1. Review: stock price differentiation, technology-led stock price: performance differentiation, new technology and performance are still core drivers. From December 30, 2022 to April 30, 2024, innovative drugs showed differentiation, such as ADC, double antibodies and other new technologies, leading targets and better performance than expected.RainbowtroutThe performance is better. R & D: with a high base, investment in YOY continues to slow down. In 2023, 31 sample innovative pharmaceutical companies invested 61.5 billion in R & D (YOY3Rainbowtrout.41%), continue the growth trend and maintain a high intensity. Commercialization: stock quantity, increment is getting better. According to our statistics, the product income of the 14 commercial innovative pharmaceutical enterprises reached 42.2 billion yuan in 2023, an increase of 54% over the same period last year. 23 domestic new drugs were approved in 2023, and 6 domestic class 1 new drugs were approved from January to April 2024. Internationalization: the competitiveness is strengthened, and License out continues to be hot. Relying on the landing of new technologies such as ADC, double antibodies, CGT and scarce technology platforms, the larger transactions from January to April 2024 are: Bawang Pharmaceuticals will authorize two cardiovascular siRNA drugs to Novartis, and Yilian Biology will license an ADC drug to Roche Pharmaceuticals. The globalization of China's local innovation force continues to expand, and we are optimistic that the internationalization of the innovative pharmaceutical industry will continue to deepen and realize the plate investment opportunities. 2. Outlook: policy support, marginal upward full-chain policy support, innovative drug development is expected to speed up. We believe that the introduction of full-chain support documents in Beijing and Guangzhou reflects that policy support for innovative drugs is beginning to increase, and we look forward to more provinces and cities launching innovative drug support policies. Under the policy dividend, the high-quality development of China's innovative drugs and its industry chain is expected to accelerate. Innovation: continuous verification of product power. In 2024, ASCO Cinda Biological IBI310 MSI-H/dMMR Colorectal Cancer, Columbine Biological SKB264NSCLC, Lepu Biological MRG004A, Yasheng Pharmaceutical Olverembatinib, Microcore Cedarben diffuse large B-cell Lymphoma, Keji Pharmaceutical CT041, Gakoz JAB-21822 + JAB-3312 were all reported in the form of oral summary. Outlook: commercialization is still in the acceleration period, and the convertibility is still strong. There were 2647 IND applications in 2023 (YOY14%) and 1081 applications from January to April 2024 (YOY38.6%). As of April 30, 2024, there are still 42 Class 1 innovative drugs in the NDA state. 3, investment strategy: buy the track-inflection point 1) track: new technology (ADC, double antibodies, CAR-T, autoimmunity, weight loss drugs); 2) inflection point: the impact of collection / health insurance price reduction hit bottom. Innovation & acceleration of internationalization: recommend Xiansheng Pharmaceutical, first Pharmaceutical Holdings, Fosun Pharmaceuticals, pay attention to Karen Pharmaceutical, Hengrui Pharmaceuticals, Hesco. International recommendation: Dizhe Medicine, Rongchang Biology, Junshi Biology, pay attention to Baiji Shenzhou, Hutchison Medicine, Baiotai and so on. Innovative technology breakthrough, bring more space flexibility: recommend Kangfang Biological, Rongchang Biological, Keji Pharmaceutical, pay attention to Karen Botai, Baili Tianheng, Maiwei Biological. Performance up: recommend Ze
