Huafu Securities: The demand for lipid-lowering drugs industry has enormous potential, and several innovative drugs are about to receive data catalysis.

ASCVD1LDL-C According to the report released by Huafu Securities, the burden of ASCVD is increasingly heavy in China. There are about 100 million people with high blood lipids in China, but the treatment rate for blood lipids is low. Traditional statins in the existing drugs have certain limitations. The lipid-lowering industry has a large unmet demand. In terms of drug development, multiple cutting-edge targets are being catalyzed by data, with strong drug development certainty. The development of new targets is expected to address the treatment needs for reducing different lipid indicators, greater reduction in LDL-C, and rare lipid disorders. Huafu Securities' main points are as follows: There are many high blood lipid patients in China, and the rate of blood lipids meeting standards is low According to the "China Resident Nutrition and Chronic Disease Status Report 2020" published by Yinhuakang Age Health Management Public Account, there are 200 million people in China with abnormal blood lipids, and about 100 million people with high blood lipids. High blood lipids may cause vascular thrombosis. Cardiovascular diseases (CVD) dominated by atherosclerotic cardiovascular diseases (ASCVD) are the leading cause of death among urban and rural residents in China, accounting for over 40% of all causes of death. It has been confirmed that low-density lipoprotein cholesterol (LDL-C) is a pathogenic risk factor for ASCVD. ASCVD is the most significant chronic non-communicable disease threatening human health globally, especially with the increasing burden of diseases in China. The long-term compliance rate of LDL-C meeting standards among super high-risk patients is only 30.1%. The lipid-lowering industry has a large unmet demand The current rate of lipid-lowering treatment among patients in China is low, and there are certain limitations within traditional statin drugs, such as statin intolerance in some patients, insufficient LDL-C efficacy, and poor long-term compliance with PCSK9 monoclonal antibodies. There is a lack of specific targeted drugs for Lp(a), which is an independent influencing factor for cardiovascular event reduction. There is a large unmet demand in the lipid-lowering field, focusing on lower lipid targets, early lipid-lowering intervention, and long-term compliance are the directions of current lipid-lowering new drug development. Multiple cutting-edge targets are being catalyzed by data, with strong drug development certainty Currently, the PCSK9 target is gradually developing towards more cutting-edge new technology routes (such as small nucleic acid drugs). Other targets like CETP, Lp(a), APOC3, ANGPTL3, etc., are also hot in the development of innovative lipid-lowering targets. The development of these new targets is expected to address the treatment needs for reducing different lipid indicators, greater reduction in LDL-C, and the rare lipid disorders. Recommendations: Focus on domestic companies that layout lipid-lowering innovative drug new targets, such as Jiangsu Hengrui Pharmaceuticals, CSPC PHARMA, AKESO, INNOVENT BIO, Shenzhen Salubris Pharmaceuticals, Zhejiang Jingxin Pharmaceutical, etc. Risk warning: R&D progress is below expectations; product sales are below expectations; centralized procurement policies are below expectations.