Yuan Qinghui, from CITIC Securities Investment Banking: Pharmaceutical sector back on growth track, innovation and going global as core themes.

Yuan Qinghui, chief analyst of medical industry at CITIC Securities, stated that in the first quarter of 2026, the revenue and profit of the innovative drug sector returned to a positive growth track. Breaking down the growth drivers, innovation and related industrial chains are the core driving factors: on one hand, the commercialization of innovative drugs has achieved rapid growth, while the upfront payments for overseas BD authorizations continue to rise, and the trend of multinational pharmaceutical companies purchasing Chinese innovative assets is pushing the performance of the innovative drug sector; on the other hand, the high prosperity of innovative drugs further drives the development of the entire industrial chain. Domestic pharmaceutical companies are increasing their early-stage research and development investments to pursue high-quality exits and returns, while overseas pharmaceutical companies' demand for Chinese-related production services is increasing, leading to comprehensive benefits for CTO, pre-clinical CTO, CDMA, and the upstream supply chain.