In the 2025 Government Work Report, it is proposed for the first time to "formulate a catalogue of innovative drugs to support the development of innovative drugs". Among the A-share listed companies, a total of 28 listed companies are mainly engaged in the R&D, production and sales of innovative drugs.

The Government Work Report mentions the formulation of the "Innovative Drug Catalog" for the first time

On March 5, 2025, the Third Session of the 14th National People's Congress released the 2025 Government Work Report.

The "Government Work Report" is divided into three parts, and the third part of the "2025 Government Work Tasks" includes ten contents. Among them, item (10) is "to increase the protection and improvement of people's livelihood, enhance the efficiency of social governance", in terms of "strengthening basic medical and health services", the report pointed out: improve the drug price formation mechanism, formulate a list of innovative drugs, and support the development of innovative drugs.

This is the first time that the government work report mentions the requirement of formulating an innovative drug catalog, which may mean that innovative drugs and non-innovative drugs are fundamentally distinguished, so as to realize the whole chain of support for innovative drugs.

In the field of chemical drugs, 20 listed innovative pharmaceutical companies are involved

Enterprises in the pharmaceutical industry are usually divided into three categories: chemical pharmaceuticals, biopharmaceuticals and traditional Chinese medicines. According to our incomplete statistics, according to the information provided by Choice Financial Terminal on the secondary classification of Shenwan industry (2021 edition), there are 20 listed pharmaceutical companies in the field of chemical pharmaceuticals whose main business involves innovative chemical drugs.

The 20 companies include: BeiGene (688235. SH), Hengrui Pharmaceutical (600276. SH), Huahai Pharmaceutical (600521. SH), Allist (688578. SH), Jibel (688566. SH) and so on.

Among them, according to the R&D expenses disclosed in the third quarter report of 2024 from high to low, the top three are BeiGene, Hengrui Pharmaceutical and Huahai Pharmaceutical.

BeiGene is focused on discovering and developing innovative therapies to treat cancer. As of August 7, 2024, the company has commercialized 17 products. Among them, Baiyueze, Baizean and Baihuize are all anti-tumor drugs independently developed by the company.

According to BeiGene's 2024 third quarter report, the company's R&D expenses for the current period were 10.166 billion yuan, revenue was 19.136 billion yuan, and the R&D expense ratio was 53.13%.

According to BeiGene's 2024 annual performance report, the company's revenue for the current period was 27.214 billion yuan, up 56.2% year-on-year.

Hengrui Pharmaceutical is a leading pharmaceutical enterprise engaged in drug research and development, production and sales. The company has 14 self-developed innovative drugs approved for marketing in China.

According to Hengrui Pharmaceutical's third quarter report in 2024, the company's R&D expenses in the current period were 4.549 billion yuan, revenue was 20.189 billion yuan, and the R&D expense ratio was 22.53%.

Huahai Pharmaceutical Co., Ltd. is mainly engaged in the research and development, production and sales of multi-dosage forms of generic drugs, biological drugs, innovative drugs and specialty APIs. As of August 31, 2024, the company has more than 20 innovative drug projects under development, of which 12 projects have entered the clinical research stage.

Huahai Pharmaceutical's third quarter report for 2024 shows that the company's R&D expenses in the current period are 687 million yuan, revenue is 7.248 billion yuan, and the R&D expense ratio is 9.48%.

On January 21, 2025, Huahai Pharmaceutical issued an announcement on the expected increase in 2024 annual results, and the company is expected to achieve attributable net profit of 1.14 billion yuan to 1.24 billion yuan, an increase of 37.3% to 49.3% year-on-year.

There are 7 biopharmaceutical innovative listed pharmaceutical companies

In the field of biopharmaceuticals, a total of 7 listed companies are involved in the research and development, production and sales of innovative drugs.

The seven companies are Junshi Biosciences (688180.HK). SH), Bio-Thera (688177. SH), CanSino (688185. SH), Kain Technology (Rights Protection) (688687. SH), Tebao Biotech (688278. SH), Sinovac Pharmaceutical (688136. SH) and Kangchen Pharmaceuticals (603590.SH).

Junshi Biosciences has complete capabilities in the whole industry chain from innovative drug discovery and development, global clinical research, large-scale production to commercialization. As of August 31, 2024, the company's product pipeline covers five therapeutic areas: malignant tumors, autoimmune diseases, chronic metabolic diseases, neurological diseases and infectious diseases. The drugs that have been commercialized include Tuoyi, Junmaikang and Mindwei.

According to Junshi Biosciences' third quarter report in 2024, the company's R&D expenses in the current period were 874 million yuan, ranking first among the seven biopharmaceutical companies, with revenue of 1.271 billion yuan and a R&D expense ratio of 68.76%.

On February 28, 2025, Junshi Biosciences disclosed its 2024 annual performance report, and the company's revenue for the current period was 1.948 billion yuan, an increase of 29.67% year-on-year.

Bio-Thera is an innovative biopharmaceutical company with innovative drugs and biosimilar research and development as its core. As of August 23, 2024, the company's main products in the clinical trial stage of the company's R&D pipeline cover three major fields: autoimmunity, oncology and ophthalmology. The main marketed products independently developed by the company include two varieties of Gloli and Betanin.

According to Bio-Thera's 2024 third quarter report, the company's R&D expenses in the current period were 599 million yuan, ranking second, with revenue of 581 million yuan and a R&D expense rate of 103.10%.

Bio-Thera 2024 annual performance report shows that the company's revenue in the current period was 743 million yuan, up 5.44% year-on-year.

CanSino is committed to developing, manufacturing and commercializing innovative vaccines. As of August 30, 2024, the company's marketed and pipeline of products under development covers the prevention of meningitis, pneumonia, diphtheria, Ebola virus disease, polio, herpes zoster, tuberculosis and other fields. Among them, the listed varieties include Manhaixin, Menaxi, Kwesha and so on.

According to CanSino's third quarter report in 2024, the company's R&D expenses in the current period were 272 million yuan, ranking third, with revenue of 567 million yuan and a R&D expense ratio of 47.97%.

On February 28, 2025, CanSino released its 2024 annual performance report, with a revenue of 846 million yuan, a year-on-year increase of 137.01%!

Traditional Chinese medicine innovative pharmaceutical company: Yiling Pharmaceutical (rights protection).

In the field of traditional Chinese medicine pharmaceutical, Yiling Pharmaceutical (002603. SZ) is an innovative pharmaceutical company.

Yiling Pharmaceutical's main business is the research and development, production and sales of patented innovative Chinese medicines. As of August 24, 2024, the company's patented innovative TCM products cover medical fields such as cardiovascular and cerebrovascular diseases, cold and respiratory diseases, diabetes, nervous system, tumors, anti-aging and urinary system. The main products include Tongxinluo Capsule, Lianhua Qingwen Capsule, Jinlida Granules, Kidney Nourishing Heart Tranquility Tablets, Yangzheng Xiaoji Capsule, etc.

According to Yiling Pharmaceutical's third quarter report in 2024, the company's R&D expenses in the current period were 572 million yuan, revenue was 6.365 billion yuan, and the R&D expense ratio was 8.99%.