China Galaxy Securities: The number of domestic new drugs selected by ASCO hits a new high, optimistic about investment opportunities in the pharmaceutical industry in 2026.

China Galaxy Securities released a research report stating that they are optimistic about investment opportunities in the pharmaceutical industry in 2026. After a recent period of volatility and adjustment, there is potential for a rebound in 2026. They recommend focusing on pharmaceutical hard technology and sub-segment track , and suggest paying attention to innovative drugs (BIC and FIC pipeline leaders), innovative devices (imaging, high-value consumables, consumer devices, etc.), medical AI direction, medical consumption recovery (medical aesthetics, branded Chinese medicine, ophthalmology, etc.), and independent third-party ICL. Key points from China Galaxy Securities: The 2026 ASCO Annual Meeting opens, with a record number of domestic new drugs selected The 2026 American Society of Clinical Oncology (ASCO) Annual Meeting will be held in Chicago, USA from May 29 to June 2, 2026. This year, 95 abstracts led by Chinese scholars were selected, including oral presentations, rapid oral presentations, clinical science symposiums, etc., surpassing the previous record of 74 in 2025. Among them, 12 abstracts of the latest breakthroughs (LBAs) are highly anticipated. The AKESO Ivosidenib HARMONi-6 study is the only Chinese study selected for the entire conference this year, and the second Chinese local innovative drug research to be selected for this important session in ASCO's history. As of now, the ASCO 2026 abstracts have been released in succession, with a large number of domestic key innovative drugs revealing core clinical data, attracting high attention from the global capital market. Multiple domestic new drugs disclose impressive data, ushering in new breakthroughs in the field of cancer treatment At the 2026 ASCO meeting, there are many achievements in domestic innovative drugs. The following pipeline is worth paying attention to: INNOVENT BIOIBI363 for the treatment of IO refractory NSCLC phase I clinical trial (mOS of squamous cell carcinoma subgroup is 18.2 months, 24-month OS rate of 47.8%), and the first-line advanced NSCLC phase I clinical trial (31.5mg/kg dose group, ORR of 86.4% in PD-L1 negative/low expression population, DCR of 100%); AKESOAK112 combined with chemotherapy for the first-line advanced squamous NSCLC phase III clinical trial (HARMONi-6, mOS of 27.9 months, HR=0.66; mPFS of 11.1 months vs. 6.9 months), combined with chemotherapy for the first-line advanced colorectal cancer phase II clinical trial; BeOne Medicines Ltd. BGB43395+palbociclib combination therapy for first-line HR+HER2- breast cancer phase I clinical trial; BGB-B2033 for the treatment of second-line advanced solid tumors phase I clinical trial; Zebutorinib+sotoracra combination therapy for first-line CLL phase III trial; Cellenova SKB264 combined with K drugs for the treatment of first-line NSCLC phase III trial; HENLIUSHLX43 for the treatment of second-line and above refractory late-stage NSCLC phase II clinical trial. The 2026 medical insurance catalog adjustment plan is released, further optimizing the rules On May 9 and 31, 2026, the National Medical Insurance Administration successively released the draft and formal plan for the adjustment of the 2026 medical insurance drug catalog. This plan mainly adjusts the following points: 1) Adjust the declaration rules: Implement a pre-declaration mechanism; Add 3 declaration channels: Commercial insurance innovative drug catalog products can directly declare basic medical insurance, establish a "first commercial insurance, then medical insurance" gradient access path, allowing high-priced innovative drugs to first be covered by commercial insurance, and then included in the medical insurance catalog after maturity. Conditional approval drugs (approved after 2020, converted to regular approval after 2023) enjoy a super long declaration window of 5 years during the conditional period + 3 years after conversion to regular approval, encouraging companies to complete confirmatory clinical research after conditional approval. For varieties that have failed in previous negotiations and have been removed from the catalog, the first new drug with the same generic name can reapply, creating an opportunity for new drugs with the same target mechanism to re-enter medical insurance. 2) Optimization of renewal and bidding rules. 3) Strengthening of conditions for removal from the catalog. 4) Overall advance of time points. Risk warnings: Risks of increased macroeconomic pressure leading to insufficient growth in pharmaceutical consumption ability, risks of policies related to innovative drug medical insurance payments falling short of expectations, risks of global order shifts due to geopolitical factors, risks of centralized procurement or price decreases exceeding market expectations.