China Galaxy Securities: CXO helps accelerate the development of small nuclear acids, and domestic pipelines are ready to take off.

China Galaxy Securities released a research report stating that the domestic small nucleic acid industry chain is still in its early stages in China, with a large space for domestic substitution, and CXO is helping to accelerate the industry's development. The small nucleic acid drug industry chain covers upstream nucleic acid monomer and reagent production, midstream new drug research and development, drug production, and downstream product commercialization. There is still a high dependence on imported raw materials, technology, patents, and equipment, with a significant space for domestic substitution. Midstream CDMO companies provide outsourced research and development services for small nucleic acid drugs, helping to accelerate the rapid development of the domestic small nucleic acid drug industry. China Galaxy Securities' main points are as follows: - Looking at the high-growth attributes of small nucleic acid drugs from the perspective of small nucleic acid drug Inclisiran joining the ranks of blockbuster drugs - Novartis' 2025 financial report: the global sales of the first siRNA ultra-long-acting lipid-lowering drug Leqvio (Inclisiran) soared to 1.198 billion US dollars, a year-on-year increase of 57%, joining the ranks of blockbuster drugs. In addition, beginning in 2026, catalytic events in the small nucleic acid drug race have been frequent: new drug approvals, capital inflows, technological breakthroughs, and mergers and acquisitions integration, showing a strong momentum for small nucleic acid drugs. Small nucleic acid drug research and development are entering a period of explosive growth, with a vast potential market space for chronic diseases - Currently, the global market competition in small nucleic acid drugs is highly concentrated: Alnylam, Ionis, and Sarepta hold 95% of the global market share, with other companies such as Arrowhead and Wave Life Sciences catching up. As of February 2026, a total of 23 small nucleic acid drugs have been approved for marketing globally (including those delisted), including 13 ASO drugs, 8 siRNA drugs, and 2 nucleic acid aptamer drugs, covering indications such as FCS, spinal muscular atrophy, and hypercholesterolemia. The global research pipeline is experiencing explosive growth, with over one hundred small nucleic acid drugs in development, with cardiovascular and metabolic diseases being the main research directions, and the proportion of research in the CNS and kidney disease fields rapidly increasing. Domestically, leading small nucleic acid biotech companies such as Ruibo Bio, Bowang Pharmaceuticals, and Shenxin Bio are rising, with not only fast-paced research pipelines but also reaching large BD deals with MNCs. Mature pharmaceutical companies are also actively deploying: INNOVENT BIO, Shenzhen Salubris Pharmaceuticals Risk warning: 1. Increasing macroeconomic pressure leading to insufficient medical consumption; 2. Innovative drug medical insurance payments falling short of expectations; 3. Global order shifts due to geopolitical factors; 4. Centralized procurement or price reduction exceeding market expectations.