Huafu Securities' Chen Tielin: Innovative drugs are rapidly developing towards internationalization from 1 to 10, and can be structurally over-allocated.

At the 2025 Autumn Economic and Investment Strategy Conference of Huafu Securities, Chen Tielin, Deputy Director of the Research Institute of Huafu Securities and Chief Analyst of the Pharmaceutical Industry, analyzed that innovative drugs approved after 2015 have accounted for 10% of the overall drug market share in 2024, and the commercial value of innovative drugs in the Chinese market is gradually being realized. From the perspective of industry trends, domestic innovative drugs are rapidly moving towards internationalization, with the future potential of Chinese innovative drugs for overseas transactions still promising. From the perspective of drug development cycles, the process of 10-50-100 in the future will be the true validation and realization period for the rise of Chinese innovative drugs. China is currently leading the global pipeline in areas such as ADC, bispecific antibodies, and cell therapy, with ADC and bispecific antibodies still being key directions for overseas expansion. In terms of allocation, Chen Tielin suggests that the pharmaceutical sector can be overweighted, but in a structural manner.