China Merchants International released a research report stating that the Chinese pharmaceutical industry is expected to continue its upward trajectory, benefiting from positive factors including innovative drug overseas licensing deals and optimization of domestic centralized procurement policies. The firm recommends buying 3SBIO (01530), GIANT BIOGENE (02367), WUXI XDC (02268), GUSHENGTANG (02273), SINO BIOPHARM (01177), and INNOVENT BIO (01801).
The firm believes that in the short term, valuations of innovative drug companies continue to rise as the market maintains high expectations for the frequency and scale of overseas licensing transactions, though investors should maintain a rational perspective on stock price appreciation opportunities. Looking ahead, the firm expects that the sustained upward momentum for innovative drug companies will primarily stem from overseas partners advancing clinical development of licensed pipelines.