The pharmaceutical sector surged today, with the Guotai (512290) biotech and pharmaceutical ETF rising over 4%, as innovation-driven transformation in the pharmaceutical industry and industry prospects attract attention.

After a decade of transformation in the AI and pharmaceutical industries, how will innovative drugs lead the industry’s new wave?

On April 1, the Guotai Biopharmaceutical ETF (512290) surged by more than 4%, and attention is drawn to the innovation-driven transformation of the pharmaceutical industry and its outlook.

Huayuan Securities pointed out that, after the ten-year innovation-driven transformation from 2015 to 2025, China’s pharmaceutical industry has basically completed the shift in growth drivers from the old to the new. Innovation is replacing generics, and overseas expansion capabilities are improving. Specifically: 1) China’s innovation-driven industries have reached a certain scale; traditional pharmaceutical companies have completed their innovation transformation, and innovative drug companies are quickly rising; 2) Overseas expansion capabilities are accelerating, and Chinese pharmaceutical companies have become a key source of innovation transformation that multinational drug firms highly value. Medical devices, supply chains, and other areas have already occupied relatively high positions globally; 3) On the demand side, population aging continues to accelerate, and demand for chronic diseases such as cardiovascular and cerebrovascular diseases and endocrinological diseases is increasing, with a “silver economy” that has a long runway and ample growth potential; 4) On the payment side, medical insurance revenue and expenditure are growing steadily, while the medical insurance bureau actively promotes the development of commercial insurance and builds a multi-tier payment system; 5) New technologies are accelerating changes in the industry. Under the wave of AI and high-tech industries, pharmaceuticals are expected to unlock new growth logic. Brain-machine interfaces, early tumor screening, AI medical care, and other developments are progressing rapidly. Looking ahead to 2026, we continue to be optimistic about the main line of pharmaceutical technology led by innovation. Meanwhile, we also recommend positioning in areas such as aging and out-of-hospital consumption, where the industry may see a turnaround. In addition, the national rollout of the long-term care insurance system is imminent. It is expected to gradually open up medium- and long-term incremental space in markets such as elderly care and rehabilitation assistance and aids.

The Guotai Biopharmaceutical ETF (512290) tracks the CS Biopharmaceutical Index (930726). From the Shanghai and Shenzhen markets, this index selects securities of listed companies involved in related fields such as biotechnology and healthcare as index samples. Constituent stocks include, but are not limited to, companies in pharmaceuticals, biotechnology, and medical devices, in order to reflect the overall performance of related listed securities in China’s biopharmaceutical industry. The index has relatively high characteristics of growth and innovation.

Risk disclosure: The mention of individual stocks is only for industry event analysis and does not constitute any recommendation or investment advice for any individual stock. Indexes’ short-term gains and losses are for reference only and do not represent future performance, nor do they constitute any commitment or guarantee regarding fund performance. Opinions may be adjusted as market conditions change, and do not constitute investment advice or commitments. Different funds have different risk and return characteristics. Investors are kindly requested to carefully read the fund’s legal documents, fully understand product elements, risk levels, and the principles of profit distribution, select products that match their own risk tolerance, and invest prudently. For fund fee rates, please refer to the legal documents.

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