Continue to have strong confidence that the pharmaceutical Sector will reverse its trend in 2025, with innovative drugs as the main focus and the left-side Sector's difficulties reversing still being the biggest investment opportunity in the pharmaceutical Sector for 2025.
According to Zhitong Finance APP, Sinolink has released a Research Report stating that the innovative drug Sector has maintained a high prosperity status recently, with significant collaborations continuing to materialize. Following AACR and ASCO, the 85th Annual Scientific Sessions of the American Diabetes Association (ADA) will be held in Chicago, USA from June 20-23, 2025. The ADA Annual Meeting is one of the largest and most prestigious diabetic academic conferences in the world, and it is expected that many endocrine metabolism-related companies will release important clinical and research information at the conference, suggesting to focus on investment opportunities related to the endocrine metabolism field. Meanwhile, as the domestic summer approaches, it is recommended to pay attention to marginal changes in Medical Services, consumption, and medical aesthetics, looking for investment opportunities.
Sinolink's main points are as follows:
Pharmaceutical Sector: On June 12, 2025, UroGen Pharma announced on its official website that the FDA (U.S. Food and Drug Administration) has approved the company’s Zusduri (Mitomycin) bladder instillation solution as the first and only drug for the treatment of recurrent low-grade intermediate-risk non-muscle invasive bladder cancer (LG-IR-NMIBC). There have been continuous advancements in chronic disease metabolism, and Eli Lilly and Co's oral lipid-lowering drug for Lp(a) is expected to be included as a breakthrough therapy. Since the beginning of 2025, both the quantity and quality of newly approved drugs in China have continued to increase, and the innovative drug Sector, which has been sluggish for several years, is now in a value trough. Meanwhile, as China's technological strength becomes more recognized globally, the innovative capabilities and growth potential of Chinese pharmaceutical companies are also beginning to attract attention from Capital Markets.
It is recommended to pay attention to leading companies, those going abroad, and innovative progress such as Hengrui Pharmaceuticals, BEIGENE, INNOVENT BIO, AKESO, HANSOH PHARMA, Dizh Medical, Shiyao Innovation, and leading ADC companies like Kelun-Biotek and BaiLi Tianheng.
Biologics: Merck has announced that two Phase III studies of the oral PCSK9 inhibitor Enlicitide for treating hypercholesterolemia have reached their primary endpoints, marking it as the world's first successful Phase III study for an oral PCSK9 inhibitor. PCSK9 inhibitors are guideline 1A recommended, and currently available products require injection, while the oral formulation is expected to further improve compliance, suggesting continuous attention to research and development progress in this field.
Medical Devices: Increased efforts in the research and development and promotion of innovative products, with a focus on the recovery of domestic end-user demand. The ShenZhen New Industries Biomedical Engineering's flagship machine, MAGLUMI X10, has received certification for market release, with a testing speed of up to 1000 tests/hour, occupying only 2.4 square meters, combining efficiency with spatial advantages. LIFETECH SCI has invested in Jianhu Medical to layout its electrophysiology business, with a longstanding growth trend in demand for innovative in-hospital devices.
Medical Services: Recently, the Institute of Neuroscience and Intelligent Technology of the Chinese Academy of Sciences, in collaboration with Huashan Hospital affiliated with Fudan University and relevant enterprises, successfully conducted China's first prospective clinical trial of invasive brain-computer interface. This achievement marks that China has become the second country in the world to enter the clinical trial stage for invasive brain-computer interface technology. With the rapid development of technology and support from policies, it is expected to promote the fast growth of the Industry and related sectors (high-end imaging equipment, surgical robots, brain-computer interfaces, artificial intelligence in healthcare, advanced biomedical materials, etc.), among which, leading players in the segmented fields that have advanced product R&D, strong financial strength, and high brand recognition are expected to benefit.
Traditional Chinese Medicine: On June 9, 2025, the innovative drug for nourishing blood, dispelling wind, and relieving pain granules developed independently by Hunan Fangsheng Pharmaceutical was approved for market launch. In recent years, policies have been continuously introduced to support the development of innovative traditional Chinese medicine drugs, showing an accelerated trend in the development of new traditional Chinese medicines, with a significant increase in IND numbers. More new drug NDAs are expected to emerge in the coming years, and attention is also recommended on the recent new product launch progress.
Investment Advice: Maintain strong confidence in the pharmaceutical Sector reversing its trend in 2025. The main line of innovative drugs and the reversal of challenges faced by left-side sectors still represent the greatest investment opportunity for the pharmaceutical Sector in 2025. It is advised to actively focus on updates of clinical data for innovative drugs, as well as the market trends for traditional Chinese medicine, pharmacies, medical services, and consumer goods that will arise as summer approaches.
Key symbols: Kelun Boda (06990), Humanwell Healthcare (600079.SH), Huadong Medicine (000963.SZ), Xiamen Amoytop Biotech (688278.SH), Yifeng Pharmacy Chain (603939.SH), Chongqing Taiji Industry (600129.SH), Shenzhen Mindray Bio-Medical Electronics (300760.SZ), Angel Align (06699), etc.
Risk Warning: Exchange rate risk, domestic and international policy risks, fluctuations in the investment and financing cycle risks, risks of mergers and integrations not meeting expectations, etc.
