Topsperity Securities: The 15th Five-Year Plan for the pharmaceutical industry released, with key support for innovative drugs and medical devices and the industrial chain.

Topsperity Securities released a research report stating that on September 18, the Ministry of Industry and Information Technology, the National Development and Reform Commission, and eight other departments issued the 15th Five-Year Plan for the pharmaceutical industry. The top-level 15th Five-Year Plan is of landmark significance, representing national support for frontier innovation and advanced technologies; it is recommended to focus on: 1) innovative drug companies with FIC/BIC drug R&D capabilities and global competitiveness, and innovative medical device companies with R&D capabilities; 2) upstream scientific research companies benefiting from the development of AI drug discovery technology and increased R&D spending; 3) CXO companies and upstream scientific research companies with internationalization capabilities that benefit from the continued increase in new drug R&D and import substitution. The main views of Topsperity Securities are as follows: Clear plans are proposed for the innovative drug industry chain and innovative medical devices, with the innovative drug industry expected to achieve a CAGR of 20%+ by 2030 The Plan proposes that by 2030, the operating revenue of pharmaceutical industrial enterprises above designated size should reach more than 3.5 trillion yuan, and the scale of the innovative drug industry should grow at an average annual rate of more than 20%; the number of products with annual global sales exceeding US$1 billion should reach more than 5; the average R&D investment intensity of listed pharmaceutical companies should reach more than 10%, the proportion of FIC in global innovative drugs should reach more than 25%, no fewer than 200 Innovative Medical Management devices should be approved cumulatively, and there should be 50 pharmaceutical industrial enterprises with annual revenue exceeding 10 billion yuan. There should be 20 hundred-billion-level industrial parks. The policy focus has shifted from scale expansion to innovation quality, industrial efficiency, and enhancement of global competitiveness, and the biomedical industry is accelerating its transformation into a national emerging pillar industry. Key Task 1: Focus on encouraging frontier innovative drugs and innovative medical devices The Plan emphasizes innovation and encourages FIC and BIC drugs and Innovative Medical Management equipment. It focuses on supporting small nucleic acid drugs such as siRNA/ASO and innovative delivery systems, next-generation conjugate drugs (bispecific/multispecific ADCs, RDCs, AOCs, etc.), cell and gene therapy drugs, novel vaccines, and Innovative Medical Management equipment. Key Task 2: Encourage the implementation of AI in basic scientific research and new drug R&D Encourage AI4S, support the R&D and translation of frontier technologies such as quantum generative AI drug molecule design, RNA scope prediction and analysis technology, and encourage the cultivation and implementation of AI in high-value application scenarios such as target screening, drug discovery, and intelligent pharmaceutical manufacturing. Key Task 3: Accelerate the international docking of the ShenZhen New Industries Biomedical Engineering chain Accelerate the construction of advantages in fields such as chemical APIs, high-end formulations, vaccines, antibody drugs, traditional Chinese medicine, and medical devices; enhance full-chain pharmaceutical R&D and production services (CRO/CDMO) professional capabilities oriented toward international markets. Support domestic enterprises in actively participating in the global pharmaceutical innovation division of labor and cooperation through joint R&D, joint commercialization, and other methods, strengthen the protection and application of intellectual property rights, and help innovative drugs and devices enter the international market. Risk warnings: Risks such as new drug R&D falling short of expectations and intensifying competition.