The concept of innovative drugs is once again active, with Lianhuan Pharmaceutical and Shuanglu Pharmaceutical hitting the limit-up for two consecutive days, and Sansheng Guojian reaching a new high.

The innovative drug concept was active again during the trading session on the 30th. As of the time of writing, Sansheng Guojian is up more than 18%, reaching new intraday highs again. HaiTe Bio is up more than 13%. LianHuan Pharmaceutical and ShuangLu Pharmaceutical have both hit their daily trading limits for two consecutive days. Dongcheng Pharmaceutical and Yatai Pharmaceutical are also at their daily trading limits. Norgenkai is up more than 9%.

According to the National Medical Products Administration’s (NMPA) announcement, in the first three months of this year, the total value of outbound licensing and transactions for innovative drugs in China exceeded $60 billion, approaching half of the entire 2025 figure. The NMPA’s latest statistics show that, as of March 27, China has already approved 10 innovative drugs for 2026, including 2 imported and 8 domestic. China’s innovative drugs have achieved historic breakthroughs, maintaining a solid momentum and offering substantial potential.

Guojin Securities said that the innovative drug sector is currently in a “golden window” where three cycles overlap: “earnings realization, valuation repair, and meeting catalysts.” Previously, since the end of the third quarter last year, the innovative drug sector underwent an adjustment lasting more than half a year, during which valuation risks were released relatively thoroughly. However, short-term sentiment suppression does not change the fundamental logic that the industry remains favorable in the long run.

First, on the fundamentals side, multiple pharmaceutical companies have turned losses into profits. According to Wind data, as of March 24, among the Shenwan Medicine and Biotech sector of all A-shares in the market, 169 companies have disclosed their 2025 annual reports. Of these, 121 companies have positive parent-attributable net profits, accounting for more than 70%. Seventy-seven companies saw year-on-year growth in parent-attributable net profits. The year-on-year growth rate of net profit for 20 companies exceeded 100%, showing the characteristics of both overall profitability recovery across the sector and concurrent differentiation in structure.

Second, from April 17 to 22, the American Association for Cancer Research Annual Meeting (AACR) is about to be held. In 2025, 126 Chinese pharmaceutical companies participated in the AACR meeting, bringing nearly 300 new drug research results, including more than 80 ADC studies, nearly 40 bispecific antibody studies, and more than 10 monoclonal antibody studies. Other drug types also include peptide-conjugated drugs, molecular glues, cell therapies, tri-specific antibodies, PROTAC, and more.

Third, the American Society of Clinical Oncology (ASCO) Annual Meeting is set to take place from May 29 to June 2. In 2015, ASCO saw only one oral presentation from China and no LBA projects. By contrast, in 2025, studies jointly resulted in the selection of more than 70 oral presentations. Not only has the number increased significantly, but there has also been a qualitative leap in terms of quality. Among them, 11 studies were selected for the highly valuable Late-Breaking Abstracts (LBA), becoming a global focus. We expect the major research contributions from China’s innovative drug companies brought by the high-profile academic conferences from April to June this year.