Hexun Investment Advisor Yao Yao: In the next two years, innovative drugs will be the hottest trend.

Biopharmaceuticals will be the hottest sector within two years, but insiders can see it clearly, while those outside the industry can’t. That’s why we’re also watching a few companies, which very likely will become future biopharmaceutical giants. This is, in fact, an opportunity for everyone—to position early in innovative drugs. This round of rally is an inevitable result of a three-way convergence of policy tailwinds, performance, and overseas expansion.

According to an analysis by Yao Yao from Hexun Investment Advisory, the industry has officially moved from the past “burning cash” phase into a period of performance realization. Today, from sector-specific scarcity to global leading capabilities, here are 10 innovative-drug companies selected for you—those with technical barriers and huge room for growth.

First, Henrui Medicine—an absolute leader in domestic innovative drugs. Its anti-cancer drug technology is globally leading, serving as a benchmark for domestic drug companies to go overseas. Second, Rongchang Biotech—an overseas king in anti-cancer drugs. It focuses on targeted therapies for gastric cancer and pancreatic cancer, setting the highest record for domestic anti-cancer drugs going overseas. Domestic sales are also extremely hot. Third, BeiGene is the first innovative-drug company in China to truly achieve profitability. Its anti-cancer pipeline is globally laid out, and the global market has been fully opened. Fourth, Konpharma Biotech—global breakthroughs with a dual-target anti-cancer drug; it is an absolute leader in the dual-antibody (dual-Ab) track. Fifth, Legend Biotech—the global first-tier cell therapy for blood-cancer-specific special drugs. It authorized Johnson & Johnson with a deal worth $3.2 billion, leading to a global blockbuster, and it also breaks through the ceiling for solid-tumor treatments, with enormous future potential.

Sixth, SinoMab Bio’s lymphom a special drug—an industry benchmark core product for domestic substitution. Obinutuzumab? (奥布替尼) has 2.5 billion in annual domestic sales; overseas authorization is about to be finalized. At the same time, it is expanding into the autoimmune disease track, with very strong upside in growth elasticity. Finally, there are four innovation-drug R&D outsourcing core service providers.

First, WuXi AppTec—an absolute global leader in the pharmaceutical industry, with end-to-end coverage from R&D to manufacturing. Its in-hand orders are close to 60 billion yuan, and getting orders feels almost effortless. Second, Celgene? (凯莱因) [cda] global leader in small-molecule drugs—deeply linked with the world’s Top 20 pharmaceutical companies. High technical barriers, and commercialized projects continue to keep it as a leader: its performance grows steadily every year by more than 25%, making certainty extremely high. Third, Hisun? (海特生物) [CXO] plus self-developed innovative drugs driving on two wheels. One side handles global outsourcing orders, and the other side self-develops nerve growth factor. It combines expansion flexibility with stability. Fourth, GemPharma? (金凯申科) [small-molecule drug] intermediate system— a leading player. It focuses on fluorinated drug APIs and is deeply bound to orders from global original research pharmaceutical companies, with ample orders.

(Responsible editor: Wang Gang HF004)

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