Breakthrough Progress in Small Nucleic Acid Drugs and Solid Tumor CAR-T Therapies: China Galaxy Securities Highlights Key Innovations and Pipeline Updates

Zhitong Finance APP learns that China Galaxy Securities released a research report stating that after a significant correction in the pharmaceutical industry during the first half of the year, valuations for both innovative and non-innovative drugs have fallen to historical lows. In the second half of the year, attention should be paid to variables in medical insurance and the realization of clinical data for innovative drugs. The investment strategy should focus on hard-core technology in the pharmaceutical sector and consider the cash value of enterprises. It is recommended to pay attention to innovative drugs (leaders in BIC and FIC pipelines), the innovative drug industry chain (CXO, upstream life sciences), export of innovative medical devices (imaging, high-value consumables, consumer devices, etc.), and the direction of medical AI. Also, keep an eye on the recovery of medical services and third-party ICLs.

China Galaxy Securities' key views are as follows:

Inclisiran Sees Significant Sales Volume Growth for Its Blockbuster Status in 2026, with Data Readouts from Multiple Small Nucleic Acid Varieties Entering the Realization Phase

From an industry perspective, 2026 has seen frequent catalysts in the small nucleic acid drug sector: a quartet of new drug approvals, capital inflows, technological breakthroughs, and M&A integration have unfolded in succession, propelling small nucleic acid drugs forward with unstoppable momentum. On the demand side of the small nucleic acid track, the market features large capacity, rapid growth in scale, and record-high business development (BD) deal values. On the supply side, the emergence of blockbuster drugs with annual sales reaching the $1 billion level (such as inclisiran), new drug launches, breakthroughs in delivery technologies, and expansion of R&D pipelines are evident. In terms of R&D, GSK announced positive Phase III data for its asset bepirovirsen (GSK836) in late May 2026: 24 weeks of treatment enabled functional cure in nearly one-fifth of patients with chronic hepatitis B, with cure rates reaching 25%–28% among the population with low baseline HBsAg levels.

The commercialization prospects for oligonucleotide therapies in chronic diseases have opened up, with multiple pipelines in hepatitis B, kidney disease, and metabolism advancing to New Drug Application (NDA) or Phase III stages. Further validation of data will significantly expand the market potential of siRNA drugs, positioning them as the next generation of blockbuster innovations following GLP-1 agonists. Chinese oligonucleotide innovative assets have completed a reversal from “in-licensing” to “global out-licensing.” The number of IPOs by oligonucleotide-focused companies has increased, substantially expanding the universe of investable targets. Investors are advised to pay attention to domestic listed oligonucleotide companies such as Ribo Life Science, Jiangsu Hengrui Medicine, Frontier Biotechnologies, and Youcare Pharmaceutical.

CARsgen Therapeutics’ Suracabtagene Autoleucel Hits the Market, Giving China an Early Lead in the Solid Tumor CAR-T Race

Over a dozen CAR-T therapies have been marketed globally, all confined to hematologic malignancies. The solid tumor pipelines of overseas pharmaceutical giants such as Novartis, Gilead, and BMS are all in pre-Phase II stages. Keji Pharmaceutical’s surucabtagene autoleucel has taken the lead in completing Phase III confirmatory clinical trials and obtaining approval, becoming the first globally pioneering and leading blockbuster product in China’s CGT field. In addition to autologous and universal CAR-T, in vivo CAR-T is rapidly transitioning from concept to reality and is gradually becoming one of the mainstream trends in the future development of cell therapies. Multinational corporations (MNCs) are heavily investing in acquisitions related to in vivo CAR-T. The core advantages of in vivo CAR-T are being progressively validated in clinical stages: no need for leukapheresis, ex vivo culture, lymphodepletion, or weeks of waiting; lower costs; and efficacy and safety profiles comparable to ex vivo approaches.

Against the backdrop of continuously expanding indications for CAR-T therapy, the in vivo CAR-T market holds significant growth potential. Globally, the cell and gene therapy (CGT) sector is currently in a phase of realizing R&D outcomes. 1) In terms of R&D innovation, attention should be focused on companies with mature pipelines, favorable clinical trial data, and breakthrough progress, such as CARsgen Therapeutics, Legend Biotech, Fosun Pharma, and JW Therapeutics. 2) Given the high outsourcing rate and high market concentration in CGT, contract research, development, and manufacturing organizations (CXOs) are poised to benefit first, including WuXi AppTec, Asymchem, Pharmaron, GenScript Biotech, Porton Pharma, and Obio Technology.

Risk Warning:Risks include insufficient growth in pharmaceutical consumption capacity due to increased macroeconomic pressures, unfavorable policy outcomes regarding national reimbursement for innovative drugs, global order shifts driven by geopolitical tensions, and price reductions from volume-based procurement or fee adjustments exceeding market expectations.