Bohai Securities: Outlook on the February Investment Strategy for the Pharmaceutical and Biotechnology Industry — Focus on Annual Report Performance Catalysts and the Innovative Drug and Device Industry Chain

In January, the "Regulations for the Implementation of the Drug Administration Law of the People's Republic of China" was released. The Ministry of Commerce and nine other departments issued opinions on promoting the high-quality development of the pharmaceutical retail industry. The 2026 National Drug Supervision and Administration Conference was held in Beijing. Additionally, the sixth batch of high-value medical consumables procurement organized by the state was opened for bidding.

In December, the healthcare CPI was 101.8, increasing by 1.8% year-on-year and 0.1% month-on-month. The pharmaceutical manufacturing PPI in December was 96.1, decreasing by 3.9% year-on-year and 0.2% month-on-month, still under pressure. From January to December, the cumulative operating income of the pharmaceutical manufacturing industry was 24,870.0 billion yuan, a year-on-year decrease of 1.2%; the cumulative total profit of the pharmaceutical manufacturing industry was 3,490.0 billion yuan, increasing by 2.7% year-on-year. From January to December, the cumulative balance of the basic medical insurance (including maternity insurance) fund was 5,312.82 billion yuan, with a fund balance rate of 17.98%.