Follow clinical progress, product pipelines, commercialization and industry performance.
Pharmaron’s new orders rose more than 30% year on year in the third quarter, with small-molecule CDMO driving a recovery in demand. HSBC Qianhai lowered its 2026 earnings forecast and its target prices for the A and H shares, while raising its earnings forecasts for 2027–2028.
Huachuang Securities is optimistic about the commercial potential of Zhongsheng Pharmaceutical’s weight-loss drug RAY1225 and MASH drug ZSP1601. The two pipeline assets have a combined risk-adjusted net present value attributable to the parent of 26.53 billion yuan; meanwhile, the brokerage expects the company’s net profit attributable to the parent to decline 19.7% year on year in 2026.
Bernstein believes the key change at ESMO 2026 was that several drugs developed in China produced efficacy data in global studies. Kelun-Biotech achieved a positive global phase III result, while Hansoh’s early data sustained the efficacy seen in China; Innovent’s IBI363 faces tests of efficacy durability and safety.
Mindray’s revenue rose 2.9% year on year in the third quarter of 2026, while net profit fell 4.6%. Citi expects domestic in vitro diagnostics and overseas operations to drive growth in 2027, but higher electronic component prices and domestic pricing pressure will continue to affect margins.
Third-quarter 2026 results compiled by Nomura show that pharmaceutical companies including Lilly and Novartis recorded rapid sales growth in China, while some medical device companies also returned to growth. However, currency movements, a low base and centralized procurement have made the extent of the recovery uneven.
Growth across multiple drug discovery service lines and an improved revenue mix drove higher third-quarter revenue and margins at HitGen. Citi raised its earnings forecasts for the next three years, but continued R&D investment, the financing environment for clients and the pace of commercialization of new platforms will still affect the realization of profits.
Citi believes AI could lower molecular design costs and expand the pool of R&D projects while making experimental validation a bottleneck. WuXi Biologics and Insilico Medicine stand to benefit from laboratory and manufacturing services, and platform and drug asset licensing, respectively.
Third-quarter revenue and earnings per share exceeded market consensus by 6% and 15%, respectively. The company raised its full-year sales guidance and expects a Biktarvy price reduction to lower 2028 revenue by approximately 1.5 billion dollars; growth from new medicines and pipeline diversification are key to offsetting the pressure.
Third-quarter revenue exceeded market consensus by about 1.9 billion dollars, with a beat of about 1 billion dollars even after excluding favorable items. Bernstein raised its full-year revenue forecast while monitoring one-time revenue, channel pricing and the pace of the Foundayo rollout.
BofA believes drug wholesalers’ financial strength and cash flow better match the market’s preference for resilient assets. Generics makers have a potential catalyst in new products due in December, but face leverage and operational execution pressures.
The US HIV pre-exposure prophylaxis market grew 14% year over year in the third quarter, with Yeztugo and Descovy sales exceeding expectations. Morgan Stanley raised its long-term growth assumptions and price target while monitoring inventory timing and the impact of future Biktarvy price cuts.
Combined third-quarter sales of Mounjaro and Zepbound reached $16.1 billion, prompting Lilly to raise its 2026 revenue and margin guidance again. But sales of oral drug Foundayo missed expectations, and Morgan Stanley cut its sales forecasts for the next two years.
Third-quarter core operating profit exceeded market consensus by 9%, but Morgan Stanley believes the underlying beat was more modest after excluding deferred expenses and one-off gains. The company reiterated its full-year guidance, while growth in 2027 will depend on whether new products can offset pressure on older medicines.
The company signed 8.5 billion yuan in new contracts in the first three quarters, but execution of old contracts, overseas labor costs and pricing pressure on laboratory services continued to weigh on gross margin. Management expects the average price of orders in execution to recover more noticeably in the first half of 2027.
Morgan Stanley believes early efficacy from the first-in-human trial of JMT108 was slightly better than expected and IL-15-related adverse reactions were generally manageable. In the breast cancer pipeline, B7H3 ADC data met expectations, while cross-trial comparisons of the HER2 bispecific antibody combination are limited.
Management expects China business growth to accelerate in 2027, with IVD revenue rising 10%; overseas growth will remain faster, but higher raw material costs and reagent price cuts pose pressures.
JPMorgan believes expanded indications and dosing regimens will support continued growth for Eylea HD, although declines in the original Eylea will offset some of that growth. Whether competition from new drugs can change the landscape also depends on payer restrictions and clinical advantages.
Third-quarter revenue rose 2.9% year over year and net profit fell 4.6%, both in line with Morgan Stanley’s expectations. Overseas operations and new businesses continued to grow, but domestic equipment weakness and declines in the two major equipment businesses remained constraints on growth.
An oncology expert interviewed by Bernstein believes that a personalized mRNA vaccine combined with pembrolizumab showed clinically meaningful benefit in a phase III melanoma study. However, disease stage, immunotherapy risks and the personalized manufacturing process will affect its use in practice.
Third-quarter revenue rose 7.1% year on year, slightly above Bloomberg consensus; net profit attributable to shareholders fell 11.6%, missing expectations. Nomura maintained its buy rating and price target of 13.13 yuan.
