Citi Names Hansoh Pharmaceutical (03692.HK) Top Pick Amid China's New Policy Boost for Innovative Drugs

According to the Zhisheng Finance APP, Citibank issued a research report stating that the National Healthcare Security Administration (NHSA) and the National Health Commission (NHC) jointly released the "Several Measures to Support the High-Quality Development of Innovative Drugs" on July 1st. This is the first time that the two government departments have jointly introduced policies to support differentiated innovation in drugs. The policy aims to support the entire value chain of innovative drugs, including the R&D of innovative drugs, hospital access, and diversified payment methods.

This is also the first time that the National Healthcare Security Administration has proposed sharing medical insurance data with pharmaceutical companies to support research and development. Citi continues to see the Chinese government's commitment to the development of innovative drugs. Citi expects that the innovative drug and biotechnology sectors will welcome multiple catalysts in the second half of 2025, including commercial collaborations, accelerated regulatory approvals, and a favorable pricing environment. Additionally, incremental payments from commercial insurance to the healthcare system will also drive industry growth.

Citi stated that Hansoh Pharma (03692) is the top choice in the pharmaceuticals industry; Ascletis Pharma-B (01672), 3SBio (01530), Innovent Biologics (01801), and Akeso Biopharma (09926) are recommended companies in the biotechnology sector. Citi also favors Abbisko Therapeutics-B (02256), Henlius Biotech (02696), Junshi Biosciences (01877, 688180.SH), and Luye Pharma (02186).