BD transactions experience explosive growth; the innovative drug concept shows partial repeated activity; Peking University Medicine hits two consecutive limit-ups

Question to AI · How does the decline in U.S. Treasury yields affect the flow of funds in the pharmaceutical sector?

On April 2nd, the concept of innovative drugs saw localized repeated activity, with Peking University Medicine (000788.SZ) hitting the limit-up for two consecutive days, Chongqing Pharmaceutical Holdings (000950.SZ) reaching the daily limit, JinYao Pharmaceutical (600488.SH) hitting the limit-up for five consecutive days, and Lianhuan Pharmaceutical (600513.SH), Jincheng Pharmaceutical (300233.SZ), and Guangsheng Tang (300436.SZ) following the upward trend.

On the news front, Eli Lilly announced on Wednesday local time that the U.S. Food and Drug Administration (FDA) has approved its oral GLP-1 medication for market launch. Additionally, the 37th International Alzheimer’s Disease Conference will be held in Lyon, France, from April 14-16, 2026.

Data released by the National Medical Products Administration shows that in the first three months of this year, China’s innovative drug licensing (BD) transaction volume exceeded $60 billion, nearly half of the total for 2025 ($135.7 billion). As of March 27, China has approved 10 innovative drugs for 2026, including 2 imports and 8 domestically developed, marking a historic breakthrough for China’s innovative drugs and maintaining a strong development momentum and potential.

According to Southwest Securities, by 2025, the number of external licensing/permission/cooperation BD projects for Chinese pharmaceutical companies will reach 165, an increase of 53 compared to last year, with upfront payments exceeding $7.03 billion, a year-on-year increase of over 226.8%.

BOC Securities analysts believe that the innovative drug sector currently has dual support from macro capital conditions and industry fundamentals. The downward turning point in U.S. Treasury yields may attract global allocation funds to emerging markets’ core assets, with pharmaceuticals being a key focus.

Zhongtai Securities pointed out that the pharmaceutical sector, especially innovative drugs, has undergone sufficient adjustment previously, with market expectations and holdings returning to low levels. Meanwhile, innovative drugs are steadily improving in both BD promotion and commercialization performance. Coupled with corrections in other industries, funds are flowing back into the pharmaceutical sector.