Recently, the innovative drug sector has been relatively strong, whether it is A-shares or Hong Kong stocks. The Science and Technology Chuang Pharmaceutical Index ETF (588700) in our grid trading also triggered a take-profit in the morning (taking profit in batches when rising, and increasing positions in batches when falling).
So, can innovative drugs still get on the car?
In fact, innovative drugs are ushering in the "Davis double-click" moment when performance and stock prices rise, which is one of the most worthy of attention at present.
Since this year, the biopharmaceutical industry has continued to heat up around the world, especially in China. Driven by the triple driving of policy support, technological innovation and market demand, the industry has entered a period of rapid development. According to Wind data, from May 1 to June 6, 2025, the Wande Pharmaceutical Index rose by 8.45%, showing that the market is highly concerned about the biopharmaceutical industry.
According to the approval of the State Food and Drug Administration in May 2025, a total of 11 innovative drugs were approved for marketing, of which Hengrui Medicine exclusively accounted for 3. The launch of these new drugs not only fills the gap in the domestic market, but also enhances the competitiveness of Chinese innovative pharmaceutical companies in the global market. For example, Hengrui Medicine's HER2 ADC drug Ruikang Trastuzumab became the first domestic ADC drug to target HER2 mutation non-small cell lung cancer in China, showing strong technical strength.
In April 2025, the application for IND of biological products accepted by the State Food and Drug Administration increased by 41.9% year-on-year, and the approval cycle was shortened to 6-8 months, accelerating the marketing process of innovative drugs. At the same time, the dynamic adjustment of the medical insurance catalog supports "real innovation". 65% of the 91 new drugs added in 2024 come from domestic companies, and the success rate of innovative drug negotiations exceeds 90%. These policies provide a good development environment for the industry.
In the investment in the pharmaceutical sector, Science and Technology Innovation Medicine is one of the directions that deserve our focus.
Take the Jiashen Science and Technology Innovation Pharmaceutical ETF (588860.SH) we invested in as an ETF that tracks the Shanghai Science and Technology Innovation Board Biomedical Index, Jiashen Science and Technology Innovation Pharmaceutical ETF closely tracks the Shanghai Science and Technology Innovation Board Biomedical Index. The index selects 50 listed companies in the fields of biomedical, biomedical engineering, bioagriculture, biomass energy, other biological industries with large market value from the Science and Technology Innovation Board market as an index sample, which fully reflects the overall performance of securities of listed companies in the representative biomedical industry in the Science and Technology Innovation Board market.
Jiashi Science and Technology Innovation Pharmaceutical ETF has high elasticity, obvious growth style, outstanding hard technology attributes, focusing on innovative medical devices + innovative drugs, and has significantly better than the performance of the Shanghai and Shenzhen 300 Index since its launch.
With the easing of Sino-US economic and trade relations and the continued support of domestic policies, the biopharmaceutical industry has great potential for valuation repair. In the first quarter of 2025, the total License-out transactions of Chinese innovative pharmaceutical companies reached 41, with a total amount of up to US$36.929 billion, approaching the full-year level in 2023. Among them, Sansheng Pharmaceutical authorized Pfizer to its PD-1/VEGF dual anti-drug drug with a down payment of US$1.25 billion plus a milestone payment of US$4.8 billion, demonstrating the international competitiveness of China's innovative pharmaceutical companies.
After the in-depth adjustments in the previous few years, the innovative drug sector is in a better period of investment opportunities, especially the industry trend of science and technology innovation medicine, which is superimposed on the AI+ industry trend.
Friends who have not gotten on the bus can consider: first lay out some positions, and then increase positions and reduce investment costs when encountering a large market pullback.
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#Strong Opportunities#
$Science and Innovation Pharmaceutical ETF (SH588860)$
$Hengrui Medicine (SH600276)$
$Tencent Holdings (HK|00700)$
