Haitong: The path to a trillion self-immune race welcomes intergenerational change, with MNCs accelerating their entry into the next-generation pipeline.

Guotai Haitong released a research report stating that it maintains a "buy" rating for the biopharmaceutical industry. Biosimilars are an important cornerstone of MNC's existing business; as patents near expiry, MNC is accelerating the layout of the next generation of biosimilar pipelines. Chinese companies are expected to achieve overtaking on the fast track of the next generation of biosimilar technology and deeply participate in MNC's global layout in biosimilar business. The main viewpoints of Guotai Haitong are as follows: In the history of biosimilar development, many blockbuster products have emerged, catalyzing the birth of many billion-dollar MNCs. In the history of biosimilar development, many blockbuster products with over a hundred billion dollars market value have emerged, catalyzing the birth of many billion-dollar MNCs. Reviewing AbbVie's history, with the volume of the core blockbuster drug Adalimumab (peak sales of approximately $19.9 billion in 2018) and pipeline iteration, it achieved two rounds of stock price increases during the golden growth period. The current standard therapies have many limitations, and technological iteration is expected to create a larger market space. Even with many limitations in terms of efficacy, compliance, etc., the first generation of biosimilar products still maintain good sales performance in the global market, giving rise to several billion-dollar blockbuster products, demonstrating the great development potential of the biosimilar market. The bank predicts that the next generation of biosimilar products will undergo comprehensive technical iteration in effectiveness, safety, and compliance dimensions, helping patients establish better medication habits, lengthen DOT, and further expand the biosimilar market space. MNC is accelerating the layout of the next generation of biosimilar products, and Chinese companies are expected to achieve overtaking on the fast track. Reviewing heavyweight BD transactions involving MNCs with a total transaction value of over $1 billion, the bank found that MNC's layout in the biosimilar track is accelerating continuously. Since 2024, Chinese companies have rapidly increased their participation in heavyweight BD transactions involving MNC biosimilars, and are expected to achieve overtaking on the next generation technology path, deeply participating in MNC's global layout in the biosimilar business. From the perspective of technological iteration paths, for T-cell-mediated biosimilar diseases, the technological areas that MNC has focused on in the past three years include dual/multi-cytokine blockade agents, long-acting and inhaled formulations, oral products, etc., with main exploration areas focusing on TL1A. For B-cell-mediated biosimilar diseases, the technological areas that MNC has focused on in the past three years include TCE immunotherapy, cell gene therapy immunotherapy, complement inhibitors, etc. Chinese companies are at the forefront in multiple areas such as dual/multi-cytokine blockade agents and TCE immunotherapy. Investment advice: It is recommended to pay attention to companies such as CanSino Biologics, Haisco Pharmaceutical Group, CSPC PHARMA, Yifang Biopharma, InnoCare Pharma, CMS, Sunshine Guojian Pharmaceutical, Hengrui Medicine, SIMCERE PHARMA, INNOVENT BIO, Qunxing Bio, EVEREST MED, AKESO, ZHIXIANG JINTAI, etc. Risk reminders include risks such as R&D falling short of expectations and commercialization falling short of expectations.