The collection of pharmaceutical products continues to advance, and the impact of generic drug collection on the industry may be nearing its end. The goal of the National Health Insurance Administration is to achieve a total of 450 drugs collected at the national and provincial levels. The first seven batches have already collected nearly 300 varieties. In addition to provincial collection, inter-provincial alliances, etc., it is expected that there are not many generic drug varieties left that have not yet been collected after the eighth batch of national procurement, and the impact of collection on generic drugs has basically come to an end. We are currently optimistic about the following main lines of the pharmaceutical sector: rehabilitation of medical services, such as Jinyu Medicine, American Health, Aier Ophthalmology, Tongce Medical, etc.; equipment brought about by new infrastructure, such as Mindray Medical, etc.; recovery from non-COVID-19 vaccines, such as Kangtai Biology, Olin Biology, etc.; consumer products of traditional Chinese medicine, such as Taiji Group, Kunming Pharmaceutical Group, etc.; companies with characteristic businesses in the pharmaceutical business, such as Shanghai Pharmaceutical and Baiyang Pharmaceutical.