According to Zhituo Finance APP, GTJA has released a Research Report, stating that it is initiating coverage of the Innovative Drugs Industry with a "Shareholding" rating. Currently, leading Innovative Drug companies have established mature R&D and sales systems, with stable expense growth. As the commercialization of core industries continues to expand, many companies are approaching a turning point to profitability, and innovation is entering a harvest period. Focus on products with significant differentiation advantages and high innovative attributes within the leading segments.

The main points of GTJA are as follows:

The unmet demand for cancer treatment is immense, and the market is expected to continue expanding.

Cancer has complex causes, and with ongoing research, cancer treatment is gradually shifting towards precision therapy, with targeted therapy and immunotherapy gradually rising. Although there have been certain breakthroughs in anti-cancer treatments in recent years, significantly improving the survival rate of some cancer patients, the five-year survival rates for certain diseases still remain at a low level, indicating clear potential for improvement. Furthermore, compared to developed countries abroad, there is still a gap in diagnosis and treatment levels in China, with an urgent need for clinical upgrades. With more drugs coming to market, the global cancer drug market is expected to expand rapidly. Despite the late start of Innovative Drugs in China, rapid development has been observed, coupled with comprehensive domestic policy support and continuous optimization of payment systems, which is expected to drive rapid market expansion. The international status of China's Innovative Drug R&D has significantly improved and is quickly catching up to the USA.

Cancer treatment is entering a phase of precision and platform innovation. Chinese companies are utilizing technological advantages such as ADC and bispecific antibodies to accelerate integration into the Global Industry Chain, with the international licensing of early pipelines becoming a growth engine.

There are over 400 ADC global pipelines under research, with Chinese companies holding 40% of the global pipeline share. HER2 has developed a mature technological pathway, and breakthroughs are imminent for TROP2 and EGFR in lung cancer and breast cancer indications. Clinical advancements for B7-H3 and CLDN18.2 are progressing rapidly in the later stages. Bispecific antibodies achieve precision treatment through dual-target synergistic mechanisms, currently dominated by hematological tumors (such as multiple myeloma, lymphoma, leukemia, etc.), and have gradually expanded to solid tumors in recent years. The momentum for bispecific/multi-target antibodies going global is rapidly rising, with significant development potential.

Mainstream anti-tumor therapies continue to evolve, and domestic new drugs are expected to showcase their capabilities.

In recent years, PD-1/PD-L1 monoclonal antibodies represented by K drugs have become the cornerstone therapies of the new generation of anti-tumor treatments; on this basis, ADCs and bispecific antibodies have begun to emerge, indicating an upgrade direction for existing clinical therapies. For example, lung cancer and breast cancer are core markets for the cultivation of blockbuster products, and domestic blockbuster products have begun to emerge, expected to bring therapy iterations to the sizable markets for first-line wild-type NSCLC, TNBC, and HER2-positive breast cancer, as well as breakthroughs in the blue ocean markets currently lacking effective treatment methods, such as second-line wild-type NSCLC, second/third-line EGFRm NSCLC, and endocrine therapy-treated HR+HER2- breast cancer.

Risk warning: Risks of intensified industry competition, risk of R&D failure, and commercialization falling short of expectations.