%, to 17.56 Hong Kong dollars.

On the news front, on October 25, the Hong Kong Department of Health announced that the "1+" approval mechanism, as outlined in the Chief Executive's 2024 Policy Address, will be expanded to include all new drugs starting November 1 this year, including vaccines and advanced therapy products, embodying the concept of 'Good Drug Hong Kong'. Expanding the '1+' mechanism can attract more new drugs from around the world to register in Hong Kong, giving patients more options, enhancing Hong Kong's local drug review capabilities, and promoting the development of related hardware, software, and talent, moving towards the 'first-tier review'.

It is reported that since the implementation of the '1+' mechanism, the Hong Kong Department of Health has received inquiries from over 80 drug factories with more than 260 submissions, including overseas and mainland Chinese drug factories. The Policy Address also announced other measures to accelerate the reform of the drug approval system, including proposing a timetable for the establishment of the 'Hong Kong Drug Regulatory Center' in the first half of 2025 and mapping out a route towards the 'first-tier review', as well as formulating strategies and measures to support drug research and development.

Caitong Securities pointed out that this round of the pharmaceutical downturn has lasted for 13 quarters. Although the valuation is 30% higher than the historical lowest P/E ratio from a valuation perspective, considering that there will still be a long investment period for innovative drugs in the future, the PE valuation can no longer accurately reflect the company's value. The internal and external environment is relatively friendly, with innovative drug pricing and the interest rate reduction cycle being two major positive factors. From the perspective of the company's development stage, the strategy of expanding innovative drug markets overseas remains unchanged.