Hong Kong Stock Concept Tracking | New Commercial Insurance Innovative Drug Directory Added! 2025 Medical Insurance Directory Adjustment Starts, Will Innovative Drugs Welcome a Historic Turning Point? (Including Concept Stocks)

According to the Zhitong Finance APP, multiple favorable policies have recently been released, benefiting the innovative drug sector. On July 10, the National Healthcare Security Administration officially announced the "Adjustment Work Plan for the 2025 National Basic Medical Insurance, Maternity Insurance, and Work Injury Insurance Drug Catalog and Commercial Health Insurance Innovative Drug Catalog," the "2025 National Basic Medical Insurance, Maternity Insurance, and Work Injury Insurance Drug Catalog and Commercial Health Insurance Innovative Drug Catalog Adjustment Declaration Guidelines," the "Negotiated Drug Renewal Rules," and the "Non-Exclusive Drug Bidding Rules."

Industry insiders indicate that it is evident from the content of the documents that the regulatory authorities have a clearer supportive attitude towards innovative drugs, particularly with the first establishment of a commercial insurance innovative drug catalog, which opens up new avenues for the payment of high-value innovative drugs.

According to Xinhua News Agency, on July 11, the adjustment of the 2025 National Basic Medical Insurance, Maternity Insurance, and Work Injury Insurance Drug Catalog and Commercial Health Insurance Innovative Drug Catalog officially commenced. Eligible applicants can submit online applications through the National Healthcare Security Service Platform from July 11 to 20.

The newly added commercial insurance innovative drug catalog this year mainly focuses on drugs with high innovation levels, significant clinical value, and substantial patient benefits, which temporarily cannot be included in the basic catalog due to exceeding the "basic protection" positioning. This aims to help improve the multi-tiered medication security system, better meet the diverse medication needs of the public, and provide more substantial economic support for the development of innovative drugs.

Additionally, on July 1, the National Healthcare Security Administration and the National Health Commission jointly released "Several Measures to Support the High-Quality Development of Innovative Drugs," launching 16 full-chain support policies at once, instantly igniting the market for innovative drugs.

Among these, the most noteworthy is the first-time opening of healthcare insurance data to pharmaceutical companies, allowing innovative drug research and development to precisely align with clinical needs; simultaneously, the establishment of a commercial insurance innovative drug catalog provides solutions for the payment challenges of high-priced drugs; and hospitals are required to hold a pharmaceutical conference to equip new drugs within three months. This "triple policy" combination injects strong momentum into the innovative drug industry.

WanLian Securities pharmaceutical analyst Huang Jingjing stated that the large-scale business development (BD) of Chinese innovative drugs continues to land, indicating that China is currently transitioning from the fast follow stage of technological innovation to the first in class stage of scientific innovation. Chinese innovative drugs have begun to exhibit a certain level of scientific innovation and are gradually shifting towards riskier, globally valuable original or differentiated products. This is the trend of transformation in China's biopharmaceutical innovation.

In recent years, Chinese innovative drugs have accelerated their international expansion and gained international recognition. In 2024, domestic biopharmaceutical companies reached over 100 licensing transactions, with a disclosed total transaction amount of USD 52.3 billion, setting a historical high compared to USD 41.9 billion in 2023. As of June 12, 2025, the disclosed total transaction amount has already reached CNY 50.1 billion, which fully demonstrates that Chinese innovative drugs have become high-quality assets in the eyes of the global pharmaceutical industry.

Moreover, it is worth noting that as of June 12, 2025, the number of license-out transactions reached 77, three times the number of license-in transactions during the same period. This data clearly shows that the international expansion of innovative drugs is accelerating Performance: On the evening of July 10, WuXi AppTec, a leading innovative drug company, released a performance forecast, expecting to achieve an operating income of approximately 20.799 billion yuan in the first half of 2025, a year-on-year increase of approximately 20.64%; and an adjusted net profit attributable to the parent company of approximately 6.315 billion yuan, a year-on-year increase of approximately 44.43%. In addition to WuXi AppTec, Shanghai Pharma, Gan & Lee Pharmaceuticals, Sinopep, SNSW, and Boteng Co., Ltd. also released their forecasts for the semi-annual report of 2025, all of which are expected to be positive. Among them, Shanghai Pharma expects to achieve a net profit attributable to the parent company of 4.45 billion yuan in the first half of 2025, a year-on-year increase of approximately 52%.

China Post Securities believes that short-term fluctuations in innovative drugs are normal, and remains optimistic about the innovative drug market in a 2-3 year dimension. Firstly, regarding overseas expansion, many high-quality projects have certain market expectations, but there is still the possibility of exceeding expectations, and overseas valuations are not yet inflated. The overseas expansion has formed a positive cycle, and there is still room for the proportion of domestic innovative drugs to increase globally in the future. Secondly, from a funding perspective, the allocation of broad-based funds to the innovative drug sector has not yet peaked, and there is also room for foreign investment to increase its allocation to Hong Kong's innovative drug sector.

Bohai Securities stated that with the introduction of significant policies for innovative drugs and the release of commercial insurance innovative drug catalogs, it is recommended to pay attention to investment opportunities related to pipeline realization, performance growth, and business cooperation in innovative drugs and related industrial chains. At the same time, it is suggested to focus on investment opportunities in sectors related to performance reversal, such as the CXO sector benefiting from improved overseas demand and gradually recovering orders, medical devices and pharmaceutical sectors benefiting from optimized procurement rules, and technology-related AI+ sectors.

Related Concept Stocks:

Jiangsu Hengrui Medicine Co., Ltd. B (02616): From April 25 to 30, 2025, the American Association for Cancer Research (AACR) Annual Meeting will be held in Chicago, USA. Jiangsu Hengrui will showcase five self-developed Pipeline 2.0 innovative products at this conference and present its latest preclinical research results through posters, including the tri-specific antibody CS2009 (PD-1/VEGF/CTLA-4), the bispecific antibody CS2011 (EGFR/HER3), and three innovative ADC molecules from the company's own antibody-drug conjugate (ADC) platform: CS5007 (EGFR/HER3 bispecific ADC), CS5005 (ITGB4 ADC), and CS5006 (SSTR2 ADC).

Hecotech B (02256): The company's subsidiary, Hecotech Pharmaceuticals, announced that its highly selective small molecule CSF-1R inhibitor, Pimitinib (ABSK021), has been included in priority review by the Center for Drug Evaluation (CDE) of the National Medical Products Administration of China for the treatment of patients with tenosynovial giant cell tumors (TGCT).

HaploMed (02142): Previously, the company reached a major strategic cooperation with AstraZeneca. According to the cooperation agreement, AstraZeneca will obtain the licensing option for two preclinical immunotherapy R&D projects, and HaploMed will receive a $175 million upfront payment, short-term milestone payments, and option fees, as well as up to $4.4 billion in development and commercial milestone payments, along with tiered royalties on net sales. The two parties will jointly establish an innovation center in Beijing, with a cooperation period of five years, which can be extended for another five years Innovent Biologics (01801): In early July, Citi released a research report stating that Innovent Biologics (01801) provided an in-depth update on its oncology specialty at the R&D Day held on June 28. The focus is on the establishment of a new generation I/O and ADC platform, particularly PD-1/IL-2 IBI363. The firm raised the company's target price from HKD 55.9 to HKD 108.4, maintaining an "Outperform" rating, and raised Innovent Biologics' sales forecasts for the fiscal years 2025 to 2027 by 1%, 1.3%, and 3.6%, respectively, while the net profit forecasts were increased by 8.9%, 6.8%, and 13.3%, reflecting the company's recent product line progress