Pharmaceutical listed companies have completed their mid-2025 interim performance disclosures. Overall, the pharmaceutical industry's total sector revenue declined 3.06% year-over-year in the first half of this year, with the decline narrowing compared to Q1. The sector's adjusted net profit attributable to shareholders fell 12.50% year-over-year, with the decline widening. Looking at sub-sectors, innovative drugs, CRO/CMO, upstream biopharmaceuticals, medical services, and home medical devices ranked highest in adjusted net profit growth rates. CRO/CMO, medical services, home medical devices, and high-value consumables sectors showed dual growth in both revenue and adjusted net profit attributable to shareholders. Traditional Chinese medicine continued to face pressure from multiple factors, with attention on improvements following channel clearance.
Regarding the pharmaceutical industry's future trends and investment strategies, Jin Ying Fund's Ouyang Juan stated that in the short term, domestic medical device procurement policies are continuously moderating, the innovative drug industry is steadily advancing, and the pharmaceutical manufacturing sector maintains stable operations with consistent quarterly year-over-year growth rates. The innovative drug sector has maintained high growth for five consecutive quarters, and 2025 will mark the beginning of commercial insurance reaching a new level, benefiting innovative drugs and innovative medical device industries.
From a medium to long-term perspective, China's pharmaceutical industry upgrade continues to materialize. On one hand, domestic supportive policies for innovative drugs are being released intensively, hospital-end products with clinical value continue to scale up, and domestic commercialization ceilings are continuously rising. On the other hand, global major pharmaceutical companies' purchases of innovative drugs from China continue to accelerate in both quantity and value, far exceeding those from the United States and other countries, with China's innovative drug industry collectively moving toward globalization.
Strategic directions include: ① Innovative drugs with the strongest global competitiveness, enjoying long-term benefits from both domestic and European-American markets, the world's two largest markets; ② Innovative drug supply chains, including CXO and upstream life science services, expected to see order growth recovery as global investment and financing growth rates reach an upward inflection point; ③ Medical devices and equipment, with continuously optimizing procurement policies, focusing on companies in imaging and other areas that emphasize self-reliance, domestic substitution, and high-end manufacturing for international expansion.
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